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.

In December, our portfolio reflected that we maintain a positive investment approach to the post-pandemic recovery. The A share markets had experienced pressure from a re-opening perspective to short-term realities-soaring infection figures in China, and the market performance was weak. For instance, the CSI 500 and CSI 1000 significantly lagged the SSE 50 and the CSI 300 index respectively.

The market rose sharply in November. We believe that the major factors that plagued the market have all reached the turning points.

In October, our portfolio underperformed. A notable drop was from Chinese equities listed overseas. Despite the CSI small cap 500 and CSI 1000 indexes rose 1.6% and 2.7% respectively, the SSE 50, the CSI 300, the Hang Seng China Enterprise Index, and KWEB lost 12.0%, 7.8%, 16.5%, and 22.1%. The market performance reflected that foreign investors have concerns over Chinese assets but interest in industries that will receive policy support in the future.

In September, taking the desperate stickiness of overseas inflation, worries about the escalation of the conflict between Russia and Ukraine, and the deep correction in China stock markets due to the lack of a strong economic recovery, our portfolio's NAV had a decent performance this month followed by a noticeable drop.