Zhongyuan Securities·2025-07-24 10:58Market Overview - On July 24, the A-share market opened lower but rose slightly, with the Shanghai Composite Index facing resistance around 3608 points[3] - The Shanghai Composite Index closed at 3605.73 points, up 0.65%, while the Shenzhen Component Index rose 1.21% to 11,193.06 points[9] - Total trading volume for both markets was 18,742 billion yuan, slightly lower than the previous trading day[9] Sector Performance - Strong performers included securities, non-ferrous metals, semiconductors, and energy metals, while precious metals, banks, insurance, and electric power sectors lagged[4] - Over 80% of stocks in the two markets rose, with energy metals and small metals leading the gains[9] Valuation Metrics - The average price-to-earnings (P/E) ratios for the Shanghai Composite and ChiNext indices are 14.75 times and 40.41 times, respectively, indicating a mid-range valuation over the past three years[4] - The trading volume is above the median of the past three years, suggesting a healthy market activity level[4] Economic Outlook - China's economy continues to show moderate recovery, driven by consumption and investment[4] - Long-term capital inflows are increasing, with steady growth in ETF sizes and continuous inflow from insurance funds, providing significant support to the market[4] Investment Strategy - Investors are advised to focus on sectors with high mid-year performance growth and technology growth strategies, while also considering high-dividend banks and public utilities[4] - Short-term market expectations lean towards steady upward fluctuations, with a need to monitor policy, capital flow, and external market changes closely[4]