Last Friday, central bank governor Zhou Xiaochuan indicated that low interest rates impact the motivation of banks to serve the economy. Coupled with the negative news of increased cash flow operations, the morning index opened lower. The Shanghai Composite Index closed at 3308 points, which I repeatedly emphasized last week as a key area (3295-3308), down by 12 points. The Shenzhen Component Index fell by 4 points. Building materials and securities firms showed some activity. From an index perspective, the negative news had limited impact on the index, instead forcing a good washout in the market. This also validated my warning in the second half of last week about being cautious about short-term adjustments, and reinforced my prediction made at the end of October that there would be a medium-term market trend. This small adjustment may lay the foundation for the launch of the dominant market trend in the second half of next week, and the index has the potential for accelerated upward movement in the second half of next week or the week after.