Seven Major Public Funds Discuss the Market: A-shares Still Show Resilience in the Medium to Long Term, Structural Opportunities Worth Anticipating

Recently, the A-share market has experienced noticeable fluctuations. On March 24, seven major public fund institutions, including Huaxia Fund, Harvest Fund, CCB Fund, China Securities Global Fund, Galaxy Fund, GF Fund, and Everbright Prudential Fund, were interviewed by Securities Daily reporters. They generally believe that the current volatility in the A-share market is influenced by overseas geopolitical risks and a decline in international risk appetite. From a medium- to long-term perspective, Chinese assets still demonstrate strong resilience, and structural opportunities in sectors such as technology and energy are worth期待。

“Recently, due to ongoing international market risks, the A-share market has experienced some fluctuations,” said a relevant business leader from Huaxia Fund to Securities Daily. From a medium- to long-term view, the fermentation of various risk factors is conducive to enhancing the competitiveness of Chinese assets, and long-term capital allocation is a better choice. First, China’s dependence on international crude oil is relatively low, and the current overseas situation is insufficient to cause long-term impacts on Chinese assets; second, China’s new energy market is gradually gaining competitiveness, providing sufficient alternatives to international crude oil; finally, short-term adjustments in overseas energy supply cannot change the intrinsic support factors behind the rising prices of various Chinese assets.

A relevant person from Harvest Fund told reporters that recent global market volatility has increased, risk appetite has generally declined, and the A-share market has also experienced some turbulence. However, considering the valuation resilience of multiple sectors, the overall adjustment pressure on the market is expected to be limited.

Qian Xin from the Global Fund Management Department of China Securities said that China’s energy market is relatively diversified. Benefiting from the “dual carbon” strategy, the country’s electrification level has rapidly increased in recent years, reducing dependence on oil. From a fundamental perspective, China’s economy has not undergone fundamental changes, so the impact on financial markets will not be very obvious. In the future, related asset prices are expected to maintain a relatively strong momentum.

Due to short-term fluctuations in the A-share market, related assets have experienced short-term net value corrections. Yu Hui, senior strategic analyst at GF Fund, told reporters that the short-term volatility of the A-share market may be brewing better allocation opportunities. From a fundamental perspective, China has a solid economic foundation and a safer, more stable environment. For example, policies to stabilize growth are orderly, continuous, and well-stocked; monetary policy has diversified ways to support the market. Meanwhile, China’s manufacturing industry and supply chain system are well-developed, showing a steady upward trend. These favorable factors support the continued strength of Chinese asset prices.

Many public fund institutions believe that the market will still present structural opportunities in the future. A relevant person from Galaxy Fund told reporters that currently, international market risks are concentrated in resource commodities, and trading logic is shifting between repair and risk aversion. As risks in the A-share market are released, sectors such as coal and oil petrochemicals are expected to see significant structural opportunities.

A relevant business leader from CCB Fund explained that recent declines in the A-share market are mainly due to concerns over liquidity reduction. However, the fundamentals of industries such as high-growth optical modules, photovoltaics, and energy storage are supported and may be catalyzed by specific events. Additionally, the banking sector, as a high-dividend asset class, is also worth关注。 Going forward, three core variables should be closely monitored: first, the evolution of overseas situations; second, the monetary policy adjustments of major global central banks; third, the intensification of domestic policies to stabilize growth.

A person from Everbright Prudential Fund’s Equity Research Department told reporters that the loose liquidity environment in the A-share market is expected to continue, and the allocation of funds to assets like banks is likely to recover, providing support for medium- and long-term market liquidity. In terms of asset allocation strategies, defensive strategies still deserve focus, and medium-term opportunities such as narrowing term spreads in the bond market can be considered.

The relevant person from Harvest Fund also expressed a positive outlook on three mid-term directions: first, sectors with sustained growth prospects within the technology sector, such as AI+ and new energy; second, sectors benefiting from policy support, such as chemicals and non-ferrous metals; third, undervalued, profit-stable non-bank assets or those with high cost-effectiveness due to domestic demand recovery, as well as consumer sectors benefiting from “investment in people.”

(Source: Securities Daily)