GF Securities Strategist Liu Chenming Says A-Share Pullback Driven by External Liquidity Shock

GF Securities chief strategist Liu Chenming said the recent A-share pullback was mainly driven by external input factors and reflected a shock to sentiment and capital flows rather than changes in China's domestic fundamentals or industrial trends. According to 36Kr, he said the main triggers were overseas leveraged funds unwinding, short-term crowding after market expectations became too uniform around key events, and renewed inflation worries caused by repeated geopolitical tensions and oil price swings. Liu said these factors were all short-term disruptions, adding that China's domestic fundamentals remain the anchor for A shares, foreign ownership of A-share holdings has been broadly stable, and further sharp downside appears limited.