At the same time, as AI has increasingly concentrated market attention and liquidity, other fundamentally sound companies have been crowded out. Looking ahead, with potential policy fine-tuning and a possible improvement in the broader economy, these previously overlooked companies that continue to grow may also present rebalancing opportunities.

While AI can dramatically improve productivity, how the benefits of that productivity are distributed across society may ultimately become one of the most important questions for investors in the years ahead.

However, the longer the blockade persists and the longer elevated energy prices remain in place, the greater the probability of sustained long-term inflation. The stock market may still be underreacting to the risks associated with rising inflation and higher interest rates, which remains a potential risk.

We maintain the view that global economic and political pressures will continue to exert a restraining influence, encouraging reasoned behavior, including that of the United States and its leadership, and reducing the likelihood of escalation toward broader confrontation.

While precise long-term forecasting is becoming more challenging, these dynamics are also creating structural opportunities that merit close attention.

In January, broad-market indices also diverged significantly. Non-ferrous metals surged, gained 22.6% over the month, benefiting from the global commodities rally and anticipated demand from AI-driven industrial upgrades, while the banking sector experienced notable declines. The exuberance and volatility in January signal the beginning of two major rebalancing trends and a new phase in AI development.

As we enter 2026, top-down perspectives suggest the presence of investment opportunities, while bottom-up stock selection remains challenging. From a macro perspective, considering asset allocation and global capital flows, Chinese assets still appear inexpensive. From the perspective of sectors that have already risen over a year and their historical valuations, they may seem less attractive. We tend to believe that the latter will ultimately conform to the former. Historical valuation references lose relevance as the environment changes, and what we are seeing now is not a continuation of past stories, but the emergence of a new narrative.