CICC: there is still some room for upside in maintaining a neutral positive view of the A-share market in 2023.

[CICC: maintaining a neutral positive view on the A-share market in 2023 there is still some room for upside]. China International Capital Corporation pointed out that looking forward to the second half of the year, we believe that the profits of A-share listed companies will be repaired or will continue. The valuation level implied in the current index performance has been included in more cautious expectations, under the benchmark judgment of the slow recession of overseas economy and the mild recovery of Chinese economy. We maintain a neutral and positive view of the A-share market in 2023, the index still has some upward space compared to the current position, and the medium-term market opportunities outweigh the risks. In the second half of the year, combined with China's growth repair and policy expectations, we pay attention to the rhythm and structure. In the next 3-6 months, investors are advised to pay attention to three main lines: 1) comply with the partial growth areas of new technologies, new industries and new trends, especially the technological growth tracks such as artificial intelligence and digital economy, the semiconductor industry chain is expected to have the opportunity of cycle reversal and technological resonance in the second half of the year; the software side continues to pay attention to the media, Internet and office software that are expected to take the lead in enabling the industry. Some areas have risen a lot since the beginning of the year, and individual stocks need to be selected from the bottom up. 2) areas with greater performance flexibility, such as improved demand or improved supply patterns such as inventory and production capacity, such as spirits, white goods, jewelry, power grid equipment and navigation equipment. 3) areas with high dividend yield and high quality cash flow.