A-shares Plummet and Hit Hot Searches, Multiple Factors Resonate to Form Negative Feedback, Public Offering Talks About Market Outlook: The Probability of a Short-Term Rebound is High
The A-shares market has experienced a sharp decline recently, leading to panic among investors and a significant decrease in net values for many active equity funds. Celebrities’ “snowball liquidation” and other hot search terms have dominated headlines, further exacerbating risk aversion among investors.
The net values of several active equity funds have seen significant drops, with China Panrui’s one-year fixed opening day net value falling by 8.94%, and several other funds experiencing drops of more than 6% in a single day. Fund companies and market analysts are puzzled by the recent sharp decline, as there are no apparent negative triggers in the market to warrant such a significant downturn.
Some fund companies have attributed the decline to a continuation of last week’s market decline, coupled with pessimistic investor expectations regarding weak domestic economic data and declining real estate sales. The fragility of market sentiment has exacerbated passive selling of leveraged funds, creating a negative feedback loop.
Despite the recent market turmoil, many fund companies maintain a positive outlook for a potential rebound in the short term. Companies like Morgan Stanley Fund and Qianhai Kaiyuan Fund believe that the accelerated decline may indicate the end of market risks, potentially leading to a market bottom out and rebound. They recommend paying attention to dividends and value strategies in the short term.
Furthermore, Southern Fund has highlighted positive factors accumulating in the country, such as policy support for the real estate industry and the central bank’s initiatives to increase monetary support, leading to a high probability of a short-term rebound.
In terms of investment direction, fund companies are focusing on low-risk sectors with stable cash flow and global pricing sectors, as well as dividend and value strategies. They also recommend keeping an eye on technology growth sectors and industry trend perspectives for potential allocation opportunities in the medium term.
It is important to note that the information provided in this article is for informational purposes only and does not constitute investment advice. Investors are advised to operate accordingly at their own risk.