Zhang Deli, chief macro analyst at Zhongtai Securities, said the
innovation-and-entrepreneurship index has corrected since Q4 and he views the
move as valuation rebalancing rather than a reversal of the industry trend or
policy environment. He said industry fundamentals remain positive medium-to-long
term and policy will continue to strongly support tech self-reliance, but
markets may see short-term volatility driven by sentiment; volatility in a few
sectors that posted large prior gains has pulled the broader index down. He
flagged monitoring changes in earnings expectations, progress in valuation
repair, and whether trading interest broadens to more sectors.
