CITIC Securities: Investor positioning style may further balance and drift towards value, price appreciation, and cycle growth.

CICC's strategy research pointed out that geopolitical conflicts have shifted the core contradiction of the market towards supply security and strategic resources, driving the logic from risk aversion to renewed concerns about inflation. The rise in oil prices has strengthened inflation expectations, suppressed the prospect of interest rate cuts, and impacted most assets. The short-term continued increase in oil prices leading to renewed inflation trading and delayed expectations of a Fed rate cut will have a certain impact on market risk preferences, causing A-shares to continue to fluctuate primarily, with a clear differentiation in market structure and relative benefits for the resources sector. Meanwhile, under the expectation of a rebound and turning positive in the Producer Price Index (PPI), investors' holding styles may further balance towards value-oriented and pro-cyclical rising prices.