Foreign institutions believe that profitability will become the core factor driving stock price performance.

As of the close of November 18th, the cumulative gains of the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index since the beginning of the year have reached 17.54%, 25.6%, and 43.31% respectively. The cumulative gains of the Hang Seng Index and MSCI China Index are around 30%, showing outstanding performance globally. Can this upward trend continue next year? Outlook reports from UBS and Morgan Stanley suggest that the structural improvement of the Chinese stock market is expected to continue under the drive of multiple positive factors such as policy support, continuous development of technology innovation industries, and capital inflows. While the possibility of a significant increase in valuation multiples at the index level is low, improved corporate profits will further deepen the structural market rally.