The A-share market got off to a good start in the year of the Year of the Loong, and the Shanghai Stock Exchange Index rose to "four consecutive positive" points, approaching 3000 points. Foreign funded institutions enthusiastically entered the market. On February 21st, the net inflow of northbound funds was about 13.6 billion yuan, reaching a new high since 2024, and the net inflow trend continued the next day. According to Wind Information data, on February 21st, the Shanghai and Shenzhen Stock Connect net bought 13.595 billion yuan, of which the Shanghai Stock Connect and Shenzhen Stock Connect net bought 9.641 billion yuan and 3.954 billion yuan respectively. The funds mainly flowed into industries such as food and beverage, banking, and power equipment. Currently, the Shanghai and Shenzhen Stock Connect has become one of the main channels for foreign institutions to participate in A-share market transactions, and the large-scale buying of northbound funds undoubtedly highlights the optimism of foreign institutions towards the A-share market. At the beginning of the Chinese New Year, China's economy has made a bright start, the pace of financial opening is firm, and positive signals from the stock market have been released one after another. All of this has effectively stimulated the vitality of the capital market, boosted investor confidence, and is also the reason why foreign institutions are actively entering the market. First of all, the economy in the year of the Year of the Loong started a new situation and consolidated the recovery trend. The consumption during the Spring Festival holiday in the the Year of the Loong is "hot", and the economic growth momentum is sufficient. According to the data center of the Ministry of Culture and Tourism, during the 8-day Spring Festival holiday, 474 million domestic tourists visited China, a year-on-year increase of 34.3%, and a comparable increase of 19.0% compared to the same period in 2019; The total cost of domestic tourists traveling was 632.687 billion yuan, a year-on-year increase of 47.3%, and a comparable increase of 7.7% compared to the same period in 2019. A series of eye-catching data have laid a stable and sound tone for China's economic development in the the Year of the Loong. At the same time, monetary policy should be pushed forward to promote stability. On February 20th, the latest 5-year and above LPR (Loan Market Quotation Rate) saw its largest decline in history, with a decrease of 25 basis points from the previous 4.2% to 3.95%. This unexpected interest rate cut has effectively driven down the overall financing cost of society, supported the stable and healthy development of the real estate market, promoted investment and consumption, and improved market sentiment and stabilized social expectations. Secondly, the steady pace of high-level opening up in the financial market has provided a reassurance for foreign institutions. Currently, foreign institutions are deeply involved in China's economic development and financial market operation, and have become a very important force in the financial industry. Recently, financial regulatory authorities have made multiple public statements, demonstrating their determination to promote high-level financial openness. On February 20th, the Office of the Central Financial Commission and the Central Financial Work Committee pointed out in a signed article published in the People's Daily that "enhancing the driving force of financial development with higher levels of openness", "strengthening the interconnection of domestic and foreign financial markets, and improving the level of cross-border investment and financing facilitation". At the end of January, Xiao Yuanqi, Deputy Director of the State Administration for Financial Supervision and Administration, emphasized at a press conference of the State Council Information Office that "we will steadily promote high-level institutional opening up in the financial sector.". In addition, since the beginning of this year, financial opening measures such as lifting restrictions on the proportion of foreign shares in banking and insurance institutions, and significantly reducing the entry threshold for quantitative foreign investment have been continuously implemented, releasing signals to encourage foreign institutions to invest and finance in China. Finally, the securities regulatory authorities have taken multiple measures to respond to investor concerns, safeguard their legitimate rights and interests, and boost market confidence. February 1st