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.

Zhitongcaijing · 10/16 14:09
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.