Middle East geopolitical conflicts fluctuate repeatedly, "fund-buying hands" increase allocation to A-shares.

Against the backdrop of continuing geopolitical conflicts in the Middle East and increasing market volatility, domestic fund advisory institutions have proactively adjusted their asset allocation towards Chinese equity assets. According to statistics from Guotai Junan Securities, in March 2026, a total of 179 fund advisory portfolios completed repositioning, with A-shares ranking second in the list of increased allocation among 11 asset classes, while assets such as emerging markets, overseas bonds, currencies, and cash were reduced to varying degrees. The adjustment of asset allocation is based on institutions' reassessment of the investment value of Chinese equity assets. The latest investment report from Huaxia Fund Advisory in April shows that based on the risk premium of the past five years, the investment value of the CSI All A-shares Index is higher than historical average by 32.67%, indicating that the equity market has transitioned from the previous "overvalued" range to a "neutral" range. The advisory institution stated that current market sentiment indicators have fallen to a low level, reflecting pessimism about rising oil prices in Chinese equity assets. However, the downside potential for further index decline may be relatively limited. Nevertheless, bottom-fishing signals still depend on the emergence of significant volume candlestick patterns in A-shares and the synchronized peak-and-fall of oil price volatility and S&P 500 volatility. Currently, the latter has shown signs of decline, while the former remains at a high level.