CICC It was noted that the RMB’s appreciation against the U.S. dollar has accelerated recently, driven by rising expectations of interest rate cuts at Federal Reserve and the year-end peak in domestic foreign exchange settlements. Donald TrumpAmid the “Great Reset,” with U.S. monetary policy aligning with fiscal measures, it is believed that dollar liquidity will trend toward abundance, and the dollar is likely to enter a depreciation channel. Under these circumstances, the accumulated motivation to settle foreign exchange holdings may support the renminbi. A weak dollar drives a synchronized global economic recovery, boosting domestic export growth and profit margins.Global monetary policy and liquidity are trending toward easing, pushing up valuations of A-shares and Hong Kong stocks. At the same time, global capital is increasingly flowing into emerging markets with higher growth potential in search of higher returns. Driven by a weak dollar and domestic policy catalysts, CICC believes that an influx of overseas and long-term capital into the market is likely to boost A-shares from the capital side.From a sectoral perspective, the “new economy”—represented by technology and overseas expansion—is expected to continue delivering strong performance in terms of fundamentals and returns. Furthermore, driven by efforts to expand domestic demand, combat internal competition, and boost overseas demand, corporate earnings in China may improve, leading to a catch-up rally in domestic demand sectors such as consumer goods.