The impressive performance of the Growth Enterprise Market has become a recent focus of market attention. The ChiNext Index recently reached a new 11-year high. What are the primary drivers behind this surge to record levels? Which factors could become key variables influencing future trends? What specific sectors warrant close attention? Let's examine the professional analysis from Lei Jun, General Manager of Quantitative and Index Investment at Great Wall Fund.
Following a period of earlier adjustments, the ChiNext board has recently staged a rebound, climbing to its highest level since June 2025. What is your perspective on this movement, and what are the main factors driving this new high?
Lei Jun: The dual engines are energy security and the AI computing revolution. Since the geopolitical conflict in late February, oil price volatility has intensified significantly. The new energy sector has effectively hedged against the volatility risks associated with traditional energy supplies, leading to stronger stock performance during market adjustments. Stocks related to computing power are benefiting from the commencement of an earnings realization cycle, exhibiting high景气度.
What is the current valuation level of the ChiNext board? How do you view the index's subsequent trend, and which factors might be key variables for its future direction?
Lei Jun: From a historical perspective, the current valuation of the ChiNext board is around the median range of the past decade. Compared horizontally with other science and technology innovation indices, its valuation advantage is even more pronounced. Within the index,细分 sectors like new energy and communications have demonstrated impressive profitability, supported by solid fundamentals. With escalating global geopolitical tensions, disruptions to oil prices from the Strait of Hormuz situation may become a long-term feature, which benefits细分 areas like energy storage within the new energy sector. Concurrently, the market has already priced in marginal risks related to oil prices relatively fully. Technological growth directions, such as AI computing power, are expected to become the core driving force for further index gains.
Which specific sectors do you favor for investment opportunities?
Lei Jun: We maintain a positive outlook on two main themes: energy storage and AI computing power. The former is crucial for energy security, while the latter is leading a new technological revolution. Both are central focuses in major power competition and are strategic emerging industries receiving significant national investment, offering substantial long-term growth potential. Overall, the ChiNext Index encompasses high-quality assets in both directions, making it an excellent tool for consolidated exposure.
The China Securities Regulatory Commission recently issued guidelines to deepen ChiNext reform and better serve the development of new quality productive forces, introducing measures like optimizing listing mechanisms and market maker systems. How will these reforms impact the long-term ecosystem and investment value of the ChiNext market?
Lei Jun: Since its inception, the ChiNext board has maintained strong inclusivity towards technology industries. Over the past decade, it has nurtured outperforming stocks in areas like fintech, new energy, computing power, and pharmaceuticals. This round of reforms further strengthens its orientation towards serving new quality productive forces, continuously broadening the board's scope and depth. It enhances capital market support for the real economy and is more conducive to positioning for future diversified technology investment opportunities.
Looking at the overall A-share market, has it transitioned from a 'valuation-driven' phase to a new 'earnings-driven' stage? Is the growth style making a comeback?
Lei Jun: The A-share market is undergoing a profound reshaping. Its industry structure has changed significantly compared to a decade ago, with the proportion of hardcore areas like technology and high-end manufacturing rapidly increasing. The shift from 'valuation-driven' to 'earnings-driven' is merely the first step. The future may progress towards 'innovation-driven' growth, fundamentally rooted in the upgrading of China's economic and industrial structure. This could mark a major cycle transitioning from traditional industry dominance to leadership by technological growth.
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