Business Strategy: After the short-term profit outflow pressure is released, A-shares are expected to return to volatile upward trend.

The announcement of the commercialization strategy report stated that the first batch of floating rate funds has officially applied, marking the entry of rate reform into the practical stage. In April, the growth rate of new social financing accelerated to a high level, accompanied by a series of financial counter-cyclical adjustment policies being implemented. It is expected that the demand for entity financing will recover, which is likely to be reflected in the social financing data in May. At the same time, the issuance of ultra-long-term special national bonds and the capital injection of special national bonds by central financial institutions have been initiated, providing support for the overall social financing. In April, the "claims of other financial corporations by the central bank" noticeably increased, possibly related to providing liquidity support to the State Administration of Foreign Exchange. Looking ahead, the State Administration of Foreign Exchange will continue to play a stabilizing role, and market downside risks are controllable. In addition, the "Joint Statement of China-US Economic and Trade Talks in Geneva" continues to have a positive effect on the revival of short-term market risk appetite. The concern of fluctuations in tariffs leading to profit-taking and exiting positions may be a major reason for the weak market in the latter half of the week. Once this short-term pressure is released, A shares are expected to return to a range-bound upward trend.