Citic Securities says two recent narrative shifts could catalyze a recovery in some non‑AI sectors with earnings support. First, markets are re‑examining Fed policy assumptions and are no longer uniformly pricing a pre‑set hawkish tightening path; a reversal of the tightening/strong‑dollar narrative has eased negative sentiment in non‑AI names. Second, controversy around Meta underscores low market tolerance for negative AI news and suggests downstream players need richer monetization models to

Citic Securities says two recent narrative shifts could catalyze a recovery in some non‑AI sectors with earnings support. First, markets are re‑examining Fed policy assumptions and are no longer uniformly pricing a pre‑set hawkish tightening path; a reversal of the tightening/strong‑dollar narrative has eased negative sentiment in non‑AI names. Second, controversy around Meta underscores low market tolerance for negative AI news and suggests downstream players need richer monetization models to justify aggressive upstream investment. Citic also expects outflows from broad A‑share ETFs to ease materially — a key liquidity margin change. The combination of a softer rate‑hike narrative and improved liquidity could spur selective recovery in fundamentally supported non‑AI sectors.