Peng Hua Fund Chief Asset Allocation Officer Zheng Ke: Short-term market sees structural rebalancing; overall A-share valuations remain attractive.

Recently, the A-share market has experienced a phased correction, with investors' risk appetite somewhat declining. Regarding current market volatility, valuation levels, and medium- to long-term investment opportunities, Zheng Ke, Chief Asset Allocation Officer of Penghua Fund and General Manager of the Asset Allocation and Fund Investment Department, believes that this round of market volatility is a structural rebalancing within the market's normal movement and has not changed the long-term investment value of A-shares. Equity assets still possess strong allocation appeal. Zheng Ke stated that, affected by the accumulation of holdings, when the equity risk premium touched two standard deviations below its mean for the third time in the third quarter, the market underwent a relatively large correction, and sectors represented by the ChiNext and the STAR 50, among others, all experienced phased pullbacks. It should be emphasized that this is due to the characteristics of the A-share market itself; there have been no obvious changes in economic fundamentals, and this does not affect China's future shift process with new quality productive forces as the engine.