BOCIC(SH:601696) Bank of China Securities·2025-09-15 02:56Core Insights - The report highlights the current industry allocation of the Bank of China’s multi-strategy system, with significant positions in non-ferrous metals (15.5%), non-bank financials (12.9%), and comprehensive sectors (7.4%) [1] - The average weekly return for the CITIC primary industries is reported at 4.1%, with the best-performing sectors being communication (10.9%), electronics (9.6%), and media (7.3%) [3][10] - The report indicates that the composite strategy has achieved a cumulative return of 25.8% year-to-date, outperforming the CITIC primary industry equal-weight benchmark by 3.0% [3] Industry Performance Review - The best-performing sectors for the week include communication (10.9%), electronics (9.6%), and media (7.3%), while the worst performers are banking (-0.1%), oil and petrochemicals (0.9%), and coal (1.1%) [3][10] - The report provides a detailed breakdown of weekly and monthly performance across various sectors, indicating a strong performance in communication and electronics [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 retail, media, and computer sectors are flagged for high valuations, exceeding the 95% percentile [12][13] Single Strategy Rankings and Recent Performance - The top three industries based on the high prosperity industry rotation strategy (S1) are non-bank financials, non-ferrous metals, and agriculture [15][16] - The report outlines the performance of various strategies, with S1 showing a significant excess return of 6.2% compared to the benchmark [3] Macro Style Rotation Strategy - The macro style rotation strategy identifies six industries with favorable macro indicators: comprehensive finance, computer, communication, national defense industry, electronics, and media [25][26] - The report emphasizes the importance of macroeconomic indicators in predicting industry performance, utilizing a multi-factor approach to assess exposure to different styles [23][24]