Liu Chenming, chief strategy analyst at GF Securities, said that the recent A-share pullback is mainly due to external import factors, which are emotional and financial shocks. The core pricing factor is internal and external liquidity shocks, not changes in domestic fundamentals or industry trends. Liu Chenming pointed out that there are three main triggers for the adjustment: the impact of overseas leveraged capital; the panic caused by the rapid removal of leveraged capital in South Korea and other markets is transmitted through risk appetite; short-term stamped-up when expectations at key points are too consistent; and the repeated combination of geographical conflicts and oil prices is heating up concerns about inflation. These factors are all short-term disturbances. Liu Chenming believes that at present, A-shares are anchored in domestic fundamentals, and the share of foreign shareholding is basically stable. External shocks have been sufficient, and there is limited room for further sharp decline.

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