Guotai Junan: Looking ahead, the stock market index still has room for new highs.

Guotai Junan Securities Strategy stated that from April 7 to present, the Shanghai Composite Index has risen by nearly 600 points; the Hang Seng Index is one of the best performers globally. However, there is still significant market divergence. Objectively speaking, in recent years, the economic transformation pains and high risk-free returns have hindered the performance of the stock market and the willingness to enter the market, acting as obstacles to the development of the Chinese economy and capital market. It should also be noted that China's transformation is accelerating, with continuous innovation emerging; around improving investor returns, capital market reforms are deepening and speeding up, allowing for the establishment of a "transformation bull market." Looking ahead, stock indices may reach new highs, and any temporary adjustments should be viewed as opportunities to increase positions in Chinese assets in a contrarian manner.