Bao Chengchao, Chief Strategist at the CITIC Securities Research Department, recently noted that from a global perspective, large-cap blue-chip stocks in the domestic market are currently trading at relatively low valuations. Compared with the United States, Japan, and South Korea, A-shares stand out as the only market where the valuation premium of AI stocks over non-AI stocks remains above its historical median: as of October 22, 2026, the price-to-earnings (P/E) ratio of AI stocks to non-AI stocks in A-shares stood at 4.4x, placing it in the 82nd percentile since 2016. By contrast, the same ratio in the United States, Japan, and South Korea had dropped to the 1st, 17th, and 24th percentiles, respectively. The underlying reason is that the AI premium in overseas markets has largely been offset by rising valuations of non-AI stocks. The P/E ratios of non-AI, non-financial sector leaders in the United States and Japan stood at 33.5x and 23.0x, respectively, ranking in the 98th and 95th historical percentiles. In sharp contrast, non-AI blue-chip stocks tied to domestic demand and manufacturing in A-shares were valued at just 15.6x overall, placing them in only the 21st historical percentile—a striking divergence between the two. This misalignment suggests that among A-shares, large-cap blue-chip stocks linked to domestic demand and manufacturing offer the relatively greatest room for valuation recovery.