Seeking Alpha Amid Structural Divergence: Institutions See Window to Position in Undervalued Blue Chips

"The divergence between price and value is precisely the window of opportunity where value investors are willing to settle in and wait patiently, and it also gives us firm confidence in the medium- to long-term development of China's capital markets." Zhang Ming, deputy general manager of the value investment department at Anxin Fund, said recently. So far this year, global capital markets have seen intensified volatility amid geopolitical tensions, oil price movements and other factors. Since October, A-shares have entered a volatile adjustment, with the previously high-flying technology and growth sectors showing markedly amplified swings. Several institutions said the recent adjustment in A-shares stems more from external disturbances and sentiment release than from a reversal in fundamentals. Institutions generally believe Chinese assets have solid fundamental support, and that amid short-term market fluctuations, investors should view the economy and markets from a longer-term perspective, recognizing China's continuing economic growth drivers and abundant structural opportunities, and have ample reason to remain confident in the long-term value of the Chinese market and Chinese assets. (China Securities Journal)