TechFlow, August 19 — According to Jinshi Data, a research report by CICC stated: "Based on Wind statistics, as of the market close on August 18,
1) The dynamic P/E ratio of the CSI 300 is around 12.2 times, placing it at approximately the 69th percentile since 2010. Horizontally, A-shares’ valuation remains at a moderate level among major global stock markets, indicating that although the overall market—especially the blue-chip segment—has undergone significant valuation recovery, clear overvaluation has not yet emerged.
2) The current market capitalization of A-shares has risen to about 100 trillion yuan, with the market cap-to-GDP ratio still at a moderately low level compared to other major global markets.
3) The total market cap of A-shares to M2 ratio is approximately 33%, sitting at the 60th historical percentile. 4) The current dividend yield of the CSI 300 Index is 2.69%, which, when compared to the yield of 10-year treasury bonds, indicates that equity assets remain relatively attractive. Taken together, these indicators suggest that A-shares’ overall valuation remains within a reasonable range both horizontally and vertically. However, at this juncture, attention should be paid to potentially increased short-term volatility due to rapidly rising trading volumes. On August 18, total market turnover exceeded 2.8 trillion yuan, and the turnover rate calculated based on free-float market cap surpassed 5%. Historical experience shows that during such periods, short-term index volatility may increase somewhat, but it generally does not affect the medium-term market trend."
