Zhongyuan Securities·2025-06-25 10:51Market Overview - On June 25, the A-share market opened lower but rose throughout the day, with the Shanghai Composite Index facing resistance around 3429 points before closing at 3455.97 points, up 1.03%[6] - The Shenzhen Component Index closed at 10,393.72 points, up 1.72%, while the ChiNext Index rose by 3.11%[6] - Total trading volume for both markets reached 16,398 billion yuan, above the three-year average daily trading volume[3] Sector Performance - Strong performers included sectors such as securities, software development, internet services, and semiconductors, while mining, oil, pesticides, and shipping showed weaker performance[3] - Over 70% of stocks in the two markets experienced gains, with multi-financial, shipbuilding, and aerospace sectors leading the increases[6] Valuation and Investment Strategy - The average price-to-earnings (P/E) ratios for the Shanghai Composite and ChiNext are 14.08 times and 37.25 times, respectively, indicating a mid-level valuation suitable for medium to long-term investments[3] - The report suggests focusing on investment opportunities in securities, software development, internet services, and semiconductors in the short term[3] Economic Context - China's economy continues to show moderate recovery, driven by consumption and investment, with long-term capital inflows increasing and ETF sizes growing steadily[3] - The Federal Reserve maintained interest rates in June, but uncertainty remains regarding future rate cuts, which could significantly boost global risk appetite[3] Risk Factors - Potential risks include unexpected overseas economic downturns, domestic policy changes, and international relations affecting the economic environment[3]