[Industrial Securities Macroeconomic Chief Duan Chao Team: Full A earnings per share increased by 12.8% in the first half of the year, and RMB asset valuations can be restored] On October 27, Industrial Securities Macroeconomic Chief Analyst Duan Chao’s team mentioned in a recent interview that since October, a new round of adjustments in the global market has stemmed from the resonance of valuations due to rekindled AI concerns and tight liquidity, and corporate profitability and exchange rate resilience are still there. Data show that from January to August 2026, the profits of industrial enterprises above designated size increased by 15.7% year-on-year, and the earnings per share of all A listed companies in the first half of the year increased by 12.8% year-on-year. During the same period, the RMB rose against the US dollar instead of falling, and the effective exchange rate continued to rise. External shocks did not evolve into exchange rate instability and capital outflows. Policies are also on the warmer side. The China Securities Regulatory Commission’s October symposium further proposed market stabilization mechanisms and broadened medium- and long-term funding sources. The risk of a sharp market decline is controllable. Duan Chao’s team believes that the two uncertainties of the Federal Reserve interest rate meeting and the U.S. midterm elections have entered the final pricing stage, and the trend of RMB appreciation is expected to continue, which will help the subsequent restoration of Chinese asset valuations. (Reporter Lin Jian)