CCSC(SH:601375) Zhongyuan Securities·2025-07-03 11:26Market Overview - On July 3, 2025, the A-share market experienced a slight upward trend after initial declines, with the Shanghai Composite Index finding support around 3447 points[2] - The Shanghai Composite Index closed at 3461.15 points, up 0.18%, while the Shenzhen Component Index rose by 1.17% to 10,534.58 points[8] - Total trading volume for the day was 13,337 billion yuan, slightly lower than the previous trading day[8] Sector Performance - Key sectors showing strong performance included consumer electronics, electronic components, batteries, and communication equipment[3] - Conversely, sectors such as shipbuilding, mining, gaming, and engineering machinery underperformed[3] - Over 60% of stocks in the two markets saw gains, with notable inflows into consumer electronics and battery sectors[8] Valuation and Investment Strategy - The average price-to-earnings (P/E) ratios for the Shanghai Composite and ChiNext indices are 14.19 times and 38.11 times, respectively, indicating a mid-level valuation suitable for medium to long-term investments[3] - The report suggests a balanced investment strategy, focusing on stocks with better-than-expected mid-year performance and reasonable valuations[3] Economic Context - China's economy continues to show moderate recovery, with consumption and investment as core drivers[3] - Long-term capital inflows are increasing, with steady growth in ETF sizes and continuous inflow of insurance funds providing significant support[3] Global Factors - The Federal Reserve maintained interest rates in June, but the uncertainty around potential rate cuts could significantly impact global risk appetite[3] - Investors are advised to closely monitor policy changes, capital flows, and international market conditions[3]