UBS' Wang Zonghao: A shares have greater upside potential than H shares.

How long can the A-share market heat last? Wang Zonghao, director of China stock strategy research at UBS Investment Bank, analyzed that in general, H-shares may consolidate in the short term, while A-shares seem to have greater upside potential. Firstly, although the margin financing balance of A-shares has recently increased, the proportion of market value is still relatively low; secondly, bank deposits continue to grow strongly, indicating that more deposits may enter the market as the stock market rises; thirdly, trading volume is still high, which may encourage more opportunistic investors to join. In addition, compared to other major regions, A-share valuation is not considered high. He also mentioned that regulatory intervention, significant overseas market pullback, and other factors may reverse the recent upward trend in stock prices, but the likelihood is low at the current stage. Another factor is the policy support in October, which is expected to provide a certain degree of expectation for investors - if the economy weakens in the third quarter, policy will provide a certain bottom line support.