Structural bubble has been already seen.
Current bouncing back ever since Shanghai Composite Index has reached 1664 points is totally propelled by the valuation.
Another prospect to view P/E ratio: Arithmetic average and median at 41x indicates that most stocks’ risks outweigh their benefits.
Estimation on current market: Structural bubble is obvious.
Abundant fluidity will back up the indexes as well.
Blue-chips represented by banking shares are expected to perform well.
Under current situation that structural bubble emerges and fluidity is surplus, we hold optimistic view about blue-chips with banking shares as representatives, including sectors of real estate, coal, petrochemical, etc. Meanwhile, we are also comparatively optimistic with these sectors with low valuation and steady performance growth.