Fangzheng Securities: China's asset attractiveness is expected to continue to increase. In the short-term spring market, it is recommended to focus on opportunities to rebalance value growth

The Zhitong Finance App learned that Fangzheng Securities released a research report saying that overall, the attractiveness of Chinese assets is expected to continue to increase, which will drive the A-share market to continue to improve. Furthermore, the equity risk premium ERP shows that equity asset investment is relatively cost-effective. Structurally, technological growth dominates or is the main structural characteristic of the medium-term market, but it has also been noticed that the current market valuation differentiation is already high, and at the same time, the dividend rate reduction margin of the dividend index has reached a new high in recent years. In the short-term spring market, it is recommended to focus on opportunities to rebalance value growth.

Since the beginning of 2025, the overall performance of the A-share market has been good, and the structural growth of small and medium capitalization technology has been particularly prominent. The bank believes that there are three main logical clues driving this round of the market: First, it is currently at the end of the downward profit cycle. This is a typical “denominator side logic” characteristic of “stage I”. Whether the small to medium market growth or dividend market is a “denominator side logic.” Second, since the fourth quarter of last year, a package of incremental policies has been introduced and implemented, and stabilizing expectations has boosted market confidence. Third, the rise of Chinese technology companies is driving the revaluation of assets.

Risk warning: Macroeconomics falls short of expectations, overseas markets fluctuate greatly, and historical experience does not represent the future.