Morgan Stanley Fund released a statement saying that the market performance in the past few days has significantly exceeded expectations. With the uncertainty of the outcome of the US election, some investors have remained cautious. However, the market has continued to rise sharply, with some indices approaching previous highs. This can be attributed to two reasons: domestic policy expectations and the fluctuation caused by overseas US election trading. Since the end of September, the overall A-share market has been strong, and the future market performance will still depend on the strength of domestic policies, which needs to be closely monitored. However, from a medium-term perspective, maintaining an optimistic attitude is necessary. On November 5th, the A-share market saw a significant increase, with various indices rising collectively. Looking at the indices, the ChiNext Index and the STAR Market 50 Index led the gains, followed by the CSI 2000 Index. The Shanghai Composite Index rose by 2.32% to close at its highest point, while the SSE 50 Index rose by 1.94%, showing relatively weaker performance. In terms of industries, defense, technology, non-bank financials, and electronics saw the largest gains, with no industry indices falling. However, banking, home appliances, utilities, and coal performed relatively poorly. More than 5000 companies saw increases in their stock prices, with the trading volume reaching 2.35 trillion yuan. According to Morgan Stanley Fund, from a domestic perspective, the Standing Committee of the National People's Congress recently discussed a proposal from the State Council to increase the limit on local government debt in order to replace existing hidden debt. Although the specific scale is unclear, the timing of this proposal exceeded market expectations. Domestic fiscal policy is currently the most influential variable affecting the market, and the recent meeting of the Standing Committee of the National People's Congress has strengthened policy expectations. As for overseas factors, the current US election is in a tight race, and it has shifted from being mostly a "Trump trade" to potentially favoring Harris in several swing states, causing a temporary increase in risk appetite and attracting funds in favor of Harris.