GUANGZHOU (Fund China) - Yinhua Fund Management Company recently issued a four-quarter investment strategy report, the report that the A-share market value in the discovery and valuation experience regression phase, entered a liquidity premium era. Three types of companies expected higher-than-expected performance.

“Shares of listed companies fundamentals can be a counterproductive” in the first quarter and experienced a higher-than-expected interim results after the growth of the third quarter, the profitability of listed companies once again exceeded the growth rate of market expectations, indicating the stock counterproductive for the company fundamentals have started to become apparent. At the same time, listed companies are more willing to true, or even over-performance to promote the release of the upgrade price. Along the performance capacity and willingness to release the clues can be found, with resources, with epitaxial growth potential companies with high operating leverage and the growth of higher-than-expected performance of the company more likely. Although the economic growth rate may slow, but the system changed for performance of the company to release the driving force remains strong, higher-than-expected performance of listed companies is still the possibility of more.

Copyright Fund China 2008.

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