Guosen Securities Co.Ltd(002736) pointed out that in September, the A-share market continued the rising market since August. Although it was adjusted in the second half of the year, on the whole, the A-share market still performed well in September. Looking forward to the future, as the monetary policy is not eager to have large easing measures in the short term, we believe that the determinants of the future trend of the market may depend more on the fundamentals of the economy. However, the downward pressure on China’s economic growth is still accumulating. We believe that under the background that the overall valuation of A-Shares is not high, the global interest rate is still in the downward cycle and the impact of external friction on A-Shares is becoming more and more passive, the biggest risk point at present is the over expected decline in the future performance of listed companies. At present, when the fundamentals have not improved, “counter cyclical and heavy defense” is still the main allocation idea we suggest. From the perspective of structural opportunities, it is recommended to pay attention to the banking, real estate and optional consumption sectors with strong undervalued defense attributes.
(Securities Times)
