Securities Daily Article: Rationally View External Shocks, A-Share Medium and Long-Term Positive Trend Unchanged

Special Topic: The Current Bottom May Be a Mid-Term Low for A-shares; Deep Adjustments Have Created Good Opportunities for Positioning

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On March 23, Fangzheng Securities Chief Economist Yan Xiang released his latest view, stating that external shocks should be viewed rationally regarding their impact on the domestic A-share market. Short-term external disturbances will not change the long-term positive trend of A-shares. After rapid adjustments, the value of equity assets is further highlighted, making them worth investor attention.

From an energy structure perspective, thanks to the leading advantages of the new energy industry chain and the ongoing energy transition, China has built a more diversified and resilient energy system. The electrification transformation is also accelerating, which means that under international oil price shocks, China is relatively less affected. “Over the past decade, China’s energy consumption structure has undergone profound adjustments, with a continuous shift from coal and oil to electricity. The electrification process in transportation is particularly prominent. Meanwhile, the installed capacity of renewable energy generation continues to expand, and the country’s energy supply independence has significantly improved,” Yan Xiang said.

In Yan Xiang’s view, since 2025, with macro policies continuously strengthening and domestic demand gradually improving, A-shares listed companies have shown a sustained recovery in profitability and a steady increase in earnings capacity. Currently, A-share listed companies are in the early stages of profit growth. In 2026, under the environment of overall stable real economic growth and continued nominal growth, corporate profits are expected to continue rising: on one hand, the ongoing recovery of nominal economic growth will clearly benefit corporate earnings; on the other hand, the deep implementation of policies to “counter internal competition” and improve capacity utilization will further benefit the recovery of corporate profit margins.

Yan Xiang also mentioned that the intrinsic stability of the capital market continues to improve. On one hand, the overall quality of listed companies in China has steadily increased in recent years, injecting strong momentum into the prosperity and development of the capital market. On the other hand, the awareness of listed companies to reward investors has significantly improved, which is an important sign of China’s capital market moving toward high-quality development. Additionally, long-term funds continue to flow in, providing solid support for the stable operation of the capital market.

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Editor: Wu Sinan