PANews reported on May 24th that, according to Jinshi, CITIC Securities believes that the US and Iran are getting closer to reaching an agreement, and the market has basically priced this in as the baseline scenario. The biggest change after the agreement is that supply and demand will simultaneously recover and economic activity will quickly recover. Currently, some economic indicators are clearly weak, reflecting the delayed demand ahead of the US-Iran agreement and the reopening of the Strait of Hormuz. Micro-entities are waiting rather than rushing to replenish inventory and start construction, which is an abnormal disturbance. As the agreement is reached and the Strait of Hormuz reopens, supply and demand will return to normal. Economic activity will improve significantly after June, and changes in macroeconomic variables will also change the environmental assumptions of market strategies, leading to a gradual shift towards a more balanced market style.

Large-scale selling by institutional investors is nearing its end, and as the macroeconomy stabilizes, allocation-oriented funds will gradually return, driving a recovery in some undervalued sectors. In terms of allocation, we continue to proactively reduce volatility and restructure the AI ​​+ energy sector portfolio.