Guan Qingyou on the A-share index falling below 4,000 points: The bull market in emerging industries is certain | Homebody Finance

【Hobbyist Finance | Expert Face-to-Face】On Friday, the three major A股 indexes surged and then retreated. The Shanghai Composite Index fell below 4,000 points. By the close, the Shanghai Composite Index was down 1.24%, at 3,957.05 points; the Shenzhen Component Index was down 0.25%; and the ChiNext Index was up 1.30%.

As stated by Guan Qingyou, President of the Institute of Ruccourse Finance Research, in an interview with Hobbyist Finance, the international situation has been relatively turbulent in recent times. The Iran crisis has triggered a chain reaction, and markets generally worry about inflation pressures stemming from a potential disruption in oil supply and a surge in oil prices. The Federal Reserve may pause rate cuts, or even pivot to rate hikes, which will further affect global capital market liquidity.

Guan Qingyou analyzed that, from the perspective of China’s own market, A股 can no longer be simply defined as a “bull market” or a “bear market,” because both the indexes and the investing participants show diversified characteristics. But one thing is relatively certain: there is a bull market in China’s emerging industries.

Guan Qingyou pointed out that China’s emerging manufacturing sector has achieved broad and in-depth global competitiveness in the AI field. Its foundation in basic manufacturing is solid, and the development direction for new energy is fairly clear. Due to the electricity demand brought by AI development, as well as the demand generated by the construction of the new round of new energy equipment and the parts and component system, these are also certain.

Guan Qingyou said that at this time, mature investors should maintain strategic focus, stay clear-headed, and adjust their mindset. Regarding the fact that the Federal Reserve has not yet cut rates and the high level of attention to inflation—of course, this needs to be monitored—but there is no need to copy and paste Wall Street’s playbook to China’s market.

**　　(The views expressed in this article are for reference only and do not constitute investment advice. Investing involves risk; enter the market with caution.)**

(Produced by Zhang Jiayi. Responsible editor: Dong Xiangyi, Zhang Yihua. Produced by Hobbyist Finance.)