UBS Securities analyst Meng Lei believes that in the short term, the upward momentum brought by loose policies in the A-share market still exists, but the upward slope may gradually slow down, and the two-way fluctuation amplitude may increase. In terms of policies, policy support including real estate, monetary, and capital market policies is gradually being implemented, and details of fiscal policy are yet to be announced, so the restorative momentum of market sentiment brought by loose policies still exists. From a liquidity perspective, a large amount of off-market funds (including new individual investors, new public funds subscribed for new issuances, foreign funds that were previously underweighted in the Chinese stock market, and medium- to long-term funds that have not yet entered the market) are waiting to enter. UBS points out that whether the A-share market can continue to achieve sustainable second-round trend upward movement depends on the strength of fiscal and related policies. For the fourth quarter of this year, UBS's macro team believes that the more reasonable expectation in the short term is for the government to introduce a 1.5-2 trillion RMB fiscal stimulus, including support for residents and enterprises, as well as filling the revenue and financing gaps of local governments. For 2025, based on UBS's current benchmark forecast assumptions (1.5 trillion yuan special national bonds, 4 trillion yuan local government special bonds, general public budget deficit rate of 3-3.5%), fiscal policy could further expand by 2-3 trillion yuan, supporting areas including increased fiscal expenditures and support for the household sector, debt restructuring of local financing platforms, and fiscal support for important structural areas. In the medium term, the market's sustained upward movement requires support from corporate profits. Overall A-share profits declined by 3% year-on-year in the first half of 2024. Industrial enterprise profits in July and August increased by 4.1% and decreased by 17.8% year-on-year, respectively, showing that corporate profits are still consolidating at the bottom in the second half of the year. The transmission of policy easing since late September to the real economy and corporate profits will take some time. If the economic fundamentals gradually improve and profits rise, the upside potential of the A-share market may be further opened up. Meng Lei further points out that the bank believes that China needs a new engine that can create wealth effects to offset the negative impact of the property downturn. It is expected that Chinese households will continue to increase their exposure to stocks. In the long run, the bank believes that the A-share market is the best reservoir of family wealth, and it can be reasonably assumed that the rise and fall of stock prices will affect the wealth of most Chinese families. Currently, the A-share market has a higher strategic importance for economic development.