Core Viewpoint - The current bull market in the domestic capital market is characterized by a lack of clear initiation signals and a slow upward movement, indicating a unique underlying logic compared to previous bull markets [1][3]. Group 1: Market Characteristics - The bull market has not been triggered by any significant events, unlike past bull markets which had clear catalysts [1]. - The index has risen slowly from 3300 points in June to 3800 points over nearly three months, contrasting with previous rapid increases [1]. Group 2: Underlying Logic - The fundamental logic behind the current market rally is valuation repair and asset repricing, as current valuations are deemed too low and detached from true value [3][4]. - The disparity between asset price and value is influenced by various factors, including monetary policy and economic conditions [3][4]. Group 3: Valuation Context - As of August 2025, the average price-to-earnings (P/E) ratio of major A-share indices is around 15 times, significantly lower than the over 30 times P/E ratio of European and American markets [4]. - The market capitalization to GDP ratio for A-shares is only 74%, much lower than the over 200% ratio for U.S. stocks and 150% for Japanese stocks [4][5]. Group 4: Market Dynamics - The capital market in the region has lagged behind economic growth and global capital market expansion, indicating a significant undervaluation [5]. - The recent potential for U.S. interest rate cuts has provided the region with the opportunity to adjust its monetary policy and encourage capital inflow into the market [6]. Group 5: Policy Support - Recent policy measures, such as lowering fund subscription fees and restarting government bond trading, aim to attract social capital into the market and facilitate asset price recovery [6][7]. - The expansion of base money through central bank bond purchases is seen as a means to indirectly support asset price recovery [8]. Group 6: Future Outlook - The current market rally, driven by valuation repair, is viewed as a necessary step for economic recovery, with expectations for continued asset price increases in the coming year [9]. - The potential for significant wealth opportunities is highlighted, encouraging investors to participate in the ongoing price recovery [9].

Core Viewpoint - The current bull market in the domestic capital market is characterized by a lack of clear initiation signals and a slow upward movement, indicating a unique underlying logic compared to previous bull markets [1][3]. Group 1: Market Characteristics - The bull market has not been triggered by any significant events or signals, unlike past bull markets which had clear catalysts [1]. - The index has risen slowly from 3300 points in June to 3800 points over nearly three months, contrasting with previous rapid increases [1]. - The underlying logic of this market is believed to be valuation repair and asset repricing, as current valuations are considered too low [3][4]. Group 2: Valuation and Pricing - The current asset prices are significantly undervalued, deviating from their true value due to various influencing factors [3][4]. - The average price-to-earnings (P/E) ratio of the A-share market is around 15 times, while major indices like the CSI 300 have an average P/E of about 12 times, both of which are lower than their U.S. and European counterparts [4]. - The market capitalization to GDP ratio for A-shares is only 74%, much lower than that of the U.S. (over 200%) and Japan (150%) [4][5]. Group 3: Economic Context - The capital market's development in the domestic context has lagged behind economic growth and global trends, indicating a significant undervaluation [5]. - The repair of asset valuations is seen as a necessary step for economic recovery, especially in light of potential liquidity releases from the U.S. [9]. Group 4: Policy Implications - Recent policies aimed at reducing fund purchase costs and restarting government bond trading are designed to attract more capital into the market [6][7]. - The easing of monetary policy and liquidity expansion by the central bank is expected to support asset price recovery [8]. Group 5: Future Outlook - The current market conditions suggest that asset prices are likely to continue rising, presenting a significant wealth opportunity for investors [9]. - Investors are encouraged to participate in this market to benefit from the ongoing asset repricing [9].