Private Equity Strategies Shift to Balance; 'Light on Indices, Heavy on Individual Stocks' Becomes Consensus

The fourth-quarter trading session for China's A-share market has officially begun. Recently, several leading private equity firms have expressed a non-pessimistic outlook for the quarter: systemic risks are limited given current asset underallocation, some high-frequency economic data shows marginal improvement, and valuation suppression is not obvious. However, incremental capital and market sentiment still require repair; future markets are likely to see oscillatory recovery with a focus on structural opportunities. In terms of strategy, 'balanced allocation' and 'light on indices, heavy on individual stocks' have become the consensus among private equity firms. Regarding key market themes, the AI industry continues to attract high attention, with September surveys by private equity firms focusing on sectors such as electronics. Regarding potential risks and positive factors, several private equity firms noted the need to further monitor U.S. Federal Reserve monetary policy, oil prices and geopolitical disruptions, A-share third-quarter earnings, and the entry of incremental capital. (China Securities Journal)