Two main triggers for the market rally:

China and the U.S. are about to dialogue: High-level talks are expected to be held in the near future (within days to weeks), involving trade and other topics, boosting market expectations for easing relations.

Central bank interest rate cuts and reserve requirement ratio reductions: On October 18, 2024, the central bank announced a reduction in the reserve requirement ratio by 0.25-0.5% and a reduction of the LPR by 0.2-0.25% within the year. The interest rate cuts and reserve requirement ratio reductions in May 2025 may implement this announcement or initiate a new round of easing, expected to release approximately 1 trillion yuan in liquidity.