BOCIC(SH:601696) Bank of China Securities·2025-07-18 10:56Core Insights - The report highlights the current industry allocation positions of the Bank of China multi-strategy system, with the highest allocations in Computer (9.7%), Power Equipment and New Energy (8.0%), and Non-ferrous Metals (7.9) [1] - The average weekly return for the CITIC primary industries is 0.8%, with the best-performing sectors being Communication (7.1%), Pharmaceuticals (4.3%), and Computers (4.0%) [3][11] - The report indicates that the composite strategy has achieved a cumulative return of 12.6% year-to-date, outperforming the CITIC primary industry equal-weight benchmark by 1.9% [3] Industry Performance Review - The best-performing sectors this week are Communication (7.1%), Pharmaceuticals (4.3%), and Computers (4.0%), while the worst-performing sectors are Banks (-2.8%), Real Estate (-2.3%), and Coal (-2.2%) [3][11] - The average monthly return over the past month for the CITIC primary industries is 7.0% [3][11] Valuation Risk Warning - The report employs a valuation warning system based on the PB ratio over the past six years, identifying sectors with high valuation risks. Currently, the sectors of Retail, Automotive, and Media are flagged for high valuation warnings as their PB ratios exceed the 95th percentile [13][14] Single Strategy Performance - The top three industries based on the high prosperity industry rotation strategy (S1) are Computer, Non-ferrous Metals, and Power Equipment and New Energy [16][17] - The implied sentiment momentum tracking strategy (S2) ranks the top three industries as Computer, Communication, and Machinery [20][22] - The macro style rotation strategy (S3) identifies the top six industries as Comprehensive Finance, Computer, Media, National Defense Industry, Electronics, and Comprehensive [24][25] Strategy Adjustments - The report notes that only two weekly strategies made adjustments this week, with an overall slight change in positions. The composite strategy increased exposure to midstream non-cyclical sectors while reducing exposure to financial sectors [3]