Active funds entering the market form a positive feedback mechanism. Institutions believe that A-shares still have the momentum to rise.

Last week, the three major stock indexes of A shares continued to be strong after a short-term consolidation, with the Shanghai Composite Index hitting a new high for the year. Institutions believe that the influx of funds in this round of market comes from various sources, including insurance funds, pension funds, public funds, private equity funds, as well as residents' investment funds entering the market. As the market's profitability increases, the positive feedback between "funds entering the market and slow rise in the stock market" is strengthened, and market risk appetite continues to improve, making the upward trend of this round of market relatively stable.