Core Viewpoint - The small-cap stocks are performing exceptionally well, with the CSI 2000 Enhanced ETF (159552) rising by 86% over the past year, significantly outperforming the CSI 2000 index, which has increased by less than 60% [1] Market Activity - The A-share market recently saw two significant indicators reaching the "1.9 trillion" mark: the total trading volume and the financing balance, both returning to this level after several months [1] - A net financing purchase of 15.4 billion yuan was recorded in a single day, marking the highest level since March of this year, indicating a strong bullish sentiment in the market [1] Investment Strategy - Despite the strong performance of the CSI 2000 Enhanced ETF, there are warnings about accumulated valuation risks and potential liquidity changes that could lead to a market pullback [3] - Investors are advised to embrace the trend but avoid reckless chasing of high prices; instead, a strategy of gradual accumulation during dips is recommended [3][4] - The CSI 2000 Enhanced ETF serves as an effective tool to manage the high volatility of small-cap stocks, providing a more controlled risk compared to betting on individual stocks [4]

Group 1 - The small-cap market has shown strong performance, with the CSI 2000 Enhanced ETF (159552) rising by 1.38% and achieving a cumulative increase of 34.92% year-to-date, indicating a robust trading environment with a turnover rate of 16.17% and a transaction volume exceeding 31 million [1] - The ETF market has exhibited a "buy high, sell low" pattern, where net outflows occur during periods of net value growth, but a reversal was noted in the afternoon with a net inflow of approximately 5 million [1] - According to Zheshang Securities, the small-cap rally is not over, driven by liquidity overflow and a significant non-linear market structure shift, with the CSI 500 showing relative strength against the CSI 2000 and micro-cap indices [1] Group 2 - The underlying logic for the current small-cap strength is attributed to liquidity overflow, with broad interest rate declines and increased participation from individual investors serving as foundational elements for this market trend [1]

Group 1 - The core viewpoint of the articles highlights the strong performance and trading volume of the CSI 1000 index in the A-share market, with a 6.69% increase in the first half of 2025, outperforming larger indices like the CSI 300 [1] - The small-cap stocks are gaining traction, with the proportion of small orders in A-shares rising from 27.7% in February to 33.9% by June 27, indicating increasing market interest [1] - The CSI 1000 index, which includes companies ranked 801-1800 by market capitalization, is seen as a key representative of small-cap stocks, benefiting from trends in emerging industries such as AI and new energy [5] Group 2 - The 1000 ETF Enhanced (159680) has achieved a cumulative excess return of 33.10% since its inception, with an annualized excess return of 11.88%, demonstrating strong performance across various market conditions [1][2] - In the first half of 2023, the 1000 ETF Enhanced showed resilience with quarterly performance reflecting excess returns in different market styles, indicating its adaptability [2] - The ongoing liquidity easing and favorable policies for small-cap stocks, including a significant increase in merger and acquisition activities, are expected to further enhance the growth potential of these stocks [5]