Deng Zhouyu, head of the Shanxi Securities Research Institute, said on July 20 that the recent phased correction in A-shares was a healthy digestion process where the market spontaneously completed chip exchanges and risks were cleared. The elements of this round of adjustments are all external shocks or short-term trade disturbances. They have neither shaken the basic market for the steady recovery of the domestic economy, nor have they reversed the long-term development direction of China's high-end manufacturing and digital economy industrial upgrading. At the same time, China's monetary policy is self-centered, independent and stable, the domestic liquidity environment remains reasonable and abundant, and there is a clear buffer against the real impact of external restrictions on the Chinese market. After the short-term emotional shock, the main lines of industrial upgrading, digital economy, and autonomous and controllable long-term investment will become more and more clear. The dividends of deepening reforms in the capital market continue to be released, which resonates with the high-quality development of the real economy, and there is solid support for the smooth and healthy operation of A-shares in the medium to long term.

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