Guotai Haitong Chief Strategist Yi: China’s stock market has entered the hitting zone again; the market stabilizing and a turnaround is not far off.

robot
Abstract generation in progress
Caitong Haitong’s chief strategist analyst Fang Yi said that China’s stock market has once again entered the “strike zone,” and that market stabilization and a turn for the better are not far off. First, uncertainty is easing: risk appetite has steadied, and the impact of major super-IPOs’ trading is set to take effect; the marginal effect of the Iran–U.S. conflict is no longer as strong as it was in March–April; and North American CSP manufacturers’ earnings expectations have already been brought forward and lowered. Second, contagion risks are being contained to drive incremental capital into the market: an objective negative liquidity feedback has emerged; major stabilizing institutions have stepped in with market participation; this week’s inflows into broad-based ETFs reached 200 billion, the highest in a single week; active ETFs and discretionary funds are accelerating approvals; and private fund filings have been kept at a high intensity. Third, after trading risks are released, the growth rationale remains solid: after technology stocks surged from April to June, investors took profits in July, and adjustments in the STAR Market and ChiNext have come down by nearly 20%, with the magnitude already having been relatively sufficient. (Caixin)
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned