“This round of adjustments is mainly affected by fluctuations in overseas markets and changes in external risk appetite. The direction of technological growth, which had a large increase in the previous period, has also retracted more clearly due to higher valuation expectations. But short-term price adjustments do not mean a reversal of the long-term trend.” Zhou Junzhi, chief macro analyst at CITIC Construction Investment Securities, said in an interview with reporters. Looking at it from a longer perspective, Zhou Junzhi believes that the medium- to long-term growth logic of the market is still clear. The upgrading of the technology industry is expected to drive profit growth for listed companies, the migration of residents' asset allocation is expected to bring incremental domestic capital to A-shares, and the internationalization of RMB is expected to broaden the space for overseas capital to allocate Chinese assets. The three logics apply to the profit side, domestic capital side, and overseas capital side of A-shares respectively.

“This round of adjustments is mainly affected by fluctuations in overseas markets and changes in external risk appetite. The direction of technological growth, which had a large increase in the previous period, has also retracted more clearly due to higher valuation expectations. But short-term price adjustments do not mean a reversal of the long-term trend.” Zhou Junzhi, chief macro analyst at CITIC Construction Investment Securities, said in an interview with reporters. Looking at it from a longer perspective, Zhou Junzhi believes that the medium- to long-term growth logic of the market is still clear. The upgrading of the technology industry is expected to drive profit growth for listed companies, the migration of residents' asset allocation is expected to bring incremental domestic capital to A-shares, and the internationalization of RMB is expected to broaden the space for overseas capital to allocate Chinese assets. The three logics apply to the profit side, domestic capital side, and overseas capital side of A-shares respectively.