Founder: China's asset attractiveness is expected to continue to rise. In the short-term spring market, we recommend focusing on value growth and rebalancing opportunities.

The founder released a research report stating that overall, the attractiveness of Chinese assets is expected to continue to increase, which will drive the A-share market to continue to move forward in a positive direction. The equity risk premium ERP shows that the investment cost-effectiveness of equity assets is relatively high. In terms of structure, technology growth may dominate or be a major structural feature in the medium term market, but it is also noted that the current market valuation differentiation is already high. At the same time, the dividend index dividend yield minus the loan rate differential has also reached a new high in recent years. In the short term, during the spring market, it is recommended to pay attention to the opportunities for value growth rebalancing. Since the beginning of 2025, the overall performance of the A-share market has been remarkable, with the structural market of small and medium-sized technology growth particularly outstanding. The bank believes that there are three main logical clues driving this round of market trends: first, we are currently at the end of the earnings downturn cycle of this round, which is a typical characteristic of the "Phase I" with "denominator logic", whether small and medium-sized growth or dividend market belong to the "denominator logic". Second, since the fourth quarter of last year, a package of incremental policies has been implemented, stabilizing expectations and boosting market confidence. Third, the rise of Chinese technology companies is driving the revaluation of asset value. Risk factors: macroeconomic performance falls short of expectations, significant fluctuations in overseas markets, and historical experience does not guarantee the future.