A Shares This Year Or Welcome Turning Point Is Worth Looking Forward To Market Reversal.

Although A shares fell 6.42% on Tuesday, a 13 month low was set.

But BlackRock, the world's largest investment management company, still believes China is not that bad.

As long as we can break the vicious circle of negative emotions.

There will be an inflection point.

It is expected that in the Spring Festival or the two meetings, it is expected that China may launch a more large-scale production capacity signal and policy and improve the long-term performance of the stock market.

"Everyone is very worried about China, which is not as bad as everyone imagined. As long as we break this vicious cycle, the United States will delay the increase in interest rates and have a positive effect on emerging markets," he said. "China's supply side structural reform has succeeded in removing excess capacity and stabilizing commodity market expectations, and there will be an inflection point in the stock market."

She also believes that this turning point will appear this year, and the most needed employment problems in the supply side reform will gradually come up with some specific solutions, including how to provide enough financial support to help or coordinate laid-off workers' re employment.

Wang Baoan, head of China's National Bureau of statistics, also said on Tuesday.

Volatility will have an impact on the economy, but it has little impact, and it is still confident about the operation of the stock market.

The devaluation of the renminbi will aggravate capital outflow and seriously affect the internationalization of RMB.

But he stressed that "the RMB does not exist on the basis of depreciation, and China's economy is still growing at medium and high speed."

On Tuesday, stock index closed down 6.42% to 2749.79, the lowest since January 7, 2014.

The Shenzhen Component Index closed down 6.96% to 9483.55.

The gem fell 7.63% to 1994.05 points.

Hongkong's Hang Seng Index closed down 2.5%, at 18860.80 points, and hang seng index fell 3.4%, at 7895.16 points.

Merrill Lynch Analysis Group recently pointed out that although China's economic outlook is bleak, the economy will not make a hard landing.

China's economic slowdown will have a greater impact on some economies, but will not have a huge spillover effect on the developed markets.

However, Bank of America believes that A shares may fall another 30%, even if the overall economy can support them.

Deutsche Bank also believes that

Slowing down and global warming are all the reasons for China's stock market to fall, but now the drop may be too large, which has been out of touch with fundamentals.

Chang Yuliang, chief stock strategist at the Bank of China, believes that the valuation of China's stock market is very low at present. MSCI China's 12 month long term PB is only 1 times, which means investors' valuation of the company is equal to assets.

Such a low valuation is rare, even during the financial crisis of October 2008, the European sovereign debt crisis in October 2011, and China's June 2013 "money shortage" period, did not appear such a low valuation.