BlackRock Fund's Wang Xiaojing: Chinese Asset Valuations Remain at Relatively Low Levels

Entering the fourth quarter, volatility in the A-share market has intensified, with some previously strong sectors experiencing fluctuations and adjustments. Wang Xiaojing, Chief Investment Officer of Equity, Quantitative, and Multi-Asset at BlackRock Fund, stated in an interview with a Shanghai Securities News reporter that from a global perspective, Chinese asset valuations remain at relatively low levels. As one of the most prominent emerging markets, China has historically attracted global capital attention when U.S. dollar interest rates enter a downward cycle. Furthermore, breakthroughs in the technology sector, represented by DeepSeek, along with the economic resilience China has demonstrated in complex environments, have led to a renewed recognition of the medium- to long-term investability of Chinese assets.

Looking ahead, Wang Xiaojing mentioned that his primary focus is on fundamentals, specifically the improvement in the profitability of listed companies. He believes that the sustained strength of the A-share market this year has been driven more by improved investor risk appetite and sentiment recovery in an environment of ample liquidity.

"If the profitability of listed companies steadily improves and the value of cash flows becomes more apparent, the market could enter a healthier upward phase. Therefore, monitoring the macroeconomy and the fundamentals of listed companies will be crucial tasks in the fourth quarter and subsequent quarters," Wang Xiaojing stated.

Regarding specific investment opportunities, Wang Xiaojing noted that non-ferrous metals, non-bank financials, technology sectors, and dividend assets are worth attention. Among these, non-ferrous metals primarily focus on precious metal mining and rare earth targets. Driven by the global entry into an interest rate cut cycle, a declining U.S. dollar, and geopolitical factors, non-ferrous metal companies have already garnered market attention. Additionally, in an environment of falling interest rates and deposit funds flowing into the capital market, the non-bank financial sector holds significant allocation value.

As for the technology sector, Wang Xiaojing believes that despite considerable gains earlier, some targets still have room for growth after pullbacks compared to overseas leading stocks. Currently, due to fluctuations in market sentiment, quantitative signals' attention to the technology sector has declined, but the long-term positive investment logic remains intact.