Increased capital inflow into the market has intensified, and A-shares possess relatively good investment appeal.

On October 26, the A-share market dipped and then rebounded. The Shanghai Composite Index rose slightly, while the Shenzhen Component Index and the ChiNext Index both fell more than 1%. More than 2,200 stocks in the broader A-share market rose, with nearly 60 stocks hitting the daily limit up. Trading volume amounted to 1.62 trillion yuan, shrinking from the previous trading day. On the funding side, incremental capital flowed actively into the market. Wind data showed that as of October 23, equity ETF funds had seen cumulative net inflows of more than 280 billion yuan since the start of October, and listed companies had repurchased more than 17 billion yuan worth of shares. With the market's continued volatility, A-share valuations have reached relatively low levels. Analysts believe that the overall valuation of the A-share market has fallen below its historical average, and that both horizontal and vertical comparisons show it now offers relatively good investment appeal. There is no need to be overly pessimistic on A-shares at present; in the short term, the market will likely focus on bottoming out through volatility and on structural opportunities.