Yan Xiang, chief economist at Huafu Securities, said that positive factors in the A-share market are currently accumulating, and the future can be more optimistic. First, the profit cycle of A-share companies is expected to bottom out and rise. Judging from historical data, the year-on-year PPI growth rate is highly correlated with the profit of A-share companies. As the PPI growth rate fluctuates and picks up year-on-year, the suppression of corporate profits by price factors will gradually weaken. Second, the continued high-quality development of the capital market is of great significance in stabilizing market expectations and boosting investor confidence. Third, the current market valuation is at a historically low level, and the investment value is prominent. In terms of allocation, the current dividend strategy still has allocation value. “Undervalization+stable profit” is an effective long-term source of dividend strategies, and the technology growth sector represented by TMT is also worth focusing on.

Yan Xiang, chief economist at Huafu Securities, said that positive factors in the A-share market are currently accumulating, and the future can be more optimistic. First, the profit cycle of A-share companies is expected to bottom out and rise. Judging from historical data, the year-on-year PPI growth rate is highly correlated with the profit of A-share companies. As the PPI growth rate fluctuates and picks up year-on-year, the suppression of corporate profits by price factors will gradually weaken. Second, the continued high-quality development of the capital market is of great significance in stabilizing market expectations and boosting investor confidence. Third, the current market valuation is at a historically low level, and the investment value is prominent. In terms of allocation, the current dividend strategy still has allocation value. “Undervalization+stable profit” is an effective long-term source of dividend strategies, and the technology growth sector represented by TMT is also worth focusing on.