Investment Rating - The report assigns a "Buy" rating for Meitu Company (1357.HK) [13] Core Insights - Meitu Company has successfully transformed from a traffic-based business model to a subscription-based model, leveraging its strong aesthetic know-how and technological foundation [3][9] - The company has experienced three technological transformations: from PC internet to mobile internet, and now to the AI era, which has enhanced its product capabilities and user engagement [9][20] - Meitu's growth strategy focuses on three main lines: globalization, expansion of productivity tools, and continuous investment in AI [11][20] Summary by Sections Company Overview - Founded in 2008, Meitu has evolved through significant technological changes, initially launching the PC version of Meitu Xiuxiu, which simplified photo editing for users [20] - The company shifted its focus back to software tools and began transitioning from a traffic monetization model to a subscription model starting in 2018 [9][20] Competitive Advantages - Meitu's strong channel capabilities and accumulated user aesthetic recognition have allowed it to maintain a leading position in the competitive beauty app market [10][57] - The company has built a robust product matrix that includes both lifestyle and productivity tools, with flagship products like Meitu Xiuxiu and BeautyCam leading their respective categories [27][93] AI Integration - All of Meitu's products have integrated AI capabilities, which have driven new growth in key metrics such as monthly active users (MAU) and payment rates [9][11] - The launch of the MiracleVision AI model in 2023 has provided a foundation for enhancing the AI capabilities across Meitu's product ecosystem [66] Market Position - Meitu holds a dominant market share of approximately 55.96% in the photo editing software sector, significantly ahead of its closest competitor [67] - The company has successfully expanded its user base internationally, particularly in Southeast Asia, where its products have gained substantial traction [93][104] Financial Performance - The subscription revenue has become a major pillar of Meitu's total income, with the subscription rate doubling from the initial phase of the transition [33][39] - The gross margin has improved significantly, rising from 15% to 69% by the end of 2024, reflecting the successful shift away from low-margin hardware businesses [39][41]

Investment Rating - The report maintains a "Positive" investment rating for the banking sector [11]. Core Insights - The banking sector has completed its 2024 dividend distribution, with a shift towards 2025 where the expected dividend yield for quality city commercial banks is projected to rise to approximately 4.5% to 5.0% [2][6]. - After recent market adjustments, leading city commercial banks such as Chengdu Bank and Jiangsu Bank have seen their expected dividend yields rebound to 5.1% and 4.9%, respectively, making them attractive for investment [7]. - The average static dividend yield for state-owned banks in A-shares is 4.02%, which still offers a 230 basis points (BP) spread over the 10-year government bond yield [7][20]. Summary by Sections Dividend Distribution - As of July 28, 2024, all 42 listed banks in A-shares have completed their dividend distributions for the year [6]. - For 2025, the expected average dividend yields for state-owned banks, joint-stock banks, city commercial banks, and rural commercial banks are projected at 4.04%, 4.27%, 4.05%, and 3.94%, respectively [6]. Market Dynamics - Recent market sentiment has shifted, leading to a significant recovery in risk appetite, which has resulted in capital outflows and price adjustments in the banking sector [7]. - The stable performance of banks is supported by recent interim reports from Hangzhou Bank, Ningbo Bank, Qilu Bank, and Changshu Bank, all of which exceeded expectations [7]. Mid-term Dividend Planning - In 2024, 24 listed banks are expected to implement mid-term dividends, with several banks like China Merchants Bank, Changshu Bank, and Su Nong Bank announcing their first mid-term dividends [8]. - The timing of mid-term dividends is expected to be similar to the previous year, influencing the allocation rhythm within the sector [8]. Dividend Ratios - The overall dividend ratio for banks in 2024 is expected to increase compared to the previous year, with limited room for further increases in 2025 [9]. - Attention is drawn to banks like Hangzhou Bank and Qilu Bank, which may have incentives to raise their dividend ratios post-conversion of convertible bonds [9]. Valuation Recovery - The report expresses optimism regarding the valuation recovery of banking stocks, particularly favoring quality city commercial banks such as Hangzhou Bank, Jiangsu Bank, Qilu Bank, Chengdu Bank, Nanjing Bank, and Qingdao Bank [10]. - The report highlights that various capital sources, including insurance and state-owned capital, have been increasing their holdings in banking stocks, indicating a positive outlook for the sector [27].

Investment Rating - The report maintains a "Positive" investment rating for the GIL industry [5]. Core Viewpoints - GIL (Gas-Insulated Metal-Enclosed Transmission Line) is a relatively new transmission line technology that offers significant advantages such as high transmission capacity, ease of maintenance, long service life, and high safety [15][22]. - The GIL industry is expected to see increased adoption in specific geographical environments and urban projects, particularly for voltage levels of 500KV and above, as well as 220KV for urban applications [31]. - The report highlights that GIL technology is currently characterized by high unit prices and considerable profitability, with a projected unit price of approximately 35,000/m and a gross margin of 49.9% for 2024 [49]. Summary by Sections 1. What is GIL? - GIL is defined as a transmission line technology that uses gas as an insulating medium and encloses conductors within a metal shell, distinguishing it from overhead lines and cables [19]. - GIL has advantages over traditional transmission methods, including lower land use, higher safety, and reduced line losses [22]. 2. GIL Industry Trends - GIL has been applied in various domestic projects across a wide voltage range from 220KV to 1000KV, with notable projects including the Su Tong GIL corridor and the Wuxi urban power grid [28][29]. - Future GIL applications are expected to focus on high-voltage direct current (HVDC) systems and urban underground transmission projects, which can save land resources [31]. - The report indicates that GIL technology is a key choice for future transmission projects, including the Gansu-Zhejiang UHVDC and Zhejiang UHVAC ring network [31]. 3. Competitive Companies in GIL - Pinggao Electric is identified as a leading company in the GIL sector, having made significant advancements and investments in GIL technology since 2015 [60][62]. - China West Electric, through its subsidiaries, has strengthened its GIL competitiveness, participating in various significant projects and acquiring control of Hengchi Electric [63][65]. - Other companies such as Siyi Electric and Ankao Zhidian have also established a presence in the GIL market, with ongoing developments and production capabilities [66][69].

Investment Rating - The report maintains a "Positive" investment rating for the photovoltaic industry [9] Core Insights - The current round of anti-involution in the photovoltaic sector is marked by a more mature and pragmatic approach compared to the previous round, initiated by a series of policy and corporate events starting from late June [3][6] - The government has shown increased attention and clearer communication regarding the photovoltaic industry, with higher-level officials participating in discussions and setting more stringent regulations [6][22] - Companies and industry associations are taking proactive steps to address issues, demonstrating a higher degree of consensus and commitment to compliance with pricing regulations [6][26] Summary by Sections Overview - The report highlights that the current anti-involution measures are more mature and pragmatic than previous efforts, with significant developments in both policy and corporate actions since late June [3][6] Government and Corporate Attitudes - Government officials have publicly emphasized the need to regulate low-price competition and improve product quality, with more structured meetings and discussions involving higher-level participants [6][18] - Companies have taken the initiative to propose practical solutions and have shown a stronger commitment to enforcing pricing regulations, leading to a more unified industry response [6][26] Capacity and Production Measures - The focus has shifted from quota-based production limits to a strategy of consolidating capacity, particularly in the silicon material sector, where leading companies are acquiring smaller firms to manage supply and demand effectively [6][28] Pricing Measures - The current measures extend price controls beyond just components to include silicon materials, silicon wafers, batteries, and modules, with a higher baseline price established compared to previous rounds [6][36] - Recent price increases have been observed across all segments, with silicon material prices rising significantly, indicating a recovery towards reasonable levels [7][42] Investment Opportunities - The report identifies significant investment opportunities in silicon materials and battery components, highlighting specific companies such as Tongwei Co., GCL-Poly Energy, and LONGi Green Energy as key players to watch [7][36]

Investment Rating - The industry investment rating is "Positive" and maintained [11] Core Insights - As of Q2 2025, the A-share environmental sector's heavy positions accounted for 0.24%, reflecting a slight increase of 0.01 percentage points from the previous quarter. The overall market is currently in a low allocation state, with a standard allocation ratio of 1.06% [6][18] - The top ten heavy positions in public funds totaled approximately 7.64 billion yuan, representing 0.25% of all disclosed fund stock holdings. The leading companies in terms of heavy positions include Hanlan Environment (1.21 billion yuan), Weiming Environmental (1.19 billion yuan), and Longjing Environmental (610 million yuan) [2][29] Summary by Sections Fund Holdings - The heavy position ratio for the A-share environmental sector was 0.24% at the end of Q2 2025, with a slight increase of 0.01 percentage points. A total of 320 fund products held heavy positions in environmental companies, accounting for 4.15% of all disclosed fund products [6][18] - The top heavy positions by market value were Hanlan Environment (1.21 billion yuan), Weiming Environmental (1.19 billion yuan), Longjing Environmental (610 million yuan), Huicheng Environmental (540 million yuan), and Juguang Technology (530 million yuan) [29][34] Market Trends - The environmental sector is experiencing a valuation recovery driven by multiple factors, including market preference for solid waste incineration stocks, which are expected to benefit from public utility market reforms and carbon market expansion [8][36] - The report highlights a positive outlook for the second half of 2025, particularly for solid waste incineration and water assets, with recommended stocks including Hanlan Environment, Weiming Environmental, and others [36][37] Company Performance - The number of funds holding significant positions in companies like Hanlan Environment (56 funds), Guangda Environment (21 funds), and others indicates a growing market interest [7][23] - Notable changes in heavy stock market value ratios include significant increases for Shanghai Xiba (up 4.63 percentage points) and Huicheng Environmental (up 1.39 percentage points) [34][36] Investment Strategy - The report suggests a focus on companies transitioning towards ToB (business-to-business) models, which is expected to enhance cash flow and support valuation recovery. Key companies to watch include Hanlan Environment, Guangda Environment, and others [36][39] - The environmental sector is seen as having a solid growth trajectory, with specific attention to waste incineration, water services, and testing services as areas of potential investment [39][40]

Investment Rating - The report maintains a "Buy" rating for the company [13] Core Views - The report discusses the potential for valuation recovery and strong performance support for the company, suggesting that concerns over overseas trade policies and profit capabilities will diminish by 2025H2-2026, leading to a restoration of reasonable valuation levels [4][10][24] Summary by Sections Historical Performance and Valuation Decline - The company has shown strong performance over the past 2-3 years, consistently exceeding expectations, yet its valuation has been under pressure due to concerns about declining profitability and increasing trade barriers in the U.S. [9][23] Valuation Outlook - The report anticipates a gradual resolution of concerns regarding profitability and trade barriers, with the company entering a valuation recovery phase by 2025H2-2026. The expected PE ratio could recover to a range of 15-20 times [10][53] Profit Outlook - Even under pessimistic scenarios, the company is projected to achieve a profit of around 11 billion, with potential contributions from the U.S. market and domestic large storage demand supporting overall performance [11][54]

Investment Rating - The report maintains a "Positive" investment rating for the express delivery industry [8]. Core Insights - The express delivery industry is expected to experience a "de-involution" phase, with significant policy catalysts anticipated in the upcoming months. The transition from the off-peak to peak season is expected to enhance the pricing power of express companies [2][11]. - The pricing increase duration is projected to be between 2 to 4 months, with a price increase of 0.06 to 0.30 yuan per ticket expected during the peak season. The profit per ticket is anticipated to improve by 0.01 to 0.10 yuan in Q4 [2][11]. - The average profit elasticity for e-commerce express delivery is expected to reach double digits, with second-tier express companies showing even more significant profit elasticity [2][11]. Summary by Sections Event Description - The report discusses the recent meeting of the State Post Bureau, which emphasized the need to combat "involution" in the express delivery sector. It addresses three main questions: the timing and sustainability of the current "de-involution," the profit elasticity for core enterprises, and the tools available for this process [6]. Pricing Dynamics - The report analyzes historical pricing trends, indicating that the current "de-involution" phase may be catalyzed by policy changes, with pricing increases expected to last longer than in 2024 but shorter than in 2021. The report references past data to illustrate potential outcomes [11][20]. Profit Elasticity - The report provides a detailed analysis of profit elasticity for major express companies, projecting that if the industry begins to raise prices in August and continues until December, the net profit for companies like Zhongtong, Yunda, and Shentong could reach 95.8 billion, 40.6 billion, and 17.4 billion yuan respectively, with corresponding profit elasticities of 6.5%, 12.7%, and 27.9% [20][21]. Tools for "De-involution" - The report identifies two main strategies for achieving "de-involution": regulatory measures to curb price wars and encouraging mergers and acquisitions among leading companies to optimize competition. The acquisition of Danbird Logistics by Shentong Express is highlighted as a significant step towards improving market dynamics [25][26]. Investment Recommendations - The report suggests actively seizing opportunities presented by the "de-involution" phase, recommending companies such as YTO Express, Shentong Express, Zhongtong Express, Jitu Express, and Yunda [21].

Investment Rating - The industry investment rating is "Positive" and maintained [10] Core Insights - The implementation of the national childcare subsidy policy is expected to support the birth rate and subsequently boost the consumption of baby diapers. The annual cash subsidy of 3,600 yuan per child for those under three years old is anticipated to have a positive impact on the market [2][6][13] - The report highlights the success of previous local subsidy trials, such as in Tianmen, Hubei, where birth rates increased significantly following the introduction of supportive measures [7][8] Summary by Sections Event Description - On July 28, the Central Committee and the State Council released the "Implementation Plan for the Childcare Subsidy System," which will provide cash subsidies starting January 1, 2025, for children under three years old [6] Event Commentary - The national rollout of the childcare subsidy policy is expected to enhance its effectiveness, with over 20 provinces already testing similar measures. The report cites Tianmen's experience, where birth rates increased by 17% in 2024, marking a turnaround after years of decline [7][8] - The report estimates that the total subsidy expenditure could exceed 100 billion yuan based on projected birth rates from 2022 to 2024 [13] Company Recommendations - **HaoYue Care**: Expected to have over 50% of its sales from baby diapers this year, with a projected market share increase from approximately 4% in 2019 to 9% by 2024 [8] - **Baiya Co.**: Anticipated to have about 3% of its sales from baby diapers in 2024, with growth driven by e-commerce and regional expansion [8] - **Hengan International**: Expected to have a 6% sales share from baby diapers in 2024, with a dividend payout ratio of 58% and an estimated dividend yield of 6.4% [8]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Viewpoints - The company is leveraging popular anime IPs to innovate traditional stationery products, with ongoing expansion of derivative products and international markets [2][4]. - The company has launched various collaborative products with well-known IPs, enhancing product functionality and appeal [9]. - The internationalization strategy includes brand acquisitions and market expansion, aiming for a global presence [9]. Summary by Relevant Sections Recent Developments - The company has partnered with popular anime IPs to create events in 15 cities and 21 locations, with new products launched in 40 flagship stores, 2700 themed stores, and 20000 specialty stores [2][4]. Product Innovation - Since 2025, the company has enhanced its product offerings in traditional stationery through IP collaborations and functional improvements, introducing products like blind box pens and advanced stationery [9]. - Notable collaborations include products themed around "Nezha" and partnerships with Tencent Video for new anime IPs [9]. Derivative Products and Market Strategy - The company is focusing on derivative products through its independent brand "Qizhi Haowan," targeting the two-dimensional economy with various merchandise [9]. - The product range includes badges, acrylic keychains, and other stationery items, leveraging multiple sales channels to reach students [9]. Financial Projections - The company expects steady revenue growth, with projected net profits of 1.54 billion, 1.66 billion, and 1.79 billion yuan for 2025-2027, corresponding to PE ratios of 19, 17, and 16 times [9].

1. Report Industry Investment Rating No relevant content provided in the report. 2. Report's Core View - During the week from July 21 to July 26, 2025, the convertible bond market continued its moderate upward trend, with the price center approaching historical highs, the valuation structure stretching overall, and market trading remaining active. The mid - cap style outperformed, and the valuation repair momentum of low - priced and medium - high - priced varieties increased, reflecting improvements in both credit and elasticity preferences. In the equity market, the growth style was dominant, and the continuous inflow of funds into the science - technology innovation and manufacturing sectors drove the active performance of high - elasticity convertible bond individual bonds. The intensity of style and industry rotation increased significantly, and the short - term emotional upsurge required vigilance against the risk of intensified fluctuations. At the current stage, it is recommended to re - evaluate the risk - return ratio and consider a balanced allocation of high - quality low - and medium - priced individual bonds, taking into account fundamental support, valuation safety, and liquidity [2][5]. - The price center of the current convertible bond market continued to rise, and the median weekly average price approached 130 yuan again. The valuation level entered the historical high - level range, and the allocation strategy may need to be adjusted. As some individual bonds with longer durations entered the forced redemption stage, the outstanding scale continued to shrink, and the capacity shortage intensified. Meanwhile, the intensity of industry and style rotation was at a relatively high level, short - term sentiment heated up, and trading games became more prominent. From the perspective of sector rotation, it is recommended to focus on the mainline opportunities of the "anti - involution" related sectors in the current market and the potential opportunities in the commercial retail and transportation sectors. It is also recommended to re - evaluate the risk - return ratio in a high - level environment, pay attention to the rotation and repair opportunities of large - cap and medium - priced varieties, and take into account valuation safety and liquidity support [9]. - The A - share market continued its volatile upward trend during the week, and capital preference remained concentrated in high - elasticity sectors, with the growth style dominant. Small - and medium - cap stocks in the science - technology innovation sector were active, and the cyclical manufacturing sector also received some incremental capital support, forming the market's mainline, and market hotspots showed a structural spread. At the same time, the performance of the weight sectors was weak, and the capital switch may support the acceleration of the sector rotation rhythm, so caution is needed when participating in sector switches. Overall, it is recommended to continuously pay attention to the fundamental support and capital persistence of high - elasticity sectors, and at the same time, be vigilant against the callback risk in high - congestion directions, and maintain the flexibility and balance of the allocation [9]. - The convertible bond market continued to rise during the week, with the mid - cap style outperforming. The market trading sentiment recovered, but the momentum slowed down marginally. In terms of the valuation structure, looking at different market price intervals, the repair momentum of low - and medium - priced and medium - and high - priced varieties was relatively strong. The low - price interval reflected an improvement in credit preference, while the elastic gaming funds in the high - price interval were slightly cautious. The implied volatility continued to rise, and market fluctuations may be magnified periodically. The emotional upsurge requires vigilance against short - term callback risks. At the sector level, sectors such as medicine, basic chemicals, and power equipment received incremental capital support, and the capital concentration increased significantly. In terms of individual bonds, the outstanding performers were mostly driven by the strength of the underlying stocks, showing characteristics of high elasticity and medium - to - short durations. It is recommended to conduct a structured allocation around the direction that emphasizes both fundamental support and valuation elasticity [9]. - The supply rhythm of the primary market of convertible bonds was stable during the week. A total of 2 new bonds were listed, and 9 companies updated their issuance plans. In terms of terms, a total of 6 individual bonds announced that they were expected to trigger a downward revision, 9 announced no downward revision, and 1 individual bond proposed a downward revision. On the redemption side, 9 individual bonds announced that they were expected to trigger redemption, 5 announced early redemption, and 4 clearly stated no early redemption. Overall, the supply continued to advance, and clause games and redemption events occurred frequently. It is recommended to continuously pay attention to the allocation opportunities brought about by individual bond games [9]. 3. Summary According to Relevant Catalogs 3.1 Look at Stocks and Do Bonds: How to Layout When Convertible Bonds Reach High Levels - The median weekly average price of convertible bonds has reached a historical high. Since 2021, the median weekly average price of convertible bonds has gradually increased, briefly reaching the 130 - yuan mark in January and August 2022 but failing to break through effectively later. Currently, with the strengthening of the equity market and the fact that the outstanding convertible bonds are mostly "old bonds" and some high - priced varieties have entered the forced redemption stage, the market outstanding scale has further shrunk. As the median weekly average price of convertible bonds approaches the 130 - yuan mark again, the current allocation strategy needs to be re - evaluated [14]. - From the perspective of industry rotation, the rotation intensity has reached a relatively high historical level. The sum of the absolute values of the changes in the weekly sector price - increase rankings is used as the sector rotation intensity indicator, and the 24 - week average is used for smoothing. Both the current week's rotation intensity and the smoothed 24 - week average are above the 85th percentile since 2010, in a relatively high - level range [14]. - From the perspective of the net financing scale of the entire A - share market, short - term sentiment may enter an over - heated range. The net financing amount of the entire A - share market is positively correlated with the trend of the Wind All - A Index. The net financing amount is at the 98.9th percentile since 2010, and the 4 - week rolling regression slope of the net financing amount is at the 94.3rd percentile since 2010, reflecting a rapid rise in short - term sentiment and a possible entry into an over - heated range [17]. - From the perspective of industry rotation, it is possible to layout opportunities related to sectors in the fourth quadrant. The first - quadrant sectors are the current market mainline, and the fourth quadrant harbors the potential to become the first - quadrant sectors. In the current week, steel, building materials, non - ferrous metals, and coal were the absolute mainlines, and their relative momentum and relative strength indicators increased significantly compared with the previous week. From the perspective of rotation, in the short term, it is recommended to pay attention to the rotation opportunities of the transportation and commercial retail sectors, which are located in the fourth quadrant and have shown good performance in both relative momentum and relative strength indicators compared with the previous week [22]. - From the perspective of convertible bond style rotation, the large - cap and medium - price indexes may be gestating opportunities. The large - cap index and the medium - value index are weaker than other styles in terms of strength and momentum. As the overall price of convertible bonds continues to rise, some funds may choose to take profits and return to the large - cap and medium - price indexes [23]. 3.2 Market Theme Weekly Review 3.2.1 Equity Theme Weekly Review - During the week from July 21 to July 26, 2025, the trading themes in the equity market were active. The infrastructure industry chain related to the Yajiang Hydropower Project saw a surge in trading popularity. The water conservancy and hydropower index led the major theme directions with a weekly price increase of 27.1% and a weekly trading volume of 142.31 billion yuan. Resource - related themes such as the rare earth index, small - metal index, and lithium - ore index had weekly price increases of 24.5%, 17.5%, and 12.4% respectively. Leading - stock indexes, dragon - tiger list indexes, and limit - up trading indexes had weekly price increases of over 20%. The previously pressured high - amplitude index and market sentiment index recovered, rising by 23.3% and 17.8% respectively, indicating that funds were concentrated in high - elasticity fields. The technology field showed structural differentiation, with the chip design index and semiconductor industry index rising by 7.1% and 4.8% respectively, while the previously popular optical module (CPO) index and optical communication index declined by 2.1% and 0.8% respectively. In terms of capital flow, the trading - theme indexes showed a significant upward trend, and the total weekly trading volume of the leading - stock index, dragon - tiger list index, and limit - up trading index exceeded 970 billion yuan. The weekly trading volume of the high - amplitude index was 633.88 billion yuan, significantly increasing compared with the previous week. Overall, market sentiment was high, and short - term funds were active. It is recommended to pay attention to high - elasticity trading opportunities, be cautious when participating in short - term over - heated themes, and maintain the flexibility and balance of the strategy [27]. 3.2.2 Convertible Bond Weekly Review - During the week from July 21 to July 26, 2025, the convertible bond market continued to rise, and the capital style switched to mid - cap elastic varieties, further enhancing market activity. The overall valuation structure showed a repair trend. Looking at different market price intervals, both the low - and high - price intervals showed signs of recovery, but the valuation of the medium - price range was under pressure, indicating that gaming funds were becoming more cautious. The implied volatility fluctuated upward, and market sentiment heated up. At the industry level, both the cyclical and growth styles performed well, and the trading focus was concentrated in the medicine, power equipment, and chemical sectors. In terms of individual bonds, medium - to - short - duration and high - elasticity bonds were favored by the market and led the price increases. The supply rhythm of the primary market was stable, and structural games continued. In terms of allocation, it is recommended to dig for individual bonds with valuation advantages and underlying - stock catalysts among medium - priced varieties, while also participating in rotation market trends and controlling risks [30]. 3.3 Market Weekly Tracking 3.3.1 Main Stock Indexes Strengthened, and Cyclical Sectors Were the Mainline of the Week - **Main stock indexes continued to strengthen, and small - and medium - cap science - technology innovation stocks performed strongly**: During the week from July 21 to July 26, 2025, the main A - share stock indexes continued to strengthen. The Shanghai Composite Index had a weekly price increase of 1.7%, the Shenzhen Component Index had a weekly price increase of 2.3%, and the ChiNext Index led the main stock indexes with a weekly price increase of 2.8%. In terms of style, small - and medium - cap science - technology innovation stocks performed prominently. The CSI 500 Index rose by 4.6% weekly, the CSI 2000 Index had a weekly price increase of 3.3%, the SSE 50 Index had a weekly price increase of 1.7%, and the STAR 50 Index had a weekly price increase of 1.8%. In terms of capital, the market's main funds continued to flow out net during the week, and the outflow pressure increased. The average daily trading volume of the entire market was about 1.8 trillion yuan, a week - on - week increase of 0.3 trillion yuan. The market showed a net capital outflow on all five trading days of the week. The net capital outflow scale expanded from 1.364 billion yuan on Monday to 4.083 billion yuan on Wednesday, then significantly shrank to 0.3 billion yuan on Thursday, and expanded again to 3.098 billion yuan on Friday, possibly indicating short - term profit - taking behavior by funds. The average daily net outflow of main funds during the week was 2.474 billion yuan, an increase of 0.792 billion yuan compared with the previous week, and market sentiment remained cautious [31]. - **The overall performance of different industries strengthened, and cyclical sectors were relatively dominant**: During the week from July 21 to July 26, 2025, the A - share market continued its structural differentiation pattern, and cyclical sectors performed strongly. The steel sector led the Shenwan primary industries with a price increase of 9.1%. The coal and non - ferrous metal sectors followed closely, with weekly price increases of 9.0% and 8.9% respectively. The building materials and building decoration sectors had weekly price increases of 7.9% and 5.9% respectively, and their trading volumes increased week - on - week, indicating the market's preference for cyclical sectors. The previously leading high - elasticity sectors continued their upward trends. The communication and computer sectors had weekly price increases of 7.5% and 4.1% respectively. The consumer sector showed internal structural differentiation. The beauty care and medicine and biology sectors both had weekly price increases of 5.4%, while the food and beverage and household appliances sectors performed relatively weakly, with only 1.5% and 0.1% weekly price increases respectively. The banking sector performed poorly, with a weekly price decline of 2.3%, leading the decliners among all industries. Overall, market funds were concentrated in cyclical sectors. It is recommended to pay attention to cyclical industries with policy support and definite performance, while also considering the technology - growth sectors. Be cautious about previously high - level sectors and guard against adjustment risks [36]. - **The trading volume showed a significant structural flow pattern**: The market funds showed obvious structural flow characteristics during the week, which was positively correlated with the sector price increases. The electronics sector had the highest average daily trading volume of 181.02 billion yuan, a week - on - week increase of 3.47 billion yuan, accounting for 10.0% of the market. The computer sector had an average daily trading volume of 148.48 billion yuan, a week - on - week decrease of 16.95 billion yuan, but still accounting for 8.2% of the market, indicating a relatively high level of overall capital attention. The non - ferrous metals, machinery, and power equipment sectors received incremental capital support of 35.81 billion yuan, 33.71 billion yuan, and 32.40 billion yuan respectively, and their average daily trading volumes were 115.25 billion yuan, 144.15 billion yuan, and 148.16 billion yuan respectively, indicating a strong willingness to layout in cyclical sectors [37]. - **The market sector congestion showed a differentiated pattern**: Cyclical sectors showed obvious congestion characteristics. The infrastructure industry chain centered on the Yajiang Hydropower Project became the main direction of capital allocation. The building materials and building decoration sectors showed obvious characteristics of high trading volume and high turnover rate, with their trading volume percentiles reaching the 100% historical peak and their turnover rate percentiles being 100% and 99% respectively. The capital concentration and trading activity were both at historical high levels. The steel and non - ferrous metal sectors also maintained high popularity, with their trading volume percentiles reaching the 98th percentile and their turnover rate percentiles being 98% and 95% respectively. The transportation sector had both indicators at the 96th percentile of the historical level, reflecting that under the expectation of policy - driven infrastructure industry chain profitability, the capital layout intensity continued to increase. The internal differentiation of the technology - growth sector intensified. The computer sector maintained high activity with a 90% trading volume percentile and an 84% turnover rate percentile. The electronics sector had an 89% trading volume percentile but only a 63% turnover rate percentile, and the communication sector had a 92% trading volume percentile but only a 40% turnover rate percentile, indicating selective capital allocation. The food and beverage sector had a trading volume percentile of only 45% and a turnover rate percentile of only 55%, indicating a low willingness of capital allocation. Overall, currently, funds are concentrated in infrastructure and some cyclical sectors. It is recommended to pay attention to possible short - term adjustment risks and consider potential rotation sectors that may experience high - low switches [43]. 3.3.2 Convertible Bond Market Continued to Strengthen, and Mid - Cap Convertible Bonds Outperformed - **The convertible bond market as a whole continued to rise, and mid - cap convertible bonds led the way**: During the week from July 21 to July 26, 2025, the convertible bond market continued to rise, and the price increase was slightly larger than that of the previous week. In terms of style, mid - cap convertible bonds performed better. The CSI Convertible Bond Index rose by 2.1% weekly, with the Wind Mid - Cap Convertible Bond Index leading the increase at 2.5%, the large - cap index rising by 1.5%, and the small - cap convertible bond index rising by 2.4%. The market as a whole continued to recover, but the momentum weakened marginally. The leading performance of the mid - cap index reflected that funds were biased towards high - elasticity varieties. In terms of capital, the trading activity of the convertible bond market increased significantly, with an average daily trading volume of about 85.86 billion yuan, a week - on - week increase of 12.02 billion yuan [47]. - **The valuation of the convertible bond market stretched overall by parity interval**: In the low - parity interval, there was a repair trend. The conversion premium rate of the below - 80 - yuan interval stretched by 2.08%, and the 80 - 90 - yuan interval stretched by 1.36%. In the 100 - yuan parity interval, the conversion premium rate of the 90 - 100 - yuan interval stretched by 1.78%, and the 100 - 110 - yuan interval stretched by 1.06%. In the medium - and high - parity intervals, the 110 - 120 - yuan interval stretched by 0.55%, the 120 - 130 - yuan interval compressed by 1.06%, and the above - 130 - yuan interval stretched by 1.19%. The valuation of the convertible bond market stretched overall by parity