Core Insights - The recent disclosure of semi-annual reports by A-share listed companies reveals the movements of institutional investors, particularly the social security fund, which is currently involved in 134 stocks [1] - The social security fund has shown a preference for the basic chemical, pharmaceutical, and electronic sectors, with the highest holdings valued at 63.1 billion, 55.6 billion, and 42.8 billion respectively [1][5] Social Security Fund Holdings - As of the end of Q2, the social security fund's total holdings amount to 22.2 billion shares, with a market value of 38.58 billion [1] - The largest individual stock holding is Spring Power, with a holding amount of 2.15 billion, representing 993.1 million shares [3] - The fund has increased its positions in several stocks, including Changshu Bank, Huafeng Aluminum, and Kaili New Materials, with increases of 23.79 million, 9.607 million, and 408,000 shares respectively [3] Performance of Key Stocks - Spring Power's stock price reached a historical high of 295.94 yuan per share on August 15, with a year-to-date increase of 83.53% [3] - The company reported a revenue of 9.855 billion, a year-on-year increase of 30.90%, and a net profit of 1.002 billion, up 41.35% [3] Sector Preferences - The social security fund's holdings in the basic chemical sector are attributed to the sector's recent positive performance, with the basic chemical industry index rising by 11.51% since July [6] - The fund's investment strategy includes focusing on industries with low valuations and those experiencing high growth supported by national policies [7] Investment Strategy - The social security fund has a long-term investment approach, with an average annual return of 7.36% over 24 years [7] - The fund's recent adjustments include reducing positions in 36 stocks, with significant reductions in Shenhua Co., with a decrease of 31.041 million shares [7] Market Outlook - The social security fund maintains a positive outlook on A-share investment value, emphasizing long-term investment and capital market health [8] - The fund's investment style is characterized by a high allocation to equity assets, which contributes to its superior long-term returns compared to other funds [8]

Core Viewpoint - The article discusses the recent movements of social security funds in the A-share market, highlighting their investment strategies and the performance of specific stocks, particularly in the chemical, pharmaceutical, and electronics sectors [1][9]. Group 1: Social Security Fund Movements - As of the second quarter of 2025, social security funds have entered 31 new stocks, increased holdings in 37 stocks, and reduced holdings in 36 stocks, maintaining a total of 134 stocks in their portfolio [2]. - The total number of shares held by social security funds is 2.22 billion, with a market value of 38.58 billion yuan [2]. - The largest holdings include Spring Power, with a holding amount of 2.15 billion yuan and a significant increase in stock price, achieving an 83.53% increase year-to-date [6][9]. Group 2: Sector Preferences - Social security funds show a strong preference for the chemical, pharmaceutical, and electronics sectors, with market values of 6.31 billion yuan, 5.56 billion yuan, and 4.28 billion yuan respectively [9]. - The chemical industry has seen a significant increase, with the index rising by 11.51% since July, indicating a recovery in this sector [9]. Group 3: Performance of New Holdings - Among the newly entered stocks, 29 companies reported year-on-year net profit growth, with New Strong Link showing a remarkable increase of 496.60% in net profit [8]. - The highest proportion of holdings by social security funds is in Blue Sky Technology, where they hold 8.4% of the circulating shares [8]. Group 4: Investment Strategy - Social security funds adopt a dual strategy, focusing on industries with low valuations and those in high-growth cycles supported by national policies [11]. - The average annual return of social security funds has reached 7.36%, outperforming many professional investment institutions [11][12].