Market Performance - The Shanghai Composite Index briefly surpassed the 3500-point mark, reaching a high of 3512.67 points, the first time in 8 months [1] - The index closed at 3493.05 points, down 0.13%, while the Shenzhen Component Index and the ChiNext Index reported slight declines and gains respectively [1] - Total trading volume across the Shanghai and Shenzhen markets was 15,276.3 billion yuan, showing an increase compared to the previous trading day [1] Stock and Sector Performance - Out of 1856 stocks that rose, 64 stocks hit the daily limit or increased by over 10%, while over 3300 stocks declined [1] - The multi-financial and banking sectors saw significant gains, with stocks like Yuexiu Capital and Agricultural Bank of China reaching historical highs [1] - Active sectors included aerospace and military, robotics, short drama gaming, new urbanization, and innovative pharmaceuticals, with several stocks hitting the daily limit or increasing by over 10% [1] Market Sentiment and Future Outlook - The recent surge from 3400 to 3500 points in just 11 trading days may have contributed to the index's inability to maintain the 3500-point level [2] - The 3500-point mark is viewed as a psychological threshold for investors, reflecting market strength [2] - Analysts suggest that the index will only transition from a "resistance level" to a "support level" when corporate profit growth exceeds 5% and policy measures align [2] - The market is shifting focus from defensive banking stocks to more aggressive sectors like technology and photovoltaics, with an emphasis on monitoring trading volume for sustained growth [2]

Market Performance - The Hang Seng Index closed down by 1.06% [1] - The Hang Seng Tech Index fell by 1.76% [1] Sector Highlights - The innovative drug concept saw significant strength [1] - The rare earth concept experienced a late-session rally [1] Company Performance - Lens Technology (06613.HK) saw a 9% increase on its first trading day [1] - Superstar Legend (06683.HK) surged by 94%, with a market capitalization exceeding 10 billion HKD [1]

Core Viewpoint - The innovative drug sector experienced a rebound, with CXO direction leading the gains, as several companies saw significant stock price increases, indicating growing confidence in China's innovative drug capabilities on the international stage [1] Group 1: Market Performance - Companies such as Puris, Medici, Jiuzhitang, Sali Medical, Huanyu Pharmaceutical, and Shanghai Yizhong all reported stock price increases, with Puris rising over 10% and others exceeding 6% [1] Group 2: Industry Insights - CICC released a report highlighting that the recent disclosures of numerous clinical data at ASCO, along with significant business development (BD) deals represented by Sanofi, further confirm the international competitiveness of Chinese innovative drugs [1] - The upcoming ESMO conference and the data disclosures surrounding it are expected to positively catalyze the innovative drug sector [1]

Market Overview - A-shares showed a strong upward trend with the Shanghai Composite Index rising by 0.20%, the Shenzhen Component Index increasing by 0.49%, and the ChiNext Index up by 0.78% as of 9:45 AM [1] - The market experienced significant volume contraction, leading to increased cautious sentiment among investors, suggesting that without major news, the market may continue its trend of index fluctuations and sector rotations [1] Key Sectors - The storage chip sector saw strong performance, with companies like Walton Technology achieving two consecutive trading limit ups, and other firms such as Baicheng Co. and Landi Group also hitting trading limits [2] - The innovative drug sector continued to perform well, with Lianhuan Pharmaceutical achieving two consecutive trading limit ups [1][2] - The beverage manufacturing sector showed localized activity, with Guotou Zhonglu also achieving two consecutive trading limit ups [1] - The medical beauty sector was active, with Langzi Co. hitting the trading limit [1] - Conversely, sectors such as electric grid equipment, tourism, and diversified finance experienced notable declines [1] Institutional Insights - Huaxi Securities indicated that the upward trend of A-shares remains intact, with strong economic growth momentum in the first half of the year easing pressure on achieving annual growth targets [3] - The focus of domestic policy is expected to remain on "stabilizing growth," with potential for monetary policy easing as the Federal Reserve may lower interest rates in Q3 [3] - Caitong Securities emphasized that the current high-level market consolidation phase presents a critical window for identifying structural opportunities, with performance-driven factors becoming increasingly important [4] - Zhongyin Securities noted that the market is likely to maintain a central upward trend, despite potential increases in overseas volatility due to upcoming tariff decisions and economic policies [5]

Overall Market Performance - The Shanghai Composite Index experienced a narrow fluctuation throughout the day, closing up by 0.02% at 3473.13, while the Shenzhen Component Index fell by 0.70% to 10435.51, and the ChiNext Index dropped by 1.21% to 2130.19 [1][2] Sector Performance - The cross-border payment and stablecoin concepts were notably active, with stocks such as Zhongyi Technology, Jingbeifang, and Xinyada hitting the daily limit up [1] - Real estate stocks saw a midday surge, with companies like Yudai Development, Shahe Shares, and Nanshan Holdings also reaching the daily limit up [1] - Conversely, the innovative drug sector experienced a pullback, with Kexing Pharmaceutical declining over 14% [1] Popular Concepts - Power stocks surged against the trend, with nearly ten stocks including Shaoneng Shares, Huayin Electric, and Shimao Energy hitting the daily limit up [1]

Group 1: Report Industry Investment Rating - No information provided Group 2: Core Viewpoints of the Report - On July 5th, the current-month contracts of the four major stock index futures showed mixed performance. IF rose 0.44%, IH rose 0.61%, IC fell 0.01%, and IM fell 0.29%. The total trading volume of stock index futures rebounded, indicating increased trading enthusiasm among investors. The trend intensities of IF and IH are 1, and those of IC and IM are also 1. There are important news including the resumption of product exports from the US to China and local measures for population development. The three major stock indices showed a pattern of rising and then falling [1][2][6] Group 3: Summary According to Related Catalogs 3.1 Stock Index Futures Data Tracking - **IF Contracts**: The closing prices of IF2507, IF2508, IF2509, and IF2512 all rose, with increases of 0.44%, 0.40%, 0.46%, and 0.47% respectively. The trading volumes and open interests of these contracts also increased. For example, the trading volume of IF2509 increased by 28,804, and the open interest increased by 14,488 [1] - **IH Contracts**: The closing prices of IH2507, IH2508, IH2509, and IH2512 all rose, with increases of 0.61%, 0.58%, 0.62%, and 0.59% respectively. The trading volumes and open interests also increased. For instance, the trading volume of IH2509 increased by 19,867, and the open interest increased by 9,229 [1] - **IC Contracts**: The closing prices of IC2507, IC2508, IC2509, and IC2512 all fell slightly, with decreases of 0.01%, 0.01%, 0.08%, and 0.04% respectively. The trading volumes and open interests increased. For example, the trading volume of IC2509 increased by 13,772, and the open interest increased by 6,230 [1] - **IM Contracts**: The closing prices of IM2507, IM2508, IM2509, and IM2512 all fell, with decreases of 0.29%, 0.36%, 0.43%, and 0.47% respectively. The trading volumes and open interests increased. For instance, the trading volume of IM2509 increased by 55,982, and the open interest increased by 16,019 [1] 3.2 Changes in the Top 20 Member Positions of Stock Index Futures - For most contracts, the long and short positions of the top 20 members showed increases. For example, in the IF2509 contract, the long positions increased by 11,728, and the short positions increased by 11,807 [5] 3.3 Important Driving Factors - There are reports that the US has resumed exports of products such as EDA software, ethane, and aircraft engines to China. Relevant departments in multiple regions are about to introduce measures for population development. The three major stock indices had a performance of rising and then falling, with some sectors showing strong performance and others weakening [6]

Market Overview - On July 4, A-shares showed mixed performance with the Shanghai Composite Index rising by 0.32% to 3472 points, while the Shenzhen Component Index and the ChiNext Index fell by 0.25% and 0.36% respectively [1][2] - The total trading volume for the day reached 1.45 trillion yuan, an increase of 121 billion yuan compared to the previous trading day, with over 4100 stocks declining [1] Sector Performance - The cross-border payment sector saw significant gains, with companies like Xinyada and Jingbeifang hitting the daily limit, and Sifang Jingchuang rising over 6% [2][3] - The banking sector collectively rose, with notable increases in CITIC Bank, Shanghai Bank, and others reaching historical highs [2][7] - The gaming sector also performed well, with Giant Network surging by over 9% and several other gaming stocks following suit, attributed to a recent increase in game license approvals [6][2] Notable Stocks - In the gaming sector, Giant Network rose by 9.07%, while Ice Glacier Network and 37 Interactive Entertainment increased by over 6% [5][6] - In the banking sector, CITIC Bank rose by 3.73%, with other banks like Industrial Bank and Everbright Bank also showing strong performance [7] - The electric power sector was active, with Shaoneng Co., ShenNan Electric A, and Huayin Power hitting the daily limit, while Xichang Electric rose over 6% [8] Declining Sectors - The solid-state battery concept stocks collectively fell, with Xinyu Ren dropping by 12% and other related stocks also experiencing significant declines [11] - The wind power equipment sector showed weak performance, with Jixin Technology hitting the daily limit down and other companies like Taisheng Wind Power and Dajin Heavy Industry also declining [12] - The beauty and personal care sector weakened, with companies like Lafang Jiahua and Shu Yang Co. dropping over 5% [13] Future Outlook - According to CITIC Securities, the short-term outlook suggests a boost in market sentiment, attracting leveraged funds, while the mid-term view indicates limited upward space due to current market levels and valuations being higher than last year [14] - The focus remains on new sectors such as innovative pharmaceuticals, AI, and semiconductor industries, with recommendations for stable sectors like military technology and solid-state batteries [14]

Report Industry Investment Rating No relevant content provided. Core View of the Report On July 4, 2025, the news about stock index futures was calm, and the market was expected to fluctuate with a slight upward trend. On July 3, all the current-month contracts of the four major stock index futures rose, with IF up 0.69%, IH up 0.16%, IC up 0.42%, and IM up 0.44%. [1] Summary by Relevant Catalogs Stock Index Futures Data Tracking - **Closing Prices and Fluctuations**: The closing prices of various stock index futures contracts showed different degrees of increase. For example, IF2507 closed at 3946.6, up 0.69%; IH2507 closed at 2707.6, up 0.16%; IC2507 closed at 5874, up 0.42%; IM2507 closed at 6279.4, up 0.44%. [1] - **Basis**: The basis of each contract was negative, indicating that the futures prices were lower than the spot prices. For instance, the basis of IF2507 was -21.47, IH2507 was -16.95, IC2507 was -48.66, and IM2507 was -63.24. [1] - **Trading Volume and Open Interest**: The trading volume and open interest of different contracts changed. In terms of trading volume, IF total trading volume increased by 2786 lots, while IH decreased by 3073 lots, IC decreased by 523 lots, and IM decreased by 2775 lots. Regarding open interest, IF total open interest decreased by 481 lots, IH decreased by 1877 lots, IC increased by 1566 lots, and IM increased by 2566 lots. [1][2] Top 20 Member Position Changes - **Long and Short Positions**: The long and short positions of the top 20 members in different contracts changed. For example, in IF2507 - IF2508, the long positions decreased by 688 (not announced for IF2508), and the short positions increased by 116 (not announced for IF2508). [5] Trend Intensity - The trend intensity of IF and IH was 1, and that of IC and IM was also 1, indicating a neutral trend according to the classification range of [-2, 2]. [6] Important Drivers - **US Market**: The US non - farm payrolls exceeded expectations, leading to a significant drop in the expectation of Fed rate cuts, a decline in US Treasury bonds, and a fall of about 1.4% in gold at one point. The tech stocks were strong, with the Nasdaq rising over 1%. The US added 147,000 non - farm jobs in June, and the unemployment rate unexpectedly dropped to 4.1%. [7] - **Chinese A - share Market**: The Shanghai Composite Index rose 0.18%, the Shenzhen Component Index rose 1.17%, and the ChiNext Index rose 1.9%. The A - share market traded 1.33 trillion yuan throughout the day, down from 1.41 trillion yuan the previous day. Some concept stocks such as innovative drugs, solid - state batteries, and Apple concept stocks performed well, while most military stocks declined. [7]

Market Overview - The Hong Kong stock market indices closed lower, with the Hang Seng Index down by 0.63%, the Hang Seng Tech Index down by 0.67%, and the Hang Seng China Enterprises Index down by 0.88% [2] - Despite the overall market decline, the innovative drug sector saw significant gains, with the Hang Seng Biotechnology Index rising by 2.97% [2] Company Performance - Technology stocks experienced a broad decline, with Xiaomi Group falling over 3%, closing down by 3.41% [4] - In the innovative drug sector, Huahao Zhongtian Pharmaceutical surged over 55%, while other companies like Kangfang Biotech, Basestone Pharmaceuticals, and Innovent Biologics also saw notable increases of 14.33%, 9.55%, and 6.68% respectively [6][7] Regulatory Developments - The National Healthcare Security Administration and the National Health Commission issued measures to support the high-quality development of innovative drugs, proposing 16 initiatives across five key areas, including increased R&D support and improved access to insurance [7] IPO Activity - Luxshare Precision announced plans to issue H-shares and list on the Hong Kong Stock Exchange [8] - Lens Technology has initiated its IPO process, aiming to officially list on July 9 [9] - GoerTek plans to spin off its microelectronics subsidiary for an IPO in Hong Kong [10] - These companies are recognized as the "fruit chain three giants," with regulatory support for leading domestic enterprises to list in Hong Kong [11] Market Infrastructure - The Hong Kong Stock Exchange launched an order transmission service for its Integrated Fund Platform, aimed at enhancing market efficiency by connecting key participants in the fund distribution ecosystem [12] - The service is supported by a financial data exchange platform operated by Shenzhen Securities Communication Co., Ltd. [13]

Market Overview - The Hong Kong stock market experienced a decline, with the Hang Seng Index falling by 0.63%, the Hang Seng Tech Index down by 0.67%, and the Hang Seng China Enterprises Index decreasing by 0.88% [1] - In contrast, the innovative drug sector saw significant gains, with the Hang Seng Biotechnology Index rising by 2.97% [1] Company Performance - Xiaomi Group's stock dropped over 3%, with a maximum intraday decline exceeding 5% [2][3] - Innovative drug stocks performed well, with Huahao Zhongtian Pharmaceutical surging over 55%, Kangfang Biotech increasing by 14.33%, and other companies like Basestone Pharmaceuticals and Innovent Biologics also showing positive growth [6] IPO Activity - Luxshare Precision announced plans to issue H shares and list on the Hong Kong Stock Exchange [7] - Lens Technology has initiated its IPO process, planning to officially list on July 9 [8] - GoerTek intends to spin off its microelectronics subsidiary for an IPO in Hong Kong [9] - These companies are recognized as the "three giants of the fruit chain," and the China Securities Regulatory Commission has expressed support for leading domestic enterprises to list in Hong Kong [10] Regulatory Developments - The Hong Kong Stock Exchange launched an Integrated Fund Platform (IFP) order transmission service to enhance market efficiency [11] - The service aims to connect key participants in the fund distribution ecosystem and will welcome 33 companies as initial participants [12]