[Wang Jun, Chief Strategist Analyst of Bank of China Securities: Expected stability coupled with marginal improvement in fundamentals highlights the advantages of the blue chip sector] On October 27, Wang Jun, Chief Strategist Analyst of Bank of China Securities, said in an interview that the valuation of blue chips is in a historically low range and the safety cushion is sufficient. It is the ballast of long-term funds in the current high-volatility environment. Judging from the market situation, the blue-chip sector has clearly resisted the decline since October, and banks, food and beverages, and petroleum and petrochemicals have bucked the trend and closed higher. In the past six months, the market has continued to adjust, and banks and coal have still achieved absolutely positive returns. Coupled with the marginal recovery of domestic demand in September, blue-chip fundamentals have been further consolidated. At the valuation level, the valuation scores of CSI 300, SSE 50, and CSI Dividend are all at historically low levels, with significant discounts compared to major overseas markets, and the performance-price ratio of stocks and bonds is outstanding. In terms of capital allocation, the current risk-free interest rate continues to decline, and the dividend rate advantage of the blue-chip sector is highlighted. The bank dividend rate exceeds 4%, and it is one of the few equity assets that can complete long-term cash flow matching. Wang Jun estimates that if the banking sector maintains a dividend ratio of no less than 30%, it can maintain a mid-single-digit growth in net assets while providing dividends of more than 4%. It is expected that stability coupled with marginal improvement in fundamentals will be the income structure required for value investment. (Reporter Lin Jian)