[China International Capital Corporation: a-share valuation is still attractive, especially undervalued state-owned enterprises still have room to repair]. China International Capital Corporation reported that the recent index correction has taken into account more pessimistic expectations. in the context of the phased weakness of the current economic data, if the policy is properly dealt with, there is no need to be too cautious about the follow-up market performance, and the current market opportunities are still greater than the risks. 1) the economic stabilization is not a linear repair, and we should also pay attention to the follow-up response of the policy. 2) A-share valuations are still attractive, especially undervalued state-owned enterprises still have room to repair. And the current overall valuation level of A shares is not high. The forward price-to-earnings ratio of Shanghai and Shenzhen 300 is 10.3x, which is still at a historical low. The implied equity risk premium of Shanghai and Shenzhen 300 is 5.5%, which is 0.8 times the standard deviation of the historical average (3.8%) since 2005. It shows that market sentiment is still pessimistic and the overall valuation is still attractive.