Brokerage Morning Meeting Highlights: CITIC Securities Says Non-AI Sectors Have Broad Structural Recovery Opportunities

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Cailian Press, November 3 — Yesterday, the market rallied and then pulled back slightly, with the ChiNext Index rising more than 3.5% at one point during the session. Combined turnover on the Shanghai and Shenzhen markets was 1.78 trillion yuan. On the board, hot spots rotated rapidly, with AI comic-drama, baijiu, retail, and large financials concepts showing active performance. On the downside, precious metals concepts fluctuated and adjusted. As of the close, the Shanghai Composite Index rose 1.08%, the Shenzhen Component Index rose 1.63%, and the ChiNext Index rose 1.87%.

CITIC Securities believes there are broad structural repair opportunities in non-AI sectors; China Securities believes that high AI demand prosperity is driving power semiconductors into a new cycle; CICC believes that a full-scale explosion of Agents requires waiting for a "breakthrough point" in technologies such as AI and in costs.

The previous thinking that "an industrial trend downturn = a bull-to-bear turn" no longer applies to this round of the AI industry rally. AI is still in an early stage of development, and in the short term it generates mostly negative externalities for other economic sectors, causing prices of production materials for various consumer goods to soar, siphoning funds from the bond market and pushing long-end interest rates sharply higher to suppress non-AI demand, while Agents to some extent also crowd out employment. The intersection of these problems has produced sharp economic and market divergence. In the strongest phase of the AI bull market, non-AI sectors have generally already entered a downtrend ahead of time and undergone deep valuation adjustments. But precisely because of this, if AI investment slows its growth pace in the future, there is no reason to remain pessimistic about non-AI sectors. If AI enters a consolidation period, non-AI sectors are expected to see a turning point; falling interest rates, falling materials prices, and policy rebalancing would all help make market performance more balanced. It is expected that trends within the technology sector will diverge, that non-AI sectors have broad structural repair opportunities, and that the main process of valuation contraction was completed in 2026. Clearing on the funding side takes time, and investors will also gradually return to reasonable return expectations. Stable-return strategies represented by PB-ROE are more advantageous than prosperity strategies, and there may be a major shift in style. In terms of allocation, appropriate diversification is needed, responding along four lines: stable returns, excellent overseas-expanding manufacturing, domestic demand repair, and new AI technology themes.

Driven by the explosion of AIDC plus incremental growth in new energy vehicles, power semiconductors have set off a wave of price increases since 2026. From the perspective of technological iteration, third-generation power semiconductor devices represented by SiC are very well suited to the technological trend of AIDC high-voltage direct-current conversion, and therefore show rising penetration trends in multiple links such as SST, HVDC, and solid-state circuit breakers, with more obvious incremental growth. According to calculations, under the AIDC explosion plus technological iteration, it is expected that by 2030 this will bring incremental demand for SiC power devices on the scale of tens of billions. Upstream and downstream of SiC power devices are expected to resonate in incremental growth.

CICC: A full-scale explosion of Agents requires waiting for a "breakthrough point" in technologies such as AI and in costs

Productivity Agents will come first, with ToC following later. Productivity Agents such as WorkBuddy initially resemble vertical applications, but over the long term are expected to become OS-level entry points like Windows. If the model side maintains multi-player competition, the product layer can rapidly gain share by virtue of stronger bargaining power and low marginal expansion investment. The turning point for ToC Agents lies in shifting from "search-style" to "recommendation-style," and from Save time to more efficient Kill time, thereby serving 80% of users' 80% of needs. A full-scale explosion requires waiting for a "breakthrough point" in technologies such as AI and in costs. ToC Agents monetization will most likely not be a single subscription.

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