“The current contraction is more of a decline in the popularity of phased transactions. It is not equivalent to a continuation of systemic risk, but there are no sufficient confirmation conditions for trend reversal.” Huang Fusheng, vice president and chief economist of China Post Securities, pointed out in an exclusive interview with reporters on October 30. The cooling of sentiment was more reflected on the trading side, and fundamentals did not weaken at the same time. On the contrary, positive signs of improved performance of listed companies are accumulating, forming important support for the market. Huang Fusheng pointed out that according to the Chinese report, the net profit growth rate of A-shares was about 15%, with the net profit growth rate of highly AI-related companies as high as 77%. The net profit growth rate of the three-quarter report further increased, laying a solid fundamental foundation for the market to move from “valuation repair” to “performance delivery”, and the driving logic is speeding up the completion of structural transformation. Looking ahead to the future market, he judged that under the triple logical resonance of the long-term market stabilization mechanism, gradual restoration of market pessimism, and continuous verification of the performance of listed companies, short-term disorderly market fluctuations are expected to subside clearly, and A-shares have a solid foundation for a steady rebound.

“The current contraction is more of a decline in the popularity of phased transactions. It is not equivalent to a continuation of systemic risk, but there are no sufficient confirmation conditions for trend reversal.” Huang Fusheng, vice president and chief economist of China Post Securities, pointed out in an exclusive interview with reporters on October 30. The cooling of sentiment was more reflected on the trading side, and fundamentals did not weaken at the same time. On the contrary, positive signs of improved performance of listed companies are accumulating, forming important support for the market. Huang Fusheng pointed out that according to the Chinese report, the net profit growth rate of A-shares was about 15%, with the net profit growth rate of highly AI-related companies as high as 77%. The net profit growth rate of the three-quarter report further increased, laying a solid fundamental foundation for the market to move from “valuation repair” to “performance delivery”, and the driving logic is speeding up the completion of structural transformation. Looking ahead to the future market, he judged that under the triple logical resonance of the long-term market stabilization mechanism, gradual restoration of market pessimism, and continuous verification of the performance of listed companies, short-term disorderly market fluctuations are expected to subside clearly, and A-shares have a solid foundation for a steady rebound.