Why have A-shares continued to fall sharply?

GUIDE

summary

Dong Chengfei, a partner at Private Equity Wise County Asset Management, believes that the current valuation of the CSI 300 Index is near a historical low, and new seeds are being bred during difficult periods, and it is a bit hasty to expect a bull market to come soon.

Galaxy Securities believes that

In 2024, it is expected to usher in the recovery of confidence and attract capital inflows under the favorable conditions at home and abroad, and A-shares are expected to usher in a volatile upward recovery market in 2024.

For the recent adjustment of the market, the institution believes that the main reasons are the slight lack of investors' willingness to go long, and the expected fluctuation of overseas monetary policy.

Ruijun Assets

It's a bit hasty to expect a bull market to come soon

Dong Chengfei, Partner/Chief Research Officer of Ruijun Asset Management, delivered a speech,

For the real estate industry, he is more optimistic, believing that new home sales may bottom out and stabilize in 2024, which will lead to the stabilization of market expectations for the economy, and the expected stabilization is a major fundamental change in the capital market.

Based on the validity of the inference that new home sales have bottomed out and stabilized, he said that the performance of subjective bulls may be better than in 2023

。

In Dong Chengfei's view, in the foreseeable future, the capital market may appear "deinstitutionalized" to a certain extent. However, he believes that the current valuation of the CSI 300 index is near historical lows, and new seeds are being bred in difficult times, and it is a bit hasty to expect a bull market to come.

He said that in the current environment, the dividend sector is still attractive to large funds with low risk appetite, and the future is still worth looking forward to, and the only risk is that some of the weighted industries are cyclical. "If you look at it from a process perspective, the bonus strategy is halfway there. ”

Galaxy Securities

Investor confidence is expected to regain amid volatility in February

After the ups and downs of 2023, the negative factors inside and outside the stock market have basically been digested, considering that the current A-shares are at the bottom of the valuation area, 2024 is expected to usher in the recovery of confidence and attract capital inflows under the favorable conditions at home and abroad, and A-shares are expected to usher in a volatile upward repair market in 2024.

The two sessions will be held in early March, and considering that the market of A-shares usually shows positive performance before the two sessions, policy drive is one of the key points to focus on, and it is necessary to wait patiently for the catalyst on the policy side to regain investor confidence. The investment strategy allocated in February should focus on low-valuation value stocks + growth value stocks in the sector that benefit from policy assistance + favorable policies of the two sessions. In February, it was recommended to balance the distribution of value stocks in sectors such as aviation, banking, technology, coal, and power.