CICC has noted that Chinese equities are poised to continue reaping the benefits of the AI technology boom and abundant liquidity, with current valuations remaining at a reasonable level. Although market volatility may spike towards the end of the year, there are currently no signs indicating that the bull market has reached its zenith. Therefore, CICC advises investors to maintain an overweight position in Chinese stocks, with a more evenly balanced internal style allocation.

The same rationale applies to U.S. stocks; however, considering the depreciation cycle of the U.S. dollar, U.S. equities demonstrate lower elasticity and are currently overvalued. This presents substantial risks for investors who are chasing highs. Consequently, CICC recommends a standard allocation for U.S. stocks.

While there is still room for China's benchmark interest rate (previously translated as 'interest rate center' or 'central tendency,' adjusted here for clarity and financial context) to decrease, Chinese bond valuations are relatively high, offering limited upside potential. Hence, a low allocation to Chinese bonds is recommended.

On the other hand, U.S. bonds, which are benefiting from the Federal Reserve's easing cycle, are expected to face inflation and debt risks in the medium term. Given these factors, CICC suggests a neutral standard allocation for U.S. bonds.