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, an

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.