CITIC Securities: It is expected that the market driven by price increase will continue in March.

CITIC Securities research report indicated that narrative promotion and price increase catalysis are still the main ways to drive the market. CITIC Securities has constructed quantitative indicators to analyze whether the recent market trends in different industries are driven by emotions or fundamental expectations. Some typical industries with high growth rates are classified as emotion-driven, such as precious metals, battery and power equipment, bulk chemicals, etc.; some industries with not very high growth rates are also classified as emotion-driven, such as smart driving, media and gaming, humanoid robots, liquor, etc.; some industries with very high growth rates are classified as fundamentally driven, such as rare earths and minor metals, wind power, chip design, etc; and there are also some industries with moderate growth rates but high discussion heat that are classified as fundamentally driven, such as North American AI computing power, cement and building materials. From the perspective of market trends, both event catalysis and signals from the quantity-price level indicate that the narrative driving forces of price increase and AI are still in a safe zone. The eruption of Iran's geopolitical risks and the increasing expectation of policies related to "anti-inversion" before and after the two sessions may continue to strengthen the clues of price increase. From the perspective of allocation, AI exposure + supply constraints = expectations of price increase, and it is expected that the market driven by price increase will continue in March.