At a 2026 mid‑year institutional equities meeting, J.P. Morgan Asset Management
(China) deputy GM and CIO Du Meng said PPI has turned positive ahead of CPI, CPI
is gradually rising, and listed-company profits are beginning to recover.
A‑share profit growth could reach double digits this year, enhancing Chinese
equities’ appeal to global investors and leaving room for cross‑sector valuation
re‑rating. Sector calls: AI remains a sustainable, high‑conviction growth area;
compute hardware’s cyclical strength and earnings growth could outpace the
market, with focus on optical modules, PCBs, liquid cooling and compute leasing.
The lithium‑centred new‑energy complex is at a pivotal inflection—excess
capacity from recent years has largely been cleared—and the strategic importance
of solar, wind and electric vehicles has risen materially.
