Penghua Fund CIO Zheng Ke said recent A-share weakness represents a phase of
structural rebalancing, not a change to the market’s long-term investment case.
He said equity risk premium in Q3 briefly breached
mean-minus-two-standard-deviations for the third time, prompting a sizable
correction concentrated in growth and innovation pockets such as ChiNext and
innovation-50 indices. Zheng said the pullback chiefly reflects position
concentration and not a material shift in economic fundamentals, and that
equities remain attractive for allocation as China advances its transition
toward higher-quality productivity.
