J.P. Morgan China/HK FTM 18 May 26 Trump-Xi summit: “Make it work and never mess it up”; China Artificial Intelligence; China Equity Strategy; Greater China Data Watch; SMIC (0981); Equity Thematic Strategy

研报英文原文证据摘录

J.P. Morgan China/HK FTM 18 May 26 Trump-Xi summit: “Make it work and never mess it up”; China Artificial Intelligence; China Equity Strategy; Greater China Data Watch; SMIC (0981); Equity Thematic Strategy

ile downside risk remains from weaker than expected consumer demand pressuring

pricing.

Equity Thematic Strategy, United States (Dubravko Lakos-Bujas / Bhupinder Singh / Kamal Tamboli)

Security and Resiliency Investing

For decades, global capital allocation prioritized economic efficiency. Firms optimized cross-border supply

chains, sourcing inputs from the lowest-cost producers and concentrating manufacturing to improve

margins. However, a recent series of supply chain crises (e.g. Covid, Russia/Ukraine, Liberation Day tariffs/

export controls, Iran tensions) expose the vulnerability of this guiding principle especially given pressure

from accelerating economic competition and geopolitical fragmentation (see Report). In our view, a

structural reorganization is underway in US public and private investment from efficiency-first towards

building greater national and economic security, resiliency and reliability. This shift towards the Security and

Resiliency theme is likely to be one of the more durable thematic dispersion catalysts across equities since

the passage of the IRA/CHIPS/IIJA Acts in 2021-22 (see Report). Given the level of catch-up required

across key segments such as Defense, Critical Minerals, Security/Cyber and Advanced Manufacturing,

investor demand for Security and Resiliency theme will likely ramp-up aggressively. Based on investor

discussions, we are not only observing rising interest in this theme but are seeing preliminary steps towards

launching new Security and Resiliency Investment Funds globally.