How to view the future after the A-share market experienced a significant adjustment on October 8th after a continuous surge? After the market closed on that day, several star fund managers including those from Zhongou Fund, Yongyin Fund, and HSBC Jin Xin Fund expressed their latest views on the current market. How to interpret the policies? How to assess market performance? How to predict future opportunities? How to specifically measure the risks and opportunities of dividend stocks and growth stocks? The relevant insights are in the following text. How to interpret the policies? To analyze the future trend of A-shares, it is necessary to first clarify the direction and intensity of this round of policies. Zhou Weiwen, Chairman of the Equity Investment Decision Committee of Zhongou Fund, believes that before the National Day holiday, policies were continuously introduced, including the press conference on September 24th on financial support for high-quality economic development. The central bank announced policies such as reducing the reserve requirement ratio, reducing reverse repo operation rates, lowering the interest rates on existing homes, reducing the minimum down payment for the second home, increasing the central bank's support ratio for refinancing funds of affordable housing, creating conveniences for exchanges between securities, funds, and insurance companies, as well as policies on stock repurchase and special refinancing funds. The China Banking and Insurance Regulatory Commission announced the expansion of the city scope of pilot equity investment of financial asset investment companies of six major commercial banks, loosening investment restrictions, extending the policy of no repayment and continued lending to all small and micro enterprises and temporarily expanding to medium-sized enterprises. The China Securities Regulatory Commission announced policies to promote long-term funds entering the market and promote mergers and acquisitions. On September 25th, the "Opinions of the CPC Central Committee and the State Council on Implementing the Strategy of Giving Priority to Employment to Promote High-Quality Full Employment" were released, and the Ministry of Civil Affairs and the Ministry of Finance issued one-off living allowances to difficult groups such as the destitute and orphans during the National Day holiday. At the political bureau meeting on September 26th, it was proposed to "promote the stabilization of the real estate market", "make efforts to boost the capital market", "help companies overcome difficulties", and "promote consumption combined with benefiting people's livelihood". Summing up the above series of policies, the central government is stabilizing asset prices and supporting the livelihoods of the people. Stabilizing asset prices means promoting the stabilization or even increase in prices of major social assets such as real estate, stocks, and equity markets. The recent policies aim to break the negative cycle and bring the economy and asset prices back to a normal fundamental level, or even to a certain extent, to a positive cycle trajectory of the economy and asset prices. Supporting the livelihoods of the people is to support individuals and companies in difficulty to help them maintain a basic living standard and overcome difficulties. How to view the current market? After several days of significant gains, how to view the current market? Zhou Weiwen believes that the stock market is returning to a reasonable level. In the future, the implementation of relevant policies and the advancement of some incremental policies may bid farewell to the bear market of the past three years in the A-share market, and the current situation may be a new starting point. Considering that the stock market has been declining for more than three years, various investors have relatively low allocations of A-shares and H-shares for various reasons, and it cannot be ruled out that the stock market will have a temporary rise beyond expectations. In terms of investment direction, as long as the chosen stocks are not related to industries with significantly declining development trends in the near future, they are probably better than holding cash. Where is the direction for long-term investment? Zhou Weiwen also believes that there are two major directions that may generate excess returns. The first is industries with upward operating trends in the next two years. These industries have positive business prospects, and their stock prices were not fully priced during the bear market in the past. Market concerns about negative information in the future have suppressed stock price increases. After the bear market mentality ends, such stocks still have room for growth. The second is sectors that will benefit from this round of economic policies. The most important thing is policies that combine boosting domestic demand with benefiting people's livelihoods. In the past, there have been trends of replacing old with new in home appliances and automobiles. In the future, there will also be low-end consumption and services benefiting from basic livelihood guarantees, pensions, and childbearing. In addition, industries benefiting from incremental policies to stabilize the real estate market and those benefiting from revitalizing the capital market and the end of the bear market may also perform well in the future. What is the market's theme? In the past six trading days, several stock funds and balanced funds under HSBC Jinxin Company have seen their gains rank at the forefront. How do they view the future market's main theme? The research team at HSBC Jin Xin Investment believes that with the shift in policies and market sentiment, there is likely to see the beginning of a new round of market trends. This is because the market is currently at an extreme position in history: The intensity of the regulators' policies exceeds market expectations and is expected to give full confidence to the macroeconomy and the market. In recent days, trading volumes in the market have significantly increased, with a large amount of new funds entering the equity market, which is expected to resonate with policies and fundamentals. Currently, the downside risk of the market has been adequately released, and the current focus is to find the main theme of this round of upward trend. For the main theme of this round of market trends, domestic demand and new quality productivity are the most noteworthy direction. On the one hand, the unexpected fiscal policies are expected to accelerate the repair of domestic demand. Secondly, the new quality productivity sector receives policy support, and has a certain degree of independence from the economic cycle, and is expected to enter an upward phase in their industrial cycle. Thirdly, in the past few years, growth stocks have experienced deep corrections due to the triple impact of performance, valuation, and liquidity. Many high-quality targets have experienced significant pullbacks, with some companies' current valuations even lower than blue-chip and dividend stocks. With the recovery of market confidence, the fundamentals and growth prospects of these high-quality targets are expected to be re-evaluated by the market, and the value reassessment process may lead to high elasticity. How to view dividend stocks? Regarding dividend stocks, Lan Xiaokang, manager of the Central Europe Rongheng Balanced Fund, believes that it is important to differentiate between types: One type is industries with low correlation to economic growth, such as hydropower; the other type is industries with high correlation to economic growth, such as banks, real estate chains, and cyclical (coal). Relatively speaking, Lan Xiaokang is optimistic about the performance of the second type of dividend stocks with high correlation to economic growth. This is because the attitude of the country's series of policies is very clear and firm at present, there has been a significant shift compared to before, the overall policy direction has been basically determined, and the future is just a matter of pace, which will not affect the results. Lan Xiaokang believes that in the short term, stocks that are pro-cyclical will perform better, including finance (securities, insurance, banks), real estate and stocks related to the real estate industry chain. Regarding small stocks, Lan Xiaokang still believes that the opportunities are not significant, and the short-term is more of an oversold rebound, lacking long-term investment value. What about growth stocks?What do you think?As of September 30th, the China-Europe Times Cooperation Win fund has risen by over 46% this year, ranking in the top 0.1% of funds in its category. The fund manager, Liu Weiwei, stated that the market's turning point has likely appeared, and they are maintaining an optimistic outlook with a relatively high position. Liu Weiwei's portfolio is mainly focused on growth stocks, supplemented by some pro-cyclical assets showing right-side signals. Regarding technology stocks, after a significant adjustment, the AI sector currently offers high cost-effectiveness. The recent release of GPTo1 is significant, indicating the emergence of the Scaling Law in inference, with the biggest catalyst expected to be GPT5 at the end of the year. In terms of new energy, energy storage has recently experienced some adjustments, but the fundamentals still exceed expectations. A large 20 gwh storage project in the Middle East is awaiting bidding. In the automotive sector, the policy of trading in old cars for new ones is starting to show effects. Recently, passenger car sales have significantly exceeded expectations, and both complete vehicles and parts have entered a period of recovery. With the dual drive of automotive and energy storage, leading battery companies are approaching full production capacity. Overall, Liu Weiwei believes that in terms of market style, growth stocks have shown cost-effectiveness after over 3 years of adjustments. Apart from the growth sector, Liu Weiwei also likes undervalued industries like engineering machinery and basic chemicals, with some industries and companies showing signs of right-side reversals. What about Hong Kong stocks? Regarding Hong Kong stocks, Luo Jiaming, the manager of the China-Europe FTA Hong Kong Stock Connect Hybrid Fund, stated that during the recent National Day holiday, the Hong Kong stock market experienced a significant uptrend. The Hang Seng Index steadily climbed from 21134 points on September 30th to 23099 points on October 7th, achieving a 9.29% increase. This uptrend was primarily supported by a series of economic stimulus measures introduced by the government, as well as market expectations for a US interest rate cut, collectively boosting investor risk appetite. Additionally, the undervalued Hong Kong stock market is more attractive to fund inflows. In terms of industry sectors, information technology, consumption, and real estate construction led the market, mainly due to positive policy changes. The trading volume in the Hong Kong stock market reached new heights, especially during the National Day holiday period when mainland fund flows were absent, indicating significant participation from overseas investors and local funds in Hong Kong. Luo Jiaming believes that the adjustment in the Hong Kong stock market on October 8th was within expectations. Looking ahead, he suggests that investors should not focus excessively on the speed of the Fed's interest rate cuts, but rather pay more attention to which industries or companies can restore growth trends amid the backdrop of domestic and international economic support policies and continued global decline in risk-free interest rates. Luo Jiaming continues to favor the following investment directions: 1) upstream resources, 2) Chinese companies generating revenue from overseas expansion, and 3) technology-driven sectors such as the Internet, electronic semiconductors, and biopharmaceutical innovation. What about consumer stocks? Regarding consumer stocks, Cheng Yuxuan, the manager of the China-Europe Times Wisdom Hybrid Fund, believes that consumer goods currently offer good value from an industry selection perspective. After peaking in 2021, core assets have experienced a decline over the past three to four years. Some high-quality companies have maintained strong performance during this period, with barriers to entry, performance stability, and sustainability. Therefore, there is value in allocating to these companies both in terms of odds and returns. During the National Day holiday, policies such as consumer vouchers issued in Shanghai and other regions encouraged resident consumption. The previously sluggish catering sector has gradually recovered, and some quality companies in the catering supply chain are also expected to perform well. What about chip stocks? Regarding chip stocks, Song Weiwei, the manager of the China-Europe CSI Chip Industry Index Fund, believes that the current A-share uptrend, coupled with foreign capital inflows, domestic fund buying, and investor participation, has led to rapid increases in trading volume and market trends. A liquid market environment favors technology growth stocks. Competitive domestic manufacturing assets, especially in the technology sector, are high-elasticity sectors in this round of market trends. The semiconductor cycle recovery, the demand for computing power brought by artificial intelligence innovation, and localization are the three main drivers of the domestic chip industry's uptrend. As an important downstream application of artificial intelligence, humanoid robots and industrial robot technologies represent a country's most advanced manufacturing capabilities and are also the focus of investment by various technology giants. In addition, mobile operating software, computer operating software, computer equipment, and domestic substitution of software will continue to advance rapidly this year, benefiting the software sector. What are the future market scenarios? Looking ahead in the equity market, the research team at Yongyuan Fund believes that the market performance after the National Day holiday is worth looking forward to. The key to whether a medium-term reversal in the market occurs lies in the degree of fiscal stimulus and whether liquidity forms a positive feedback loop. 1) If fiscal stimulus exceeds expectations or continues to be strong, along with the formation of a positive feedback loop in liquidity (individual investors transferring funds to securities accounts or a large volume of new equity fund issuances), the market may experience a reversal. 2) If fiscal stimulus and fund flows do not form a positive feedback loop, the market is still likely to reverse, but it may be a volatile upward trend until there is a positive feedback loop in fund flows. 3) If there is no fiscal stimulus but a positive feedback loop in fund flows, the market may experience a short-term, steep valuation-driven rally, with small and micro-cap companies possibly becoming the market focus. 4) If there is no fiscal stimulus and no positive feedback loop in fund flows, the market trend may come to an end. Based on the context of systemic valuation repair, Yongyuan Fund believes it is worth focusing on broad-based indices that have not yet recovered to their mid-May highs. In terms of style, the recovery of small-cap styles is more likely, and factors to watch include the impact of fiscal policy, the unclear growth/value divide, and industry focus on industries that have been oversold since the beginning of the year but have seen low increases in this round.