According to Shenchao TechFlow, on August 19, Jin Ten Data reported that the CICC research report believes, "According to Wind statistics, as of the close on August 18,
1) The dynamic price-to-earnings ratio of the CSI 300 is around 12.2 times, with the price-to-earnings ratio at about 69% of the historical percentiles since 2010. Horizontally, the valuation of A-shares is still at a medium level among major global stock markets, indicating that the overall market, especially the blue-chip sector, has undergone considerable valuation repair, but no significant overvaluation has emerged yet.
2) The current market capitalization of A-shares has risen to about 100 trillion yuan, and the ratio to GDP is still relatively low among major global markets.
3) The total market capitalization of the A-share market/M2 is about 33%, which is at the historical 60th percentile. 4) The current dividend yield of the CSI 300 index is 2.69%. Compared to the yield of 10-year government bonds, equity assets still have relative attractiveness. Considering the above indicators, the overall valuation level of A-shares is still within a reasonable range in both horizontal and vertical comparisons. However, it is also necessary to pay attention to the potential increase in short-term volatility due to the rapid rise in trading volume at this point in time. On August 18, the total market trading volume exceeded 2.8 trillion yuan, and the turnover rate based on free-floating market capitalization has exceeded 5%. Historical experience shows that during this period, the index may have increased short-term volatility, but it generally does not affect the mid-term market trend.