According to the CITIC Construction Investment Research Report, there is still an upward trend in market performance growth, policy support orientation has not changed, and overall valuation is at a medium level. Therefore, there is no “bottom of performance - bottom of policy - bottom of valuation”, but market sentiment is expected to reach a phased bottom. Therefore, the current market is not a “historical bottom” from the perspective of the economy, policy, and market cycle, but rather a “sharp decline” caused by short-term negative factors resonance, a sharp decline in market sentiment, and full expression of pessimism. In the short term, it is expected that this round of sharp decline is expected to end, leading to a rebound to repair the market. There are three specific reasons: First, judging from the market position, the current market has experienced two rounds of decline, and the point level is low. Second, judging from the current market's core focus deleveraging process, this round of secondary deleveraging has already taken 1 month. With the massive inflow of ETF capital, this round of deleveraging may come to an end. Third, judging from market sentiment and institutional behavior, A-shares are also expected to recover from a rebound. Based on the above analysis and research reports, it is believed that the current bottom of the market has been revealed, and in the short term, it is expected that there will be a rebound to repair the market.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.