CITIC Securities Advises Avoiding Liquidity-Bet Assets for H2 2026, Favors Commodities and Equities

According to CITIC Securities on May 22, the brokerage recommended avoiding assets overly dependent on liquidity expansion in the second half of 2026, citing falling macroeconomic liquidity alongside rising inflation and profit cycles. Instead, investors should focus on earnings and inflation-driven opportunities. Base metals, crude oil, Chinese and U.S. equities are flagged as high-conviction positions, while Chinese government bonds offer opportunities subject to risk tolerance. U.S. Treasuries are expected to face headwinds amid persistent inflation and limited Federal Reserve easing.
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