Zhongjin: The current period may be a relatively low point in the mid-term for A-shares, and the deep adjustment has brought about a good opportunity for layout.

Zhongjin believes that the current may be the mid-term relative low point of A shares, and the deep adjustment has brought about a good opportunity for layout. Although there is still some uncertainty in the short-term trend, after the adjustment, the risks in the A-share market have been further released. We believe that the valuation is at a relatively reasonable level. March 23, the equity risk premium of the Shanghai and Shenzhen 300 Index compared with the yield of the 10-year government bond was 5.5%, at the 42nd percentile since 2010. The dividend yield of the Shanghai and Shenzhen 300 Index is 2.7%, and the stock-bond value ratio still has an advantage. In the medium term, the macro environment of the market has not fundamentally changed, and the logic of supporting the "steady progress" of the A-share market is still valid. Risk release and downward adjustments are expected to bring better allocation opportunities. China's manufacturing advantages are obvious, and artificial intelligence is in a stage of new technology iteration and application landing. The demand for energy and costs for new model training is showing exponential growth, supporting upstream demand and driving the price increase and profit improvement of related listed companies.