BlackRock Fund Wang Xiaojing: The tactical and strategic investment value of A-shares is very significant

On January 9th, Jin Shi Data reported that in the evening of January 9th, Wang Xiaojing, Director of Quantitative and Multi-Asset Investment at BlackRock, stated that the long-term valuation of large and mid-cap stocks in the A-share market is very attractive, and both tactical and strategic investment values in A-shares are significant. Wang Xiaojing noted that compared to the current yield of less than 2% on government bonds, broad-based large and mid-cap indices such as A500 and CSI 300 now have dividend yields above 2%, indicating that the long-term cash flow value is superior to that of government bonds. In comparison to other markets, the price-to-earnings ratio of the S&P 500 index in the U.S. is about 24 times, while the price-to-earnings ratio of the CSI A500 is 12 times. Other emerging markets, such as India, also have high valuations. "As global investors, in the context of interest rate cuts in the U.S., emerging market stocks are generally a relatively good asset class. China is the largest economy among emerging markets, and the tactical and strategic investment values in A-shares are very significant right now. BlackRock's overweight on Chinese stocks is largely a prediction of long-term cash flow value and an interpretation of policy stance. We believe that the policy stance has turned positive and will continue for a considerable period," said Wang Xiaojing