Core Viewpoint - The Shanghai Composite Index has reached 4000 points for the first time in 10 years, indicating a gradual increase in market enthusiasm, despite a lack of strong profit-making effects for investors [1][2][28]. Market Performance - The Shanghai Composite Index closed at 4002.83, with a gain of 14.61 points (+0.37%), while the Shenzhen Component Index and the ChiNext Index also saw increases of 120.55 points (+0.90%) and 43.70 points (+1.35%) respectively [2]. - The index has risen from a low of 3100 points this year, reflecting a warming market sentiment [2]. Investor Sentiment - Many investors are conflicted about entering the market, fearing they might buy at a peak while also wanting to capitalize on the ongoing bull market [3][4]. - The current market reaction to the index reaching 4000 points is notably subdued compared to previous instances, with less media excitement and fewer discussions [6][8]. Market Dynamics - The speed of retail investors moving their deposits has decreased compared to previous bull markets, indicating a lack of confidence in sustained upward movement [7]. - The primary reason for the lack of enthusiasm is that while the index has risen, the actual account balances of many investors have not increased, leading to a disconnect between index performance and individual investor returns [9][10][12]. Market Control - The new high in the index is largely attributed to government intervention rather than an influx of new capital, suggesting that the market is currently in a phase of stock selection rather than broad-based growth [15][18]. - The absence of sufficient incremental capital means that the market is characterized by a struggle between existing funds, often resulting in larger funds dominating smaller ones [19][21]. Future Outlook - Historically, the Shanghai Composite Index has previously surpassed 4000 points in 2007 and 2015, both times leading to further increases towards 5000 points [26][28]. - Current monetary policies, both domestically and internationally, are supportive of continued upward movement in the index, which could enhance profit-making opportunities in the future [30][31]. Investment Strategy - Investors are advised to identify undervalued sectors and stocks that may attract large capital flows as the index continues to rise [36]. - The expectation is that as the index approaches 5000 points, the profit-making effect will gradually improve, although this process may take time and require patience [35].

Core Viewpoint - The Shanghai Composite Index has reached 4000 points for the first time in 10 years, indicating a gradual increase in market enthusiasm, despite the lack of strong market reactions and profit-making opportunities for investors [1][2][6][9]. Market Performance - The Shanghai Composite Index closed at 4002.83, with a 0.37% increase, while the Shenzhen Component Index and the ChiNext Index also saw gains of 0.90% and 1.35% respectively [2]. - The index has risen from a low of 3100 points this year, reflecting a warming market sentiment [2]. Investor Sentiment - Many investors are conflicted about entering the market, fearing they might buy at a peak and face subsequent declines [3][4]. - The current market reaction to the index reaching 4000 points is muted compared to previous instances, with less media excitement and fewer discussions [6][8]. Profitability Concerns - Despite the index reaching new highs, the overall market has not shown strong profit-making effects, with many investors' account balances remaining stagnant since August or September [9][10][12]. - The divergence between index performance and individual stock profitability is attributed to a lack of incremental capital entering the market, leading to a scenario where large funds dominate the trading landscape [18][21]. Historical Context - Historically, the Shanghai Composite Index has reached 4000 points twice before, in 2007 and 2015, both times followed by a rise to 5000 points [26][27]. - Current government policies continue to support the capital market, suggesting potential for further upward movement in the index [27][30]. Future Outlook - The market is expected to transition from a phase of stock selection to one where larger funds will begin to invest in undervalued sectors and stocks, potentially improving the overall profitability for investors [32][34]. - Investors are advised to identify undervalued sectors and stocks that may attract large funds as the index continues to rise [36].

Core Viewpoint - The Shanghai Composite Index has reached 4000 points for the first time in 10 years, indicating a gradual increase in market enthusiasm, despite concerns about potential market peaks and the lack of strong profit-making effects for investors [1][2][4]. Market Performance - The Shanghai Composite Index closed at 3988.22, down 0.22%, while the Shenzhen Component Index and the ChiNext Index also experienced declines [2]. - The index has risen from a low of 3100 points this year, reflecting a warming market sentiment [2]. Market Sentiment - Unlike previous instances when the index reached 4000 points, there is less media excitement and public discussion this time, attributed to a slower pace of retail investors moving their deposits [3][4]. - The lack of strong profit-making effects is a significant factor, as many investors have not seen corresponding increases in their account balances despite the index's rise [4][5]. Market Dynamics - The recent index highs are believed to be driven by government intervention rather than new capital inflows, leading to a situation where market dynamics are characterized by existing funds competing against each other [5][6]. - The focus of large funds is on stocks that significantly contribute to the index, resulting in a lack of broad market participation and profit-making opportunities for smaller stocks [6][7]. Future Outlook - Historical patterns suggest that after reaching 4000 points, the index has previously moved towards 5000 points, supported by government policies favoring the capital market [6][7]. - The current monetary environment, both domestically and internationally, is conducive to further index growth, with expectations of increased capital flow into previously undervalued stocks as the market stabilizes [7][8]. Investment Strategy - Investors are advised to identify undervalued sectors and stocks that may attract large funds as the index approaches 5000 points, as this could present significant profit opportunities [7][9]. - The upcoming months are seen as a transitional phase, where patience and strategic positioning in the market will be crucial for maximizing returns [7][8].