STOCKS | Huachuang Securities Economist Zhang Yu Says AI Policy Supports China Stocks

Huachuang Securities chief economist Zhang Yu said the recent short-term correction in A-shares was triggered by overseas factors, with geopolitical tensions pushing up oil prices and reinforcing expectations of tighter U.S. inflation, while broad declines in overseas stock markets triggered a global market resonance. According to Jin10, Zhang said sentiment and funding transmission amplified domestic volatility, while domestic midstream manufacturing remained strong and the global supply-demand pattern for capital goods favored China's manufacturing sector. Zhang said AI support policies, a complete industrial system, ample policy support, and fiscal reserves formed multiple supports over the long term. He said the decline was only a rebalancing of valuations and sentiment and did not mean a reversal in China's fundamentals or long-term industrial trends.