Industrial Securities Chief Strategy Analyst Zhang Qiyao: "Price increases" reflect an improving economy and will become this year's main investment theme

Since 2026, “price increases” have become the most important trading clue in the capital markets. After the Spring Festival holiday, concept stocks related to price hikes performed strongly, with sectors like chemicals and non-ferrous metals leading the market.

In this regard, Zhang Qiyao, Chief Strategy Analyst at Industrial Securities, stated that among the top 30 concept indices with the largest gains since the beginning of the year, 25 are related to price increases. The scope of price hikes is expanding from non-ferrous metals to oil and gas, chemicals, building materials, technology, and other broader areas. “Looking ahead, ‘price increases’ as a synonym for ‘prosperity’ and a core factor in determining style diffusion are expected to become the most important main line this year. Full attention should be paid to the logic of ‘price increases’ throughout the year,” he said.

Zhang Qiyao analyzed that, on one hand, price increases, as the most direct and prominent signal reflecting improved performance and upward economic trend, essentially represent trading on prosperity. As this year’s profit growth becomes the main contradiction influencing the overall trend and structure, once the clue of price hikes spreads to become a common feature across industries and a synonym for ‘prosperity,’ it will be regarded by the market as a core trading theme for the entire year. On the other hand, the upward movement of PPI (Producer Price Index) has a significant impact on market style. As an important signal of the cyclical recovery, if the price rebound this year can be validated smoothly, the market style will also more easily extend to cyclical sectors.

In terms of rhythm, Zhang Qiyao believes that March and April are the first important windows for validating and trading on price increases throughout the year. As domestic price hike clues further enrich and more sectors are expected to see price increases, this will likely be validated, and price hikes—an important logic behind corporate profit recovery and market style diffusion—may become a core theme for rotation and trading.

Zhang Qiyao’s analysis indicates that, based on multiple factors, sectors such as new energy vehicles (batteries, power grid equipment), machinery (construction machinery, specialized equipment, general equipment, automation equipment), TMT (electronics, communications, gaming), as well as innovative pharmaceuticals, new consumption, shipbuilding, commercial vehicles, auto parts, and chemical products all have strong and certain opportunities for overseas expansion.

(Source: Shenzhen Business Daily)