Domestic fund manager:
Trading strategy: this round of rise is steady and long-run kind. The momentum of this round of rise is milder, compare with the blue-chips in 2017.

1. A-share market has the advantage of global stock valuation. The situation of 2018 can be consider as a combination of market environment of year 2003 and 2013, which is growing market plus value-focusing market.
2. By looking through the history of A-share market, almost every five years, bunch of investing opportunities backed up by fundamental will appear.
3. For recent two years, the ability of gaining endogenous growth of growth stocks continuously rising, till the third quarter of the year 2017, the net-profit of CSI 500 has accumulated a 42% year-on-year growth, meanwhile, for CSI 300 and SSE 50, the numbers are 13% and 8%. The recovery of endogenous profitability of high-quality growth stocks has provided a fundamental support for valuation.
4. From the match degree of profit and valuation to analysis, the dynamic PEG for blue-chip stocks, which represented by CSI 300 and SSE50, are 0.96 and 1.02, the valuation is within reasonable level. However, the PEG of CSI 500, the index of value growth stocks, is 0.89. Comparatively speaking, the PEG of CSI 500 is undervalued and which creates advantages on cost performance.
5. This round of rise is steady and long-run kind, may last for a long while. The momentum of this round of rise is milder, compare with the momentum of blue-chips in 2017.

6. For year 2018, there are some rising chances for “value-growth” in medium and long term, if investors wait patiently, total return of medium and long term investments might exceed all investors ’ expectations.

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