CICC: The "Ignored" Bull Market

CICC analyzed the current bull market and pointed out that since the policy shift last year, market performance has exceeded expectations. Despite the market rise, divergences have increased, and some sectors are overvalued. The dynamic price-to-earnings ratio of the Hang Seng Index is 11.6 times, higher than the historical average, while the S&P 500 is 22.3 times. CICC believes that simply comparing the valuations of the Chinese and American markets is not very meaningful and that profitability and liquidity conditions need to be considered