Huafu Securities: Positive factors in A-shares are accumulating, and we can be more optimistic in the future

On August 31, Yan Xiang, chief economist of Huafu Securities, said that the current positive factors in the A-share market are accumulating, and the follow-up can be more optimistic. First, the profit cycle of A-share enterprises is expected to bottom out, from the historical data, the year-on-year growth rate of PPI is highly correlated with the earnings of A-share enterprises, with the year-on-year growth rate of PPI shocks and rebounds, the price factor will gradually weaken the suppression of corporate earnings. Second, the high-quality development of the Capital Market continues to advance, which is of great significance for stabilizing market expectations and boosting investor confidence. Third, the current market valuation is at a historical low, and the investment value is highlighted. In terms of allocation, the current dividend strategy still has allocation value, “low valuation + stable profitability” is the long-term effective source of the dividend strategy, and the technology growth zone represented by TMT is also worth focusing on.