Huafu Securities: A-share Valuations Have Priced In Caution, Equity Value Emerging

The significance here is less the call itself than its timing: a sell-side strategist arguing that caution is already in the price implies the market's problem is positioning, not fundamentals. The conditionality matters — the recovery case rests on earnings stabilizing and liquidity expectations repairing, both of which are assumptions rather than observations. For A-share and China-exposed RWA allocators, the open question is whether earnings revisions actually trough, since that would validate the valuation argument; without it, the view remains a sentiment call dressed as a valuation one.