中国资产，爆发！

Core Viewpoint - Chinese assets have experienced a significant surge, driven by positive market sentiment and expectations of interest rate cuts by the Federal Reserve [2][5][7]. Market Performance - The Nasdaq Golden Dragon China Index rose over 1.8%, while the three-times leveraged FTSE China ETF saw a peak increase of over 6%. The two-times leveraged Chinese internet stock ETF surged nearly 5% [2][5]. - Notable Chinese stocks, such as Huami Technology, saw a dramatic increase of over 48% at one point, closing with a 34% rise. The company's latest earnings report indicated a revenue of $59.4 million for Q2 2025, a 46.2% year-on-year increase, and a significant narrowing of losses [5][6]. External Capital Flows - Recent data from CICC indicates that foreign capital has returned to the Hong Kong stock market for the first time in 41 weeks, marking a shift in foreign investment strategies towards Chinese assets [9][10]. - The report from Nomura highlights that Chinese ETFs listed in the U.S. have recorded net inflows for three consecutive weeks, suggesting a positive change in foreign capital allocation [2][9]. Federal Reserve Expectations - Market expectations for a rate cut by the Federal Reserve in September have intensified, with a 94.4% probability of a 25 basis point cut according to CME FedWatch [7]. - Analysts suggest that a significant rate cut could be on the horizon, with some predicting a potential 50 basis point reduction [7]. Investment Strategy Insights - CICC emphasizes that recent market adjustments may present better investment opportunities, advocating for a "buy low" strategy rather than chasing high prices. Investors are encouraged to focus on sectors with reasonable valuations and long-term growth potential [10]. - Goldman Sachs has raised its 12-month target for the MSCI China Index from 85 to 90 points, reflecting an increasing interest in Chinese stocks driven by diversification needs and favorable market conditions [10].