Core Viewpoint - The micro-cap stock index has recently reached a new high, but has shown significant pullback after a two-day market adjustment, indicating increased volatility in the market [1]. Group 1: Market Dynamics - Several public funds believe that the rapid recovery of micro-cap stocks over the past two months is driven by multiple factors, with liquidity being a primary driver [2][4]. - The micro-cap stock index has shown strong performance, with the CSI 2000 and Guozheng 2000 indices rising by 16.11% and 13.27% respectively since April 8, significantly outperforming larger indices [4]. - The central bank's emphasis on maintaining a moderately loose monetary policy suggests that liquidity support for micro-cap stocks may continue, enhancing their market elasticity [4]. Group 2: Fund Performance and Limitations - Despite some public funds achieving good performance with micro-cap stocks, the limited capacity for these stocks to absorb large amounts of capital has led to restrictions on fund subscriptions [6][8]. - As of the first quarter of 2025, public funds held approximately 4.55 billion yuan in micro-cap stocks, representing only 0.08% of their total market value, indicating low holding concentration [7]. Group 3: Diverging Opinions on Future Trends - There are differing opinions among institutions regarding the future of micro-cap stocks, with some reports indicating that the factors supporting their collective rise are beginning to show signs of strain [3][9]. - Concerns have been raised about the potential for a "snowball" effect if the current trend of collective investment in micro-cap stocks exceeds their capacity, which could lead to significant market fluctuations [10]. Group 4: Optimistic Perspectives - Some analysts remain optimistic, suggesting that micro-cap stocks are primarily driven by liquidity rather than fundamental factors, and that they may continue to outperform in the absence of a clear market trend [11].