Recently, the A-share market has experienced phased adjustments, and market sentiment is under pressure. However, in the midst of sharp fluctuations, forces from all sides to stabilize the market are gathering: trillions of insurance funds are bucking the trend and are determined to be “patient capital”; many brokerage firms are relaying to buy back shares and are intensively vocal to stabilize expectations; brokerage chiefs generally believe that the adjustments are technical corrections, and A-shares are resilient enough in the medium to long term. The economy is basically well-oriented, the policies are strong, and the industry trends have not changed. This is what motivates institutions to look bullish on the future market. Regarding the market's adjusted operation strategy, the advice that brokerage firms tend to agree on is: don't panic to “cut meat,” and don't blindly cut the bottom. Zhang Jun, chief economist and research director of China Galaxy Securities, said that this round of decline is a benign technical adjustment. Currently, the market has the conditions for a steady rebound, and the index has ushered in a recovery window. According to the CITIC Securities Research Report, early index adjustments are more similar to rebalancing after K-shaped market differentiation. After the pressure on valuations in high-ranking sectors is released, pricing in the A-share market is expected to gradually return to fundamental logic.

Recently, the A-share market has experienced phased adjustments, and market sentiment is under pressure. However, in the midst of sharp fluctuations, forces from all sides to stabilize the market are gathering: trillions of insurance funds are bucking the trend and are determined to be “patient capital”; many brokerage firms are relaying to buy back shares and are intensively vocal to stabilize expectations; brokerage chiefs generally believe that the adjustments are technical corrections, and A-shares are resilient enough in the medium to long term. The economy is basically well-oriented, the policies are strong, and the industry trends have not changed. This is what motivates institutions to look bullish on the future market. Regarding the market's adjusted operation strategy, the advice that brokerage firms tend to agree on is: don't panic to “cut meat,” and don't blindly cut the bottom. Zhang Jun, chief economist at China Galaxy Securities and director of the Research Institute, said that this round of decline is a benign technical adjustment. Currently, the market has the conditions for a steady rebound, and the index has ushered in a recovery window. According to the CITIC Securities Research Report, early index adjustments are more similar to rebalancing after K-shaped market differentiation. After the pressure on valuations in high-ranking sectors is released, pricing in the A-share market is expected to gradually return to fundamental logic.