Chinese equity tree is not a repetition of the 2015 scene

The Chinese stock market sees a boom, as the CSI 300 index (CSI 300) for leadership supplies has increased by 9% so far this month, while the “Chinet” index, which reflects the technological sector, reached 18%, exceeding the record of the “Standard and Poor’s 500” index. With the beginning of the recovery of economic activity, the fear of repeating what happened in 2015 – when we saw an updated increase in the first half of the year, followed by an incredible collapse of the same extent, and the CSI 300 index fell by 47% amid the fear that the profits were not sustainable. Chinese stocks lead global markets with slices of jumping companies. The current economic situation indicates agreements. The producers have suffered from an economic shrinkage for almost three years, which is the longest period in a decade. The government is talking about ending the price wars that led to corporate profits, reminding us of what is called the Reformation of the Offer Side of 2015. The margin transactions, which are a measure of risk appetite, reached the highest level during a decade. Is it a bubble as it seems? How is it reasonable for the stock market to achieve this good achievement while the economy suffers from contraction? China seems to be in a liquidity bubble. Come, before this conclusion reaches, we must ask about the favorite businesses in the market, and whether their profits justify investors’ interest in it. Contrary to what was the case before a decade, when the interest rate discount approved by the central bank on the stock market, strengthened the last high and established large capital companies as it promotes. The Chinese stock market worth $ 11 trillion is a witness to a tranquil recovery that quickly “buys Chinese products”. Last week, DeepSeek released an update of its pioneering model (V3) and changed its composition to align the next generation of homemade chips. Meanwhile, reports reported that the company “Invidia” suspended the production of the H20 AI chip, specifically designed for the Chinese market, after Beijing asked technological companies to stop buying it due to concerns related to national security. In other words, China does not want its own generation insignificance models, but also wants to use it on devices of its production. The value of the listed companies that match the ‘Dembricon Technologies’ with the corresponding companies, and the ‘Cambricon Technologies’, and the Beijing -based business, and the ‘Higon information technology’. Consistent performance at the same time, and with the beginning of the profit season, the performance reports do not appear. Of the 65 technical enterprises listed in the CII3 index, 28 companies issued the profits in the second quarter, with an average sales growth and profits of 11.4% and 15.5% respectively, which are best in a year. As for the company “Higon”, the shares of which jumped by 51% this month, turnover increased by 41% compared to last year. At the beginning of the year, he moved the sudden appearance of the ‘Deep Sick’ model, which depends on various languages, the Hong Kong Stock Exchange, where the largest consumer technology businesses are included in China. Companies such as “Tennint Holdings” and the “Ali Baba” group promoted for logical models have used the success of “Deep Seck”. China warns its businesses against the use of the US “H20” foil now, we are in the next phase of the transformation of the artificial intelligence of Chinese stocks. The focus is on infrastructure shares. This time, the largest beneficiary is the most important fair stock exchanges, where the latest advanced technology companies often offer public subscription. It seems to be attached to the Hong Kong passengers, a phenomenon we have not seen in 2015. At first glance, some evaluation measures may appear to be exhausted. For example, the “Cambron” share, elected in the market, trades 66 times the future sales, and it is much higher than 19 times the share of “Invidia”, which is considered a high price. But we look at a revolutionary technique at an early evolutionary stage. Before establishing the profits, it will be early, whether the stock in its value is exaggerated or not. It is best to focus on the main theme. The Goldman Sachs Group, which usually looks at the horizon, increased the target price of “Cambron” by 50%, which made the company value in 2030 at nine times. Most of us have now agreed that artificial intelligence is a revolution. Therefore, investors should avoid thinking about one direction and doing many comparisons to the past. In the midst of all this madness, the $ 12 trillion China market is trying to find its Chinese version of “Invidia”.