Huatai Securities: The style of the A-share market in 2026 will enter a rebalancing rather than a switching phase

36Kr learned that Huatai Securities' research report forecasts the A-share market for 2026, providing four core judgments. First, the profit cycle may have a resilient recovery. Thanks to the approaching turning points of the capacity cycle and inventory cycle, the profit cycle is expected to enter a recovery path in the first half of next year, with the expectation of restoring resilience depending on the real estate cycle and corporate overseas expansion, both of which currently show positive signals; second, there is still room for relative valuation to rise. Currently, the forward PE TTM of the CSI 800 relative to developed markets and other emerging markets still has room for improvement compared to historical highs, and Chinese assets remain relatively attractive, with incremental funds not constraining the market; third, next year's market style will enter a rebalancing rather than a switching phase; fourth, pay attention to seven major investment clues: policy cycle, technology cycle, real estate cycle, capacity cycle, inventory cycle, energy cycle, and capital market reform