East Money Securities Chen Guo: Growth and innovation sectors are expected to see a considerable rebound by the end of the year.

The research report released by Chen Guo's team stated that liquidity contraction was the key factor behind the market's weakness in the third quarter. Shrinking market turnover, continuous repayment of margin funds, and the capital diversion brought by IPO expansion combined to weigh on the performance of growth stocks. However, marginal improvement has recently emerged, with large net inflows into STAR Market and ChiNext ETFs, a notable release of trading crowding, a significant decline in the valuations of the dual-innovation boards, and a rise in the equity risk premium, enhancing the appeal of growth assets.