A-Shares' Recent Two-Week Selloff Has Distinctive Imported Characteristics, Says CITIC Chief Economist on July 20

CITIC2.12%
According to Jin10, Chief Economist of CITIC Securities Huang Wentao said on July 20 that A-shares' recent two-week selloff has distinctive imported characteristics. The offshore market downturn is digesting concentration and leverage, while A-shares differ structurally in liquidity environment, trading crowdedness, and upside drivers, Huang noted. A-shares have absorbed a discount mismatched with their own risk structure. Following this adjustment, A-shares technology assets have declined significantly, while policy direction, industry space, and medium-term earnings trends have not been revised downward accordingly. The price corresponding to future growth has become lower, with improved risk-reward ratio.
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