“The sharp decline in emotional catharsis is unsustainable. Market stabilization measures and foreign trade hedging policies are expected to help stabilize the market.” Zheng Xiaoxia, chief economist at Huaan Securities, said that measures to stabilize the market are already on the way, and foreign trade hedging policies are expected to be introduced at an accelerated pace, so there is no need to be pessimistic about A-shares in their current position. Looking ahead to the future market, Zheng Xiaoxia believes that the direction of stagnant growth in the early period and undervaluation combined with potential catalysts is worth paying attention to: the first main line is banks and insurance with a stable cost ratio and strategic allocation value in the medium to long term in the volatile market; the second main line is to support some consumer sectors catalyzed by policies, focusing on pharmaceuticals, automobiles, home appliances, and travel chains; and the third main line is to continue to be optimistic about medium- to long-term precious metals prices and stock price performance.

“The sharp decline in emotional catharsis is unsustainable. Market stabilization measures and foreign trade hedging policies are expected to help stabilize the market.” Zheng Xiaoxia, chief economist at Huaan Securities, said that measures to stabilize the market are already on the way, and foreign trade hedging policies are expected to be introduced at an accelerated pace, so there is no need to be pessimistic about A-shares in their current position. Looking ahead to the future market, Zheng Xiaoxia believes that the direction of stagnant growth in the early period and undervaluation combined with potential catalysts is worth paying attention to: the first main line is banks and insurance with a stable cost ratio and strategic allocation value in the medium to long term in the volatile market; the second main line is to support some consumer sectors catalyzed by policies, focusing on pharmaceuticals, automobiles, home appliances, and travel chains; and the third main line is to continue to be optimistic about medium- to long-term precious metals prices and stock price performance.