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[Shanghai Composite Index Shows Resilience with Slight Decline; UBS Says A-Shares a "Safe Haven" Amid Geopolitical Turmoil] 1. On Friday, the Shanghai Composite Index closed slightly lower by 0.2% at 4,120.14 points, with a cumulative weekly decline of approximately 0.1%. The CSI 300 Index closed nearly flat, the ChiNext Index was flat, and the STAR Market 50 Index closed down 0.2%. Asian stock markets generally declined due to the ongoing conflict with Iran and high oil prices exacerbating inflation concerns. 2. Wang Zonghao, Head of China Equity Strategy Research at UBS, stated that since the escalation of geopolitical conflicts, the MSCI China Index has outperformed global indices by 1.4%, with A-shares showing greater resilience, while the CSI 300 Index remained essentially flat. He believes that Chinese stocks offer global investors viable diversification options, and A-shares have provided some downside protection against recent geopolitical events. 3. UBS points out that the resilience of A-shares stems from multiple factors: China's relatively low dependence on oil (oil accounts for about 20% of total energy consumption); ample crude oil reserves (enough to meet four months of demand, approximately 1.3 billion barrels); government pricing mechanisms constraining the transmission of international oil prices; and rising input costs potentially pushing up PPI and price expectations, which is a positive development in the current environment. 4. Iran's new Supreme Leader Mojtaba gave his first public speech, stating that he would continue the fight and use the blockade of the Strait of Hormuz as leverage. Trump claimed that the US would earn substantial revenue from rising oil prices, a statement that drew criticism. The military sector declined, with the CSI Defense Index falling 2.3%, hitting a more than two-month low; energy stocks were boosted, with CNOOC's year-to-date gains exceeding 40%.