CITIC Securities research chief strategist Bao Chengchao says China large-cap blue-chip valuations are low on a global basis. As of Oct 22, 2026, the A-share AI/non-AI PE ratio is 4.4x, at the 82nd percentile since 2016; the US, Japan and Korea ratios sit at the 1st, 17th and 24th percentiles respectively. Overseas AI premiums have largely been absorbed by rising non-AI valuations: US and Japan non‑AI, non‑financial leader PEs are 33.5x and 23.0x, at the 98th and 95th percentiles. By contrast, C

CITIC Securities research chief strategist Bao Chengchao says China large-cap blue-chip valuations are low on a global basis. As of Oct 22, 2026, the A-share AI/non-AI PE ratio is 4.4x, at the 82nd percentile since 2016; the US, Japan and Korea ratios sit at the 1st, 17th and 24th percentiles respectively. Overseas AI premiums have largely been absorbed by rising non-AI valuations: US and Japan non‑AI, non‑financial leader PEs are 33.5x and 23.0x, at the 98th and 95th percentiles. By contrast, China domestic‑demand and manufacturing-related non‑AI blue chips trade on a 15.6x PE, at the 21st percentile. The divergence implies the largest scope for valuation rerating is within A-share large caps tied to domestic demand and manufacturing.