The market generally predicted the drop of CPI in April. Although there was still likely to be concerns about inflation in the second half of the year, CPI in the whole second quarter would have a chance to gradually fall, and the short-term interest rate increase expectation would further weaken. Secondly, since the mid October of last year, the market had been in deep decline, valuation pressure had been fully released. The 2008 dynamic price-earnings ratio was only around 20 times. The premium level of A-shares over H-shares had significantly narrowed. Thirdly, in late April, the management successively adjusted stamp tax rate, regulated the lifting of lock-up shares restrictions for small and medium non-tradable shareholders, and standardized IPOs. It continuously launched favorable policies in combinations, and its accumulated effect gradually became apparent and began to actually take effect on the basic market. Finally, the lifting of lock-up shares restrictions for small and medium non-tradable shareholders in the second quarter entered a relatively low ebb period. New funds which were concentratedly issued in February and March would finish fundraising and build positions one after another, providing fresh blood for the market. The increase of QFII quota would also contribute new funds to the market. All these would hopefully bring the market capital surface to balance in the short term.