Chinese Wealth: The Psychological Battle at A-Share 3600 Points, How to Defend? Short-term changes are unlikely and may continue to unfold, China's equity market repair has not ended yet

　Grandon 8/12｜Chinese Wealth public number article states that after the Shanghai Composite Index reaches 3600 points, it becomes more like a psychological battle. To answer what we should do now, we need to understand why this round rose? The core reasons are two: one is that super-low interest rates drive long-term funds from fixed-income assets to other asset strategies. Two is China's economic resilience exceeding expectations. Although real estate remains sluggish and still drags down most traditional economy sectors, some new economy sectors' technical progress and profitability recovery attract global investors' attention. And these two factors, in the short term, are unlikely to change and may continue to unfold. Therefore, China's equity market repair has not ended yet.

　The main focus is whether these emerging economies can form a "torch-like" momentum under the protection of reform policies and other factors. This may depend on observing the Fourteenth Meeting of the Central Committee of the Communist Party of China this autumn and the important deployments made in the Fifteenth Five-Year Plan.

　As for what investors should do, Chinese Wealth suggests that truly worth learning from and having stronger coping ability is to configure assets from a macro perspective, holding a certain proportion of fixed-income assets, alternative assets, and overseas stocks and bonds, i.e., conducting global asset allocation. When the market reaches 3600 points, instead of expending mental energy predicting short-term fluctuations, we should return to the "origin" of investing: reviewing one's risk tolerance, clarifying long-term investment goals. Volatility will never end, but our initial intention should not be swayed.