Chen Guo's Take on A-Share Market Correction: A Bottom Has Been Found! The Key Now Is Not About Position Size, but Market Structure

Deep News07-28

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On July 28, the A-share market opened lower and continued its decline in the morning session. By the midday close, the Shanghai Composite Index had fallen 0.98% to 3,820.52 points, the Shenzhen Component Index had dropped 3.42% to 13,664.80 points, the ChiNext Index had slumped 5.37% to 3,397.97 points, and the STAR 50 Index had declined 4.03% to 1,735.01 points. The combined trading volume of the Shanghai and Shenzhen stock exchanges in the morning session was approximately 1.33 trillion yuan. More than 2,800 stocks in the market recorded gains.

In response to this, Chen Guo, Deputy Director of the Research Institute and Chief Strategy Officer at East Money Securities, stated that the combination of a policy bottom, an (domestic demand) earnings bottom, a (carbon-based) capital bottom, and a sentiment bottom indicates that the bottom of the A-share index has been established. He argued that the decisive factor for the market's future performance is not the size of one's position, but rather the choice of market structure.

He believes that from a bull market perspective, investors should actively increase their holdings in carbon-based assets, Hang Seng Tech stocks, 'sauce-flavor tech' stocks, oversold assets, and pursue value investing and high-quality blue-chip stocks.

For a wealth of information and precise analysis, visit Sina Finance APP. Editor: Shi Xiuzhen SF183.

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