Market Performance - The Shanghai Composite Index reached a new high of 3669.04 points, approaching the previous high of 3674.4 points from October 8, 2024 [1] - The index closed up 0.51%, with the Shenzhen Component Index rising 0.34% and the ChiNext Index increasing by 0.91% [3] Financial Sector Strength - The financial sector showed strong performance, with multi-financial, insurance, banking, and securities sectors collectively rising [4] - Notable stocks included Agricultural Bank and Postal Savings Bank, both reaching historical highs [4] Bank Performance Insights - Major banks like Industrial Bank, CITIC Bank, and China Merchants Bank showed positive percentage increases, with Industrial Bank up 1.44% and CITIC Bank up 1.33% [5] - The market anticipates better-than-expected net interest margins and stable asset quality as banks enter the mid-year reporting season [5][6] Brain-Computer Interface Sector Growth - The brain-computer interface sector experienced significant gains, with stocks like Maikangde and Xiangyu Medical leading the rise [8][9] - Recent government initiatives aim to promote the development of the brain-computer interface industry, with a focus on establishing a robust technological and industrial framework by 2027 [11] Regulatory Support for Brain-Computer Interfaces - The National Healthcare Security Administration has issued guidelines to facilitate the pricing and clinical application of brain-computer interface technologies, paving the way for faster commercialization [12] - Industry experts highlight the diverse application scenarios and significant commercial potential in the brain-computer interface sector, particularly in non-invasive products [12]

Group 1 - Hong Kong stock indices experienced collective fluctuations and declines, with the Hang Seng Tech Index ETF (513180) following suit, led by declines in companies such as Midea Group (000333), Meituan, BYD (002594), and Xiaomi Group [1] - The Federal Reserve decided to maintain interest rates for the fifth consecutive time, keeping the federal funds rate target range at 4.25% to 4.50%. Some institutions believe that the Fed may lower rates within the year due to signs of economic weakening in the U.S. [1] - According to Citic Securities, the mid-year report for Hong Kong stocks in 2025 is expected to show a "steady main, upward elasticity" pattern, with positive earnings expectations in the pharmaceutical, technology, and new consumption sectors [2] Group 2 - The Hong Kong stock market will officially enter the mid-year reporting season in August, with Tencent Holdings expected to announce its mid-year results on August 13 and Xiaomi Group on August 19 [2] - The Hong Kong Consumption ETF (513230) covers e-commerce and new consumption sectors, which are relatively scarce compared to A-shares [5] - The Hang Seng Tech Index ETF (513180) includes core AI assets and encompasses leading hard technology companies that are relatively scarce in A-shares [5]

Group 1 - The core viewpoint of the articles indicates that the A500 index and its ETF are showing positive performance, with significant increases in specific constituent stocks such as Northern Rare Earth and YTO Express [1][2] - As of July 9, 2025, the A500 index has seen a weekly increase of 1.25%, reflecting a general upward trend in the market [1] - The National Bureau of Statistics reported a year-on-year increase in the Consumer Price Index (CPI) for June, indicating a shift from decline to growth, while the Producer Price Index (PPI) shows signs of stabilization in certain industries [1] Group 2 - Financial analysis suggests that the market is experiencing a narrow fluctuation with high trading volumes, particularly in sectors like pharmaceuticals, military, and computing, indicating increased activity [2] - The A500 index is composed of 500 securities selected for their large market capitalization and liquidity, representing the most significant publicly traded companies across various industries [2] - As of June 30, 2025, the top ten weighted stocks in the A500 index include Kweichow Moutai, CATL, and Ping An Insurance, collectively accounting for 20.67% of the index [2][4] Group 3 - The A500 ETF closely tracks the A500 index, with its latest price reported at 0.98 yuan, reflecting a 0.51% increase [1][2] - The top ten stocks by weight in the A500 index show varied performance, with Kweichow Moutai and Ping An Insurance experiencing slight increases, while BYD and Midea Group saw declines [4] - The A500 ETF is linked to several other funds, indicating a broad interest in this index and its performance [4]

Group 1 - The Shanghai Stock Exchange Sci-Tech Innovation Board 100 Index (000698) experienced a decline of 0.21% as of July 7, with mixed performance among constituent stocks [1] - The leading gainers included Zhongke Feimiao up 3.84%, Sirui Technology up 3.61%, and Yirui Technology up 3.51%, while the biggest losers were Rongchang Biological down 6.30%, Shengyi Electronics down 4.22%, and Sanjing Guojian down 4.06% [1] - The Huaxia Sci-Tech 100 ETF (588800) fell by 0.10%, with the latest price at 0.98 yuan, and it saw a significant growth of 278 million yuan in scale over the past three months, ranking at the top among comparable funds [1] Group 2 - CITIC Securities indicated that the current market environment resembles that of late 2014, suggesting that a catalyst is needed to ignite the market, potentially from unexpected developments in US-China policies or changes in the tech industry [1] - The report recommends maintaining three strategic focuses during the mid-year earnings season: industries with strong trends like AI and innovative pharmaceuticals, sectors driven by performance and valuation such as North American computing chains, non-ferrous metals, and gaming, and themes related to military and new energy sectors [1] - Overall, the rotation among non-ferrous metals, AI hardware, innovative pharmaceuticals, gaming, and military sectors is expected to be the main theme during the mid-year earnings season [1] Group 3 - According to招商证券, AI is identified as a key driver of the current technological revolution, creating investment opportunities across multiple industries and themes in the A-share market [2] - In July, the peak of earnings forecasts disclosure is anticipated, with both positive and pessimistic earnings expectations being critical for the next phase of A-share investment strategies [2] - The Huaxia Sci-Tech 100 ETF (588800) tracks the Sci-Tech Innovation Board 100 Index, with 80% of holdings being stocks with a market cap below 20 billion, focusing on high-potential targets [2]

Domestic Financial Market - The Shanghai Composite Index closed at 3472.32, with a slight increase of 0.32%, while the Shenzhen Component Index decreased by 0.25% to 10508.76 [3][8] - The trading volume in the Shanghai and Shenzhen markets reached 1.45 trillion, an increase of 121 billion compared to the previous trading day [8] Macro News Summary - The People's Bank of China is promoting the digital RMB innovation in relevant free trade zones [5] - The Ministry of Industry and Information Technology is addressing low-price disorder in the photovoltaic industry, indicating potential recovery for the sector [6] Industry Dynamics - The outdoor economy is emerging as a new consumption trend, with related stocks such as Zhejiang Nature and Explorer [6] - The establishment of a leadership group for general aviation and low-altitude economy by the Civil Aviation Administration of China [6] Company Focus - Zhongzhu Yejitu Group reported a net profit of 560 million to 650 million for the first half of 2025, an increase of 50.97% to 75.23% year-on-year [7] - Zhangyue Technology achieved a breakthrough in overseas short drama business, with nearly 200,000 new users on the iDrama platform [7] - Chip Dynamics reported a net profit between 138 million and 169 million for the first half of 2025, representing a year-on-year growth of approximately 144.46% to 199.37% [7] Market Review and Outlook - The market experienced fluctuations with a peak near 3500 points, but closed lower due to profit-taking [8] - The upcoming earnings season is expected to be crucial for excess returns, particularly in sectors like non-ferrous resources, midstream manufacturing, consumer services, and TMT [8] - New quantitative regulations are being implemented, indicating potential risks for previously high-flying small-cap stocks [8]

Market Overview - On July 1, A-shares experienced active trading with sectors like innovative drugs, banking, and non-ferrous metals showing strong performance, leading to several stocks reaching historical highs [1] - The total trading volume in the A-share market was 1.5 trillion yuan, a decrease of 208 billion yuan from the previous trading day, despite the absence of northbound capital transactions [1] Sector Performance - Among the primary industries, the comprehensive, pharmaceutical, and banking sectors saw the highest gains, increasing by 2.60%, 1.80%, and 1.54% respectively, while the computer, retail, and communication sectors faced declines of 1.18%, 0.79%, and 0.45% [2] - In the pharmaceutical sector, several stocks, including Forerunner Biologics and Sunshine Medical, hit the 20% daily limit, with others like Kexing Pharmaceutical and Shuyou Pharmaceutical rising over 15% [2] Banking Sector Insights - The banking sector rebounded on July 1 after two consecutive days of decline, with stocks like China Construction Bank and Pudong Development Bank reaching new historical highs [3] - The average dividend yield for the banking sector is currently at 4.01%, making it attractive for long-term funds [3] Investment Recommendations - Analysts suggest focusing on sectors with strong mid-year performance expectations, particularly in technology, consumption, and midstream manufacturing, as the upcoming half-year report disclosure period is expected to drive market upward momentum [4][5] - Recommended sectors for investment include electronics (semiconductors), machinery (automation equipment), pharmaceutical (chemical pharmaceuticals), national defense and military industry, non-ferrous metals, and computers [5]

Core Viewpoint - The A-share market is expected to focus on structural opportunities as the mid-year reporting season approaches, with attention on sectors with strong performance and high safety margins, as well as policy-driven consumer sectors and core assets in innovative pharmaceuticals [1][5][8]. Market Performance - The A-share market saw a rise last week, with the Shanghai Composite Index reaching a new high for the year, while the Shenzhen Component Index and the ChiNext Index increased by 3.73% and 5.69%, respectively [1]. Economic Indicators - In the first five months of the year, China's industrial enterprises reported a total profit of 27,204.3 billion yuan, with gross profit increasing by 1.1% and operating revenue rising by 2.7% year-on-year, indicating ongoing industrial economic transformation [2]. Fundraising Trends - As of June 24, 13 out of the 26 newly approved floating rate funds have been established, raising over 12.6 billion yuan, with several funds exceeding 1 billion yuan in fundraising [4]. Investment Insights from Institutions - CITIC Securities suggests that the mid-year reporting season will primarily present structural opportunities, with active funds shifting from pharmaceuticals and consumer sectors to technology and finance [5]. - Shenwan Hongyuan emphasizes the importance of focusing on long-term positive factors, suggesting that the market may experience short-term fluctuations but will stabilize in the long run [7]. - China Galaxy Securities identifies three main investment lines: high safety margin assets, technology sectors, and policy-driven consumer sectors [8]. - HSBC Jintrust Fund expresses optimism for the second half of the year, particularly for cyclical sectors due to improved supply-demand dynamics [9]. - ICBC Credit Suisse Fund highlights the potential of core assets in innovative pharmaceuticals, anticipating significant developments in 2025 [10]. - Morgan Asset Management focuses on four key areas: AI, pharmaceuticals, consumer goods, and power batteries, indicating strong investment opportunities in these sectors [11].

Report Industry Investment Ratings No specific industry investment ratings are provided in the report. Core Viewpoints - The geopolitical conflict between Israel and Iran has cooled down, and the market risk appetite has rebounded. However, the impact of external factors on the A-share market is limited, and the shock center of the stock index is expected to gradually move up. With the approaching of the interim report season, IF and IH with higher performance certainty may be relatively strong, while IC and IM face increased performance verification pressure [1]. - The bond market sentiment is optimistic, but the high valuation restricts the upward space. The short - term policy interest rate is difficult to cut [1]. - The geopolitical risk premium of precious metals has declined, and the prices are oscillating at a high level. It is recommended to continue holding the strategy of selling out - of - the - money put options on gold and silver 08 contracts [1][4]. - The macro - uncertainty persists, and copper prices continue to oscillate. The supply of copper is tight, but the overseas macro situation is uncertain, and the real demand is cautious [4]. - The cost of aluminum is disturbed, and the inventory is at a low level. The supply of alumina is in excess, but the downward drive may slow down. The supply - demand of aluminum is intertwined, and the low inventory provides support [4]. - The fundamentals of nickel are weak, and the price continues to decline. The supply of the nickel industry chain is in excess, but the price of nickel ore is firm. It is recommended to continue holding the strategy of selling call options [4]. - The supply of lithium carbonate is loose, and the price is under pressure. The demand for lithium is weak, while the supply is increasing, and the inventory of smelters is rising [4][6]. - The high inventory of polysilicon suppresses the rebound. The supply - demand pattern of the polysilicon market is gradually becoming looser. It is recommended to continue holding the strategy of selling call options [6]. - The geopolitical risk premium of steel has declined, and the prices are close to the upper limit of the range. The fundamentals of steel are not significantly changed, and the upward space is limited. It is recommended to hold the strategies of selling out - of - the - money call and put options on rebar [6]. - Coke has completed four rounds of price cuts, and the spot price is approaching the bottom while the futures price rebounds first. The long - term supply of coking coal is in excess, but the short - term supply tightens. It is recommended that cautious investors close their short positions in coking coal and wait and see for new orders [8]. - The glass has stronger support than soda ash. The supply of soda ash is expected to be loose, and it is recommended to hold short positions. The performance of float glass is also weak, and it is recommended to hold short positions and some arbitrage strategies [8]. - The geopolitical premium of crude oil may further decline. It is recommended to close the long - call option positions [8]. - The import volume of methanol may not decrease significantly, and the futures price may face a correction. The positive impact of the Middle - East conflict is fading [10]. - The demand for polyolefins is poor, and the price is expected to decline. The demand for polyolefins is weak, and the crude oil premium is retreating [10]. - The inventory of the cotton industry is decreasing, and it is recommended to maintain a long - position strategy. The supply of cotton is expected to be tight, and the short - term fundamentals have no obvious negative drive [10]. - The demand for rubber is not fulfilled, and the port inventory is increasing. The supply of rubber is increasing while the demand is decreasing, and the price is under pressure [10]. Summary by Categories Stock Index - Geopolitical conflict cools down, market risk appetite rebounds, A - share oscillates upward on Monday, small and micro - cap indexes strengthen, and the trading volume of the two markets slightly rebounds to 1.15 trillion yuan [1]. - The performance of IF and IH may be relatively strong during the interim report season, while IC and IM face performance verification pressure [1]. Treasury Bond - The bond market sentiment is optimistic due to loose liquidity, but the high valuation and the difficulty of short - term policy interest rate cuts restrict the upward space [1]. Precious Metals - Geopolitical risk premium declines, gold and silver prices oscillate at a high level. It is recommended to hold the strategy of selling out - of - the - money put options on gold and silver 08 contracts [1][4]. Non - ferrous Metals - Copper: The supply is tight, but the overseas macro situation is uncertain, and the real demand is cautious. Copper prices continue to oscillate in the short term [4]. - Aluminum: The cost is disturbed, and the inventory is low. The supply of alumina is in excess, but the downward drive may slow down. The supply - demand of aluminum is intertwined, and the low inventory provides support [4]. - Nickel: The fundamentals are weak, the supply of the industry chain is in excess, but the price of nickel ore is firm. It is recommended to hold the strategy of selling call options [4]. Energy and Chemicals - Polypropylene (PP): The event - driven positive factors fade, and the supply is in excess. It is recommended to open new short positions in PP2509 [2]. - Polysilicon: The high inventory suppresses the rebound. It is recommended to continue holding the strategy of selling call options on polysilicon PS2508 - C - 34500 [2][6]. - Aluminum: The inventory is at a low level. It is recommended to hold the previous long positions in AL2508 [2]. - Crude Oil: The geopolitical premium may further decline. It is recommended to close the long - call option positions [8]. - Methanol: The import volume may not decrease significantly, and the futures price may face a correction [10]. - Polyolefins: The demand is poor, and the price is expected to decline [10]. Steel and Iron - Rebar: The geopolitical risk premium declines, and the price is close to the upper limit of the range. It is recommended to hold the strategies of selling out - of - the - money call and put options [6]. - Hot - rolled Coil: The fundamentals change little, and the price oscillates. It is recommended to wait and see for new orders [6]. - Iron Ore: The supply - demand may be slightly looser in June - July, and the price follows the steel price to oscillate in a narrow range. It is recommended to wait and see for new orders [6]. Coking Coal and Coke - Coking Coal: The long - term supply is in excess, but the short - term supply tightens. Cautious investors are recommended to close their short positions and wait and see for new orders [8]. - Coke: The fundamentals show a double - decline in supply and demand. The spot price is approaching the bottom, and the futures price rebounds first [8]. Soda Ash and Glass - Soda Ash: The supply is expected to be loose, and it is recommended to hold short positions and some arbitrage strategies [8]. - Float Glass: The performance is weak, and it is recommended to hold short positions and some arbitrage strategies [8]. Agricultural Products - Cotton: The inventory of the industry is decreasing, and the supply is expected to be tight. It is recommended to maintain a long - position strategy [10]. - Rubber: The demand is not fulfilled, the port inventory is increasing, and the price is under pressure [10].

Group 1: Geopolitical Events Impacting Markets - Iran's parliament has voted to potentially close the Strait of Hormuz, a critical maritime route for global oil trade, which could impact approximately one-third of the world's seaborne oil trade [2] - U.S. Vice President Pence stated that closing the Strait would be detrimental to Iran's economy, emphasizing the strategic importance of this waterway [2] - Following U.S. airstrikes on Iranian nuclear facilities, tensions have escalated, with Iran's Revolutionary Guard threatening to retaliate against U.S. interests in the region [3][4] Group 2: Cross-Border Payment Innovations - The launch of the Cross-Border Payment System marks a significant step in enhancing the convenience of using the Renminbi in cross-border retail scenarios, promoting the internationalization of the currency [6] Group 3: Securities Market Developments - The China Securities Regulatory Commission (CSRC) is seeking public opinion on a revised classification evaluation system for securities companies, aiming to promote high-quality development and support differentiated growth for smaller firms [7] Group 4: Market Analysis and Investment Strategies - CITIC Securities recommends focusing on sectors like North American AI hardware supply chains and industries with good mid-year performance and reasonable valuations, such as wind power and gaming [9] - The analysis indicates that the Hong Kong stock market is currently under pressure, but opportunities may arise in electric vehicles, innovative pharmaceuticals, and new consumption sectors [11] - Huaxia Strategy emphasizes the importance of the "1+6" policy framework aimed at supporting technological innovation and enhancing the attractiveness of A-shares in the international market [14] - The outlook for A-shares remains optimistic, with expectations of a gradual upward trend supported by policy measures and market reforms [19][20]

Market Overview - The A-share market experienced fluctuations this week, with major indices showing declines. Small-cap and micro-cap stocks faced larger drops, with the Guozheng 2000, Zhongzheng 1000, and micro-cap indices falling over 2% [1] - In contrast, large-cap indices like the Shanghai Composite Index, Shanghai 50 Index, and CSI 300 Index saw declines of less than 1% [1] Impact of Geopolitical Events - Recent developments in the Israel-Iran conflict, particularly the U.S. military actions against Iranian nuclear facilities, are expected to have more of an emotional impact on the market rather than a substantial one [1][2] - Historical context from the Russia-Ukraine conflict indicates that initial market reactions to geopolitical events can be short-lived, as seen when the market recovered after a 1.7% drop following the conflict's outbreak [2] Market Trends and Predictions - The market is anticipated to maintain its existing rhythm, with potential for a "retreat before advance" pattern similar to previous months [2][3] - A historical reference suggests that after a period of adjustment in late 2023, the market rebounded significantly, indicating that current fluctuations may also lead to future gains [3] Sector Focus - The current market trend is characterized by sector rotation, with a focus on industries expected to report strong mid-year earnings. Notable sectors include the North American AI hardware supply chain and industries with high growth expectations such as wind power, gaming, and rare metals [8][9] - The banking and insurance sectors are also highlighted as areas of consistent capital inflow, indicating their importance in the overall market direction [9] Short-term Opportunities - Short-term opportunities may arise from the recent geopolitical tensions, particularly benefiting oil transportation, oil, and natural gas sectors due to rising shipping costs [10] - The gaming sector may see a boost from popular titles gaining traction in sales rankings, which could stimulate investor interest [10] Conclusion - Overall, the impact of recent geopolitical events on the A-share market is expected to be limited, with a focus on sector-specific opportunities and individual stock performance rather than broad market movements [10][11]