Core Viewpoint - The article discusses the significant rise in A-shares and Hong Kong stocks over the past year, exploring the reasons behind this increase, the current valuation of RMB assets, and the potential for future market growth [1][18]. Group 1: Market Trends - In a bull market, fluctuations are normal, and corrections are common even during significant upward trends [3][4]. - Historical data shows that even during major bull markets, such as in 2007, there were multiple corrections exceeding 10% [5][9]. - The index tends to rise over the long term, with past crises only causing temporary fluctuations [9]. Group 2: Recent Performance - As of mid-September 2024, A-shares and Hong Kong stocks have risen significantly from a historical low valuation of 5.9 stars to around 4.1-4.2 stars [15][19]. - The past year has seen A-shares and Hong Kong stocks leading global markets, with the MSCI World Index rising by 22.98% and the Hang Seng Index increasing by 55.93% [21]. Group 3: Reasons for Market Growth - The first reason for the recent rise is valuation improvement, as the previous bear market had driven valuations to extremely low levels, with A-shares and Hong Kong stocks being 50% lower than the global average [19][20]. - The second reason is the improvement in liquidity, aided by favorable policies and market conditions, including the Federal Reserve's interest rate cuts and domestic supportive measures [26][28]. Group 4: Earnings Growth - There are signs of improvement in earnings, particularly in the technology and pharmaceutical sectors, which have shown significant growth [30][32]. - The technology sector in Hong Kong saw a remarkable earnings growth of 128.92% year-on-year in Q1 2025, although growth rates slowed to 51.24% in Q2 [32]. - Consumer sectors in A-shares have shown stable earnings growth, but the growth rate has slowed recently [34][38]. Group 5: Future Market Outlook - If the Federal Reserve continues to lower interest rates and domestic conditions remain accommodative, there is potential for further market growth, especially if earnings continue to improve [40].

Core Viewpoint - The current market is experiencing structural growth rather than a broad-based bull market, driven by factors such as the decline in RMB and USD interest rates, as well as the year-on-year profit growth of certain stocks [37][38]. Market Performance - The overall market showed a low opening but ended with an increase, closing at 4.2 stars [1]. - Both large, medium, and small-cap stocks experienced similar upward movements [2]. - Value styles, including dividends, have been consistently rising [3]. - Growth styles initially fell in the morning but turned positive by the afternoon [4]. - Hong Kong stocks outperformed A-shares in terms of growth [5]. Characteristics of Bull Markets - Bull markets are characterized by rapid increases rather than slow, steady growth, with significant gains occurring in short bursts [9][12]. - Historical bull markets have been mostly structural rather than broad-based, with different styles leading at different times [14][16]. - Bull markets often experience intermittent pullbacks, typically following a pattern of "advance three, retreat one" [20][21]. - Long-term trends show that market indices tend to rise over time, with each bear market's bottom being higher than the previous one [27][28]. - Investor behavior tends to exacerbate short-term volatility, with many chasing gains during market peaks [30][32]. Current Market Outlook - The current bull market is not over but remains structural, with specific sectors likely to continue performing well [37]. - The recent performance of A-shares and Hong Kong stocks has been influenced by declining interest rates and profit growth in certain sectors [38]. - Future market movements will depend on the trajectory of USD interest rates and potential economic challenges [39].