Recently, several domestic and foreign institutions have released their 2026 annual strategy reports. From the perspective of various institutions, the Chinese economy is expected to continue its steady growth trend in 2026. At the same time, with the gradual improvement of macroeconomic fundamentals and the emergence of new highlights in various industries, the foundation for the long-term improvement of the A-share market will be further consolidated. The prospect of economic growth has been predicted by many institutions for China's economic growth rate in 2026. For example, on November 10th, Everbright Securities released a report stating that it is expected that the target for China's economic growth rate in 2026 will still be set at "around 5%". On November 9th, China International Capital Corporation (CICC) released a report predicting that policies will be implemented on both the supply and demand sides in 2026 to achieve economic growth of around 5%. On November 11th, Mingming, Chief Economist of CITIC Securities, stated at the 2026 Capital Market Annual Meeting that China is expected to achieve an economic growth rate of around 5% in 2025 and maintain a growth rate of around 4.9% in 2026. Zhang Ning, Senior China Economist at UBS Investment Bank, recently stated that it is expected that overall domestic economic activity will remain resilient in 2026. It is clearly believed that fiscal expenditure will continue to expand moderately in 2026, and with the steady promotion of localized debt, local government finances will improve. The policy level support and boost the economy will also continue, which is expected to promote a real GDP growth rate of around 4.9% in 2026. Taking into account the base factor and policy pace, the economic growth in 2026 may exhibit a "low front and high back" rhythm. China International Capital Corporation (CICC) stated that in 2026, the supply side may experience both increases and decreases. While increasing the supply of high-quality consumption, it will continue to "reverse internal competition" to reduce inefficient production capacity. It is expected that demand side policies will also be moderately increased, but in terms of structure, a combination of "increase and decrease" will be used to increase the proportion of expenditure in areas with higher efficiency and reduce the proportion in areas with lower efficiency. Given that China's potential growth rate is still relatively high, an ideal scenario is for the demand side to increase its efforts to fill the demand gap. Everbright Securities believes that the fiscal policy will continue to maintain a "more positive" tone in 2026. In addition, the scale of local special bonds and ultra long term special treasury bond in the government fund budget will continue to expand. In terms of monetary policy, it is expected that the reserve requirement ratio will be lowered twice in 2026, with a total magnitude of about 100 basis points; Reduce interest rates 1 to 2 times, with a single rate of 10 basis points. "It is estimated that the new super long term special treasury bond will increase to 1.6 trillion yuan to 1.8 trillion yuan, and the new limit for special local government bonds will increase to 4.8 trillion yuan. It is expected that the central bank will further cut interest rates by 20 basis points and reserve requirement ratio by 25 basis points to 50 basis points by the end of 2026, and use other tools to maintain sufficient liquidity. ”Zhang Ning said. In addition, Zhang Ning believes that with policy support, sustained investment, and strong R&D spending, the growth rate of the "new economy" industry will continue to be faster than other economic sectors from 2026 to 2030, and its proportion to GDP will increase by 3 percentage points by 2030 compared to the current level. Multiple factors support the performance of Chinese assets. According to the 2026 investment strategy report on the A-share market released by CITIC Securities, A-share listed companies are gradually transforming from localized enterprises with domestic exposure to multinational companies with global exposure. The Chinese capital market is also gradually transforming from an emerging market to a mature market. China CITIC Securities released a research report, predicting that the index will continue to fluctuate upwards but the increase will slow down. Investors are more concerned about improving fundamentals and verifying the economic situation. China International Capital Corporation (CICC) stated that looking ahead to 2026, the logic of international monetary order restructuring will be further strengthened, the AI revolution will enter a critical period of application, and China's innovative industries will see performance realization. The above trends will continue to support the performance of Chinese assets. The importance of A-share fundamentals will continue to increase in 2026, and the trends of global funds and domestic resident funds are also factors that cannot be ignored. Everbright Securities stated that after a significant policy stimulus, the domestic economy may enter a stable operating phase again in 2026, and the impact of price factors on profits may become more apparent. It is expected that the profits of A-shares will gradually recover by 2026, and the non-financial growth rate of all A-shares will be restored to around 10%. At the same time, there may be more highlights in the profit structure. From the perspective of market liquidity, CITIC Securities stated that the continuous inflow of absolute return funds pursuing stable returns should be the core feature of the future incremental liquidity pattern in the capital market, which has to some extent driven the volatility of the A-share broad-based index into a long-term downward trend; Tool based products gradually seize the market share of traditional subjective multi head products, which may temporarily amplify fluctuations in local sectors and themes, but it does not affect the overall situation. From the perspective of industry allocation, CITIC Securities stated that three major clues are worth paying attention to: firstly, upgrading the quality of resource/traditional manufacturing industries, transforming market share advantages into pricing power and continuously increasing profit margins; Secondly, Chinese enterprises' "going global" and globalization have greatly opened up the imaginative space for profit growth and market value ceiling; The third is to further expand the commercial application scope of AI, continue the trend of the technology sector, and amplify the relative competitive advantage of Chinese enterprises. The current global macro environment and trends in innovative industries are still relatively favorable for the growth style. After more than a year of rising prices in the growth sector, there has been a significant increase in valuation. ”China International Capital Corporation (CICC) believes that the style of the A-share market may become more balanced in 2026, and the catalytic factors driving this transition mainly come from the past three years of overcapacity reduction cycles, coupled with policy advances such as "anti involution". More and more pro cyclical industries are expected to approach supply-demand balance. (New Society)