BEIJING, May 12 (Xinhua) -- China International Capital Corporation Limited (CICC, 3908.HK) suggested investors continue to pay attention to shares related to domestic demand as the resumption of work and production going forward in a report published on Monday.
China's A-share market continued to show resilience since the Labor Day holiday. Although external environment may still have some short-term fluctuations, CICC maintains a positive view on the market structure in a report, said Wang Hanfeng, chief strategist and managing director of CICC, in the report.
He said while external demand may remain under pressure, the focus of policy is still be on expanding domestic demand.
The fundamentals of some domestic demand industries began to show positive signs, such as automobiles and home appliances. The daily coal consumption of the six largest power plants recently returned to positive growth for the first time after the epidemic, indicating that the pace of work resumption picked up, according to Wang.
Focusing on domestic demand may not only be a short-term expedient, but also an option in the medium term, given the changes in China's external environment. Furthermore, from the position and valuation point of view, position of the domestic demand sector is still not high, and the valuation is still attractive.
(Edited by Yang Qi with Xinhua Silk Road, kateqiyang@xinhua.org)
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