Market Performance - The three major stock indices rose collectively, with the North Stock 50 Index increasing by over 1% and more than 3,300 stocks in the market showing gains [1] - As of the market close, the Shanghai Composite Index rose by 0.45% to 3,633.99 points, the Shenzhen Component Index increased by 0.64% to 11,177.78 points, and the ChiNext Index gained 0.66% to 2,358.95 points [1] - The North Stock 50 Index saw a rise of 1.58%, with total trading volume across the Shanghai, Shenzhen, and North Stock markets reaching 1.7595 trillion yuan [1] Sector Performance - The pharmaceutical and tourism sectors experienced declines, while the military, automotive, coal, and semiconductor sectors saw significant gains [1] - Active concepts included humanoid robots, industrial mother machines, and liquid-cooled servers [1] Investment Insights - According to Everbright Securities, the current market trend may exhibit characteristics of "rotating supplementary gains," with a focus on sectors that are likely to benefit from this trend [1] - Key areas of interest in the first-level industry include machinery and electrical equipment, while second-level industries to watch are engineering machinery, chemical fibers, automation equipment, and commercial vehicles [1] - Long-term focus areas include consumption, technological self-reliance, and dividend stocks, with specific attention to policy subsidies, service and new consumption trends in the consumption sector, and AI, robotics, semiconductors, and military sectors in technology [1] Future Outlook - The market is expected to enter the next phase of an upward trend in the second half of the year, with potential to break through the phase high points of the second half of 2024 [1] - The market style in August is anticipated to lean towards cyclical sectors, with a focus on home appliances, non-bank financials, and electrical equipment [1]

Core Viewpoint - The public fund industry is experiencing a significant recovery in 2025 after a four-year downturn, with over 90% of active equity funds achieving positive returns this year, leading to increased confidence among fund managers and a revival in fund issuance [1][2]. Fund Performance - Active equity funds have seen an average return of over 13% year-to-date as of August 1, with a notable number of funds doubling their performance, including 17 funds that achieved over 140% returns [2]. - More than 800 active equity funds reached historical net asset value highs in the past month, indicating a strong recovery from previous losses [3]. Market Dynamics - The current market environment presents structural opportunities in sectors like humanoid robots, AI hardware, and innovative pharmaceuticals, which have contributed to the recovery of fund performance [2]. - Fund managers are increasingly focusing on high-growth sectors, with a shift from traditional sectors like real estate and bonds to equities, particularly in new economy sectors [3]. Fund Manager Behavior - Fund managers are showing a clear increase in risk appetite, with many raising their stock positions and concentrating their holdings in core stocks [5]. - Data shows that nearly 2,500 funds increased their stock positions and concentration in the second quarter, reflecting a significant shift in risk preference [5]. Fund Issuance Trends - The pace of new fund issuance has accelerated, with 149 new funds launched in July, matching the issuance rate from November 2022 [11]. - Notable funds like Dachen Insight Advantage raised 2.461 billion yuan in just eight days, marking the largest initial fundraising for active equity funds this year [9]. Investor Sentiment - Despite the positive performance, many investors remain cautious, with a tendency to redeem funds once they break even, indicating a need for trust rebuilding in active equity funds [1][11]. - The market is witnessing a preference for passive investment products over active equity funds, with high-performance products gaining more attention [11].

Core Viewpoint - The public fund industry is experiencing a resurgence in 2025 after a prolonged period of stagnation, with over 90% of actively managed equity funds achieving positive returns this year, indicating a potential recovery in investor confidence [1][2]. Group 1: Fund Performance - Active equity funds have seen an average return exceeding 13% year-to-date, with a significant number of products doubling their performance, including 17 funds achieving returns over 140% as of July 29 [2]. - Over 800 active equity funds reached historical net asset value highs in the past month, reflecting a strong recovery in short-term performance [2][3]. - Despite some funds still recovering from previous losses, the overall performance improvement is expected to support long-term growth [2]. Group 2: Fund Manager Sentiment - Fund managers are increasingly optimistic, raising stock positions and focusing on core holdings, with some increasing their stock allocations by 5 to 8 percentage points [5][6]. - A notable shift in investment strategy is observed, with managers concentrating their portfolios, as seen in the increase of top ten holdings' concentration from around 50% to nearly 60% [6][7]. - Fund managers are favoring sectors with clear growth potential, particularly in technology and high-end manufacturing, as they anticipate improving profit growth in the latter half of the year [5][7]. Group 3: Fund Issuance and Market Dynamics - The positive performance of funds has led to a noticeable increase in the pace of new fund issuance, particularly in equity funds, with a significant rise in marketing efforts [8][9]. - In June, 155 new funds were established, marking a near-record high, with July seeing 135 new fund launches, indicating a robust recovery in the fund issuance market [9][10]. - Despite the overall positive trend, not all funds are equally favored, with passive investment products gaining more traction than actively managed equity funds [10].

Core Viewpoints - The A-share equity market continues its strong performance, with multiple key levels being broken through, maintaining strong upward momentum driven by various favorable factors [2][3] - The US equity market shows a slowdown in its high-level growth, but remains in a fluctuating upward trend due to recent tariff negotiations [2][4] - The enhanced equity strategy index has shown relative strength, consistently breaking previous highs and recording higher elasticity in an upward market environment [2][3] A-share Market Analysis - The Shanghai Composite Index has reached resistance near 3600 points, with limited pullback and strong support [2] - The technology growth sector, which performed relatively weakly in May and June, has recently gained more market attention, indicating a shift in capital towards lower-priced sectors [3] - Defensive sectors like dividends and low volatility are expected to undergo short-term adjustments, presenting potential opportunities for positioning after price corrections [3] Overseas Market Dynamics - Recent tariff negotiations have led to a rapid recovery in the US and other markets, with some economic data exceeding expectations, alleviating previous inflation concerns [4] - Despite initial successes in tariff negotiations, there remains uncertainty in related policies, and the risk of overly optimistic pricing in the short term should be noted [4] - The long-term outlook for the US stock market remains positive, driven by strong technological development trends, although current high valuations may present lower cost-effectiveness for new investments [4][6] Fund Strategy Performance - The Evergreen Low Volatility Fund Strategy recorded a weekly return of 1.990%, with a cumulative return of 14.953% since its inception [11][12] - The Enhanced Equity Fund Strategy achieved a weekly return of 2.284%, indicating strong performance in a rapidly rotating and volatile market [5][6] - The Cash Growth Fund Strategy outperformed the benchmark with a weekly return of 0.028%, accumulating a total excess return of 0.457% since its inception [6][15] Fund Strategy Insights - The Evergreen Low Volatility Fund aims to maintain low volatility while achieving stable returns, showing significant outperformance compared to the benchmark [12][22] - The Enhanced Equity Fund focuses on identifying funds with strong alpha generation capabilities, aiming for superior performance in improving market conditions [13][23] - The Cash Growth Fund is designed to optimize cash management for investors, ensuring higher returns while minimizing volatility risks [15][24] Global Investment Strategy - The Overseas Equity Allocation Fund has accumulated high levels of excess returns since its inception, benefiting from the global technology sector's growth [17][25] - The strategy emphasizes selecting indices with strong upward momentum for global diversification, enhancing overall portfolio returns [25][26]

ETF Market Overview - The overall performance of ETF products has been good in the past two weeks, with the largest increase seen in the Sci-Tech 100 ETF among major broad-based ETFs, and the pharmaceutical industry ETF showing the highest increase among industry and thematic products [2][10] - In the past two weeks, major broad-based ETFs such as the Sci-Tech 50, CSI 2000, and CSI 800 saw net inflows, while the CSI A500 ETF experienced the largest net outflow [2][10] - The market saw the establishment of 20 new ETFs in the past two weeks, with a total issuance of 9.371 billion units, all of which are stock ETFs [22] ETF Fund Flow Analysis - Since the beginning of 2025, the fund flow trend for major broad-based ETFs has shifted from outflows to inflows and then back to outflows, with A-series ETFs continuously experiencing outflows [11] - In the past two weeks, the outflow speed of broad-based ETFs has accelerated, particularly for the Shanghai Stock Exchange 50, CSI 1000/CSI 2000, and Sci-Tech/Entrepreneurship ETFs, while the outflow speed for the CSI 300 and CSI 500 ETFs has slowed down [11][15] Thematic ETF Performance - The technology-themed ETFs tracking indices related to cloud computing and artificial intelligence have performed well in the past two weeks, with significant net inflows for products tracking Hong Kong Stock Connect internet indices [26][28] - The dividend-themed ETFs tracking indices such as the National New Hong Kong Stock Connect Central Enterprise Dividend CPR have shown the largest increase in returns over the past two weeks [31] ETF Product Structure and Management - As of July 25, 2025, the total scale of various ETFs has increased compared to the end of 2024, with bond ETFs, commodity ETFs, industry + dividend ETFs, QDII ETFs, and broad-based ETFs seeing increases of 193.44%, 103.65%, 42.98%, 18.92%, and 4.90% respectively [22][19] - The largest ETF management scale is held by Huaxia Fund, with 800.411 billion yuan, while E Fund has expanded its management scale by over 310 billion yuan compared to one year ago [22][23]

Core Viewpoint - The Chinese market is attracting more funds due to its valuation advantages and structural opportunities amid global uncertainties [1] Market Sentiment and Valuation - A-shares are showing signs of recovery, with low correlation to other global markets, providing good defensive characteristics [2] - Current market sentiment is improving, but overall valuation levels remain attractive, indicating a key window for value investors to acquire quality assets [2] Economic Transition and Interest Rates - The Chinese economy is transitioning from high-speed growth to high-quality development, necessitating a reduction in debt-driven growth [3] - A long-term downward trend in interest rates is anticipated, which may further enhance equity asset valuations [3] Asset Allocation Strategy - The investment strategy focuses on long-duration assets, particularly dividend-paying stocks and high-quality companies with sustainable return on equity (ROE) growth [4] Sector Focus - Three main investment themes are highlighted: 1. Dividend stocks, seen as "deposit substitutes" in a low-interest environment, supported by new regulations encouraging dividends and buybacks [5] 2. New productive forces, emphasizing companies with high intangible assets and technological innovation, particularly in the private sector [5] 3. New consumption trends, where consumer preferences are shifting towards experiences and emotional value, creating investment opportunities in emerging consumer products [5] Private Sector Recovery - The recovery momentum of the private economy is a critical observation point, with improved policy environments since 2023 positively impacting market sentiment [6] - Increased capital expenditure and recovering return on equity among leading private enterprises indicate preparation for a new growth cycle [7]

Market Overview - A-shares are experiencing a significant rebound, with the Shanghai Composite Index approaching the 3600-point mark, driven by increased market sentiment and institutional fund inflows [1] - The financing balance in the A-share market has surpassed 1.9 trillion yuan, indicating a recovery in margin trading activity [1] Sector Performance - The steel sector has led the market in July, with an index increase of 18.54%, followed by building materials, biomedicine, and non-ferrous metals, which saw gains of 15.98%, 11.83%, and 10.88% respectively [2] - The biomedicine sector has shown strong performance, with the biomedicine index reaching a new high since October 2024, and the CRO index rising by 22.18% since July [4] - The rare earth sector has also performed well, with an average increase of 41.67% among seven listed companies, led by Shenghe Resources, which saw a nearly 71% rise [4] Investment Strategies - As the market approaches the end of July, institutions are focusing on structural opportunities, emphasizing the importance of policy details and mid-year performance reports [6] - Key investment themes include technology innovation, high dividend stocks, and cyclical recovery, with a focus on identifying alpha opportunities that align with performance and valuation [6] - Institutions suggest maintaining a focus on industry-specific investments while avoiding excessive trading in response to macroeconomic fluctuations [7] Future Outlook - The market is expected to transition from a stock-based to a flow-based environment, with potential for further policy-driven improvements in fundamental expectations [6] - The upcoming month of August is anticipated to bring volatility due to external disturbances, but the overall market sentiment remains stable [7] - Key sectors to watch include new energy, non-ferrous metals, and technology-related industries, which are expected to benefit from policy support and improving profit expectations [8]

Group 1 - Recent ETF listings have attracted significant attention from insurance capital institutions in equity investments [1][3] - The second largest holder of the Huatai-PineBridge CSI Hong Kong Stock Connect Consumer Theme ETF is China United Property Insurance Co., holding 60.01 million shares [1] - The top ten holdings of the CSI Hong Kong Stock Connect Consumer Index include popular consumer stocks like Pop Mart and Laopu Gold [1] Group 2 - Insurance capital is increasingly entering various thematic sectors such as artificial intelligence, dividends, and free cash flow [3] - The second largest holder of the Fortune CSI Sci-Tech Innovation Board Artificial Intelligence ETF is ZhongAn Online P&C Insurance Co., holding 35 million shares [3] - In the dividend sector, China Life Reinsurance Co. is the second largest holder of the Great Wall CSI Dividend Low Volatility 100 ETF, with over 10 million shares [3] Group 3 - Insurance capital institutions are also investing in broad-based ETFs, with China Pacific Life Insurance Co. being the largest holder of the Guolianan CSI A500 Enhanced Strategy ETF, holding 20 million shares [3] - The allocation of insurance capital to equity assets is steadily increasing, supported by policy measures [4] - This shift is expected to release trillions in long-term funds, enhancing market stability and supporting quality enterprise financing [4]

Market Overview - The A-share market has seen a continuous rise for five weeks, with a notable shift in the types of stocks driving the increase, moving from dividend stocks to speculative loss-making stocks recently [6][8]. - The overall market sentiment remains positive, with the growth in the pharmaceutical sector being particularly significant [3][10]. Stock Performance - Small and mid-cap stocks have outperformed large-cap stocks in the recent rally [2]. - Value stocks have slightly declined, with banks experiencing a 5-6% pullback after reaching overvalued levels [3][6]. - The recent surge in loss-making stocks is reminiscent of previous speculative trends, indicating a potential market peak [7][9]. Investment Strategy - The company maintains a focus on value stocks and high-performing companies, avoiding participation in speculative loss-making stocks [7][9]. - The market is expected to face some corrections, particularly among stocks with poor fundamentals, but the overall trend remains upward as long as corporate earnings continue to grow [11][12]. Free Cash Flow Index - A new index tracking free cash flow has been introduced, which selects stocks with high free cash flow rates, providing an alternative to traditional dividend indices [13][23]. - Free cash flow is defined as the cash available after necessary operational expenditures, which is crucial for assessing a company's financial health [20][21]. - The free cash flow index is seen as a valuable complement to dividend indices, particularly as it excludes financial sector stocks [28][33]. Market Sentiment and Future Outlook - The current market environment is characterized by a combination of valuation expansion and fundamental recovery, suggesting that the upward trend is likely to continue [10][11]. - Investors are advised to prepare for short-term volatility, but the long-term outlook remains positive as corporate profitability is expected to drive market growth [12][11].

Group 1 - The overall fund positions increased marginally in Q2 2025, with a notable increase in the ChiNext index and a decrease in the main board [6][10][14] - In terms of industry allocation, public funds increased their holdings in technology and cyclical sectors while reducing exposure to manufacturing and consumer sectors [25][31] - The allocation to high-dividend sectors rose, with significant increases in insurance holdings [50][52] Group 2 - The public funds significantly increased their positions in the ChiNext index by 1.74 percentage points to 15.18% and reduced the main board by 1.87 percentage points to 72.46% [14][24] - The technology sector saw increased allocations, particularly in electronics, healthcare, and home appliance manufacturing, while the food and beverage sector saw a decline [31][34] - The telecommunications and financial sectors experienced notable increases in allocation, while discretionary and staple consumer sectors were reduced [28][31] Group 3 - The report highlighted a marginal increase in the stock positions of four types of funds, with the balanced mixed funds showing a more significant increase [11][19] - The concentration of the top ten holdings decreased, with the top ten holdings accounting for 16.70%, down 3.4 percentage points from the previous quarter [24] - The report indicated a continued rise in the allocation to Hong Kong stocks, while the allocation to the Hang Seng Technology index saw a decline [15][17]