A-shares still have resilience in the medium to long term; structural opportunities are worth anticipating

Recently, the A-share market has experienced noticeable fluctuations. On March 24, seven major public fund managers, including Huaxia Fund, Harvest Fund, CCB Fund, China Securities Global Fund, Galaxy Fund, Fortis Fund, and Everbright Prudence Fund, were interviewed by Securities Daily. They generally believe that the current volatility in the A-share market is influenced by overseas geopolitical risks and a decline in international risk appetite. From a medium- to long-term perspective, Chinese assets still demonstrate strong resilience, and structural opportunities in sectors like technology and energy are worth looking forward to.

“Recently, due to ongoing international market risks, the A-share market has experienced some fluctuations,” said a relevant executive from Huaxia Fund in an interview with Securities Daily. From a medium- to long-term view, the fermentation of various risk factors is conducive to enhancing the competitiveness of Chinese assets, and long-term capital allocation is a better choice. First, China’s dependence on international crude oil is relatively low, and the current overseas situation is insufficient to cause long-term impacts on Chinese assets; second, China’s new energy market is gradually becoming more competitive, providing sufficient alternatives to international crude oil; finally, short-term adjustments in overseas energy supply do not alter the intrinsic support factors for rising asset prices in China.

A person in charge from Harvest Fund told reporters that recent global market volatility has increased, risk appetite has generally declined, and the A-share market has also experienced some turbulence. However, considering the valuation resilience of multiple sectors, the overall adjustment pressure on the market is expected to be limited.

Qian Xin, head of the Global Fund Management Department at China Securities, stated that China’s energy market is relatively diversified. Benefiting from the “dual carbon” strategy, the country’s electrification level has rapidly increased in recent years, reducing dependence on oil. From a fundamental perspective, China’s economy has not undergone fundamental changes, so the impact on financial markets will not be very significant. In the future, related asset prices are expected to remain relatively strong.

Due to short-term fluctuations in the A-share market, related assets have experienced short-term net value corrections. Yu Hui, senior strategist at Fortis Fund, told reporters that the short-term volatility in the A-share market may be brewing better allocation opportunities. From a fundamental standpoint, China has a solid economic foundation and a safer, more stable environment. For example, policies to stabilize growth are orderly, continuous, and well-stocked; monetary policy has multiple ways to support the market. Additionally, China’s manufacturing and supply chain systems are well-developed, showing a steady upward trend overall. These positive factors support the continued strength of Chinese asset prices.

Many public fund managers believe that the market will continue to present structural opportunities in the future. A relevant person from Galaxy Fund told reporters that currently, risks in the international market are concentrated in resource commodities, and trading logic is shifting between repair and risk aversion. As risks in the A-share market are being released, sectors like coal, oil, and petrochemicals are expected to see significant structural opportunities.

A person in charge from CCB Fund’s business department explained that the recent decline in the A-share market is mainly due to concerns over declining liquidity. However, the fundamentals of certain industries, such as high-growth sectors like optical modules, photovoltaics, and energy storage, are supported and may experience catalysts. Additionally, the banking sector, as a high-dividend stock, is also worth attention. Going forward, three core variables should be closely monitored: first, the evolution of overseas geopolitical situations; second, the monetary policy adjustments by major global central banks; and third, the intensification of domestic growth stabilization policies.

A relevant person from Everbright Prudence Fund’s stock research department told reporters that the loose liquidity environment in the A-share market is expected to continue, and the allocation of funds to assets like banks is likely to recover, providing support for medium- to long-term market liquidity. In terms of asset allocation strategies, defensive strategies still deserve focus, and medium-term opportunities such as narrowing yield spreads in the bond market can be considered.

The aforementioned person from Harvest Fund also expressed a positive outlook on three mid-term directions: first, sectors with sustained growth prospects within the technology sector, such as AI+ and new energy; second, sectors benefiting from policy support, such as chemicals and non-ferrous metals; and third, undervalued, profit-stable non-bank assets or those with high cost-effectiveness due to domestic demand recovery, as well as consumer sectors benefiting from “investment in people.”