There are two characteristics of A-share this year,The first characteristic is that the volatility rate has risen sharply.
An increase in uncertainty about both domestic and overseas market. Domestic market may see more policy tightening, the same as overseas market liquidity. Meanwhile, the valuation of US stocks is at a high level.
The other is style conversion.
These blue-chips in China, whether they are household appliances or the cycle stocks, will be dragged down by the sales of real estate. This drag will probably lag behind for more than six months. At the same time, these growth stocks that are less relevant to the economy perform better than these cyclic stocks and blue chip stocks.
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