In August, the CSI 300 index rose slightly, with a year-to-date increase of nearly 18%. In August, the Nasdaq index rose by nearly 10%, and has risen by more than 30% year-to-date. The market cap of several major technology stocks as percentage of total market cap has reached a record high.

In July, the market initially had a rapid rise due to the strong economic recovery in the second quarter and the accumulated “wealth effect” in the previous period. Soon, it became volatile due to changes in the external situation and domestic efforts to cool the market. We also feel that opportunities in the market have proliferated, reflecting the improvement in economic expectations and the price reactions of lagging sectors.

In June, A-shares and Chinese assets remained strong. Overseas markets were more volatile due to impact from central bank’s actions, announcements, and epidemic situations.

In May, the focus of the domestic market shifted from the epidemic situation to Sino-US relations. Overseas markets continued to respond to improving epidemic situation with resuming production.

In April, the market rebounded significantly in the context of China ’s resumption of work and the gradual control of overseas epidemics. The rebound in overseas markets has basically been rehearsed in the Chinese market in which online economy gets more opportunities, domestic demand is preferred, and industry leaders are less affected.

In the February newsletter, we discussed the risks of overseas epidemics, but we still underestimated the speed of its development.

The market fluctuated in February. After two months of fluctuations, our NAV basically has returned to the beginning level of the year.

Simply put, there are a lot of concerns of the Coronavirus. There are two types of stock price declines: one is the decline that will not rise back, the other is the decline that will rise back.