Sou Hu Cai Jing·2025-08-31 11:18Core Viewpoint - The report from Guotai Junan Securities indicates that the Chinese stock market is expected to continue rising, with the Shanghai Composite Index surpassing 3,800 points, marking a ten-year high. The firm believes that the index will reach new highs in the future [1] Group 1: Market Outlook - The logic for being bullish on China since 2025 includes accelerated transformation, reduced uncertainty in economic and social development, and a downward trend in risk-free interest rates [1] - The report highlights that the capital market reforms have led to a systematic change in the perception of the value and risks associated with Chinese assets, thereby expanding the development space for the capital market [1] Group 2: Market Dynamics - Concerns about short-term adjustments in the market are deemed unnecessary, as the margin financing scale and market capitalization are at historical averages, and overall valuation levels remain low [1] - The likelihood of a Federal Reserve rate cut in September may provide an opportunity for the Chinese central bank to ease monetary policy and restart government bond trading, which could support economic measures [1] Group 3: Investment Strategy - The report suggests increasing the allocation of mid-cap stocks or low-priced blue-chip stocks in September as part of the investment strategy [1]