China International Capital Co maintains its annual outlook for H2:
international order reconfiguration and China’s industrial-innovation trend
remain the primary drivers of this cycle’s upside and China-asset repricing, and
those conditions are intact. The A-share market is therefore better positioned
for a long, steady advance than a rapid rally. With investor risk appetite and
bullish expectations elevated, CICC flags H2 focus on external conditions and
global cyclical sectors—especially AI—and on liquidity/flow dynamics. Overall
valuations are reasonable but there are pockets of overvaluation; guard against
sectoral fragility and volatility risk.
