Zou Xinjin, Guolian'an Fund: The market showed an "A"-shaped trend in the first quarter, gathering momentum for a fresh start.

Zou Xinjin, Managing Director of the Equity Investment Department at Guolian An, stated: The first quarter of 2026 basically showed an "A"-shaped trend. The spring rally in January-February + the decline in risk appetite brought by geopolitical conflicts in March. However, I still believe that the overall A-share market in 2026 will remain in an upward trend.

The variables brought by geopolitical conflicts have already been reflected in the market in March. If the conflict does not expand in scope, the impact on A-shares may be very limited, only causing short-term disturbances in some sectors, and will not change the overall market trend.

Pro-cyclical and technology sectors are still expected to be the main themes of the market in the second quarter, but the strength and pace of the stabilization and recovery of overall domestic demand will become the core key variable determining the height of the market's upward movement. With the acceleration of work and production resumption after the Spring Festival, both supply and demand expanded simultaneously, and the PMI index returned to the expansion zone. As a late-cycle sector, the large consumption sector is constrained by the overall recovery pace being relatively slow and lagging, and is expected to be difficult to reverse for the time being, possibly showing a following trend.

      In terms of the convertible bond market, overall valuations are still at a relatively high level, but have eased compared to before the Spring Festival. The possibility of another significant decline is expected to be small.

The short-term convertible bond market is still constrained by the supply-demand imbalance pattern. Market movements may be more dominated by the subscription and redemption behavior of fixed-income + funds. Opportunities arising from valuation digestion, such as pullbacks caused by unexpected events and downward revisions of conversion prices, can be watched.

Risk Disclosure: Only represents the market view of Guolian An Fund at that time. The market carries risks, and investment requires caution. This material is based on publicly available information deemed reliable by Guolian An Fund. Under no circumstances does the information or opinions expressed in this material constitute investment advice to anyone, nor serve as promotional material or any legal document. Investors should not regard this view as the sole reference factor for making investment decisions, nor should they believe it can replace their own judgment. Investors bear the risks and consequences of any investment behavior themselves.