Core Viewpoint - The article discusses the impact of the recent increase in tariffs by the U.S. on Chinese goods, emphasizing that the A-share market will continue to be driven by domestic factors despite external pressures [2][3][4]. Summary by Sections Market Performance - The A-share market experienced a significant adjustment following the announcement of a 10% tariff increase on Chinese goods by the U.S., with the CSI 300 index declining by 2.22%, the Shanghai Composite Index down by 1.72%, and the CSI 500 index falling by 3.26% [2]. Economic Fundamentals - China's economic performance remains under domestic control, with the official PMI for February exceeding expectations, indicating a stable recovery during the Spring Festival period. The increase in tariffs is partially offset by the resilience of the domestic economy, although further fiscal and monetary policies will be necessary to mitigate the impact of escalating U.S. tariffs [3][4]. International Relations - The failure of the U.S.-Ukraine peace talks is highlighted, with the article suggesting that the U.S. is likely to withdraw from the Russia-Ukraine conflict. The commentary indicates that the U.S. has provided the best economic negotiation terms to Ukraine, but the lack of military support from the U.S. undermines Ukraine's position [3]. Technical Analysis - Institutional funds continue to favor the main board, aligning with the fundamental outlook of a stabilizing domestic demand amidst increasing external pressures. The article suggests maintaining a high allocation in A-shares, particularly in small-cap sectors, as the market adjusts to the recent tariff news [4].