Chen Guo from CITIC Securities: Comprehensive profits, valuation, trading characteristics, etc. indicate that the market has already reached the bottom.

On September 10, Jin10 data reported that the valuation of the A-share market has reached a historical low, especially the price-to-book ratio. Chen Guo from CITIC Securities believes that the third quarter is expected to be the bottom of profitability, and the market is gradually incorporating the improvement expectations of year-on-year data for the fourth quarter of the third quarter. The pessimistic expectations that have been reflected in the short-term market reaction have exceeded those at the beginning of February. However, important bottom features have appeared at the trading level in the recent period. First, the turnover rate measured by the circulating market capitalization is approaching or equivalent to the levels of several major bottoms in history. Second, sectors such as banks that have performed strongly in the previous period have seen significant declines in the past two weeks, and the correction of strong stocks is often a common signal at the end of market adjustment. From the perspective of profitability, valuation, and trading characteristics, the market has already formed the conditions for a bottom.