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[US-Iran Ceasefire Triggers Risk Asset Frenzy, A-Shares Approach 4000 Points, Yuan Hits Three-Year High] 1. Boosted by the two-week ceasefire agreement reached between the US and Iran, global risk appetite rebounded strongly. The Shanghai Composite Index surged 2% in early trading on Wednesday, approaching the 4000-point mark, before closing up 1.9%. The upward trend continued in the afternoon, currently reaching 3983.73 points; the Hang Seng Index jumped as much as 3%. Trading volume in Shanghai and Shenzhen markets increased by over 40% in the morning session compared to the previous day, and both the spot and offshore yuan against the US dollar hit over three-year highs. 2. Analysts believe that the worst phase of the Middle East situation may have passed, as neither side can afford further escalation, allowing risk assets a respite. However, a sustained price revaluation requires more signals. UBS recommends maintaining diversification and appropriate hedging to avoid hasty adjustments to strategic allocations. 3. The technology growth sector led the gains, with the CSI Artificial Intelligence Index and Semiconductor Index surging over 5% at one point, and the Hang Seng Tech Index rising 4.2%. The energy sector suffered a sharp decline, with the CSI 300 Energy Index falling over 5% at one point. Market focus is shifting from geopolitics to other areas. 4. Fund managers point out that high oil prices are detrimental to China's industrial economy, and China has an incentive to ease tensions. The direct impact of the Middle East conflict on the Chinese economy is limited, and the economy is expected to achieve a "strong start" in the first quarter. 5. Analysts say that risk assets have received a breather, but for the rally to continue, traders need to see actual shipping activity in the Strait of Hormuz resume; otherwise, the current situation is merely a sharp position adjustment rather than a sustained price revaluation.