Multiple brokerage chief strategists discuss the stock market: The conditions for a stabilizing rebound are in place, and the A-share market has sufficient long-term resilience

In recent weeks, China’s A-share market has seen a phase of pullback. Multiple chief economists and chief analysts at securities firms said the adjustment has been driven by the transmission of external, input-like factors, and that it is a technical correction. They also said the market currently has the conditions to rebound, and that A-shares have sufficient resilience in the medium to long term.

Zhang Jun, Chief Economist and Dean of the Research Institute at China Galaxy Securities, said that recent hawkish remarks by Federal Reserve officials have boosted U.S. Treasury yields and the U.S. Dollar Index, suppressing global high-valuation growth stocks. Meanwhile, U.S. stocks and technology shares in Japan and South Korea have all fallen sharply. Panic sentiment in the memory industry chain has been transmitted across borders, Northbound capital has seen phased outflows, and combined with rising geopolitical tensions and higher oil prices, this constitutes passive transmission of overseas sentiment.

Huang Wentao, Chief Economist at China Citic Construction Investment Securities, said, “Short-term shocks may change trading rhythm, but they cannot change the direction of domestic policies or the trend of the technology industry. In this round of overseas declines, what is being digested is concentration and leverage, whereas A-shares have structural differences from that situation in terms of the liquidity environment, the degree of trading crowdedness, and the presence of upside catalysts. Compared with overseas markets, A-shares are bearing a discount that does not fully match their own risk structure.”

Chen Li, Chief Economist and Head of the Research Institute at Chuan Cai Securities, said that there has not been any trend-like weakening in China’s domestic macro fundamentals or the logic driving industrial development. The economic support policies are being continuously implemented, manufacturing profits are recovering, and in the future, the cultivation of industries will be advanced steadily. (Shanghai Securities News)