CICC pointed out that the engine of the dollar's liquidity expansion is undergoing a “major change.” With inflation shifting from latent to apparent, and a new Federal Reserve Chairman Walsh, who advocates downsizing, the post-pandemic era of exogenous money driven by the Federal Reserve's expansion and fiscal deficit may come to an end. Meanwhile, endogenous monetary expansion driven by AI capital expenditure is already taking shape — the engine of liquidity is moving from the policy side to the physical side. On the one hand, endogenous monetary expansion enhances economic resilience and deepens inflationary stickiness. On the other hand, it also accelerates the flow of capital from traditional real estate and consumer sectors to technological frontiers with higher return expectations. In the future, asset performance may continue to diverge: assets driven solely by exogenous liquidity will be under pressure, while assets representing the direction of advanced productivity are expected to take advantage of the expansion of endogenous currencies.

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