Yuan Chuang, chief economist at Caixin Securities, said that recent A-share adjustments are mainly affected by external import factors, and subsequent trends will return more to domestic fundamentals. Currently, style rebalancing is nearing its end, and market stability can be expected. Yuan Chuang pointed out that the indicators used to measure the degree of industry differentiation showed that as of July 19, this value was 49.35%, which only slightly exceeded the average value of 48.48% in the past two years by about 0.87 percentage points. Furthermore, broad-based ETFs were heavily purchased last week, with a net inflow of 156.128 billion yuan. Among them, the Shanghai and Shenzhen 300, China Securities 1000, and Science Innovation 50 linked ETFs had net inflows of 39.984 billion yuan, 25.628 billion yuan, and 19.619 billion yuan, respectively. Yuan Chuang predicts that the irrational behavior of the short-term market is expected to be corrected. Looking forward to the future market, driven by factors such as the disclosure of the semi-annual report at the end of August and the proximity of the US midterm elections in early November, it is expected that the A-share market will usher in a favorable window period from late August to the end of October.

Yuan Chuang, chief economist at Caixin Securities, said that recent A-share adjustments are mainly affected by external import factors, and subsequent trends will return more to domestic fundamentals. Currently, style rebalancing is nearing its end, and market stability can be expected. Yuan Chuang pointed out that the indicators used to measure the degree of industry differentiation showed that as of July 19, this value was 49.35%, which only slightly exceeded the average value of 48.48% in the past two years by about 0.87 percentage points. Furthermore, broad-based ETFs were heavily purchased last week, with a net inflow of 156.128 billion yuan. Among them, the Shanghai and Shenzhen 300, China Securities 1000, and Science Innovation 50 linked ETFs had net inflows of 39.984 billion yuan, 25.628 billion yuan, and 19.619 billion yuan, respectively. Yuan Chuang predicts that the irrational behavior of the short-term market is expected to be corrected. Looking forward to the future market, driven by factors such as the disclosure of the semi-annual report at the end of August and the proximity of the US midterm elections in early November, it is expected that the A-share market will usher in a favorable window period from late August to the end of October.