Since July, sharp overseas market weakness and imported shocks have increased
volatility in A-shares. A recent rumor of a domestic lithography-machine R&D
breakthrough sent ASML shares lower and pushed related A-share sectors higher.
Market moves suggest greater supply-chain autonomy is reducing A-shares'
sensitivity to external shocks and helping form a defensive moat. China has a
near-complete industrial system, a large engineering workforce and deep
end-market demand; domestic substitution is shifting from single-point wins
toward coordinated full-chain progress. Continued industrial-chain improvement
should raise listed companies' long-term growth value and resilience to external
risk. Investors should temper valuation assumptions for “industrial-chain
security”: the direction is clear, but the process may be uneven.
