On October 22, Cheng Qiang, chief economist and research director of Debon Securities, said that after continuous adjustments, the overall valuation of A-shares has entered a reasonable range. The various negative factors that the market feared in the early stages have been largely absorbed by prices, and the room for further decline in the index is already relatively limited. Cheng Qiang said he is optimistic about the subsequent performance of the A-share market. Taken together, valuations have returned to reasonable, industrial sentiment remains high, micro profits continue to improve, and policies continue to be strengthened, and multiple positive conditions have formed support. Cheng Qiang pointed out that macroeconomic fundamentals are resilient and support a stable market base. Exports have continued to perform well. High-quality domestic manufacturing companies have continued to expand overseas markets and increase their global share. The improvement in revenue and operating cash flow at the micro level is real and verifiable, and the strength for endogenous economic recovery is gradually being saved. At the same time, policies related to steady growth and capital market reform initiatives are in the process of continuous development. The direction of policy support is clear, and optimization at the institutional level will gradually improve market expectations and create a favorable environment for a steady recovery in the market.

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