Huafu Securities macro chief analyst Chen Xing said core A‑share valuations now
largely reflect market caution, making equity allocation value increasingly
evident. He said equities have upside repair potential provided earnings show
marginal stabilization and liquidity expectations modestly recover. He advised
against panic selling and recommended focusing on high‑quality names where
Earnings and valuation align, maintaining rational, patient positioning. After
the recent correction, broad and sector indices have dropped to historically low
percentiles; some growth subsectors sit near one‑year lows, and financials and
cyclical value sectors are near historical troughs. Chen said the negative
factors that compressed valuations are largely priced in, limiting downside and
improving risk‑reward, so names with high earnings certainty and reasonable
valuations could see an attractive allocation window.
