ZHONGTAI SECURITIES·2025-07-28 15:41Market Overview - The market is expected to continue rising in August, driven by liquidity conditions[5] - As of July 28, the Wind All A Index surpassed its peak from October 8 of the previous year, indicating a bullish market sentiment[5] Market Drivers - The upward market movement is attributed to ample incremental capital and improved supply-demand dynamics, particularly in cyclical stocks[7] - Recent trends show a significant increase in public and retail investor participation, with new fund issuance in June reaching nearly 30 billion, the highest monthly level since 2022[8] Investment Strategy - The report recommends focusing on large financial and technology assets, highlighting the potential for banks and insurance companies to benefit from reduced economic risks and lower liability costs[9] - Technology assets are suggested for contrarian trading due to their low trading congestion, with historical performance showing a strong correlation with trading dynamics[9] Key Stock Recommendations - The August stock selection includes: Hong Kong Tech 50 ETF, Fuda Co., Su Neng Co. (automotive), Zhujiang Co., Core International (trading), Wanhua Chemical, Dongcai Technology (chemicals), and others[17] - The report emphasizes the importance of sectors like steel and pharmaceuticals, which are expected to perform well due to demand recovery and policy support[9] Risks - Potential risks include unexpected economic downturns and insufficient policy support, which could impact market performance[18]