CITIC SEC: Market lacks a consistent main theme; focus on profitability and valuation safety margin.

CITIC SEC released a research report stating that in September, global technology remained largely range-bound, with hardware relatively outperforming, while rising interest rates may constrain valuation expansion; energy and resource products failed to sustain August's global resonance; consumption and real estate improved only in some markets or sub-sectors. In terms of style, the low-valuation style rebounded, the high-profitability factor was relatively strong in most markets, and high-growth was overall weak. At the current industry level, there is no consistent main theme, and investors are placing greater emphasis on profitability and valuation safety margin, reflecting a certain defensive character. Global market industry comparison: In September, technology overall showed range-bound performance, with tech equipment relatively outperforming in more markets, but software and IT services were overall weak; resource products shifted from cross-market consistent strength in August to divergence across markets; consumption and real estate showed only localized improvement. Overall, global industries continued to be dominated by structural rotation, without forming a consistent main theme. Technology remained largely range-bound, with hardware relatively outperforming, and rising interest rates may constrain valuation expansion. Tech equipment achieved industry factor returns of 6.59%, 4.42%, 4.18%, and 1.96% in the United States, ASEAN, South Korea, and Japan, respectively, while Greater China was -0.57%; software and IT services achieved slight positive returns only in the United States and South Korea, while the other three markets remained negative. Currently, long-end interest rates are rising, for example, the yield on the 10-year U.S. Treasury benchmark rose from 4.75% at the end of August to 5.28% at the end of September, while expectations remain for further rate hikes during the year, which may limit valuation expansion in the technology sector. Energy and resource products failed to sustain August's global resonance, with obvious divergence across markets. Fossil energy achieved positive industry factor returns only in South Korea and ASEAN, at 12.56% and 2.38%, respectively; mineral resources achieved a positive return of 1.00% only in ASEAN, while the United States, Japan, and South Korea were -8.02%, -6.81%, and -6.18%, respectively. ASEAN renewable energy achieved an industry factor return of 18.25%, but the United States and South Korea remained negative. Energy and resource products shifted from cross-market consistent strength in August to divergence across markets. Consumption and real estate showed localized repair, but industry performance still lacked cross-market consistency. Retailers achieved positive industry factor returns of 1.97% and 1.64% only in ASEAN and Greater China, while cyclical consumer services were negative in all five markets; real estate achieved a positive industry factor return of 4.87% only in Greater China, while the other four markets remained negative. This month's improvement in consumption and real estate appeared only in some markets and sub-sectors. Global style factor performance in September: low valuation and high profitability were relatively superior, while high growth was relatively weak, reflecting a certain defensive character. The low-valuation factor achieved returns of about 3.8%, 2.9%, and 2.4% in Japan, South Korea, and Greater China, respectively; the high-profitability factor achieved returns of about 6.8%, 1.0%, 0.9%, and 0.7% in the United States, Greater China, ASEAN, and South Korea, respectively, with the number of markets with positive returns increasing from one in August to four. The high-growth factor was negative in all four Asian markets, while the United States was basically flat. CITIC SEC believes that this month global markets placed relatively greater emphasis on profitability and valuation levels, reflecting a certain defensive character.