CICC: Recent strong performance of A-shares impacted by several factors.

The research report of Zhongjin Company stated that the Shanghai Composite Index reached a nearly four-year high with increased trading volume. The recent strong performance of the index is driven by funds, supported by performance, and a temporary decrease in external risks. Several factors have influenced the strong performance of A-shares recently: 1. The marginal strengthening of the interpretive power of funds in the current market; 2. The overall profit growth rate of the A-share market this year is expected to end the "four consecutive years of decline" and turn positive; 3. Short-term external uncertainties have decreased and are better than market expectations.