pennconflict3| CICC: A-share valuation is restored after adjustment, and the Shanghai and Shenzhen 300 P/E ratio is 10.5 times. Looking forward to the future market

News summary

CICC analysis believes thatpennconflict3Although A-shares have recently undergone phased adjustments, increased economic policies and reform expectations will push the market to continue to repair, and major indices are expected to resume their upward trend. The Shanghai and Shenzhen 300 Index has a forward P/E ratio of 10pennconflict3.5 times, there is still room for valuation repair, and improvement in earnings expectations after the first quarter will support market performance. It is recommended to focus on green sectors such as export chain industries, globally priced resource products and new energy.

Newsletter text

[CICC analyzed that the phased adjustment of the A-share market will not affect the sustainability of its repair market]. The analysis pointed out that my country's economic policies and reform measures are expected to be further strengthened in the future, which will promote the continued improvement expected by investors. Despite the recent market emergencepennconflict3There have been adjustments, but this does not mean that the market repair trend since February is over. After adjustments, the main indices are expected to resume their upward trend. Currently, although market valuations have rebounded, the forward P/E ratio of the Shanghai and Shenzhen 300 Index is still only 10pennconflict3.5 times, lower than the historical average, and improved earnings expectations after the first quarter will also support the subsequent performance of the index. In terms of asset allocation, in the context of good external demand, export-related industries and globally priced resource goods still have investment opportunities; some industries with rising prices, such as public utilities, are receiving increasing market attention; green sectors such as new energy need to pay attention to recent marginal changes in industrial policies, which will help improve investors 'expectations.