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 depreciation of the US dollar and appreciation of the RMB are attracting foreign capital back to China, while domestic savings are partially moving to the stock market [1][12] - The US Federal Reserve's probability of interest rate cuts in September has significantly increased, with expectations rising from below 40% to 89.6% after disappointing non-farm payroll data [5] - China is set to impose value-added tax on newly issued government bonds starting August 8, 2025, which may increase long-term bond yields and enhance the attractiveness of Chinese assets to foreign investors [9] Group 2 - The Chinese government is committed to stabilizing the market, with the Central Huijin Investment Company acting as a "national team" to support the capital market by increasing ETF holdings [5][6] - A joint initiative by six departments aims to promote long-term capital inflow into the stock market, with state-owned insurance companies expected to allocate 30% of new premiums to A-shares starting in 2025, potentially bringing in over 500 billion RMB annually [7] - The "14th Five-Year Plan" highlights key industries for investment, including technology, finance, agriculture, and energy, with specific focus on sectors like robotics, semiconductors, and renewable energy [18][24] Group 3 - The A-share market is experiencing a bullish trend driven by incremental capital, with a focus on quality stocks across various sectors despite short-term market fluctuations [2][33] - The Shanghai Composite Index and Shenzhen Component Index showed significant gains in July, with average daily trading volume reaching 1.6 trillion RMB [3] - The market is expected to see a rebound after a period of correction, with opportunities in sectors aligned with the "14th Five-Year Plan" and domestic self-sufficiency [2][33]

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 maintained a volatile pattern with the Shanghai Composite Index down 0.37%, Shenzhen Component Index down 0.17%, and ChiNext Index down 0.24% at the close [1][2] - 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, with over 3,300 stocks rising [2] Sector Performance - The military, oil and gas, civil explosives, rare earth permanent magnets, and PCB sectors experienced the largest declines, while the traditional Chinese medicine sector surged, along with AI applications, photovoltaic, BC battery, education, logistics, and paper sectors [4] - The photovoltaic sector saw a collective rebound, with stocks like Jiejia Weichuang and Shuangliang Energy hitting the daily limit, and Haiyou New Materials rising over 12% [4] Individual Stock Highlights - Notable gainers included: - Shengwotai (+23.15% to 13.99) - Weikang Pharmaceutical (+20.00% to 25.62) - Xinguang Pharmaceutical (+12.76% to 19.80) - Tianmu Pharmaceutical (+10.03% to 15.36) - Guizhou Bailin (+49.93% to 6.53) [5] Capital Flow - Main capital inflows were observed in the banking, photovoltaic equipment, and traditional Chinese medicine sectors, while textile and apparel, electric grid equipment, and gas sectors saw net outflows [6] - 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) [7] - Stocks facing net outflows included Xinyi Sheng (14.68 billion yuan), Northern Rare Earth (12.50 billion yuan), and Tianfeng Securities (12.07 billion yuan) [8] Analyst Insights - Dexun Securities noted that the A-share index shows a strong monthly trend, but August may face profit-taking and technical pressure around the 3,600-point mark, suggesting a focus on sector rotation opportunities [9] - Guojin Securities indicated that the current market adjustment does not signal the end of the rally, as the weekly trend remains upward and trading volume is high, providing room for error [9] - Dongxing Securities suggested that the Chinese stock market has entered a medium to long-term bullish phase, recommending a high position with a focus on sectors with good economic prospects, such as innovative drugs, military, and technology [9]

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 total trading volume in the Shanghai and Shenzhen markets reached 1.60 trillion yuan, a decrease of 337.7 billion yuan compared to the previous trading day, with over 3,300 stocks rising across the market [1][3]. Index Performance - As of the market close on August 1, the three major A-share indices maintained a fluctuating pattern, with the Shanghai Composite Index down 0.37%, the Shenzhen Component Index down 0.17%, and the ChiNext Index down 0.24% [2]. Sector Performance - The military, oil and gas, civil explosives, rare earth permanent magnets, and PCB sectors experienced the largest declines, while the traditional Chinese medicine sector surged, and AI applications, photovoltaic, BC batteries, education, logistics, and paper-making sectors saw significant gains [5]. - The photovoltaic sector rebounded collectively, with stocks like Jiejia Weichuang and Shuangliang Energy hitting the daily limit, and Haiyou New Materials rising over 12% [5]. Stock Highlights - Notable gainers in the traditional Chinese medicine sector included Qizheng Tibetan Medicine, Weikang Pharmaceutical, Tianmu Pharmaceutical, and Xintian Pharmaceutical, all reaching the daily limit [5][6]. - Specific stocks with significant increases included: - Shengtai Biological: +23.15% at 13.99 yuan - Weikang Pharmaceutical: +20.00% at 25.62 yuan - Xinguang Pharmaceutical: +12.76% at 19.80 yuan [6]. Capital Flow - Main capital inflows were observed in the banking, photovoltaic equipment, and traditional Chinese medicine sectors, while textile and apparel, electric grid equipment, and gas sectors saw net outflows [7]. - Individual stocks with notable net inflows included Jiejia Weichuang, Beiqi Blue Valley, and Shuangliang Energy, with net inflows of 542 million yuan, 495 million yuan, and 455 million yuan respectively [8]. Institutional Insights - According to Dexun Securities, the A-share index shows a strong characteristic of three consecutive monthly gains, indicating significant profit accumulation, with potential for profit-taking and technical pressure around the 3,600-point mark in August [9]. - Guojin Securities noted that while the market is in a period of emotional decline, the current rally is not over, as the weekly trend remains upward and trading volume is high, providing more room for error [9]. - Dongxing Securities suggested that the Chinese stock market has entered a medium to long-term slow bull phase, with reduced volatility and healthy rotation of market hotspots, recommending a high position with a focus on sectors with good economic prospects [9].

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].

Core Viewpoint - The market showed a fluctuating upward trend in July, with all three major indices closing higher for the month, particularly the ChiNext Index which rose over 8% [1] Market Performance - The Shanghai Composite Index struggled to maintain the 3600-point level, experiencing a loss by the end of the trading day [1] - The total trading volume in the Shanghai and Shenzhen markets reached 1.94 trillion, an increase of 91.7 billion compared to the previous trading day [1] Sector Performance - The innovative drug sector demonstrated strong performance, with several stocks, including Nanxin Pharmaceutical, hitting the daily limit [1] - AI application stocks were notably active, with stocks like Yidian Tianxia also reaching the daily limit [1] - AI hardware stocks showed mixed results, while the liquid cooling server concept performed strongly, with stocks such as Invec hitting the daily limit [1] Index Performance - By the end of the trading day, the Shanghai Composite Index fell by 1.18%, the Shenzhen Component Index decreased by 1.73%, and the ChiNext Index dropped by 1.66% [1]