A-share Market Dips Then Recovers; Institutions Cite Foundation for Corrective Rebound

This week, the Shanghai Composite Index, Shenzhen Component Index, ChiNext Index, and STAR 50 Index cumulatively fell by 0.74%, 1.91%, 2.93%, and 4.88%, respectively, with coal, media, and petroleum & chemical sectors leading gains. In terms of capital flows, Wind data shows that main funds in both the Shanghai and Shenzhen markets experienced net outflows over two trading days, reflecting cautious sentiment. Analysts believe the market has a foundation for a corrective rebound in the short term, with trading activity expected to pick up, though the rebound may be relatively moderate. With third-quarter earnings reports from listed companies set to be disclosed by the end of October, sectors supported by profitability are likely to become preferred investment directions. (China Securities Journal)