Core Insights - The A-share market has returned to the 4000-point level for the first time in ten years, with the Shanghai Composite Index reaching a high of 4010.73 points on October 28, 2023, before closing at 3988.22 points, down 0.22% for the day, and showing an annual increase of nearly 19% [1][2] - Despite the overall market rally, over 80 active equity funds reported negative returns year-to-date, with some funds experiencing net value losses exceeding 15%, indicating a significant divergence in fund performance during this bullish market [1][3] Market Performance - The Shanghai Composite Index has seen a "slow bull" market since April 7, 2023, rising nearly 1000 points, with the technology growth sector being a major contributor, as evidenced by the ChiNext Index and the STAR 50 Index rising 50.8% and 48.82% respectively year-to-date [2][3] - The average year-to-date returns for ordinary stock and mixed equity funds are 33.3% and 32.93%, respectively, with some funds doubling their net value [3] Fund Performance Discrepancies - A significant number of funds, particularly those heavily invested in traditional value sectors such as banking, real estate, and liquor, have underperformed. For instance, some mixed equity funds have reported losses exceeding 15% [5][6] - Long-term underperforming funds have continued to struggle in the current market, with several funds showing net value losses of over 30% in the past three years [6] Investment Strategies and Market Dynamics - The divergence in fund performance is attributed to differing investment strategies, with many funds failing to adapt to the rapidly changing market conditions and sector rotations [4][7] - Funds that have heavily invested in sectors with significant year-to-date declines, such as consumer and healthcare, have also faced challenges, leading to poor performance [7][8] Future Outlook - The recent breakthrough of the Shanghai Composite Index above 4000 points raises questions about potential upward momentum from previously lagging sectors, which may attract capital inflows [8] - Historical data suggests that sectors that have lagged may see a rebound following such market milestones, although caution is advised against overly relying on historical trends for future performance predictions [8]