Analyst: The positive spiral effect of index profit and incremental capital is still in operation, and the narrative supported by this round of liquidity has not been broken.

Liu Chenming, chief analyst of Guangfa Securities, said that since late August, the market turnover has been high and shrinking, with daily turnover dropping from 3.2 trillion yuan to 2 trillion yuan at one point. At the same time, there has been a decline in profit-taking efficiency and increased market volatility, causing concerns among some investors. From the current market trend, if there are new catalytic factors appearing later, the market turnover may still increase further. From the perspective of incremental funds, the positive spiral between index profit-taking effects and incremental funds is still in operation, and the narrative supported by this round of liquidity has not been broken. The disturbances since September are mostly due to trading behaviors and emotional disturbances.