Venture(US:VEMLY) Sou Hu Cai Jing·2025-07-31 11:20Core Viewpoint - The ChiNext index experienced a significant pullback of 1.66%, marking the largest single-day decline since July of this year, attributed to profit-taking after a prolonged upward trend and lack of new policy measures from recent meetings [2][3]. Market Analysis - The recent pullback is primarily due to a short-term adjustment after a strong rally, with 19 out of the last 29 trading days showing gains, leading to profit-taking by investors [3]. - The absence of new stimulus measures from a recent important meeting has dampened market expectations, as the language used in the meeting shifted from concerns about external shocks to a focus on positive economic indicators [3]. - Ongoing trade tensions, particularly the lack of significant outcomes from the latest US-China trade talks and the impending implementation of high tariffs, are also contributing to market uncertainty [3]. Future Outlook for ChiNext - The outlook for the ChiNext remains optimistic, supported by ongoing domestic policy initiatives aimed at promoting economic growth and reducing financing costs [4]. - The fundamentals of key sectors within the ChiNext, such as telecommunications, pharmaceuticals, and electronics, are showing improvement, with expected net profit growth of 39% by 2025 [5][7]. - The ChiNext index is projected to have a revenue growth rate of 26% and a net profit growth rate of 39% by 2025, outperforming other major indices [7][10]. Valuation Perspective - The current valuation of the ChiNext index is relatively low, with its valuation percentile below 25% compared to other indices, suggesting potential for future gains [11]. - Historical performance indicates that the ChiNext has previously experienced substantial gains during bull markets, with past increases exceeding 100% in previous cycles, indicating room for further growth in the current market [12].