The trend of "steady progress" in A shares is expected to continue.

Last week, the A-share market showed a pattern of consolidation at a high level after a volatile upward trend. The Shanghai Composite Index regained the 3400-point level in the first half of the week driven by the financial sector, while in the second half of the week, sector rotation accelerated and the index adjusted on reduced trading volume. Institutional analysis believes that the short-term market risk preference has increased and expectations for fundamentals have improved, leading to major A-share indices breaking through the gap that occurred in early April. With continued strong policy support and the entry of medium- to long-term capital into the market, the trend of steady progress in the A-share market is expected to continue.