Seven Major Public Funds Discuss the Market: A-shares Still Show Resilience in the Medium to Long Term, Structural Opportunities Worth Anticipating

Reporter Wang Ning

Recently, the A-share market has experienced noticeable fluctuations. On March 24, seven major public fund institutions, including China Asset Management, Harvest Fund, CCB Principal 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 declining international risk appetite. From a medium- to long-term perspective, Chinese assets still demonstrate strong resilience, and structural opportunities in sectors such as 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 China Asset Management 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 prices of various Chinese assets.

A relevant person 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 obvious. In the future, relevant 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 of the A-share market may be brewing better allocation opportunities. From a fundamental perspective, 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 institutions believe that the market will still present structural opportunities in the future. A relevant person from Galaxy Fund told reporters that currently, international market risks are concentrated in resource commodities, and trading logic is shifting between repair and risk aversion. As risks in the A-share market are released, sectors such as coal, oil, and petrochemicals are expected to present significant structural opportunities.

A relevant business leader from CCB Principal Fund explained that recent declines in the A-share market are mainly due to concerns over liquidity reduction. However, the fundamentals of some industries are supported, such as high-growth sectors like optical modules, photovoltaics, and energy storage, which may see catalysts. Additionally, the banking sector, as a high-dividend asset class, 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 of major global central banks; third, the intensification of domestic policies to stabilize growth.

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