Valuation Summary - The overall valuation of A-shares as of March 20, 2026, shows the CSI All Share (excluding ST) PE at 21.7x and PB at 1.8x, positioned at the historical 81st and 43rd percentiles respectively [2] - The Shanghai Stock Exchange 50 PE is at 11.4x and PB at 1.3x, at the historical 57th and 34th percentiles [2] - The CSI 300 PE is at 14.0x and PB at 1.5x, at the historical 62nd and 36th percentiles [2] - The CSI 500 PE is at 35.1x and PB at 2.4x, at the historical 67th and 56th percentiles [2] - The ChiNext Index PE is at 41.2x and PB at 5.6x, at the historical 36th and 64th percentiles [2] Industry Valuation Comparison - Industries with PE valuations above the historical 85th percentile include Real Estate, Automation Equipment, Retail, IT Services, and Communication [2] - Industries with PB valuations above the historical 85th percentile include Electronics (Semiconductors) and Communication [2] - Industries with both PE and PB valuations below the historical 15th percentile include Securities, Food and Beverage, Medical Services, and White Goods [2] Industry Sentiment Tracking New Energy - In the photovoltaic sector, the price of polysilicon futures dropped by 11.8%, and the spot price fell by 3.2%, indicating cautious demand from downstream [2] - Battery material prices, including lithium, have seen significant declines, with lithium carbonate down by 3.9% [2] Technology TMT - The Philadelphia Semiconductor Index rose by 0.3%, while the Taiwan Semiconductor Index fell by 0.4% [2] - The DRAM price index increased by 4.1%, indicating a positive trend in semiconductor pricing [2] Real Estate Chain - The national average price of rebar fell by 0.4%, while cement prices increased by 1.3% as construction activity picks up [3] - Real estate sales area decreased by 13.5% year-on-year in January-February 2026, indicating ongoing challenges in the sector [3] Consumer Sector - The average price of live pigs fell by 1.8%, prompting government intervention to stabilize prices [3] - Retail sales grew by 2.8% year-on-year in January-February 2026, showing signs of recovery in consumer confidence [3] Midstream Manufacturing - Manufacturing investment grew by 3.1% year-on-year in January-February 2026, supported by improved cash flow and external demand [3] - Industrial electricity consumption increased by 6.1%, reflecting a recovery in manufacturing and export activities [3] Cyclical Industries - Concerns over global economic stagnation have led to significant declines in metal prices, with COMEX gold down by 10.6% [3] - Brent crude oil prices rose by 0.5% to $104.41 per barrel, driven by geopolitical tensions affecting supply [3]

Valuation Summary - The overall valuation of A-shares as of March 20, 2026, shows the CSI All Share (excluding ST) PE at 21.7x and PB at 1.8x, positioned at the historical 81st and 43rd percentiles respectively [2] - The Shanghai Stock Exchange 50 PE is at 11.4x and PB at 1.3x, at the historical 57th and 34th percentiles [2] - The CSI 300 PE is at 14.0x and PB at 1.5x, at the historical 62nd and 36th percentiles [2] - The CSI 500 PE is at 35.1x and PB at 2.4x, at the historical 67th and 56th percentiles [2] - The ChiNext Index PE is at 41.2x and PB at 5.6x, at the historical 36th and 64th percentiles [2] Industry Valuation Comparison - Industries with PE valuations above the historical 85th percentile include Real Estate, Automation Equipment, Retail, IT Services, and Communication [2] - Industries with PB valuations above the historical 85th percentile include Electronics (Semiconductors) and Communication [2] - Industries with both PE and PB valuations below the historical 15th percentile include Securities, Food and Beverage, Medical Services, and White Goods [2] Industry Midstream Sentiment Tracking New Energy - In the photovoltaic sector, polysilicon futures prices fell by 11.8%, and spot prices dropped by 3.2%, indicating cautious demand from downstream [3] - Battery material prices, including lithium, have seen significant declines, with lithium carbonate down 3.9% [3] Technology TMT - The Philadelphia Semiconductor Index rose by 0.3%, while the Taiwan Semiconductor Index fell by 0.4% [3] - The DRAM price index increased by 4.1%, indicating a positive trend in semiconductor pricing [3] Real Estate Chain - The national average price of rebar fell by 0.4%, while cement prices increased by 1.3% as construction activity picks up [3] - Real estate sales area decreased by 13.5% year-on-year in January-February 2026, indicating ongoing challenges in the sector [3] Consumer Sector - The average price of live pigs fell by 1.8%, prompting government intervention to stabilize prices [3] - Retail sales grew by 2.8% year-on-year in January-February 2026, showing signs of recovery in consumer confidence [3] Midstream Manufacturing - Manufacturing investment grew by 3.1% year-on-year in January-February 2026, reflecting improved cash flow and external demand [3] - Industrial electricity consumption increased by 6.1% year-on-year, driven by higher manufacturing output [3] Cyclical Industries - Concerns over global economic stagnation have led to significant declines in metal prices, with COMEX gold down 10.6% and copper down 7.1% [3] - Brent crude oil prices rose by 0.5% to $104.41 per barrel, influenced by geopolitical tensions affecting supply [3]

Investment Rating - The report does not explicitly provide an investment rating for the industry analyzed [1]. Core Insights - The report highlights the valuation comparisons across various indices and sectors, indicating that the overall market is at historical high percentiles for certain metrics, suggesting potential overvaluation in some areas [2][5][6]. - The report identifies specific industries with high PE and PB ratios, indicating sectors that may be overvalued, such as real estate and semiconductor industries, while also pointing out sectors like securities and food and beverage that are undervalued [2][7]. Valuation Summary Overall Market Valuation - The CSI All Share Index (excluding ST stocks) has a PE of 22.5x and a PB of 1.9x, positioned at the 82nd and 50th historical percentiles respectively [2]. - The Shanghai Composite Index has a PE of 11.5x and a PB of 1.3x, at the 58th and 37th historical percentiles [2]. - The ChiNext Index has a PE of 40.9x and a PB of 5.6x, at the 35th and 64th historical percentiles [2]. Industry Valuation Comparisons - Industries with PE ratios above the 85th historical percentile include real estate, automation equipment, retail, and IT services [2]. - Industries with PB ratios above the 85th historical percentile include electronics (semiconductors) and telecommunications [2]. - Industries with both PE and PB ratios below the 15th historical percentile include securities, food and beverage, medical services, and white goods [2]. Sector-Specific Insights New Energy - In the photovoltaic sector, polysilicon prices have shown mixed trends, with futures prices increasing by 8.0% while spot prices decreased by 3.1% [2]. - The battery materials market is experiencing price fluctuations, with lithium hexafluorophosphate down by 5.5% and lithium carbonate up by 2.7% [2]. Technology (TMT) - The Philadelphia Semiconductor Index rose by 1.8%, while the Taiwan Semiconductor Index fell by 1.1% [3]. Real Estate Chain - The steel market saw a 1.1% increase in spot prices for rebar, while cement prices decreased by 0.4% [3]. Consumer Sector - The average price of live pigs fell by 2.3%, and the wholesale price of pork dropped by 4.6% [3]. Midstream Manufacturing - Excavator sales decreased by 10.6% year-on-year in February, but exports increased by 38.8% [3]. Cyclical Industries - Brent crude oil prices increased by 11.3%, reaching $103.89 per barrel, marking a significant rise since the beginning of the year [3].

Investment Rating - The report does not explicitly state an investment rating for the industry [1] Core Insights - The report highlights the valuation comparisons of various indices and sectors within the A-share market, indicating that the overall market is at historical high percentiles for PE and PB ratios [2][5][6] - The report tracks the mid-term economic conditions across several industries, including New Energy, Technology, Real Estate, Consumption, and Cyclical sectors, providing insights into price movements and market trends [3][4] Valuation Comparisons - The overall market PE for the CSI All Share (excluding ST) is 22.6 times, with a PB of 1.9 times, positioned at the 83rd and 51st historical percentiles respectively [2] - The Shanghai Composite Index has a PE of 11.6 times and a PB of 1.3 times, at the 59th and 39th historical percentiles [2] - The CSI 300 Index shows a PE of 14.2 times and a PB of 1.5 times, at the 65th and 40th historical percentiles [2] - The report identifies sectors with high PE valuations above the 85th historical percentile, including Real Estate, Automation Equipment, Retail, Electronics, and IT Services [2] - Sectors with low PE and PB valuations below the 15th historical percentile include Securities, Food and Beverage, Medical Services, and White Goods [2] Industry Mid-term Economic Conditions New Energy - In the photovoltaic sector, upstream polysilicon prices have decreased by 11.6% for futures and 7.7% for spot prices, indicating a bearish demand outlook [3] - Battery materials such as cobalt and nickel have seen price declines of 1.4% and 1.8% respectively, with lithium prices dropping significantly [3] Technology TMT - The semiconductor market experienced a 46.1% year-on-year sales growth in January 2026, with China's growth at 47.0% [3] - Domestic smartphone shipments fell by 16.1% year-on-year, indicating a continued decline in demand [3] Real Estate Chain - The report notes a 0.7% increase in rebar prices, while cement prices have decreased by 1.5% [3] Consumption - The average price of live pigs has dropped by 4.7%, reflecting seasonal demand fluctuations [3] - The wholesale price index for liquor has shown a slight recovery, but major brands like Moutai have seen price declines [3] Cyclical - The report indicates fluctuations in commodity prices, with gold and silver prices down by 2.2% and 10.3% respectively, while aluminum prices have surged due to supply concerns [3]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The report highlights the valuation comparisons of various indices and sectors within the A-share market, indicating that the overall market is at historically high valuation percentiles, particularly in the real estate, automation equipment, and electronics sectors [2][5][6] - The report tracks the mid-term economic conditions across several industries, noting significant price fluctuations in raw materials and end products, particularly in the new energy and technology sectors [3][4][8] Valuation Summary A-share Valuation (as of March 6, 2026) - The overall market PE is 22.6x, with a PB of 1.9x, placing it at the 83rd and 51st historical percentiles respectively [2][5] - Specific indices such as the Shanghai Composite and CSI 500 show varying PE and PB ratios, with the CSI 500 at 37.5x PE and 2.6x PB, indicating a high valuation relative to historical data [2][5] Industry Valuation Comparisons - Industries with PE valuations above the 85th percentile include real estate, automation equipment, retail, electronics, and IT services [2][8] - Industries with PB valuations above the 85th percentile include electronics (semiconductors) and communications [2][8] - Sectors such as securities, food and beverage, medical services, and white goods are noted to have both PE and PB valuations below the 15th percentile, indicating potential undervaluation [2][8] Mid-term Economic Conditions Tracking New Energy - In the photovoltaic sector, upstream prices for polysilicon have decreased significantly, leading to a downward pressure on prices due to weak demand [3] - Battery material prices, including cobalt and lithium, have also seen declines, reflecting a cautious outlook on future demand [3] Technology (TMT) - The semiconductor market has shown robust growth, with a 46.1% year-on-year increase in global sales, particularly in China [3] - However, consumer electronics, particularly smartphones, are experiencing a decline in shipments, with forecasts adjusted downward [3] Real Estate Chain - Steel prices have seen slight increases, while cement prices have decreased, indicating mixed signals in the construction materials sector [3] - The glass industry is facing high inventory levels, leading to stable prices despite ongoing losses [3] Consumer Sector - Pork prices have dropped significantly due to seasonal demand fluctuations, while liquor prices have shown slight recovery [3] - Agricultural products like corn and wheat have seen price increases, reflecting varying demand dynamics [3] Cyclical Industries - Commodity prices are fluctuating, with precious metals experiencing declines while industrial metals like aluminum have seen price increases due to supply concerns [3] - Oil prices have surged, reflecting geopolitical tensions and supply chain disruptions [3]

Group 1: A-Share Valuation - The overall valuation of A-shares as of February 27, 2026, shows the CSI All Share (excluding ST) with a PE of 22.8x and a PB of 1.9x, positioned at the historical 83rd and 53rd percentiles respectively [2][5] - The Shanghai Stock Exchange 50 Index has a PE of 11.5x and a PB of 1.3x, at the historical 58th and 37th percentiles [2][5] - The CSI 300 Index has a PE of 14.1x and a PB of 1.5x, at the historical 64th and 38th percentiles [2][5] - The CSI 500 Index shows a PE of 38.8x and a PB of 2.7x, at the historical 71st and 63rd percentiles [2][5] - The ChiNext Index has a PE of 43.3x and a PB of 5.7x, at the historical 43rd and 66th percentiles [2][5] Group 2: Industry Valuation Comparison - Industries with PE valuations above the historical 85th percentile include Real Estate, Automation Equipment, Retail, Electronics (Semiconductors), and IT Services [2] - Industries with PB valuations above the historical 85th percentile include Industrial Metals, Minor Metals, Defense, Electronics (Semiconductors), and Communications [2] - The White Goods industry has both PE and PB valuations below the historical 15th percentile [2] Group 3: Industry Midstream Sentiment Tracking - In the New Energy sector, the price of polysilicon futures dropped by 4.8%, and the spot price fell by 3.7%, indicating weak sentiment due to subdued demand [2][3] - In the Technology TMT sector, the Philadelphia Semiconductor Index decreased by 2.0%, while the Taiwan Semiconductor Index increased by 4.8% [3] - In the Real Estate chain, the price of rebar fell by 1.1%, while the price of cement decreased by 0.4% [3] - In the Consumer sector, the average price of live pigs dropped by 7.7%, and the wholesale price of pork fell by 3.6% [3] - In the Midstream Manufacturing sector, heavy truck sales increased by 46.0% year-on-year in January 2026, driven by favorable policies [3] Group 4: Commodity Prices and Trends - The price of Brent crude oil futures rose by 1.2% to $72.52 per barrel, influenced by geopolitical tensions in the Middle East [3] - The price of thermal coal increased by 4.0% to 751 RMB/ton, while coking coal prices fell by 2.0% to 1501 RMB/ton [3] - The price of gold increased by 3.2%, and silver prices rose by 11.6% [3]

Valuation Summary - The overall valuation of A-shares as of February 27, 2026, shows the CSI All Share (excluding ST) PE at 22.8x and PB at 1.9x, positioned at the historical 83rd and 53rd percentiles respectively [2] - The Shanghai Stock Exchange 50 PE is at 11.5x and PB at 1.3x, at the historical 58th and 37th percentiles [2] - The CSI 300 PE is at 14.1x and PB at 1.5x, at the historical 64th and 38th percentiles [2] - The CSI 500 PE is at 38.8x and PB at 2.7x, at the historical 71st and 63rd percentiles [2] - The CSI 1000 PE is at 52.3x and PB at 2.8x, at the historical 75th and 63rd percentiles [2] - The National Index 2000 PE is at 64.8x and PB at 3.0x, at the historical 79th and 72nd percentiles [2] - The ChiNext Index PE is at 43.3x and PB at 5.7x, at the historical 43rd and 66th percentiles [2] - The Sci-Tech 50 PE is at 165.6x and PB at 6.5x, at the historical 95th and 72nd percentiles [2] - The ChiNext Index/CSI 300 PE ratio is 3.1 and PB ratio is 3.8, at the historical 29th and 62nd percentiles [2] Industry Valuation Comparison - Industries with PE valuations above the historical 85th percentile include Real Estate, Automation Equipment, Retail, Electronics (Semiconductors), and IT Services [2] - Industries with PB valuations above the historical 85th percentile include Industrial Metals, Minor Metals, Defense, Electronics (Semiconductors), and Communications [2] - The White Goods industry has both PE and PB valuations below the historical 15th percentile [2] Sector Insights New Energy - In the photovoltaic sector, upstream polysilicon futures prices fell by 4.8% and spot prices by 3.7%, with weak demand affecting sentiment [2] - In the battery materials sector, cobalt and nickel prices increased by 3.2% and 2.2% respectively, while lithium carbonate and hydroxide prices rose by 19.7% and 16.8% [2] Technology TMT - The Philadelphia Semiconductor Index decreased by 2.0%, while the Taiwan Semiconductor Index increased by 4.8% [3] - The DRAM output value index rose by 3.6%, with NAND prices increasing by 5.6% [3] Real Estate Chain - The price of rebar fell by 1.1%, while futures prices increased by 0.4% [3] - The national cement price index decreased by 0.4%, while glass prices rose by 1.0% [3] Consumer Sector - The average price of live pigs fell by 7.7%, and wholesale pork prices decreased by 3.6% [3] - The wholesale price index for liquor saw a slight increase of 0.03% [3] Midstream Manufacturing - Heavy truck sales increased by 46.0% year-on-year in January 2026, driven by tax incentives and subsidies [3] Cyclical Industries - The price of Brent crude oil futures rose by 1.2% to $72.52 per barrel, influenced by geopolitical tensions [3] - The price of thermal coal increased by 4.0% to 751 RMB/ton, while coking coal prices fell by 2.0% to 1501 RMB/ton [3]

Valuation Summary - The overall valuation of A-shares as of January 23, 2026, shows the CSI All Share (excluding ST) PE at 22.7x and PB at 1.9x, positioned at the historical 83rd and 52nd percentiles respectively [2] - The Shanghai Stock Exchange 50 PE is at 11.5x and PB at 1.3x, at the historical 58th and 36th percentiles [2] - The CSI 300 PE is at 14.1x and PB at 1.5x, at the historical 63rd and 37th percentiles [2] - The CSI 500 PE is at 38.9x and PB at 2.7x, at the historical 71st and 63rd percentiles [2] - The CSI 1000 PE is at 51.5x and PB at 2.7x, at the historical 74th and 61st percentiles [2] - The National Index 2000 PE is at 64.1x and PB at 3.0x, at the historical 79th and 71st percentiles [2] - The ChiNext Index PE is at 43.0x and PB at 5.8x, at the historical 42nd and 68th percentiles [2] - The Sci-Tech 50 PE is at 180.4x and PB at 6.9x, at the historical 98th and 83rd percentiles [2] Industry Valuation Comparison - Industries with PE valuations above the historical 85th percentile include Real Estate, Automation Equipment, Retail, Chemical Pharmaceuticals, Electronics (Semiconductors), and IT Services [2] - Industries with PB valuations above the historical 85th percentile include Defense and Military, Electronics (Semiconductors), and Communications [2] - Industries with both PE and PB valuations below the historical 15th percentile include Aquaculture and White Goods [2] Industry Sentiment Tracking New Energy - In the photovoltaic sector, downstream spot prices continue to rise, while upstream polysilicon futures prices fell by 10.8% [2] - Battery materials show mixed trends, with cobalt prices down by 3.7% and lithium carbonate prices up by 9.8% [2] Technology TMT - The Philadelphia Semiconductor Index rose by 0.4%, and the Taiwan Semiconductor Index increased by 2.3% [3] - The DRAM price index increased by 3.0%, while NAND prices surged by 10.8% [3] Real Estate Chain - The average price of rebar fell by 1.3%, while iron ore prices decreased by 2.2% [3] - National commercial housing sales area decreased by 8.7% year-on-year, with real estate development investment down by 17.2% [3] Consumer Sector - The average price of live pigs increased by 1.5%, while pork wholesale prices rose by 2.1% [3] - Retail sales growth for 2025 is projected at 3.7%, with December's growth at 0.9%, below expectations [3] Midstream Manufacturing - Manufacturing investment grew by 0.6% year-on-year, while narrow infrastructure investment fell by 2.2% [3] - Heavy truck sales increased by 13.0% year-on-year in December, with a total annual growth of approximately 26% [3] Cyclical Industries - Brent crude oil futures closed up by 3.2% at $66.23 per barrel, influenced by geopolitical tensions [3] - The Baltic Dry Index rose by 12.4%, indicating increased shipping demand [3]

Investment Rating - The report does not explicitly provide an investment rating for the industry as a whole, but it highlights various sectors with their respective valuation metrics, indicating potential investment opportunities based on historical percentiles [1][2]. Core Insights - The report tracks the valuation of A-shares as of January 9, 2026, with the overall market PE at 22.4 times and PB at 1.9 times, indicating a historical percentile of 83% and 49% respectively [1][2]. - Key sectors with PE valuations above the historical 85th percentile include Real Estate, Automation Equipment, Retail, Chemical Pharmaceuticals, Electronics, and IT Services [1][2]. - The semiconductor market is projected to reach nearly $1 trillion in sales by 2026, with a year-on-year growth of 22.5% [3]. Valuation Summary A-Share Valuation - The overall market PE is 22.4x, with a historical percentile of 83% [1][2]. - The Shanghai Composite Index PE is 12x, with a historical percentile of 65% [1][2]. - The ChiNext Index PE is 42.6x, with a historical percentile of 41% [1][2]. Industry Valuation Comparison - Industries with PE valuations above the 85th percentile include: - Real Estate - Automation Equipment - Retail - Chemical Pharmaceuticals - Electronics - IT Services [1][2]. - Industries with PB valuations above the 85th percentile include: - Defense and Military - Electronics (Semiconductors) - Telecommunications [1][2]. Sector-Specific Insights New Energy - The photovoltaic industry sees a mixed trend with upstream silicon prices down by 9.4% while downstream battery prices increased by 1.3% [1][2]. - Lithium carbonate prices increased by 17.9% due to supply disruptions [1][2]. Technology (TMT) - The semiconductor index rose by 3.7%, with global sales increasing by 29.8% year-on-year [3]. - DRAM prices increased by 10.9%, indicating strong demand in the cloud services sector [3]. Real Estate Chain - Steel prices increased slightly, while cement prices remained stable [3]. - The glass market is expected to reach a weak balance due to production adjustments [3]. Consumer Goods - Pork prices decreased by 1.0%, while wholesale prices for liquor increased by 2.2% [3]. - Agricultural products showed mixed price movements, with corn prices stable and soybean prices up by 0.8% [3]. Midstream Manufacturing - Excavator sales increased by 19.2% year-on-year, driven by equipment upgrades and demand from mining sectors [3]. Cyclical Industries - Industrial metals saw price increases, with copper up by 4.1% [3]. - Brent crude oil prices rose by 3.7% due to geopolitical tensions [3].

Valuation Summary - The overall valuation of A-shares as of December 31, 2025, shows the CSI All Share (excluding ST stocks) with a PE of 21.6x and a PB of 1.8x, positioned at the 81st and 42nd historical percentiles respectively [2] - The Shanghai Composite Index has a PE of 11.8x and a PB of 1.3x, at the 63rd and 43rd percentiles [2] - The CSI 300 Index has a PE of 14.2x and a PB of 1.5x, at the 65th and 39th percentiles [2] - The CSI 500 Index shows a PE of 33.8x and a PB of 2.3x, at the 64th and 51st percentiles [2] - The ChiNext Index has a PE of 40.8x and a PB of 5.5x, at the 35th and 63rd percentiles [2] - The STAR 50 Index has a PE of 161.1x and a PB of 6.1x, at the 97th and 66th percentiles [2] Industry Valuation Comparison - Industries with PE valuations above the 85th historical percentile include Real Estate, Retail, and IT Services [2] - Industries with PB valuations above the 85th historical percentile include Electronics (Semiconductors) and Communications [2] - Industries with both PE and PB valuations below the 15th historical percentile include Medical Services and White Goods [2] Industry Sentiment Tracking New Energy - In the photovoltaic sector, prices for silicon wafers increased by 10.8%, while battery cell prices rose by 11.8% [2] - The price of lithium carbonate increased by 0.9%, and lithium hydroxide rose by 8.4% [2] Technology TMT - The Philadelphia Semiconductor Index increased by 2.2%, and the Taiwan Semiconductor Index rose by 5.1% [3] - The DXI Index (DRAM output value) increased by 7.2%, driven by strong demand for high-performance products related to AI [3] Real Estate Chain - The price of rebar increased by 0.1%, while the price of cement decreased by 0.3% [3] - The national cement price index showed a decline of 0.3% [3] Consumer Sector - The average price of live pigs increased by 10.4%, while the wholesale price of pork rose by 1.4% [3] - The price of Moutai liquor decreased by 3.5% to 1505 yuan [3] Cycle - The price of Brent crude oil futures decreased by 2.4%, closing at $60.8 per barrel [3] - The price of LME copper increased by 2.7%, while LME aluminum rose by 2.2% [3]