In the domestic stock market, overall price fluctuations are relatively significant, but there is not a clear distinction among different stocks. The number of absolute low-priced stocks remains limited. High-priced stocks are mainly concentrated in small-cap segments, whereas low-priced stocks on the main board tend to fall within the 5–10 yuan range. Although low-priced stocks make up a considerable portion on the main board, their valuations are still relatively high. Small-cap stocks often experience elevated valuations due to investors' risk appetite.
Looking at changes in low-priced stocks across sectors, industries such as steel, real estate, power equipment, and utilities have a higher proportion of low-cost stocks. Some of these sectors have seen a passive shift from undervaluation to low-growth performance. In contrast, sectors like pharmaceuticals and food and beverages have seen a declining share of low-price stocks, with valuations gradually falling—mainly due to stable business performance.
Valuation trends also show differences. At key market points like 998 and 1664 on the Shanghai Composite Index, over 69.9% and 64.1% of stocks had a price-to-book (PB) ratio below 2 times, respectively. However, at the 2000-point level, this dropped to 39.4%. This highlights ongoing structural differences, particularly with small-cap stocks on the SME Board and GEM carrying relatively higher valuations compared to the main board.
Compared to developed markets, China’s A-share market has two distinct features. First, the differentiation in stock prices is not strong, especially with few absolute low-priced stocks, which contrasts sharply with the numerous low-priced stocks found in mature markets. Second, investor valuation structures vary depending on the growth stage of companies. In developed markets, emerging industries typically have lower stock prices relative to their valuations and demonstrate stable performance and profitability. In contrast, in the A-share market, even if performance is unstable, emerging industries often carry high valuations. On the other hand, large-cap blue-chip stocks like banks, despite stable profitability, usually trade at lower valuations.
As the delisting system, investor protection mechanisms, and value-investment concepts continue to develop, market characteristics are evolving. First, the overall valuation center is gradually declining. Second, industries with stable performance, strong profitability, and higher shareholder returns—such as financial services—are expected to see improved valuations and stock prices. Third, under delisting pressure, truly low-priced and highly liquid stocks will become more common. Fourth, certain new economic growth sectors may maintain high valuations as performance improves, while industries entering or facing recession will face downward pressure on both valuations and stock prices.
In the short term, the market is influenced by valuation levels and economic restructuring. Sectors like banking, financial services, home appliances, and automobiles are likely to see increased market valuations and share prices. Meanwhile, some niche growth industries deserve long-term attention.
Steel Metal Plank Or Deck,Steel Plank Scaffolding,Altrad Ringlcok Steel,Steel Metal Plank
Chuzhou Jincheng Metalwork Co.,Ltd , https://www.jinchengscaffold.com