Last week, global stock markets experienced a significant pullback, with A-shares also undergoing adjustments. Driven by a substantial rise in international oil prices, the energy and chemical sectors demonstrated strong performance. Among publicly offered Funds of Funds (FOF), those heavily invested in related funds performed well, becoming one of the few categories to achieve positive returns against a backdrop of low overall success rates for the week.

Market analysis indicates that short-term market volatility is significantly influenced by external factors, while medium to long-term prospects remain favorable for the "technology-plus" direction.

For the week of March 2nd to March 8th, A-shares saw a broad-based decline: the Shanghai Composite Index fell by 0.93%, the CSI 300 dropped by 1.07%, and the CSI 1000 fell over 3%. Hong Kong markets continued their weakness, with the Hang Seng Index declining by 3.28% and the Hang Seng Tech Index dropping by 3.7%. Against this backdrop, government bond yields moved lower.

Although risk aversion emerged in domestic equity markets, some analysis suggests that short-term geopolitical shocks typically impact stock markets initially through sentiment and a sharp rise in risk premiums, manifesting as increased volatility and capital reallocation. From a medium to long-term perspective, the restructuring of the international order, resonating with China's industrial innovation trends, is considered the core driver behind the current A-share rally and the revaluation of Chinese assets.

Specifically for last week, the performance of various oil and gas funds boosted FOF returns. Wind statistics show that China Securities Co., Ltd. Ruixuan 6-Month Fund A achieved a weekly return of 1.77%, making it the top-performing public FOF for the week. Based on its heavy holdings at the end of the fourth quarter last year, its significant position in the Harvest S\&P Oil \& Gas Exploration \& Production Select Industry ETF was a major contributor. This ETF itself gained 8.94% over the week, providing crucial support for the FOF's performance.

Overall, public FOF performance was lackluster last week, with equity-oriented FOFs and pension target FOFs all recording negative returns, resulting in a low investment success rate. However, as mentioned, recent external influences have led to pronounced market volatility and a sharp decline in risk appetite. Some public funds remain optimistic about the future performance of A-shares.

Chu Wenyu of Great Wall Fund stated that the current market conditions represent a temporary, event-driven shock that does not alter the long-term market trend. The focus will remain on seeking marginal changes within the AI thematic line. From a performance realization perspective, computing hardware remains a core area, with ongoing attention to technological developments in optical modules and PCBs, supply-demand dynamics in data center power sources, and event-driven catalysts in areas like embodied AI and commercial aerospace.

Last week, markets were focused on the annual sessions of the National People's Congress and the Chinese People's Political Consultative Conference. Policy guidance and direction were provided regarding stricter supervision, quality improvement, and attracting long-term capital into the market. The cultivation and development needs of key emerging industries are also likely to be a major focus for the capital market in the future.

Caitong Fund noted that under the regulatory guidance of "supporting the strong and limiting the weak," capital markets, including the private placement market, have become highly transparent and standardized. Particularly since the new "National Nine Articles" in 2024, the trend of strict supervision driving high-quality development has become increasingly evident. This "strong supervision" cycle is fundamentally about systematically improving the quality of listed companies, building a more solid value foundation for the capital market, and gradually revealing investment value.

The China Securities Regulatory Commission's optimized regulations for refinancing clearly indicate a shift in regulatory focus towards strictly controlling new issuance volume and improving quality. The 2024 "National Nine Articles" further reinforce this top-level design, with a core emphasis on "strictly controlling the entry gate for IPOs to enhance the quality of listed companies from the source," comprehensively raising listing standards across all boards, and guiding resources towards high-quality enterprises that serve national strategies and "hard technology."

Correspondingly, the regulatory logic for the A-share private placement market is shifting from a previous emphasis on financing efficiency and scale to a new phase that places greater importance on financing quality, capital allocation, and market stability. This transition, mutually reinforcing with the introduction of medium to long-term capital, is jointly solidifying the value foundation of the private placement market.

Caitong Fund expressed that the current market expectation of "long-term improvement" is built on a triple foundation of "improving fundamentals, ample liquidity, and optimized asset quality," and is beginning to be validated through the market's structural performance.

Currently, the public fund industry is entering a new stage of high-quality development, signifying a shift from traditional competition based on scale to a more comprehensive, multi-dimensional development focusing on corporate governance, investment research capabilities, and compliance risk control. The industry will closely center on enhancing investor returns, prioritizing clients, preventing risks, strengthening supervision, and resolutely implementing relevant policies.