Sou Hu Cai Jing·2025-08-03 12:16Market Performance - The two markets opened lower on Friday, with the Shanghai Composite Index closing at 3559.95 points, down 0.37%, and the Shenzhen Component down 0.17% [1] - The total trading volume was 15,984 billion, a significant decrease of 3,377 billion (-17.44%) compared to Thursday [1] - Over 80% of industry sectors saw gains, with warehousing logistics, construction decoration, software, paper printing, and ecological environment sectors leading the rise [1] Industry Highlights - The Chinese medicine sector experienced a significant surge, with Weikang Pharmaceutical hitting the 20% daily limit, alongside other companies like Tianmu Pharmaceutical and Guizhou Bailin also reaching the limit [1] - The photovoltaic sector also performed well, with Jiejia Weichuang and Shuangliang Energy both hitting the daily limit [1] Technical Analysis - The three major indices showed a volume contraction and closed with long upper shadows, indicating a potential reversal after five consecutive weeks of gains [2] - The Shanghai Composite, Shenzhen Component, and ChiNext Index fell by 0.94%, 1.58%, and 0.74% respectively for the week, with total trading volume at 8.93 trillion, down 1.76% from the previous week [2] Investment Strategy - Companies are advised to reduce positions in high-flying stocks that have seen significant gains, while looking to invest in undervalued small and mid-cap growth stocks that have shown strong performance in Q1 and exceeded expectations in H1 [2] - There is a recommendation to allocate some resources towards brokerage stocks in anticipation of the upcoming half-year and third-quarter earnings reports [2]