The market has been falling continuously in the past week, especially the sharp drop on Wednesday was attributed by some market participants. Ren Zhengfei’s internal statement on shrinking the marginal business of Huawei has blown “cold air” into the stock market. There are also investors who believe that it is the midterm performance mines of some industries that have dragged down the stock index. In the author’s opinion, this decline is due to multiple factors, such as the repeated epidemic, the net outflow of northward funds, and the decline of peripheral stock markets< Br > < div class = "height" > < / div > these factors are superimposed and resonated in the hearts of investors. When panic spreads, the stock index will inevitably overreact. However, at the end of Thursday, in addition to the growth enterprise market index, the Shenzhen composite index closed red, and the Shanghai Composite Index rose nearly 1%. After only one day, the “cold” of the market has converged, showing that the A-share market is still resilient< Br > < div class = "height" > < / div > it should be noted that the policy of stabilizing growth is consistent. On August 24, the national Standing Committee deployed the follow-up policy measures of the package of economic stabilization policies to strengthen the foundation for economic recovery and development< Br > < div class = "height" > < / div > according to the semi annual reports disclosed in succession, the performance decline of some A-share companies does not represent the whole market, and the concerns caused are only partial and short-term. As of the closing on August 25, 2080 companies that have disclosed the performance of the first half of 2022 have realized a total net profit attributable to the parent company of 931.939 billion yuan, an increase of 10.51% over the previous year; 1117 companies realized a year-on-year increase in net profit attributable to the parent company, accounting for 53.7%. Under the situation of repeated epidemics in the first half of the year, such performance actually far exceeded market expectations< Br > < div class = "height" > < / div > from the perspective of comparative advantages, the attraction of Chinese assets is obvious to all. According to the latest data released by the Ministry of Commerce, from January to July 2022, the actual amount of foreign capital used in China was 798.33 billion yuan, an increase of 17.3% year on year. This fully reflects the confidence of foreign investors in China’s economy< Br > < div class = "height" > < / div > on August 22, the people’s Bank of China lowered the LPR interest rate by 5bp for the one-year period; 15bp was lowered over the five-year period, and the release of monetary liquidity exceeded expectations. Corresponding to abundant liquidity, there are not many investment options that can handle trillions of yuan per day. At present, A-share has obvious comparative advantages in terms of valuation, liquidity and market ecology. The continuous inflow of funds will eventually promote the stock price and thus affect the trend of A-share market. Some analysts pointed out that the road of A-share cycle repricing has been opened< Br > < div class = "height" > < / div > the excessive decline caused by emotion will soon be recovered, but the opportunity lost due to the misjudgment of the general situation due to panic may be missed forever, which investors must pay attention to.