Minsheng Securities has issued a research report, suggesting that the ongoing bull market might be entering a phase characterized by sustained growth and further consolidation. In August, the market experienced an overall upswing, with the Shanghai Composite Index surging past the 3,800-point mark and hitting a new peak since 2016. Cambricon witnessed a remarkable monthly surge of 110.36%, with its stock price at one point even surpassing that of Kweichow Moutai, thus emerging as the new 'stock king'.

Regarding the future trajectory of the market and the valuation prospects following Cambricon's significant ascent, the institution conducted an analysis from a historical standpoint: This current bull market is primarily propelled by liquidity. Although the prosperity of the A-share market has largely hit rock bottom, it still lingers at a relatively low ebb. From a long-term vantage point, prior to any clear tightening of liquidity, the likelihood of the market reaching its peak remains relatively slim. From the perspective of trading sentiment, the proportion of margin trading volume keeps on rising, indicating a high level of market trading enthusiasm, albeit with signs of overheating. Historical data suggests that the probability of a substantial short-term rise following an adjustment is low, and the market may well be stepping into a phase of sustained growth and further consolidation. Should the enthusiasm for margin trading abruptly wane, it could exert a short-term impact on sectors with high margin trading involvement, such as TMT (Technology, Media, and Telecommunications).