Core Viewpoint - The A-share market is experiencing a volatile pattern with mixed performance across the three major indices, indicating a focus on specific hot sectors while overall market breadth is weakening [4][5]. Market Performance - The Shanghai Composite Index opened high and reached a peak of 3787.98 points, marking a three-day consecutive high, with a technical pattern suggesting acceleration [4]. - A total of 2169 stocks rose, but the overall profit-making effect is diminishing, with a decline in the number of advancing stocks compared to decliners [4]. Trading Volume - The total trading volume in both markets reached 1.42 trillion yuan, marking the longest consecutive period of over 2 trillion yuan in nearly a decade, reflecting sustained market enthusiasm and ample liquidity [5]. Fund Flow Dynamics - There is a net outflow of funds from major players while retail investors are net buyers, indicating a shift in investment strategies [6]. - Institutional investors are reallocating funds from high-volatility small-cap stocks to blue-chip stocks, particularly increasing positions in semiconductor and consumer electronics sectors, while reducing holdings in leading consumer stocks like Kweichow Moutai [6]. Investor Sentiment - Retail investors exhibit a mix of enthusiasm for chasing gains and awareness of risks, showing a preference for small-cap stocks that resonates with institutional strategies [6]. - There is a notable concern regarding the performance of high-positioned thematic stocks, particularly in relation to AI application earnings realization [6].

Group 1 - The Hang Seng Index rose by 0.49% to 24,627.25 points, with the Hang Seng Tech Index increasing by 0.93% and the Hang Seng China Enterprises Index up by 0.51%, indicating a relatively active market with a half-day trading volume of HKD 126.524 billion [1] - The valuation of core internet leading companies in the Hong Kong stock market remains in the upper-middle range of normal valuation, with a systemic improvement in asset quality [1] - The dual logic of "AI technology transformation + undervaluation recovery" positions Hong Kong internet leaders as quality targets that can withstand economic cycles, with expectations for a comprehensive harvest period in the second half of the year [1] Group 2 - The Hang Seng Internet ETF (513330) supports T+0 trading and focuses on the internet platform economy, including major players like Alibaba, JD.com, Tencent, Meituan, Kuaishou, and Baidu, with a DeepSeek content ratio of 86% [2] - The ETF possesses dual attributes of "new consumption + new technology," making it a suitable tool for investors to allocate towards AI application and core assets in the "AI + internet" sector [2]

Group 1 - The A-share market experienced a collective decline on August 1, with the Shanghai Composite Index down by 0.37%, the Shenzhen Component down by 0.17%, and the ChiNext Index down by 0.24% [1] - The pharmaceutical sector showed resilience, with all stocks in this sector rising against the market trend, while the sports concept sector underwent a collective adjustment [1] - ETFs related to photovoltaic and traditional Chinese medicine saw significant gains, with the Hang Seng Consumption ETF (159699) leading with a rise of 4.69% and a turnover rate of 10.28% [2] Group 2 - The implementation of the "Regulations on the Labeling of Traditional Chinese Medicine Pieces" on August 1 mandates detailed labeling, including shelf life and origin, which is expected to enhance industry standardization and accelerate the exit of small enterprises, thereby boosting confidence in leading pharmaceutical companies [2] - A report from Huatai Securities indicated that the National Engineering Laboratory for the Preparation of Polysilicon Materials is revising the comprehensive energy consumption standards for polysilicon products, focusing on limiting new production capacity [3] - The Ministry of Industry and Information Technology has issued a special energy-saving inspection task list for polysilicon, which may lead to energy consumption controls on existing production capacity [3]

Market Overview - A-shares experienced a volatile trading day with the Shanghai Composite Index down 0.37%, Shenzhen Component down 0.17%, and ChiNext down 0.24% [3][4] - The total trading volume in the Shanghai and Shenzhen markets was 1.6 trillion yuan, a decrease of 337.7 billion yuan compared to the previous trading day [4] Sector Performance - The military, oil and gas, civil explosives, rare earth permanent magnets, and PCB sectors saw the largest declines [7] - Conversely, the traditional Chinese medicine sector surged, with AI applications also showing strength, while solar energy, BC batteries, education, logistics, and paper sectors performed well [7] Notable Stocks - The solar energy sector rebounded significantly, with stocks like Jiejia Weichuang and Shuangliang Energy hitting the daily limit, and Haiyou New Materials rising over 12% [7] - The traditional Chinese medicine sector saw multiple stocks hitting the daily limit, including Qizheng Tibetan Medicine and Weikang Pharmaceutical [8] Capital Flow - Main capital inflows were observed in the banking, solar equipment, and traditional Chinese medicine sectors, while textile and clothing, electric grid equipment, and gas sectors experienced net outflows [10] - Specific stocks with significant net inflows included Jiejia Weichuang (5.42 billion yuan), Beiqi Blue Valley (4.95 billion yuan), and Shuangliang Energy (4.55 billion yuan) [10] Market Sentiment and Outlook - Analysts noted that the A-share index has shown strong characteristics with three consecutive monthly gains, but August may see profit-taking and technical pressure above 3600 points [11] - Despite recent adjustments, the overall market trend remains upward, with high trading volumes providing more room for error [11] - The market is entering a medium to long-term slow bull phase, with reduced volatility and healthy rotation of market hotspots [11]

Market Overview - The market experienced fluctuations throughout the day, with the three major indices slightly declining. The Shanghai Composite Index fell by 0.37%, the Shenzhen Component Index decreased by 0.17%, and the ChiNext Index dropped by 0.24% [1] - The total trading volume in the Shanghai and Shenzhen markets was 1.60 trillion, a decrease of 337.7 billion compared to the previous trading day [1] Sector Performance - The Chinese medicine, electric equipment, AI applications, and paper-making sectors showed strong performance, while the shipbuilding, civil explosives, PCB, and CPO sectors faced declines [1] - The pharmaceutical sector performed well, with innovative drug concepts continuing to show strength, highlighted by Anglikang reaching the daily limit [1] - Traditional Chinese medicine stocks saw a rebound, with Weikang Pharmaceutical also hitting the daily limit [1] - The photovoltaic sector rebounded, with Jiejia Weichuang reaching the daily limit [1] - AI application sectors were active in the afternoon, with Dingjie Shuzhi rising over 10% [1] - The data element concept strengthened, with Shensanda A hitting the daily limit [1] - Conversely, the sports concept sector collectively adjusted, with Gongchuang Turf hitting the daily limit downwards [1]

1. Report Industry Investment Rating No investment rating for the industry is provided in the report. 2. Core Viewpoints The report presents a comprehensive overview of the overnight market trends, macro - economic news, and performance across various sectors including commodities, finance, and industries. It shows that domestic commodity futures generally declined, while the global economic situation is complex with factors like Fed's interest - rate decisions, trade policy adjustments, and regional economic data influencing market movements. 3. Summary by Relevant Catalogs Overnight Night - Market Trends - Domestic commodity futures closed mostly lower, with the main contract of coking coal futures hitting the daily limit down, glass down over 8%, and polysilicon down nearly 8% [2][52]. - International precious metal futures generally fell, with COMEX gold futures down 0.31% and COMEX silver futures down 2.51%. However, they had cumulative increases in July [2][52]. - Oil prices dropped due to a large increase in US inventories. WTI crude futures fell 0.91% and Brent crude futures fell 0.86%, but both had significant cumulative increases in July [2][53]. - London base metals closed lower across the board, affected by the Fed's hawkish stance and trade policy disruptions [3][55]. Important Information Macro - Information - The State Council emphasized enhancing macro - policy effectiveness and promoting economic reform. The NDRC focused on building a unified national market and promoting the healthy development of the private economy [6]. - China's July PMI dropped to 49.3%, and non - manufacturing and composite PMI also declined slightly but remained above the critical point, indicating overall economic expansion [7]. - US June inflation data slightly exceeded expectations, adding uncertainty to the Fed's interest - rate cut schedule [7]. Energy and Chemical Futures - As of July 31, the total inventory of float glass samples in China decreased for six consecutive weeks, and the total inventory of soda ash manufacturers decreased for the third consecutive week but remained at a high level [10]. - Anhui's new photovoltaic glass furnace production cut is expected to lead to a decline in domestic glass supply and inventory in August [11]. - The ANRPC expects a 0.5% increase in global natural rubber production and a 1.3% increase in demand in 2025 [11]. - Singapore's fuel oil and middle distillate inventories increased, while light distillate inventories decreased [11]. Metal Futures - In July 2025, China's industrial silicon production increased month - on - month but decreased year - on - year, and the social inventory increased slightly [13]. - In Q2, China's gold ETF inflow reached 464 billion yuan, a record - high quarterly performance, driven by global trade risks and soaring gold prices [13]. - In H1 2025, China's exports of new - energy commercial vehicles increased by 230% year - on - year, and the overseas market is also expected to double [15]. - The GZFE solicited opinions on platinum and palladium futures and options contracts and related rules [15][16]. Black - Series Futures - In July 2025, the steel industry PMI returned to the expansion range, and in August, steel demand may continue to recover weakly, with prices fluctuating [18]. - The coking coal long - term agreement floating value in July increased by 3.8% compared to June [19]. - Some coal mines in Changzhi suspended production or reduced output, leading to a decrease in daily coal production [21]. - As of July 31, rebar production and apparent demand decreased, factory inventory decreased, and social inventory increased [21]. - Some coking coal mines' production was restricted, and coal inventories decreased to low levels [22]. - The average profit per ton of coke for independent coking plants was - 45 yuan/ton, with significant regional differences [22]. Agricultural Product Futures - Indonesia raised the reference price of crude palm oil in August, increasing the export tax [24]. - Malaysia's palm oil exports in July decreased compared to the previous month according to different survey agencies [25][27]. - The number of ships waiting to load sugar in Brazilian ports and the quantity of sugar to be loaded increased [27]. - Brazil's soybean, corn, and other agricultural product exports showed different trends in the specified period [27]. - The prices of live pigs in China decreased, and the proportion of pig - to - grain decreased slightly [28]. - The drought - affected areas of US soybeans, corn, and cotton showed different changes [28]. - US soybean exports and sales showed an upward trend [28]. - Canada's rapeseed and wheat exports decreased [30]. Financial Market Finance - A - shares closed lower, with cyclical sectors falling and some technology - related sectors performing well. The Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index all declined on the day but had cumulative increases in July [32]. - The Hong Kong stock market closed lower, but southbound funds had a large net inflow, and Meituan received significant additional investment [32]. - The SSE accepted the IPO application of Taimed Biopharmaceuticals, the first company under the restarted fifth listing standard of the STAR Market [33]. - *ST Guangdao on the BSE had a "ground - to - sky" board on July 31 [33]. Industry - The NHSA formulated a new drug pricing mechanism and added price items related to medical new technologies [34][35]. - The NEA is formulating policies for high - power charging facilities and promoting their construction [35]. - In H1, China's renewable energy and new - energy storage installed capacity increased significantly [35]. - The National Financial Regulatory Administration required urban commercial medical insurance to avoid "involution" competition [36]. - From January to July, the sales of TOP100 real - estate enterprises decreased year - on - year, and the decline in July was more significant [36]. - The MIIT solicited opinions on three mandatory national standards for electric vehicles [37]. - In July, China's auto dealer inventory warning index decreased year - on - year but increased month - on - month [38]. Overseas - Brazil and India will not yield to US trade pressure [39]. - Trump criticized the Fed, and the US inflation data exceeded expectations, adding uncertainty to the Fed's interest - rate cut schedule [40][41]. - Trump urged pharmaceutical companies to reduce drug prices in the US [41]. - US corporate layoffs in July increased significantly year - on - year [42]. - US initial jobless claims increased slightly, and continuing jobless claims remained unchanged [43]. - The BOJ maintained interest rates and raised the inflation forecast [43]. - Inflation in Germany, France, and Italy showed different trends [43]. International Stock Markets - US and European major stock indexes closed lower, affected by inflation and trade concerns, and the market's expectation of a Fed rate cut in September decreased [44][45]. - Apple and Amazon's Q2 financial reports showed different performance, with Apple's stock rising after - hours and Amazon's falling [46]. - Wenyuanzhixing's Q2 revenue increased significantly, especially in the Robotaxi business [47]. - Samsung's Q2 operating profit decreased significantly, mainly due to the chip business [48]. - BMW's Q2 sales and profit decreased, but vehicle deliveries increased slightly [49]. - Shell's Q2 revenue and profit exceeded expectations, and the company announced a stock - buyback plan [50]. - Unilever's Q2 sales and profit growth slightly exceeded expectations [51]. Commodities - Domestic commodity futures closed mostly lower, with significant declines in some varieties [52]. - In Q2, global gold demand increased year - on - year, but central bank gold purchases slowed down [52]. - International precious metal futures closed lower, with cumulative increases in July [52]. - Oil prices dropped due to a large increase in US inventories [53]. - London base metals closed lower, affected by the Fed's stance and trade policies [55]. Bonds - The domestic bond market continued to be strong, with treasury futures rising and bond yields falling [56]. - In June, China's bond market issued a large amount of various bonds, and overseas institutions' bond custody balance reached 4.3 trillion yuan [56]. - US Treasury yields showed different trends, with short - term yields rising due to inflation data [56]. Foreign Exchange - The on - shore RMB against the US dollar depreciated on Thursday, and the central parity rate was also adjusted downwards [57]. - The Indonesian rupiah fell to a one - month low, and the central bank intervened in the exchange rate [58]. - The US dollar index fell slightly, and most non - US currencies rose [60].

Market Overview - The market experienced a day of volatility with all three major indices falling over 1%, specifically the Shanghai Composite Index down 1.18%, the Shenzhen Component down 1.73%, and the ChiNext down 1.66% [1]. Stock Performance - The market saw a significant number of stocks declining, with over 4,200 stocks falling [2]. - In terms of sector performance, the innovative drug concept showed strength with stocks like Nanxin Pharmaceutical hitting the daily limit [3]. - AI applications remained active against the trend, with stocks such as Yidian Tianxia also reaching the daily limit [3]. - AI hardware stocks exhibited mixed results, but the liquid cooling server concept was strong, with companies like Invec hitting the daily limit [3]. Declining Sectors - Sectors such as steel and non-ferrous metals, which are cyclical, collectively weakened, with Anyang Steel dropping over 7% [4]. - The financial sector was sluggish throughout the day, with Zhongyin Securities falling over 5% [4]. Trading Volume - The total trading volume for the Shanghai and Shenzhen markets reached 1.94 trillion yuan, an increase of 91.7 billion yuan compared to the previous trading day [4]. Notable Stocks - New Yisheng had a trading volume of over 14.6 billion yuan, leading the market, while other notable stocks included Zhongji Xuchuang and Ningde Times with significant trading volumes as well [4].

ETF Industry News - Major indices collectively rose, with several communication sector ETFs leading the gains. The Communication ETF (515880.SH) increased by 2.08%, 5G50ETF (159811.SZ) rose by 1.87%, and Communication Equipment ETF (159583.SZ) gained 1.79% [1] - The construction materials sector saw declines, with the Construction Materials ETF (516750.SH) down by 1.30% and another Construction Materials ETF (159745.SZ) down by 1.25% [1] Communication Industry Insights - A recent report from Western Securities highlighted that AMD and NVIDIA mentioned that agent-based AI is expected to drive exponential growth in inference workloads. Collaboration with leading AI companies and cloud providers is anticipated [2] - The report emphasizes that computing power remains a major bottleneck for AI innovation, and self-developed ASIC chips from large companies are becoming an important supplement to computing power supply [2] - Key areas to focus on include overseas computing chain growth, domestic computing demand, and the importance of self-controllable technology in the industry [2] Dividend Asset Allocation - Dividend-themed funds are gaining traction as core investment targets due to their stable cash flow and defensive attributes. Several dividend-themed ETFs have recently reached record high shares [3] - As of June 17, the E Fund CSI Dividend Low Volatility ETF reached 1.576 billion shares, up 85% year-to-date, while the Southern S&P China A-share Large Cap Dividend Low Volatility 50 ETF reached 6.564 billion shares, a 75% increase [4] Sci-Tech Board ETF Developments - Following the implementation of the "Sci-Tech Board Eight Measures," the number and scale of Sci-Tech Board ETFs have both seen significant growth, with a total of 88 ETFs and a combined scale exceeding 250 billion yuan [5] Market Overview - The A-share market saw all major indices rise, with the Shanghai Composite Index up 0.04% to 3388.81 points, the Shenzhen Component Index up 0.24% to 10175.59 points, and the ChiNext Index up 0.23% to 2054.73 points [6][7] - The electronic, communication, and defense industries performed well, with daily increases of 1.5%, 1.39%, and 0.95%, respectively [9] ETF Market Performance - Stock-style ETFs showed the best performance today, with an average increase of 0.27%, while cross-border ETFs had the worst performance with an average decrease of 0.57% [12] - The top-performing stock ETFs included 5G Communication ETF (515050.SH) with a 2.37% increase, 5GETF (159994.SZ) with a 2.22% increase, and Communication ETF (515880.SH) with a 2.08% increase [14][15] Trading Volume Insights - The top three stock ETFs by trading volume were A500 ETF (159351.SZ) with 2.862 billion yuan, A500 ETF Fund (512050.SH) with 2.770 billion yuan, and Sci-Tech 50 ETF (588000.SH) with 2.175 billion yuan [17][19]

Group 1 - The Hang Seng China Enterprises Index and the Hang Seng Tech Index have both broken through significant technical levels, marking a rebound of over 20% since April, officially entering a technical bull market [1] - On June 9, the Hong Kong stock market opened strongly, with the Hang Seng Index rising by 0.78% and the Hang Seng Tech Index initially increasing by 0.97%, later expanding to a peak of 3% during the day [1] - Individual stocks showed a broad-based rally, with Kingdee International rising nearly 5%, and other tech stocks like Tencent Music and Meituan increasing by over 4% [1] Group 2 - The Hang Seng China Enterprises Index includes 50 H-shares companies, such as CITIC Limited, China Life, and Ping An Insurance, and is calculated using a market capitalization weighting method [2] - The Hang Seng Tech Index focuses on the technology sector, featuring major internet companies like Tencent, Alibaba, and Meituan, benefiting significantly from the development of AI applications and the profit release of internet enterprises [2]

Core Viewpoint - The newly approved floating rate fund, Dachen Zhi Zhen Return Mixed Fund, will start issuing on June 3, with a focus on active equity investment and managed by Du Cong, who has demonstrated strong performance in technology growth investments [1][2]. Group 1: Fund Overview - The Dachen Zhi Zhen Return Mixed Fund is set to be issued on June 3, with Du Cong as the proposed fund manager and ICBC as the custodian [1]. - Dachen Fund is known for its active equity investment capabilities, with notable fund managers like Xu Yan, Liu Xu, and Han Chuang [1]. - Du Cong has shown a significant excess return of 18.7% relative to the performance benchmark since managing Dachen Growth Progress Fund [1]. Group 2: Investment Strategy - Du Cong's investment framework focuses on identifying "key variables" to determine investment weight through expected return rates and curvature [2]. - The investment process consists of two main steps: assessing long-term performance potential and understanding company quality and future valuation [2]. - "Curvature" is a key concept in Du Cong's strategy, representing the acceleration of growth, which influences company pricing during market turning points [2]. Group 3: Performance Metrics - Since Du Cong took over Dachen Growth Progress Fund, it has achieved a cumulative return of 20.74%, ranking in the top 15% of its category [3]. - The fund's net asset value curve has shown steep growth, indicating strong performance during various bull markets in the technology sector [3]. - The fund's turnover rate reached 1,076.12%, reflecting Du Cong's active management and responsiveness to market changes [3]. Group 4: Market Opportunities - Du Cong highlighted several investment opportunities in the 2024 annual report, including AI computing power, domestic substitution industries, and the Apple supply chain [6][7]. - The fund achieved a quarterly return of 11.2% in Q1 2025, with an excess return of 8.27% relative to its benchmark [6]. - The ongoing U.S.-China trade tensions are seen as a catalyst for investment opportunities in semiconductor and software sectors [6].