Following a period of easing geopolitical tensions, global risk assets experienced a broad-based rally during the week of April 6-10, 2026, with bond markets advancing and gold prices trending higher. Key developments across markets are outlined below.

In the equity sector, the A-share market continued its rebound after clear signals of de-escalation in Middle Eastern geopolitical events. The Shanghai Composite Index briefly recovered above the 4,000-point level but faced significant resistance, closing the week at 3,986.22. The ChiNext Index and the CSI 1000 Index outperformed, driven primarily by growth sectors such as communications, electronics, and new energy, which may reflect emerging market consensus.

In the bond market, a recovery trend unfolded as both government and credit bonds posted gains, with Treasury bond futures also rising. Liquidity remained extremely loose, supporting stability in short-term rates. Market sentiment improved following a temporary ceasefire agreement in the Middle East, which led to a notable decline in Brent crude prices and eased imported inflation expectations, contributing to a rebound in long-term bonds. From a supply-demand perspective, institutional reallocation demand at the start of the quarter supported a significant recovery in long-end bonds. On the policy front, the central bank's continued "minimal-volume" reverse repo operations suggest limited room for further declines in short-term interest rates.

In commodities, COMEX gold prices moved higher amid fluctuations. After initial tension, the Middle East ceasefire eased concerns over energy supply disruptions and associated inflationary pressures. A weakening U.S. dollar provided additional support, allowing gold to realign with its medium- to long-term pricing logic.

Overseas, U.S. stocks experienced minor fluctuations early in the week. Markets held steady ahead of a key deadline set by former President Trump, who later announced a two-week ceasefire after Tuesday's market close, triggering a rebound. Over the first four trading days, the S&P 500 rose 3.68%, with energy stocks declining while technology, consumer, and industrial sectors rebounded strongly. The Philadelphia Semiconductor Index surged over 10%, reaching a new record high. The U.S. dollar index faced clear resistance near 100, retreating to around 99 by week's end. U.S. Treasury yields edged lower, though the recovery was less pronounced than in equities.

Specific views on different asset classes are as follows:

**Equities** While the trajectory of geopolitical events remains unpredictable, their economic impact is becoming clearer. Recent inflation data showed a narrowing year-on-year increase in CPI, while PPI turned positive with a notable rise, highlighting price transmission from upstream resources. Although fluctuating geopolitical developments may periodically affect A-share market sentiment, the market's reaction coefficient is likely to diminish over time. Attention will increasingly focus on investment opportunities and risks influenced by geopolitical factors, as well as directions emerging during the important April earnings season. Earnings certainty is expected to be a key investment focus, with sectors such as optical communications, industries benefiting from rising PPI trends, and the strategic value of the new energy system warranting attention.

**Bonds** The U.S.-Iran ceasefire includes a two-week observation period, with uncertainty regarding the resumption of Strait transit. Elevated oil prices continue to exert inflationary pressure on long-term and ultra-long-term bonds, favoring a strategy centered on medium- and short-term bond coupons. Over a longer horizon, under a neutral scenario, the bond market is likely to remain range-bound. This is due to the domestic economy still being in a consolidation phase, with current inflation driven more by imported factors than demand recovery, creating transmission pressures for mid- and downstream sectors. Monetary policy is unlikely to shift abruptly. Meanwhile, institutions such as banks, benefiting from lower liability costs, provide some配置 support.

**Commodities** From a配置 perspective, short-term pressure on gold from geopolitical factors has eased, and holding costs have marginally decreased. Technically, gold has stabilized near previous resistance levels and may continue to test higher after consolidation. Over the medium to long term, central bank gold purchases and concerns over U.S. dollar credibility persist, suggesting opportunities for strategic配置 on dips with controlled positioning.

**Overseas Assets** The U.S. administration shows little appetite for prolonged conflict, but significant gaps remain in core demands between the U.S. and Iran. With Strait transit capacity not yet fully restored, oil prices are expected to stay elevated under limited transit assumptions, keeping inflation expectations above pre-conflict levels. Investors should continue to focus on real assets, security, and inflation themes amid global realignment, while also monitoring advancements in the AI industry and beneficiaries along the AI supply chain. Overseas assets remain a vital component of diversified配置. Given daily subscription limits on QDII funds,配置-oriented investors may consider accessing overseas markets through portfolio strategies, balancing asset classes, regions, and styles.

The following sections summarize quantitative market data for the week.

**Equity Market Overview** Major indices posted broad gains. Among broad-based indices, the CSI 1000 and NZ 2000 indices recorded the highest weekly increases.

Note: PE (TTM) = ∑(constituent market cap) / ∑(constituent net profit TTM). Historical percentile is calculated based on daily data since 2005.

Trading activity saw a rebound in turnover compared to the previous week. By structure, the share of non-index stock turnover declined, while the shares of CSI 300, CSI 500, and CSI 1000 constituents increased.

Turnover rates for the CSI 300, CSI 500, and CSI 1000 indices rose week-on-week, with current levels above their three-year averages.

Note: Index turnover share = constituent turnover / total market turnover. Turnover rate = (total shares traded / total float shares) * 100%.

Volatility, measured by 20-day rolling standard deviation, increased for the CSI 300, CSI 500, and CSI 1000 indices, with current levels above three-year averages.

Sector performance was led by communications, electronics, and machinery equipment, which rose 10.74%, 10.64%, and 7.08%, respectively.

**Key Equity Market Events** - Former U.S. President Trump expressed optimism about a potential U.S.-Iran agreement and called for restraint from Israel regarding military actions in Lebanon. - China's securities regulator issued guidelines to deepen reforms on the ChiNext board, introducing a fourth listing standard that combines growth and innovation metrics with market cap and revenue criteria to support high-potential innovative enterprises. - Regulatory authorities emphasized the need to curb "internal competition" in the lithium battery industry, urging firms to avoid unfair practices and maintain healthy market秩序. - China successfully launched 21 low-orbit satellites for its satellite internet project from the Taiyuan Satellite Launch Center.

**Bond Market Overview** Interbank liquidity eased, while exchange liquidity tightened. Government and credit bonds strengthened, with Treasury futures also gaining.

**Key Bond Market Events** - The U.S. Federal Reserve released minutes showing divided views on the economic impact of Middle East conflicts, with two-way risks for interest rates. The benchmark rate was held at 3.5%-3.75%. - China's March CPI rose 1% YoY (vs. 1.3% previously), with a MoM decline of 0.7%. PPI increased 0.5% YoY (vs. -0.9% previously), rising 1% MoM.

**Commodity Market Overview** The Nanhua Commodity Index fell 2.61% for the week. Gains were seen in precious metals (+2.56%) and non-ferrous metals (+0.40%), while declines occurred in energy (-6.22%), ferrous metals (-1.64%), and agricultural products (-0.44%).

Shanghai gold rose 1.22%, while crude oil fell 11.39%.

Note: Weekly changes for Brent crude are calculated based on prices at 15:00 China time.

Investors are reminded that all investments carry risks. Content herein is based on public information and is for reference only. Investors should make decisions based on individual objectives and risk tolerance.