On August 14th, the Deputy General Manager of Schroders Global Fund Management (China) Co., Ltd., An Yun, wrote that in the short term, China's stock market may continue to fluctuate at the bottom due to factors such as the expectations of a fall in the market after a recent rebound, and increased trading in anticipation of Trump winning the US election. However, in the medium term, there are still structural opportunities in the financial markets. Firstly, the current valuation of Chinese stocks and corporate profit expectations are relatively low and still have room for growth. Secondly, in recent years, China's economic structural adjustments have shown some effects, such as strong and stable investment in high-tech industries, as well as the increasing trend of domestic companies competing for market share globally. Ultimately, this is because Chinese companies have strong operating costs and comprehensive competitiveness. Finally, there are accumulating micro-level positive policies in the capital market, such as dividends, delisting and refinancing. Schroders Globals favored directions include income stocks, undervalued blue-chip stocks, cyclical turnaround and growth-oriented enterprises among several asset classes. Firstly, income stocks can still be focused on. Despite being slightly crowded, corporate dividend payout rates have significantly increased according to 2023 financial reports, so even though there has been a significant excess return in the past two years, the overall dividend yield for income stocks has not been diluted significantly. Secondly, industries at the bottom and possibly poised for a reversal are increasing, such as semiconductors, new energy, automation, construction machinery, cement, non-banking financial industry, etc. Schroders Global will closely monitor these industries to capture investment opportunities. Third, the new round of information technology investment driven by artificial intelligence (AI) innovation is a topic worth long-term attention, as the technology is developing rapidly, and with enhanced computing power, there may be a leaps in development, Chinese companies in related fields are worth continuing to watch. Lastly, companies expanding internationally are still worth watching. Schroders Global focuses on industries such as grid equipment, new energy, passenger vehicles, and e-commerce logistics.