CITIC Securities: Asian stock markets need to focus more on the structural allocation opportunities brought about by changes in fundamental clues.

The research report from Citic Securities states that under the three factors of liquidity improvement, geopolitical disturbances, and AI bubble being short of imminent threat, Asian stock markets need to focus more on structural allocation opportunities brought about by changes in fundamental clues. The reversal of the Fed's interest rate cut expectation in December has eased macro pressure in Asian markets, while the standoff between China and Japan, conflicts between Russia and Ukraine, etc. under the high running of the global GPR index have constituted phase disturbances. In the AI field, cash flow support and supply chain bottlenecks make it difficult for extreme bubbles to appear. Specific market core viewpoints are as follows: 1) A shares: Need to break through expectations on fundamentals, recommend focusing on the pricing power estimation of resources/traditional manufacturing industry and the main line of enterprises going global, pay attention to low crowded varieties and dividend targets. 2) Hong Kong stocks: Expected to achieve a double-click of Davie's from internal and external catalysts, suggest focusing on technology, medical care, resources and other five major directions. 3) Korean stock market: Relying on fundamentals, policies and liquidity to promote revaluation, recommend focusing on the semiconductor/AI and other industries. 4) Indian stock market: Has the potential for catching up, under the backdrop of loose monetary policy, it is recommended to prioritize the allocation of interest rate-sensitive enterprises and consumer sectors, and to be bullish on IT services in reverse. 5) Japanese stock market: Benefiting from governance dividends and increased allocation from foreign funds, focus on four major directions such as industry consolidation and asset revaluation. 6) Southeast Asian stock markets: Showing a recovery trend, Malaysia is recommended to focus on the AI and data center industry chain; Indonesia is recommended to focus on consumption and new energy vehicles; Thailand is recommended to prefer consumption and tourism sectors, overall needing to closely monitor macro variables and policy trends.