Positive factors continue to accumulate, mutual funds are optimistic about the future market of A shares.

Some public offering institutions have stated that since July, favorable policies have brought improvements in market expectations from both the supply and demand sides. This, combined with accelerated entry of high-risk capital such as margin trading and speculative funds, as well as resonance with public offering fund, insurance capital, and foreign capital, has continuously generated incremental funds in the market and driven the index higher. However, some institutions have cautioned that there may be volatility risk in the market in the future. Huabao Fund has stated that in the short term, following the breakthrough of the Shanghai Composite Index, a pullback may be needed for confirmation, and it may need to consolidate at a previous high position for a period of time to digest market capital with divergent views. The probability of the index rising directly in one direction is not high, and market volatility may increase. However, in the medium term, the upward trend in the market remains unchanged.