CICC strategy: policies continue to focus on the effectiveness of fundamental repair

CICC strategy reiterates that the market has some characteristics of the bottom in terms of policy, valuation and capital sentiment, and the market has a midline value; There are still some challenges in the market environment, and more positive fundamental catalysts are needed for further growth. In particular, the month on month improvement of earnings expectations may be more important. Under the background of the overweight of domestic "steady growth" and the decline of overseas growth, we will focus on the post epidemic repair of domestic fundamentals in the future, focusing on real estate, consumer demand, etc. At present, we are concerned about three directions: 1) the stable growth sector with relatively low valuation may still have relative benefits in the current macro environment, such as traditional infrastructure, stable demand for real estate and related industrial chains (building materials, construction, household appliances, home furnishings, etc.); 2) For the consumption in the middle and lower reaches with many early adjustments, low valuation and clear medium and long-term prospects, choose stocks from bottom to top, including household appliances, light industry and household appliances, automobiles and parts, agriculture, forestry, animal husbandry and fishery, medicine, etc; 3) The manufacturing growth sector, including new energy vehicles, new energy and technology hardware semiconductors, has released some risks. The turnaround lies in the marginal improvement of "stagflation" risk, global liquidity and market sentiment factors.