Industrial Securities
FUZHOU, China, Oct. 29, 2026 /Xinhua-AsiaNet/–
A recent report by Wang Han, Chief Global Economist at Industrial Securities, points out that despite mounting market volatility since July this year, the fundamental drivers powering the market’s strength since 2024 remain fully intact. Three key structural shifts driving the strength of A-shares persist: China’s economic transition from “quantitative growth” to “qualitative transformation”, the evolving great power rivalry shifting in China’s favour, and ongoing policy support for capital markets.
The report highlights that the traditional “center-periphery” structure of the global economy is breaking down, and China is ascending within the complex global economic framework. In the AI domain, competition is shifting from isolated leads in models and chips toward cost and efficiency advantages of the full-supply-chain. Open-source models are narrowing the gap with closed-source alternatives, while AI value is spilling over across upstream and downstream sectors – areas where China and East Asia hold a distinct comparative advantage.
Geopolitically, China has greater strategic initiative in its regional diplomacy. While gold may experience short-term price fluctuations, its long-term strategic value is rising, and conditions are coalescing for Chinese equities to transition from tracking US markets toward independent pricing.
Finally, the report concludes that as the strategic game reaches its mid-phase, short-term volatility will not alter long-term trends, as macro direction is far more vital than market noise. Looking ahead, key factors to monitor include potential reversals in global industrial and geopolitical landscapes, China’s positioning within global production networks, the trajectory of AI profit distribution, regional diplomatic initiatives, and corporate earnings drivers.
Risk Factors:
The accelerated evolution of global geopolitical dynamics, alongside rising uncertainties surrounding global economic and policy outlooks.