GS 高华证券－中国投资组合战略：关于A股市场回调的看法

02.01 ５页　　　英文

Domestic A share market slumped 5% on January 31, losing over US$70bn of total market cap in one day. The A-share correction is long overdue given the strong rally last year and ytd. Before the correction, A-share valuation had reached a theoretically stretched valuation level of around 25x P/E, which was almost discounting China's growth at US COE (8.5pct).The correction was triggered by hawkish comments from NPC Vice Chairman Mr. Chen Siwei on the heels of a series of tightening measures and warnings from government bodies. PBOC raised the reserve ratio in early January and made it clear that it will consider asset prices in making monetary policy decisions. CBRC warned commercial banks not to lend