Credit Suisse expects that the returns of the mainland A-share market will be driven by earnings growth, adding targets such as Sytech and HIMILE SCIENCE AND TECHNOLOGY

Credit Suisse published a research report indicating that last year, the Chinese and Chinese A-share markets performed steadily. Overall, the market focus was on artificial intelligence, technology, and materials sectors, while domestic consumption-related sectors showed weak performance, leading to significant return differentiation and substantial excess returns.

Credit Suisse noted that from an investment style perspective, profit correction, growth at a reasonable price (GARP), and momentum factors received attention this year, while quality and low-risk indicators declined. Growth stocks in the Chinese A-share market performed well. Although P/E ratio expansion was the main driver of returns last year, it is predicted that this year's returns will be more driven by earnings growth.

The firm updated its portfolio while maintaining a barbell strategy between growth at a reasonable price stocks and sustainable earnings stocks. New additions include: Sytech (600183.SH), HIMILE SCIENCE AND TECHNOLOGY (002595.SZ), International Potash (000893.SZ), Atour (ATAT.US), SANY Heavy Industry (600031.SH), and COSCO SHIPPING Ports (01199.HK).

Removed stocks include: Pop Mart (09992.HK), Tencent Music (TME.US), WuXi AppTec (02268.HK), Sunny Optical Technology (02382.HK), Zhejiang Hu-Hang-Yong (00576.HK), and Guangzhou-Shenzhen Railway (00525.HK)