CITIC Securities says that looking to H2 2026, domestic and international AI
compute and embodied intelligence sectors should see material industrial
progress, driving strong demand for upstream AI hardware, midstream supporting
equipment and downstream application manufacturing. Early signs of a general
manufacturing recovery are emerging, led by structural strength in specialized
equipment, and China’s export-competitive production capacity abroad is expected
to remain a tailwind. The firm recommends monitoring marginal changes in
companies’ AI exposure and overseas capacity/exposure and tracking the general
manufacturing rebound.
