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

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.