Core Viewpoint - After the holiday, foreign and financing funds have returned to the Chinese market, with a preference for technology and cyclical sectors, particularly electronics and non-ferrous metals [1][4]. Market Pricing Status - Market trading activity has significantly increased, with average daily trading volume rising to 2.6 billion and the average number of daily limit-up stocks increasing to 71.6 [2] - The proportion of stocks that gained value has risen to 54.1%, with the median weekly return for all A-shares increasing to 0.4% [2] - Industry trading concentration has continued to rise, with 11 industries having turnover rates in the top 10% historically, led by the automotive sector [2] A-share Fund Flow - After the holiday, foreign and financing funds have flowed back into the market, while ETF inflows have slowed [3] - Public funds saw new issuance drop to 870 million, with various public funds reducing their equity positions [3] - Foreign capital inflow reached 300 million USD, with northbound trading accounting for 30.5% of total trading volume [3] - The IPO raised 190 million, with a private placement scale of 2.11 billion, and the scale of unlocked shares reached 79.12 billion [3] - Net buying in financing reached 50.81 billion, with trading volume accounting for 12.9% [3] - Retail investor activity showed a marginal decline [3] A-share Industry Allocation - There is a preference for technology and cyclical sectors, with foreign and domestic capital both increasing their positions in electronics and non-ferrous metals [4] - Foreign capital saw net inflows of 3.47 billion in electronics and 2.04 billion in non-ferrous metals, while there were outflows in home appliances and banks [4] - Financing saw net inflows of 10.85 billion in electronics and 6.58 billion in non-ferrous metals, with a slight outflow in comprehensive sectors [4] - Passive fund flows in ETFs were concentrated in non-bank financials and power equipment, with notable inflows in securities and battery sectors [4] Hong Kong and Global Fund Flow - Southbound capital inflow decreased to 2.65 billion, the lowest since 2022 [5] - Foreign capital inflow into the Hong Kong market reached 500 million USD [5] - Developed markets saw a net outflow of 30.3 billion in active funds and a net inflow of 216.3 billion in passive funds, while emerging markets experienced a net outflow of 5.3 billion in active funds and a net inflow of 16.9 billion in passive funds [5] - The US and China were the top recipients of foreign capital inflows, while Japan and the UK saw outflows [5]