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 pul

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.