Gujin Securities’ chief economist Song Xuetao: China’s A-shares are expected to return to a fundamentals-driven market trend

Guotai Junan Securities’ chief economist Song Xuetao said that China is in a transition period between old and new drivers. Short-term economic data fluctuations will not change the support for industries. Sector sentiment in tracks such as AI, semiconductors, and high-end equipment will remain firm, and central state-owned enterprises will continue to step up investment in emerging industries. With full industry-chain support strengthening the resilience of manufacturing exports, and as state-owned capital funds maintain stable expectations, the market is set to shift to a structural trend dominated by fundamentals and earnings. Looking ahead, industry trends in AI, semiconductors, and high-end equipment are strong, and manufacturing advantages are prominent. As external shocks are absorbed, the market is expected to return to a structurally driven trend led by fundamentals.
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