A-shares poised for steady higher-quality growth

Recent swings in global markets have reflected the unwinding of crowded AI trades and persistent geopolitical uncertainty. Though China's technology sector is connected to global AI sentiment, the A-share market has shown remarkable resilience, with implied volatility remaining relatively stable.

In our view, the recent pullbacks are indicative of profit-booking and short-term momentum adjustment rather than a change in fundamentals.

Looking ahead, China's A-share market has the potential to sustain a measured upward trend and develop into a steadier and more mature "slow bull" market.