Li Huaijun, a macro analyst at the First Venture Securities Research Institute, said on July 21 that A-shares currently have certain support conditions. First, fundamentals are resilient, and the overall trend of moderate economic recovery has not changed. Production and retail data for June showed a moderate recovery trend. The performance growth trend of listed companies has not changed, and many listed companies in the high-tech industry have issued pre-increase announcements in their semi-annual reports. Second, valuations are already attractive; valuations in some sectors have returned to historically low ratings, and have medium- to long-term investment value. Looking ahead to future trends, Li Huaijun said that in the short term, if time is exchanged for space, the market is likely to continue the volatile pattern, but there is limited room for a further sharp decline. Looking at structural differentiation in the medium term, we should focus on the main lines of the industry. For example, the AI-driven technology market is still supported by the industry. The capital expenditure of the top five global cloud vendors soared 91% year on year in the first quarter of 2026; the resource cycle sector benefited from rising energy prices and had phased investment opportunities; and the consumer sector is expected to gradually recover under the impetus of consumer promotion policies. In the long run, the trend of A-shares is upward, and the slow bullish pattern remains unchanged. The long-term growth potential of the Chinese economy provides a solid foundation for A-shares. The foreign capital allocation logic is shifting from “buying growth” to “buying safety,” and medium- to long-term capital will continue to flow in.

Li Huaijun, a macro analyst at the First Venture Securities Research Institute, said on July 21 that A-shares currently have certain support conditions. First, fundamentals are resilient, and the overall trend of moderate economic recovery has not changed. Production and retail data for June showed a moderate recovery trend. The performance growth trend of listed companies has not changed, and many listed companies in the high-tech industry have issued pre-increase announcements in their semi-annual reports. Second, valuations are already attractive; valuations in some sectors have returned to historically low ratings, and have medium- to long-term investment value. Looking ahead to future trends, Li Huaijun said that in the short term, if time is exchanged for space, the market is likely to continue the volatile pattern, but there is limited room for a further sharp decline. Looking at structural differentiation in the medium term, we should focus on the main lines of the industry. For example, the AI-driven technology market is still supported by the industry. The capital expenditure of the top five global cloud vendors soared 91% year on year in the first quarter of 2026; the resource cycle sector benefited from rising energy prices and had phased investment opportunities; and the consumer sector is expected to gradually recover under the impetus of consumer promotion policies. In the long run, the trend of A-shares is upward, and the slow bullish pattern remains unchanged. The long-term growth potential of the Chinese economy provides a solid foundation for A-shares. The foreign capital allocation logic is shifting from “buying growth” to “buying safety,” and medium- to long-term capital will continue to flow in.