GF SECURITIES Assistant Director and Chief Strategist Liu Chenming: 40% New Economy Profit Share Reshapes A-Share Assessment Logic

On December 19th, at the "Alpha Summit" co-hosted by Wall Street Watch and China Europe International Business School, Liu Chenming, Assistant Director and Chief Strategist of GF Securities, stated that the profit structure of A-share listed companies has undergone fundamental changes: the profit share of emerging industries has increased from 20% a decade ago to the current 40%, while the share of traditional domestic demand (real estate, infrastructure, consumption) has decreased to 60%. This means that the traditional logic of "stocks are a barometer of the economy" needs to be revised; even if domestic demand is under pressure, as long as 40% of advanced manufacturing and overseas sectors maintain resilience, A-share ROE can still achieve stabilization and recovery across cycles