Huaan Fund fund manager Su Qihan recently said that although external disturbances are compounded by internal structural differentiation, the emotional recovery of the A-share market requires a process; in the medium to long term, factors such as current market valuation, profit, and liquidity all support maintaining confidence in the medium to long term direction. Specifically, valuation pressure has been released to a large extent after this round of adjustments. The yield on 10-year treasury bonds is about 1.6% and financial management is about 1%, while the Shanghai and Shenzhen 300 dividend rate is close to 3% and the ROE is close to 6%. Whether it is its own valuation or horizontal comparison between assets, it is in a reasonable position. From the perspective of corporate profits, with PPI correction, the profit growth rate of all A non-financial companies has returned to double digit growth for the first time in nearly three years. According to the current three-quarter report, the annual growth rate is expected to be 10% to 15%.

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