Beijing Business Daily: High-quality stocks are expected to lead valuation correction.

The news of a temporary ceasefire between the US and Iran has stimulated the A-share market to rebound significantly. The performance of the Shanghai and Shenzhen 300 Index, represented by high-quality stocks, is slightly stronger than the overall Shanghai Composite Index, indicating that the recovery speed of high-quality stocks is slightly faster than the overall market. In the future, the valuation recovery space and speed of high-quality stocks will be higher and faster than the overall market, and the valuation level of high-quality stocks will gradually diverge from low-quality stocks. The trend of A-shares is closely related to external environment, fund flows, and the fundamentals of listed companies. The temporary easing of geopolitical tensions has eliminated a major uncertainty factor in the market, providing an opportunity for valuation recovery for A-shares that were previously suppressed by risk aversion sentiment. When market funds choose investment direction, they often prioritize listed companies with low risk and strong certainty. High-quality stocks, with stable operating performance, solid fundamentals, and predictable stable cash dividend capability, become the preferred targets for large funds to buy in the rebound stage, which is also the core reason for their stock prices to strengthen first.