Chen Xing, chief macro analyst at Huafu Securities, said in an interview with the Securities Times that the previous market adjustments were mainly affected by high US bond yields and external valuation suppression due to weakening expectations for overseas AI financing, and domestic fundamentals have not deteriorated. After the index accelerated correction in late September, market sentiment and investor positions have fallen back to a low level. As the disclosure of the third quarterly report comes to an end, the inflection point of profit recovery is expected to be further confirmed. As superimposed incremental capital continues to enter the market, the market may gradually absorb external disturbances and return to the main line of fundamental pricing. Chen Xing advised investors to avoid short-term emotional disturbances, avoid leaving the market in a panic, focus on high-quality targets with a good match between performance and valuation, and maintain a rational and patient layout. Chen Xing said that from a macroeconomic perspective, China's economy shows positive characteristics of “stable total volume, new momentum, and marginal improvement.” Structurally, the value added of the tertiary sector increased by 5.2% year on year, becoming the core support for steady growth. “A virtuous cycle in emerging fields is being formed at an accelerated pace”, and the contribution of high-tech industries and new quality productivity to growth continues to increase. Overall, the economy accelerated month-on-month and marginally rebounded in the third quarter, which to a certain extent broke the pessimistic expectations of the early market about weak fundamentals, and also laid the fundamental foundation for the subsequent implementation of corporate profits and market valuation restoration.
Zhitongcaijing · 1d ago
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Chen Xing, chief macro analyst at Huafu Securities, said in an interview with the Securities Times that the previous market adjustments were mainly affected by high US bond yields and external valuation suppression due to weakening expectations for overseas AI financing, and domestic fundamentals have not deteriorated. After the index accelerated correction in late September, market sentiment and investor positions have fallen back to a low level. As the disclosure of the third quarterly report comes to an end, the inflection point of profit recovery is expected to be further confirmed. As superimposed incremental capital continues to enter the market, the market may gradually absorb external disturbances and return to the main line of fundamental pricing. Chen Xing advised investors to avoid short-term emotional disturbances, avoid leaving the market in a panic, focus on high-quality targets with a good match between performance and valuation, and maintain a rational and patient layout. Chen Xing said that from a macroeconomic perspective, China's economy shows positive characteristics of “stable total volume, new momentum, and marginal improvement.” Structurally, the value added of the tertiary sector increased by 5.2% year on year, becoming the core support for steady growth. “A virtuous cycle in emerging fields is being formed at an accelerated pace”, and the contribution of high-tech industries and new quality productivity to growth continues to increase. Overall, the economy accelerated month-on-month and marginally rebounded in the third quarter, which to a certain extent broke the pessimistic expectations of the early market about weak fundamentals, and also laid the fundamental foundation for the subsequent implementation of corporate profits and market valuation restoration.
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