During the past three quarters in 2011, both China's A share market and bond market slumped under the complicated economic background of stagnant American economy, deteriorating European debt crisis, domestic economic growth slowdown and consistent stringent monetary policy. The Shanghai Composite Index went down with fluctuation, dropping by 16% and the average PE of the listed companies in the whole stock market has been rather low while the average PE of small-and-mid companies is still high, so there exists structural valuation pressure. Looking forward into the fourth quarter of 2011 and 2012, We expect the stock market will show great fluctuations with structural investment opportunities, suggesting investors pay attention to those companies with good growth prospects and valuation advantage in the consumption sector or emerging industries,and the blue chip companies with good fundamentals in those sectors that have valuation advantage due to their previous large price drop. <<