On the evening of October 16, Deng Lijun, chief strategy analyst at Huajin Securities, said that the current A-share valuation has returned to a neutral position, there is plenty of room for subsequent repairs, and the valuation is still highly cost-effective. First, if calculated from 2005 to now, the current historical quantiles for all A and Shanghai and Shenzhen 300 valuations are likely to be in the neutral range of 46% and 51%, respectively. They have clearly recovered from the previous low of 20%, and A-share valuations have returned to a reasonable range. Second, the current valuation is still relatively cost-effective. Especially for sectors such as GEM that have fully recovered, there is still plenty of room for further repairs in the future.

On the evening of October 16, Deng Lijun, chief strategy analyst at Huajin Securities, said that the current A-share valuation has returned to a neutral position, there is plenty of room for subsequent repairs, and the valuation is still highly cost-effective. First, if calculated from 2005 to now, the current historical quantiles for all A and Shanghai and Shenzhen 300 valuations are likely to be in the neutral range of 46% and 51%, respectively. They have clearly recovered from the previous low of 20%, and A-share valuations have returned to a reasonable range. Second, the current valuation is still relatively cost-effective. Especially for sectors such as GEM that have fully recovered, there is still plenty of room for further repairs in the future.