How to gauge the core trend of A-shares after an important meeting?

The 2026 National Two Sessions will be held as scheduled, with policies set to anchor the direction of the year’s economic development and capital market trends. As an important policy window for the capital market, signals released during the Two Sessions have always been key indicators for A-share market trends. This year’s sessions clearly defined economic growth targets, focusing on cultivating new quality productivity and expanding domestic demand. Combining historical market patterns following the Two Sessions, structural opportunities in A-shares are gradually emerging. How to seize policy-driven investment opportunities has become a core market focus.

Through the market fog, Taigirl will guide you to pay attention to market developments~

Government Work Report Anchors Development Direction

This year’s Two Sessions made clear plans for economic development in 2026, setting the annual growth target at 4.5%-5%, balancing growth stability with room for high-quality development. The Government Work Report highlights two core directions: one, emphasizing technological innovation as a driver of high-quality growth, with a focus on cultivating new quality productivity and building emerging pillar industries such as integrated circuits, aerospace, and biomedicine, while also planning for future industries like energy, quantum technology, and brain-computer interfaces; two, prioritizing expanding domestic demand through measures such as increasing income for urban and rural residents, implementing paid staggered vacations, and supporting consumption upgrades with 250 billion yuan in ultra-long-term special government bonds, stimulating consumption from both supply and demand sides and strengthening the domestic growth foundation. Precise policy implementation provides clear growth expectations for related A-share sectors.

Review of the Past Decade of Two Sessions Market Patterns

Looking back at the A-share performance one month after the past ten Two Sessions can offer important insights for current market judgments. Data shows that over the past ten years, the A-share market rose in 6 instances and fell in 4 within one month after the sessions, generally showing more gains than losses. Notably, in 2016, policy expectations were heavily released, leading to the most prominent market performance, with many mainstream indices rising over 13% in the month following. Overall, the policy signals and industry cues from the Two Sessions gradually influence capital and sentiment, with the one-month post-session market reflecting both the implementation of policy expectations and current risk appetite and fundamentals, providing a clear reference for market rhythm.

A-share market performance one month after the past ten Two Sessions (%):

Data from 2016.01.01 to 2025.12.31.

Identify Three Core Investment Themes

Based on the policy tone and market patterns, 2026 A-share investments may revolve around three major themes to capture structural opportunities.

1. Focus on the core track of new quality productivity and seize opportunities in the technological revolution: New quality productivity is a key term of this year’s Two Sessions. Policies from the top level support related industries, creating trillion-yuan incremental markets. For example, biomedicine was included as a new emerging pillar industry for the first time, with policies on centralized procurement and accelerated overseas expansion of innovative drugs driving sector growth—highlighting opportunities in Hong Kong-listed innovative drug R&D and domestic innovation drugs. Additionally, “computing and electricity collaboration” was included in the government work report and became a focus of new infrastructure, with AI computing power explosion boosting electricity demand, leading to surges in demand for ultra-high voltage, flexible DC distribution, and energy storage. Power grid equipment and green energy resources are poised for development. Future industries like low-altitude economy, 6G, and quantum technology, supported by risk-sharing mechanisms, are expected to become long-term growth drivers.

2. Focus on consumption recovery and upgrading, exploring domestic demand growth potential: Expanding domestic demand remains the top priority, with policy measures providing strong support for consumption recovery. Initiatives such as 100 billion yuan in special funds to stimulate demand, increased consumer loan interest subsidies, and efforts to energize lower-tier markets will directly promote both goods and services consumption upgrades. Policies favoring old-for-new replacements benefit durable goods like appliances and automobiles; tourism, health, and sports services are expected to see demand release amid optimized holiday policies. Implementation of urban and rural income-increase plans will fundamentally enhance residents’ consumption capacity, shifting the sector from recovery to endogenous growth. Currently, valuation levels in consumption sectors remain relatively low, with high growth potential under improved earnings expectations.

3. Allocate to dividend assets and seek stable allocation opportunities: In 2026, A-share styles are expected to become more balanced, with the value of dividend assets remaining prominent. Under low interest rates and a “asset scarcity” environment, long-term funds like insurance and pension funds are accelerating market entry, favoring assets with stable dividends and bond-like qualities. High-dividend, high free cash flow, and sustainable dividend-paying stocks in finance, infrastructure, and utilities are likely to become key long-term holdings, providing steady returns amid market volatility.

Taikang New Growth Hybrid

Fund Code: Class A 014287, Class C 017366

Taikang Quality Life Hybrid

Fund Code: Class A 010874, Class C 010875

Taikang CSI Dividend Low Volatility ETF

Fund Code: 560150