East Money Research Institute deputy director and chief strategist Chen Guo said A-shares saw large-scale discounted sales of high-quality stocks driven by liquidity-driven forced selling by holders of dividend assets, creating price dislocations. He reiterated a strong preference for non-bank financials, especially brokerages, noting the sector's ROE is at its highest since 2022 with room to rise and its current PB sits in the bottom decile of the historical distribution. He said he does not ex

East Money Research Institute deputy director and chief strategist Chen Guo said A-shares saw large-scale discounted sales of high-quality stocks driven by liquidity-driven forced selling by holders of dividend assets, creating price dislocations. He reiterated a strong preference for non-bank financials, especially brokerages, noting the sector's ROE is at its highest since 2022 with room to rise and its current PB sits in the bottom decile of the historical distribution. He said he does not expect a broad A-share bear market; if one materialises, brokerage valuations would likely have adjusted first. Conversely, he warned that any extreme market compression of broker valuations should ultimately snap back.