TechFlow News, January 5th: According to Jinshi Data, CICC pointed out that recently, driven by rising expectations of a Federal Reserve interest rate cut and the peak year-end foreign exchange settlement period domestically, the appreciation of the RMB against the US dollar has accelerated. Under Trump's "Great Reset," with US monetary policy coordinating with fiscal policy, it is believed that US dollar liquidity will trend towards abundance, and the US dollar is highly likely to be in a depreciation channel. In this scenario, the previously accumulated motivation for foreign exchange funds to settle may support the RMB. A weaker US dollar promotes global economic resonance and recovery, driving improvements in domestic export growth and profits. Global monetary policies and liquidity are both trending towards easing, boosting the valuations of A-shares and Hong Kong stocks. Simultaneously, global capital is increasingly flowing into emerging markets with higher growth elasticity in search of higher returns. Under the influence of a weaker US dollar and domestic policy catalysts, CICC believes that more overseas and long-term funds entering the market are expected to boost A-shares from the capital side. Structurally, "new economy" sectors represented by technology and overseas expansion are expected to continue performing well in terms of fundamentals and returns. Additionally, driven by expanding domestic demand, countering internal competition, and overseas demand, domestic corporate profits may improve, leading to a catch-up in domestic demand sectors such as consumption.
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