news flash·2025-07-20 06:23Core Viewpoint - The report from CITIC Securities indicates that the A-share market is gradually transitioning into an incremental market, similar to the Hong Kong stock market, with a focus on identifying sectors with expected discrepancies that can form consensus among investors [1] Group 1: Market Trends - The upcoming earnings season may present opportunities for companies expanding overseas, which has shown to be a strong indicator of performance exceeding expectations [1] - Historical data suggests that overseas expansion significantly enhances companies' Return on Equity (ROE) and profit margins, serving as a proactive measure against domestic competition and improving profitability [1] - The logic of global revenue exposure is expected to provide stability in stock allocation and valuation premiums, marking a necessary transition for emerging markets into mature markets [1] Group 2: Current Market Conditions - Despite being a key performance indicator this year, overseas expansion has faced volatility due to trade wars, resulting in a fragmented bottom-up driving state [1] - As expectations regarding trade wars stabilize post-August and the earnings season concludes, there is potential for overseas expansion to generate a sector-wide market trend [1] Group 3: Investment Recommendations - The report suggests maintaining a focus on sectors such as aerospace, non-ferrous metals, telecommunications, innovative pharmaceuticals, military industry, and gaming, with a current preference for Hang Seng Technology [1]