[JPMorgan Chase: French stock market valuations have fallen to historical lows and may rebound in the short term] On October 26, JPMorgan Chase stated that the French stock market has underperformed other markets for three consecutive years. The relative price-to-earnings ratio of the CAC 40 index has dropped to a historically low level. Market pessimism may be excessive, and some stocks have room for a short-term rebound. The bank believes that France may pass a new budget in the next one to two months. If the budget is passed, French local corporate and bank stocks that have fallen sharply before may rebound. However, JPMorgan Chase warned that France will be difficult to make substantial progress in fiscal consolidation before the presidential and parliamentary elections from April to June 2027. The financial situation may even deteriorate further, and a stable governing majority that supports reform may not be formed after the elections. In addition, French local corporate profit forecasts have not yet fully reflected the risks of economic deterioration, so a short-term rebound does not mean a continued rise. In the medium term, the bank continues to be optimistic about French listed companies with overseas revenue accounting for more than 75%, believing that the profits of these companies are less affected by the French domestic economy, and the gap between stock prices and profit performance is expected to be repaired.