Dai Zhifeng, general manager of research and consulting at Zhongtai Securities,
said the recent A-share correction reflects post-rally valuation digestion,
earnings dispersion and external volatility. Ongoing market-stabilizing policies
have supported expectations and liquidity. China Listed Companies Association
data show combined revenue and net profit for the ChiNext, STAR Market and
Beijing Stock Exchange rose 27.0% and 79.8% in the first three quarters. Pricing
on technology-focused boards is shifting from valuation expansion to earnings
delivery; broad sector rallies will be harder and investors will place greater
weight on real orders, profit quality, cash flow and valuation alignment. The
market has shown signs of stabilization. The medium- to long-term positive trend
for A-shares remains, but further upside depends on sustained corporate profit
improvement, fresh inflows and supportive macro data.
