Core Viewpoint - The investment strategy emphasizes structural opportunities in the market, particularly focusing on the revaluation of Chinese assets, globalization of advantageous industries, and technological self-sufficiency, with a notable interest in new consumption, AI, and the automotive industry [3][19][20]. Market Overview - The market has shown a stable index with structural opportunities, characterized by a "dumbbell" feature where traditional dividend assets like banks perform on one side, while emerging growth sectors such as AI, new consumption, and innovative pharmaceuticals rotate on the other [3][11]. - Investor risk appetite remains high despite short-term disruptions from macro events like tariffs and geopolitical conflicts, indicating a stable macro expectation [10][15]. Investment Directions - **New Consumption and Entertainment Export**: The shift from being a low-cost goods exporter to a "dopamine factory" exporting affordable joy through gaming, short videos, and trendy products is highlighted, driven by an increase in female users and cultural products going global [4][32]. - **Technology Sector**: The focus is on AI and domestic substitution, with attention to structural changes in high-demand segments like GPU networking and the long-term potential of domestic computing power amid a "de-Americanization" trend [4][34][36]. - **Automotive Industry**: The strategy favors high-end domestic brands, the commercialization of smart driving, and the global influence of Chinese car manufacturers, emphasizing that only leading companies will thrive in a competitive environment [4][38][39]. Team Dynamics and Research Methodology - The investment team emphasizes the importance of sustainable research methods, effective communication, and the ability to learn from past mistakes, fostering a culture that encourages quick adaptation to market changes [6][9][31]. - Collaboration between different teams, such as the synergy between the TMT and cyclical groups, showcases the importance of cross-functional cooperation in identifying and validating investment opportunities [8][30]. Specific Opportunities Identified - **New Consumption**: The focus on female consumer power and the potential for entertainment exports indicates a growing market for brands that resonate with this demographic [24][32]. - **Technology**: Continued investment in AI is expected, with a focus on both domestic and international opportunities within the AI supply chain and applications [34][36]. - **Automotive**: The automotive sector is seen as a growth area, particularly for high-end brands and smart technology, with a strong emphasis on the global expansion of Chinese automotive companies [38][39].

Core Insights - The core viewpoint of the article is that淡水泉投资 (Fountainhead Investment) is optimistic about the second half of 2025, focusing on three structural investment opportunities: the revaluation of quality Chinese assets, the globalization of advantageous industries, and technological self-sufficiency [2][7]. Market Performance Overview - Since late September last year, risk appetite in the A-share and Hong Kong markets has been rising, with structural opportunities emerging despite limited overall index volatility [3]. - The market has shown a "dumbbell" distribution of investment opportunities, with value dividend assets performing relatively poorly this year, while emerging growth assets have experienced rapid rotation [3]. - Economic indicators show that while government efforts to stabilize growth are ongoing, confidence among businesses and consumers still needs improvement [3]. Global Perspective - The loosening of the "American exceptionalism" narrative may lead to a global capital rebalancing, with investors regaining enthusiasm for stock markets across the U.S., Europe, and emerging markets [4]. - Global fund allocation to Chinese markets has stabilized after a decline since 2021, with future overseas capital inflows dependent on the certainty of China's economic recovery [4]. Investment Gains and Losses -淡水泉 acknowledged capturing investment opportunities in certain areas but also missing some due to strict research criteria [5]. - The firm successfully identified new consumption opportunities with overseas characteristics but missed some domestic demand-driven opportunities due to high weight requirements for overseas exposure [5]. - In the technology sector, the first quarter was driven by AI confidence, while the second quarter saw a return to overseas computing power themes [6]. Structural Investment Opportunities -淡水泉 identified three main structural opportunities for the second half of the year: revaluation of quality Chinese assets, globalization of advantageous industries, and technological self-sufficiency [7]. - The firm also highlighted the importance of marginal improvements in fundamentals and incremental policies as potential catalysts for economic-sensitive assets [7]. Sector-Specific Insights - In the automotive sector, opportunities are concentrated in high-end, intelligent, and export-oriented segments, with domestic brands experiencing a golden period of growth [9]. - The firm sees significant potential in the AI industry, focusing on overseas computing power, domestic computing capabilities, and AI application fields [8]. Conclusion -淡水泉's analysis indicates a cautiously optimistic outlook for the second half of 2025, emphasizing the need for quick responses to external changes while capitalizing on identified structural opportunities [7][8].