International oil prices have sharply risen. Yang Xiaoqiang, Co-Chief Executive Officer of Emerging Market Corporate Bonds and Head of Fixed Income for Greater China at Pictet Asset Management, believes that the impact of the oil price surge on the economy will depend on how long the Middle East conflict persists. Given the oversupply of global oil itself, if the conflict ends, international oil prices may quickly fall. Pan Jianhui, Senior Investment Manager for Chinese equities at Pictet Asset Management, points out that rising energy prices will lead investors to shift towards risk, which may not be beneficial for the stock market. However, he agrees that the recent surge in international oil prices is only a short-term overshoot and is unlikely to be sustained at high levels in the medium to long term, with the future performance of the Chinese stock market mainly determined by its fundamentals. Recently, there has been frequent capital outflow from the northbound link. Pan Jianhui believes that mainland investors selling off Hong Kong stocks is due to the risk-off sentiment triggered by the Middle East situation. While he remains optimistic about Hong Kong stocks in the long term, he anticipates that the performance of A-shares will outperform Hong Kong stocks in the future, as A-shares have clear upward momentum, such as improving liquidity and upward revisions in earnings forecasts. On the other hand, there are many uncertainties in the Hong Kong stock market. Pan Jianhui cites examples such as Chinese internet platforms facing intense competition and uncertainties surrounding antitrust policies. He further acknowledges that the commercialization of large AI models in the mainland involves significant capital investment and it is difficult to predict their short-term success in business.