Recently, the A-share market has shown a slow but stable pump trend, sparking heated discussions among investors about the "slow bull" market. However, beneath the surface calm, there are actually undercurrents, with increasing differentiation among various zones.

Overall, the performance difference between large-cap and small-cap stocks is particularly prominent. Taking the CSI A100 and CSI 2000 indices as examples, since September 24, 2024, except for a brief violent rally at the end of September, the rise of the CSI 2000 has generally outpaced that of the CSI A100. This strong performance of small-cap stocks is not only reflected across the entire market but is also gradually spreading to the Sci-Tech Innovation Board and the ChiNext. Especially since late April, the advantage of small-cap stocks in these zones has become increasingly evident, fully illustrating that once a market style is formed, it often permeates into various sub-sectors.

However, high returns are often accompanied by high risks. Observing the market corrections at the beginning of this year and in early April, the drawdown of the CSI 2000 was significantly greater than that of the CSI A100, highlighting the higher volatility of small-cap stocks.

This market differentiation is not only reflected between large and small caps but also exists across different industries and themes. Investors need to recognize that although the overall market appears stable, profound changes are occurring within its internal structure.

In the face of such a fragmented market landscape, how should investors respond? First, it is necessary to maintain a clear mind and avoid blindly chasing rises and selling at losses. Second, conduct in-depth research on the fundamentals of each zone to find high-quality targets with genuine growth potential. Finally, diversify investments reasonably to balance risk and return.

Overall, the current A-share market, although moving slowly, presents both opportunities and challenges. Investors should adapt to market changes, flexibly adjust their strategies, and seize long-term investment opportunities in this 'slow bull' market.