The Shanghai Composite has surpassed the 3800-point mark, and A shares are expected to form a healthy capital cycle.

Last week, the A-share market continued to strengthen, with the Shanghai Composite Index reaching 3800 points, and trading volume breaking 2 trillion yuan for 8 consecutive trading days, with a continuous increase in risk appetite for funds. Institutions generally believe that the core driving force behind the rise of the index is the increase in incremental liquidity. At the same time, investors should be aware that the recovery of the manufacturing industry and the improvement in corporate profits are important backgrounds driving funds into the stock market. From the start to the acceleration of this round of market trends, the core clues revolve around industrial trends and company performance. Looking ahead, institutions generally believe that with the relay of new and old funds, A shares are expected to form a positive cycle of "slow rise in the stock market - strengthened confidence - inflow of funds".