The market in June remained challenging, but we maintained a high position and our portfolio continued under pressure.We believe that the market is overly pessimistic, and our portfolio is built on the following considerations

The market in May remained very challenging, and investors’ confidence was even more fragile than in April. The market is full of various concerns about the Chinese economy. Our portfolio continues to be under significant pressure. However, we believe that the market may be overly pessimistic about the Chinese economy, and investors' views on Chinese stocks have implied too many negative expectations, which may have overlooked some important information. Our view is that for the Chinese economy to recover, it may only need some more time.

The market was tough in April. There were hot topics, but not incremental capital. The performance of our portfolios was not good. The hot AGI-related investments were uncertain to us. The overseas Chinese assets were affected by the declined risk appetite towards Chinese assets. The manufacturing companies were hit by excess supply in general.

In March, the market’s volatility and trading sentiment varied relatively significant. The performance related to post-COVID recovery was weak, but the performance related to the Artificial General Intelligence was very strong.

Performance in February was weak, because the economic recovery was not fast enough compared to the market’s implied expectations: the rise from November to the Spring Festival, although we think this is related to this year’s Spring Festival being earlier, and the temperature after the festival is lower, also many people have not returned home for three years, and the later return to work has something to do with it. Moreover, due to an unexpected phased easing of China-US relations in February, the opportunity for easing was missed, and then the continuity of overseas capital inflows was affected.

In Jan, the stock markets continued a rally since November last year. In fact, the market lacked clear direction after China’s loosened COVID policy in December last year and played very cautious.