Guan Tao, chief economist at Huafu Securities, said recent domestic market
weakness reflects sentiment volatility after rising geopolitical tensions and
widening divergence in overseas tech stocks, but key market drivers remain
intact. He listed four market-positive points: China’s long-term favorable
economic fundamentals are unchanged; the certainty of stronger, more effective
policy support remains; innovation momentum is gradually releasing; and
valuation advantages in Chinese assets remain to be exploited. Under dual forces
of market demand and policy guidance, China’s growth is shifting toward higher
quality and structural upgrade. Investors should treat recent volatility
rationally, focus on earnings-recovery stories, and remain cautiously optimistic
on medium-to-long-term market prospects. Guan added that deepening
capital-market financing and investment reform is two-way: authorities must
strengthen institutional support for long-term capital and investors must adopt
long-term, value-driven, rational investment habits. The current episode is a
litmus test for the market’s ability to move away from momentum trading toward
greater maturity.
