Mergers And Acquisitions To Accelerate Reform And Innovation Is The Main Theme.

The main contradiction in the fourth quarter A share market is probably the expectation of innovation and reform.

The possibility of rebound is greater in the fourth quarter, and the style may be biased towards consumption, technology and equipment manufacturing.

We believe that the key regional reforms such as state-owned enterprises and land need to have a great breakthrough after a considerable consensus between the senior and the public. There are obvious obstacles at present. Reforms in the areas of finance, finance and taxation are relatively easy to push forward.

In terms of innovation, we see that in the context of not breaking the bottom line and not affecting national security, the state's efforts in promoting innovation are absolutely unprecedented. At the same time, asset adjustment is relatively easy after the adjustment of valuation.

M & A is a fresh blood in the economy and the most convenient way to enter the A share market.

Therefore, looking at M & A activities, we can see whether A shares are still seeking new opportunities.

From our statistics, the A share market has not lost the vitality of supporting innovation.

By September, A shares announced that the number of Companies in the board of directors of major asset restructuring boards, or the proportion of A shares listed companies, has reached a record high.

Companies that are already making major asset restructuring.

The pace did not slow down; the company that announced the failure of major asset restructuring was at a low level in 7, 8 and 9 months.

But it should be prompted that there may be some pressure on the private equity market.

Whether in the US or in China, more and more people believe that the market is at the beginning of a bubble or bubble burst.

Moritz, chairman of Sequoia Capital, has recently expressed the same view in the financial times as an example of Theoranos.

Fortunately, the target of A share merger is relatively mature, and the impact of the investment bubble on the merger and acquisition of listed companies should be relatively small.

The relative trend of state-owned enterprises will be weaker than that of private enterprises.

In private enterprises, they will continue to be followed by innovative lines and enterprising ones.

Further, if these enterprises can be combined with the key strategies of the country, they will become the protagonists of the market.

And we believe that the reason for the innovation reform will be the main contradiction in the fourth quarter, for three reasons:

First, reform.

The expectation is that the fundamentals of market strength have been strong since the middle of 2014, and the argument of "reforming cattle" is a corroboration. Because of this history, the attention to reform and innovation process has always been at a high level.

Two, the market is back to normal and should return to the fundamentals of the market.

But recent

Not all the fundamentals, in the abnormal market, it can help provide shelter; after the market normalcy, the discussion on the performance space will return to the spotlight. At present, the performance space of A shares is closely related to the policies and practices of innovation and reform.

The three is whether the pace of reform and innovation will be slowed down after the market turbulence. With the small and medium-sized creation being the epicenter of this round of market fall, there may also be differences in this area, which needs to be resolved through continuous observation and verification.