BEIJING, Oct. 26 (Xinhua) – China's A-share market entered a period featuring low risk appetite given the multiple uncertainties at home and abroad in the short run, reported Xinhua Finance citing a research report from Industrial Securities Monday.
According to the research report, domestic mainstream institutional investors prefer securing existing investment returns and no explicit trends are found in the A-share market especially when science and technology-driven, consumption and medical sector stocks remain relatively high in valuation.
Under such circumstances, the pending debut of the initial public offering (IPO) of Ant Group, the expected second largest IPO in history on A-share market causes worries of investors over its absorption of market capital in the short term.
In external market, the uncertain results of the U.S. presidential election and the continued uncertainty in the epidemic situations in Europe also adds to investors' worries over the short-term trend of the A-share market.
In the mid- and long term, the research report tells that investors are still confident in the future trend of A-share market, which may undergo a round of long-term bullish consolidation and investors are suggested paying attention to the investment value of stocks with low valuation such as banking sector stocks and stocks likely to benefit from the ongoing economic recovery. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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