Investment Focus - The market has entered a second phase of broad consolidation, with heightened volatility risks in micro-caps, new consumption, and innovative pharma sectors [1][8] - The Hang Seng Index dropped 1.5% and the Hang Seng Tech Index fell 2.0%, while A-shares also experienced declines [1][8] - Liquidity in the tech sector has been diverted towards innovative pharma and new consumption, but both sectors saw notable pullbacks this week [1][8] Hong Kong Market Dynamics - The sustainability of rallies in new consumption and innovative pharma depends on continued HKD liquidity and steady southbound inflows [2][9] - Recent pullbacks in innovative pharma have increased the AH premium from a 10-year average of 136 to 139, indicating H-shares are underperforming A-shares [2][9] - The liquidity in the Hong Kong market is tightening, influenced by large IPOs and upcoming listings [2][9] Southbound Capital Flows - This week saw a net inflow of HKD 16.3 billion, but only HKD 4.2 billion flowed in during the last three trading days of market decline [3][10] - Significant selling pressure was observed in Pop Mart, with HKD 1.8 billion sold, nearly erasing the past month's inflows [3][10] - Southbound capital mainly flowed into banks, healthcare, and consumer services, with limited outflows in communication services [3][10] A-Shares Performance - The liquor index rebounded 2.7% this week, supported by favorable media commentary, but the overall downtrend remains unaltered [4][11] - The banking sector continued to perform well, rising 2.6%, which helped stabilize large-cap defensives [4][11] - Micro-caps fell 2.2%, underperforming the broader market but still remain at elevated levels [4][11] Market Outlook - The broad consolidation pattern in the market is expected to continue, with high-flying sectors like micro-caps, new consumption, and innovative pharma yet to fully deflate [4][12] - The expiration of the 90-day tariff grace period on July 9 may lead to renewed pressure from U.S.-China negotiations [4][12] - Investors are advised to wait for better entry points, particularly near 21,000 on the Hang Seng Index and 3,200 on the Shanghai Composite [4][12] Short-Term Market Sentiment - Recent U.S. military actions against Iran may extend market downward momentum early next week [5][13] - If the market declines to key support levels, a bottoming rebound may occur [5][13] - The tech sector, after sufficient pullback, is believed to hold stronger rebound potential, particularly in edge AI and application software [5][13]

Group 1: AMD GPU Launch - AMD launched MI350X and MI355X GPUs on June 13, achieving a 4x increase in computing power and a 35x improvement in inference speed compared to the previous MI300X [1][3] - The MI350 series competes with NVIDIA's B200, featuring 1.6 times the memory capacity and comparable or superior training and inference speeds [3] - The MI350X has a maximum total board power (TBP) of 1000W, while the MI355X reaches 1400W, enhancing performance [3][4] Group 2: Future Developments - AMD plans to release the next-generation MI400 series in 2026, developed in collaboration with OpenAI, with expected performance improvements of 10x over the MI300 series [4] - The MI400 series will utilize the next-generation CDNA architecture, featuring 432GB HBM4 memory and 19.6TB/s memory bandwidth [4] Group 3: AI Applications and Innovations - The Chinese Academy of Sciences launched the "Enlightenment" system for fully automated chip design, which aims to surpass human-level design capabilities [5] - The system will continue to evolve through iterative cycles and explore various AI methodologies to enhance its design capabilities [5] Group 4: AI Financing Trends - Multiverse Computing completed a €1.89 billion (approximately $2.17 billion) Series B funding round, focusing on AI model compression technology that can reduce model size by up to 95% without performance loss [6][7] - The technology allows for significant speed improvements and cost reductions in inference, making it applicable for edge devices [7] Group 5: Investment Recommendations - The industry outlook remains positive for overseas computing power chains, with specific companies recommended for investment, including 嘉和美康, 科大讯飞, and 寒武纪, among others [2][8]