"Trump Trade" and Responding to "Trump Trade"

Analysis suggests that in response to potential tariff shocks, a moderate adjustment of the RMB exchange rate may be used, and it is recommended to avoid certain heavy asset companies. Potential tariffs could lead to a contraction in external demand, and domestically there will be a greater emphasis on stimulating internal demand, with consumption potentially elevated to an unprecedented level due to fiscal stimulus. It is expected that the U.S. deficit will increase, inflation expectations will strengthen, and the pace of domestic interest rate cuts remains unclear, so it is advised to reduce investments in technology themes that solely benefit from monetary easing. Future fiscal stimulus will be more focused on internal demand, and it is anticipated that the economy will further rebound in the fourth quarter