Core Viewpoint - The ChiNext index experienced a significant pullback of 1.66%, marking the largest single-day decline since July of this year, attributed to profit-taking after a prolonged upward trend and lack of new policy measures from recent meetings [2][3]. Market Analysis - The recent pullback is primarily due to a short-term adjustment after a strong rally, with 19 out of the last 29 trading days showing gains, leading to profit-taking by investors [3]. - The absence of new stimulus measures from a recent important meeting has dampened market expectations, as the language used in the meeting shifted from concerns about external shocks to a focus on positive economic indicators [3]. - Ongoing trade tensions, particularly the lack of significant outcomes from the latest US-China trade talks and the impending implementation of high tariffs, are also contributing to market uncertainty [3]. Future Outlook for ChiNext - The outlook for the ChiNext remains optimistic, supported by ongoing domestic policy initiatives aimed at promoting economic growth and reducing financing costs [4]. - The fundamentals of key sectors within the ChiNext, such as telecommunications, pharmaceuticals, and electronics, are showing improvement, with expected net profit growth of 39% by 2025 [5][7]. - The ChiNext index is projected to have a revenue growth rate of 26% and a net profit growth rate of 39% by 2025, outperforming other major indices [7][10]. Valuation Perspective - The current valuation of the ChiNext index is relatively low, with its valuation percentile below 25% compared to other indices, suggesting potential for future gains [11]. - Historical performance indicates that the ChiNext has previously experienced substantial gains during bull markets, with past increases exceeding 100% in previous cycles, indicating room for further growth in the current market [12].

Group 1 - The current market sentiment is favorable for the ChiNext board, driven by strong performance in sectors such as stablecoins, pharmaceuticals, photovoltaics, military, and solid-state technologies [2] - High-frequency economic indicators show improvement in Q2 compared to Q1 across various industries, particularly in TMT (digital media, cinema, components, gaming), industrial products (motors, automation equipment, photovoltaics, wind power), and consumer goods (specialty chains, retail, tourism, medical devices) [2] - The upcoming earnings reports from high-performing companies, particularly in the ChiNext board, are expected to be released in early July, contributing to positive market momentum [3] Group 2 - The performance of the ChiNext index has been strong due to favorable fundamentals, with expectations for continued upward movement depending on upcoming non-farm payroll data [4] - Market expectations for non-farm payrolls suggest an addition of 110,000 jobs, down from the previous 139,000, indicating a potential shift towards lower interest rates if the data is disappointing [4] - The global trend of central banks, including the Federal Reserve, moving towards interest rate cuts is seen as beneficial for the stock market, particularly for the ChiNext board [5] Group 3 - The current market trend is identified as bullish, with a focus on capitalizing on short-term opportunities within the ChiNext board while maintaining awareness of broader market cycles [7] - Technical indicators, such as the MACD, suggest a supportive environment for the ChiNext board, indicating potential for further gains [7]