2021 has passed. The environment has had a significant impact on investment, which we discussed a lot in the recent investor meetings and in articles posted on our public account. In this commentary, we would like to have a review on the market in 2021 as well as an outlook on our focuses in 2022.

The market was not quite volatile in November. CSI 500 rose by 3.3% while CSI 300 dropped by 1.6%. Investors traded on a weak economy and on a pandemic that seemed hard to be curbed in the short run. Energy, banks and consumer services underperformed. Outperformers were national defense, meta universe as well as “the professional, the special, the proficient and the new”.

In October, though market volatility seemed low in general, the internal differentiation was dramatic.

In September, the market surged and plummeted, resulting in a slight difference between the beginning indices and the ending ones. The substantial increase of upstream raw material prices was not passed along to the downstream product prices, forming a sharp contrast.

The market was split in August. The CSI 300 Index was nearly flat, the ChiNext dropped by 6.6%, whereas CSI 500 and CSI 1000 rose by 6-7%. Sectors such as non-ferrous metal, iron and steel, coal and chemicals surged by approximately 20% in August; while chips, pharmaceutical and food & beverage fell sharply. The market turnover was continuously above one trillion RMB.

The market fluctuated downward in July, falling sharply in the last few days of the month.

The market showed obvious differentiation in June, with ChiNext rose significantly while CSI 300 fell.

The market rebounded in May.