Investment Rating - The report maintains a "Buy" rating for the computing power industry, indicating a positive outlook for related companies [6][23]. Core Insights - The computing power industry is experiencing explosive growth driven by unprecedented capital expenditures (Capex) from global tech giants, fueled by the AI wave [19][20]. - The "One Big Beautiful Bill Act" signed by President Trump introduces significant tax cuts and incentives that stimulate growth in the computing power sector [5][20]. - The report emphasizes that the computing power sector is at a critical intersection of surging demand and supportive policies, marking the beginning of a "computing power arms race" [6][23]. Summary by Sections Investment Strategy - The report suggests focusing on companies within the computing power and optical communication sectors, including leaders like Zhongji Xuchuang and New Yisheng, as well as various other related firms [12][23]. Market Review - The communication sector has seen an increase, with the optical communication index performing particularly well [15][18]. Demand Side Analysis - Major tech companies are significantly increasing their Capex to build computing power infrastructure, with Google raising its 2025 Capex target from approximately $75 billion to $85 billion, a record high [21][23]. - Meta plans to invest hundreds of billions to develop superintelligent systems, with substantial increases in its Capex budget [21][23]. Policy Impact - The "One Big Beautiful Bill Act" reduces the federal corporate tax rate from 35% to 21%, permanently easing the tax burden on companies and encouraging reinvestment [5][22]. - The act also restores full expensing for capital investments, enhancing investment returns and accelerating the expansion of the computing power industry [5][22]. Recommendations - The report recommends focusing on key players in the computing power supply chain, including optical communication leaders and companies involved in liquid cooling and edge computing platforms [7][12][23].

Market Overview - The A-share market is experiencing a surge, with sectors like robotics and steel showing significant performance, highlighted by 12 stocks receiving over 100 million yuan in net purchases from financing clients, led by Northern Rare Earth with 380 million yuan [1][4] - The Shanghai Composite Index has surpassed 3400 points, with a trading volume increase and a stock rise-to-fall ratio of 2.57:1, although less than 50% of stocks have risen over 6% [3] Market Illusions - Four major illusions in the bull market are identified: 1. The "waiting for a rise" illusion, where investors believe their stocks will soon increase in value 2. The "hot and cold" illusion, where rapid rotation of hot stocks leads to losses for those who chase them 3. The "rise and fall" illusion, where the index rises but individual stocks do not 4. The "high and low" illusion, where low-priced stocks are perceived as safe while high-priced stocks are seen as risky [5][10] Fund Dynamics - The 12 stocks favored by financing clients include Northern Rare Earth (380 million yuan), New Yi Sheng (281 million yuan), and Hainan Huate (163 million yuan), indicating significant fund dynamics at play [4][10] - The concept of "funding competition" is discussed, where aggressive buying often leads to subsequent adjustments, creating opportunities for informed investors [7][9] Institutional Research - A total of 194 companies were subject to institutional research, with New Yi Sheng attracting the most attention; however, not all intensive research leads to positive outcomes [10] - The distinction between "genuine research" and "fake research" is crucial, as some companies are investigated due to stock price fluctuations rather than genuine interest from institutions [10] Data Utilization - The importance of using quantitative data to navigate the market is emphasized, as it can reveal underlying trends and intentions that are not immediately apparent to average investors [11][12]

Market Overview - The A-share market experienced fluctuations on July 25, with the Shanghai Composite Index down by 0.33%, the Shenzhen Component down by 0.22%, and the ChiNext down by 0.23% [1] - A total of 2,532 stocks rose while 2,724 stocks fell, with market turnover at 1.82 trillion yuan, a decrease of over 50 billion yuan compared to the previous day [1] - The multi-modal AI sector saw significant gains, with stocks like Tianrun Technology, Yinsai Group, Hanwang Technology, and Jingye Da hitting the daily limit [1] Sector Performance - The medical device sector rose against the market trend, with the medical device index increasing by 1.07%. Notable stocks included Kangtai Medical and Zhengchuan Co., which both hit the daily limit [2] - The recent launch of the 11th batch of centralized procurement by the National Medical Insurance Administration is expected to optimize procurement rules, moving away from a sole focus on low prices [2] - Citic Securities anticipates that the medical device sector will see valuation and performance recovery due to the new procurement rules and product innovation opportunities [2] Fund Flow Analysis - For the week of July 21 to 25, A-share main funds saw a net outflow of 123.735 billion yuan, with significant outflows in machinery, basic chemicals, computers, and power equipment sectors [3] - Only three sectors experienced net inflows: banking (14.46 billion yuan), beauty care (3.52 billion yuan), and the comprehensive sector (48.32 million yuan) [4] - Notable individual stocks with over 1 billion yuan net inflow included Xingsen Technology, Ningde Times, and Tianqi Lithium, with Xingsen Technology leading at 7.71 billion yuan [4] Lithium Market Insights - The lithium carbonate market is currently in a state of oversupply, but improvements in supply due to policy tightening and capacity clearance are expected [5] - The price of lithium carbonate futures rose by 7.21% to 76,700 yuan per ton, rebounding over 30% from the end of June [4] - By 2027-2028, it is projected that lithium carbonate supply and demand will balance, with prices potentially exceeding 100,000 yuan per ton [5] ETF Information - The 500 Quality Growth ETF, tracking the CSI 500 Quality Growth Index, has seen a recent increase of 2.57% over five days, with a price-to-earnings ratio of 16.90 times [7]

Core Viewpoint - The communication industry is experiencing a positive turnaround in fund holdings, with a market value share of 3.90% in Q2 2025, reflecting a quarter-on-quarter increase of 1.31 percentage points, returning to the top ten sectors [1][3]. Group 1: Fund Holdings and Market Position - In Q2 2025, the communication sector's fund holdings ranked fifth among 31 primary industries, with the top five being electronics, power equipment, food and beverage, pharmaceuticals, and banking, with respective shares of 17.22%, 9.80%, 9.55%, 9.04%, and 7.90% [3]. - The AI industry chain remains a focal point, with the top three companies in the communication sector by fund holding market value being NewEase, Zhongji Xuchuang, and Hudian Co., with market values of 31.207 billion yuan (up 123.28%), 28.788 billion yuan (up 124.58%), and 12.311 billion yuan (up 178.32%) respectively [3]. Group 2: Industry Outlook and Growth Potential - The communication industry maintains an "overweight" rating, driven by the ongoing high growth phase of capital expenditure in computing power, closely aligned with the global AI development trajectory [2]. - Significant capital expenditures are anticipated in the domestic AI sector, with Alibaba projecting that its investment in cloud and AI infrastructure over the next three years will exceed the total of the past decade, while Tencent's capital expenditure is expected to triple year-on-year to 10.7 billion USD in 2024 [2]. - The AI computing power industry chain is expected to continue accelerating in 2025, with evolving demand in inference capabilities, presenting broader growth opportunities for the communication sector [2].

Group 1 - The core viewpoint of the article highlights the significant profit growth of several companies in the electronic components sector, driven by the AI computing industry's expansion [3] - Companies such as Huadian Co., Ltd. (沪电股份) expect a year-on-year increase in net profit attributable to shareholders of 45%-53%, while Zhongji Xuchuang (中际旭创) anticipates a 53%-87% increase, Xinyi Sheng (新易盛) expects a staggering 328%-385% increase, and Shengyi Electronics (生益电子) projects a 432%-471% increase [3] - The article emphasizes that the explosive growth in the AI industry is not only creating new markets and demands but is also pushing the entire electronic industry chain to upgrade its performance with stricter technical standards [3] Group 2 - The article suggests that the beneficiaries of this trend are not limited to upstream components, but also include the midstream manufacturing sector, which is also a focus for potential investment opportunities [4]

Group 1 - The core index of the artificial intelligence industry, the CSI Artificial Intelligence Industry Index (931071), has shown a positive performance with a 0.56% increase as of July 25, 2025, with notable gains from key stocks such as iFlytek (002230) up by 2.92% and Chipone (688521) up by 2.49% [1][3] - The artificial intelligence ETF (515980) has experienced a trading volume of 40.216 million yuan with a turnover rate of 1.22%, and its latest scale reached 3.255 billion yuan [3] - The artificial intelligence ETF has seen continuous net inflows over the past four days, totaling 81.6296 million yuan, with the highest single-day net inflow reaching 36.6568 million yuan [3] Group 2 - The CSI Artificial Intelligence Industry Index is constructed from 50 representative listed companies based on their AI business proportion, growth level, and market capitalization, with the top ten stocks accounting for 52.07% of the index [4][7] - The top ten weighted stocks in the index include companies like Zhongji Xuchuang (300308) and iFlytek (002230), with respective weights of 8.20% and 6.63% [7] - The report from Industrial Securities indicates that the media industry will benefit significantly from AI technology applications, with 2025 expected to be a breakout year for AI applications [8]

Group 1 - The 7th World Artificial Intelligence Conference (WAIC 2025) will be held on July 26 in Shanghai, featuring major AI companies like Huawei, Alibaba, Baidu, and SenseTime, focusing on cutting-edge topics such as large models, robotics, smart chips, and industrial integration, reigniting interest in the AI market [1] - The newly launched Dacheng ChiNext AI ETF (159242.SZ) achieved impressive performance on its first day, ranking among the top two in terms of trading volume and latest scale compared to similar products [1] - The ChiNext AI Index has seen a cumulative increase of 151.75% in 2023, significantly outperforming the Sci-Tech Innovation Board AI Index at 82.02% and the CSI AI Index at 102.88%, indicating strong growth potential and market capture ability [1] Group 2 - The ChiNext AI Index focuses more on "hardware + underlying support" compared to the Sci-Tech AI Index, which emphasizes algorithms and software, with heavy investments in optical modules, computing chips, edge computing, and operating systems, aligning with the core logic of current AI industry expansion [1] - Key companies in the index, known as the "three musketeers of optical modules"—Zhongji Xuchuang, Xinyi Sheng, and Tianfu Communication—are deeply embedded in the supply chains of global tech giants like Nvidia, benefiting from global computing upgrades and the iteration of 1.6T high-speed optical modules, with expected net profit growth rates exceeding 50% by 2025 [1] - Guosheng Securities highlights the long-term growth potential of the A-share computing power sector, suggesting that as AI applications transition from laboratories to commercialization, computing infrastructure is poised to become a core driver in the next "cloud computing golden decade" [2]

Core Viewpoint - New Yisheng has experienced a decline in stock price over five consecutive trading days, with a cumulative drop of -5.83% [1] Company Overview - Chengdu New Yisheng Communication Technology Co., Ltd. was established in 2008 in Chengdu, China, and was certified as a national high-tech enterprise in 2010. It is a leading provider of optical module solutions and services [1]. Shareholder Activity - Three funds under E Fund Management have entered the top ten shareholders of New Yisheng. Specifically, E Fund's ChiNext ETF and E Fund's CSI 300 Initiated ETF reduced their holdings in the second quarter of this year, while E Fund's CSI Artificial Intelligence Theme ETF made a new entry [1]. - E Fund's ChiNext ETF has a year-to-date return of 8.95%, ranking 1461 out of 3424 in its category. E Fund's CSI 300 Initiated ETF has a year-to-date return of 7.41%, ranking 2020 out of 3424. E Fund's CSI Artificial Intelligence Theme ETF has a year-to-date return of 12.03%, ranking 991 out of 3424 [1]. Fund Performance - E Fund's ChiNext ETF has shown a performance increase of 3.60% over the past week and 14.56% over the past month, with a year-to-date performance of 8.95% [2]. - E Fund's CSI 300 Initiated ETF has increased by 2.99% over the past week and 7.26% over the past month, with a year-to-date performance of 7.41% [4]. - E Fund's CSI Artificial Intelligence Theme ETF has increased by 1.46% over the past week and 12.18% over the past month, with a year-to-date performance of 12.03% [5].

Group 1 - The core viewpoint of the articles highlights the significant growth of public fund assets in the A-share market, surpassing 34 trillion yuan, driven primarily by the increase in ETF funds [1][2] - As of the end of Q2 2025, the total scale of public funds reached 34.05 trillion yuan, marking a 7.04% increase from 31.81 trillion yuan at the end of Q1 2025 [2] - All types of funds experienced growth in Q2, with stock funds increasing by over 270 billion yuan, bond funds by 865.3 billion yuan, and money market funds by 950.5 billion yuan [2] Group 2 - ETFs emerged as the main contributor to the growth in fund management scale, with significant increases in several products, including those from E Fund and Huaxia Fund, each exceeding 10 billion yuan in growth [3] - The "head effect" of ETFs is evident, with top funds attracting substantial inflows, particularly from state-owned entities, which added over 220 billion yuan to ETFs in Q2 [3][4] - Several thematic ETFs, particularly in the healthcare and technology sectors, have shown strong performance, with some achieving returns over 20%, notably the Hang Seng Innovation Drug ETF, which rose by 67.5% [4] Group 3 - The top three heavily held stocks by public funds in Q2 were Ningde Times, Kweichow Moutai, and Midea Group, with market values held by funds of 52.05 billion yuan, 29.34 billion yuan, and 28.36 billion yuan respectively [5] - In terms of changes in holdings, the top three increased positions were in Zhongji Xuchuang, Xinyi Sheng, and Hudian Co., with increases of 13.97 billion yuan, 12.89 billion yuan, and 8.45 billion yuan respectively [6] - Conversely, the largest reductions were in BYD, Luxshare Precision, and Kweichow Moutai, with decreases of 16.51 billion yuan, 10.51 billion yuan, and 8.46 billion yuan respectively [6] Group 4 - Market outlook suggests that capital flow and innovation will remain key drivers for stock performance, with a positive view on H-shares and the overall Chinese stock market [7] - The market has shown strong performance since June, with the Shanghai Composite Index reaching a new high for the year, indicating a solid bullish sentiment among investors [7] - Recommendations include maintaining a medium to high position in the market, focusing on opportunities related to technological advancements and domestic demand policies [7]

1. Report Industry Investment Rating - No information provided in the content. 2. Core Viewpoints of the Report - In 2025Q2, the A-share market showed a volatile upward trend with significant structural differentiation and style rotation. The median return of active equity funds was 1.90%, outperforming major indices such as the CSI 300 and CSI 500. Nearly 70% of stocks in the whole market recorded positive returns [3]. - As of the end of Q2 2025, the total scale of active equity funds was 3.29 trillion yuan, a decrease of 0.04 trillion yuan from the previous quarter. In Q1 2025, there was a net outflow of 113.407 billion yuan from active equity funds [6]. - Different - style and theme fund managers had diverse investment strategies and outlooks. For example, value - style fund managers focused on undervalued traditional assets and looked for opportunities in some consumer and cyclical sectors; growth - style fund managers concentrated on long - term growth companies and adopted a "boom - mining + balanced allocation" strategy [21][23]. 3. Summary According to the Table of Contents 3.1 Active Equity - Type Fund 2025 Second - Quarter Report Data Review 3.1.1 Performance Review - In Q2 2025, the A - share market was volatile. After a brief decline in early April due to US tariff policies, it stabilized from mid - April to mid - May and saw theme rotations since June. The Guozheng 2000 and ChiNext 50 recorded relatively high positive returns of 4.41% and 3.19% respectively. The median return of active equity funds was 1.90%, and the median stock price change was 5.39% [3]. 3.1.2 Scale and Fund Flow - As of the end of Q2 2025, the total scale of active equity funds was 3.29 trillion yuan, down from 3.33 trillion yuan in the previous quarter. In Q1 2025, there was a net outflow of 113.407 billion yuan from active equity funds. Funds with a fund - flow change ratio < - 1% accounted for 74.34%, while those with a net inflow ≥ 1% accounted for only 16.51% [6]. 3.1.3 Position Change - As of Q2 2025, the average stock position of active equity funds was 87.23%, with an average position change of 1.15%. The average active position change was 1.18%, and the average natural position change was - 0.04%. 39.57% of funds adjusted their active positions by 0 - 5%, and 33.76% adjusted by - 5% - 0 [9]. 3.1.4 Industry Allocation - The top five industries for increased holdings were communication, medicine, non - bank finance, banking, and national defense and military industry. The top five industries for reduced holdings were food and beverage, automobile, commerce and retail, power equipment and new energy, and machinery. Five industries had over - allocation reductions, and nine industries had under - allocation increases [12]. 3.1.5 Individual Stock Heavy - Holdings - The top ten heavy - holding stocks by market value included Tencent Holdings, CATL, Kweichow Moutai, etc. The top ten heavy - holding stocks by the number of holding funds included CATL, Tencent Holdings, Zijin Mining, etc. The stocks with the largest increase in market value of heavy - holdings included Zhongji Innolight, New H3C Semiconductor Technology, etc., while those with the largest decrease included BYD, Alibaba - W, etc. [15][16][18] 3.2 Second - Quarter Report Fund Manager Views Summary 3.2.1 Value Style - Since 2022, value - style funds have attracted more attention. In 2025, they faced headwinds. Many value - style fund managers believed that undervalued stocks were still worth buying. In terms of position structure, most did not significantly adjust their allocations and focused on traditional undervalued assets, while also looking for opportunities in some consumer and cyclical sectors [21]. 3.2.2 Growth Style - Affected by overseas uncertainties and domestic policies, the market was volatile. Growth - style fund managers adhered to selecting long - term growth companies and adopted a "boom - mining + balanced allocation" strategy. They focused on AI, innovation drugs, and some emerging consumption sectors [23]. 3.2.3 Balanced Style - Balanced - style fund managers selected stocks from multiple dimensions and controlled portfolio risks through diversification. In the context of increased market risk appetite, many reduced holdings in traditional industries and high - dividend consumer stocks and increased holdings in growth stocks and booming industries [25]. 3.2.4 Consumption Theme - Traditional consumption showed differentiation and repair. New consumption had structural opportunities, but the sustainability and space of consumption trends needed to be judged. Some fund managers made structural adjustments in traditional consumption and increased investment in new consumption [27]. 3.2.5 Medicine Theme - Innovation drugs became a consensus. Some fund managers also looked for investment targets with low growth this year, such as innovative medical devices, CXO, and pharmacies [29]. 3.2.6 TMT Theme - The AI industry chain developed rapidly. TMT - theme fund managers continued to focus on AI - related companies and also paid attention to other technology sectors such as robotics and semiconductors [31]. 3.2.7 High - End Manufacturing - The attention to the military industry increased. High - end manufacturing showed competitive advantages, and some fund managers expected the recovery of some electro - new energy sectors [33]. 3.2.8 Cycle Theme - Resource sectors had long - term investment logic. Dividend - type cycle assets had allocation significance, and banks were still the core of the dividend sector [35]. 3.2.9 Hong Kong Stock Theme - Most fund managers were relatively optimistic about Hong Kong stocks. Some adjusted their positions from crowded sectors to the technology sector with lower valuations and expected performance growth [37].