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Macro US Stocks

East Money Securities’ Chen Guo: A-share equity risk premium attractive

Chen Guo, chief strategist at East Money Securities, said the equity risk premium on the Shanghai Composite and CSI 300 is currently attractive from a valuation standpoint. He said overall third-quarter and full-year earnings growth for A-shares, along with ETF inflows providing a backstop, will support the market. He advised investors to look for overlaps between improving fundamentals and valuation repair during market pullbacks.

Original source

AI take

This is a sell-side strategist's valuation call, not a data release, so its significance lies in the framing: the case rests on the equity risk premium plus expected earnings growth and ETF inflows acting as a backstop. That combination matters most for domestic A-share allocators weighing whether passive flows can offset weak sentiment, since the ETF backstop argument implicitly leans on state-linked or index-tracking demand rather than fundamentals alone. The open question is whether the earnings growth he anticipates actually materializes across the third quarter and full year — valuation repair without it would be a much thinner story.

Generated by AI for reference only.

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