Market Overview - The market is experiencing a style switch, with the consumption ETF (159928) rising over 2% and achieving a trading volume exceeding 500 million yuan during the day, indicating a significant inflow of funds [1] - The consumption ETF has accumulated over 2.1 billion yuan in net inflows over the past five days, with its latest share count surpassing 20 billion, leading its peers [1] Hong Kong Market - The Hong Kong consumption ETF (159268) also saw a nearly 1% increase, with a trading volume approaching 20 million yuan and a net inflow of over 5 million yuan during the day [3] - In the past ten days, the Hong Kong ETF has recorded net inflows on six occasions, totaling over 150 million yuan [3] - Notable stocks in this ETF include Haier Smart Home, which rose nearly 6%, and other companies like Mao Geping and Smoore International, which also saw significant gains [3] Policy Developments - New policies aimed at promoting high-quality urban development have been introduced, with goals set for 2030 and 2035 to enhance urban living quality and governance [5] - The focus on real estate and urban development is expected to influence market dynamics positively [5] Industry Insights - Current market conditions indicate accelerated sector rotation and a "high cut low" strategy among individual stocks, with TMT and military sectors showing strong performance since April [6] - Analysts suggest that the next market direction may focus on eliminating undervalued stocks, as the overall industry valuation has reached historical highs [6] - The consumption sector is showing signs of recovery, with a notable increase in retail sales and cinema box office performance [6] - The "small happiness" consumption trend is gaining attention, characterized by high-frequency, emotional-value purchases rather than purely cost-effective options [6][7] Investment Opportunities - The consumption ETF (159928) is highlighted for its resilience across economic cycles, with top holdings including major liquor brands and agricultural companies [7] - The Hong Kong consumption ETF (159268) is positioned as an efficient investment vehicle for capturing trends in cultural and emotional consumption, appealing to younger generations [8]

Investment Rating - The industry rating is "Strongly Outperforming the Market" [96] Core Insights - The report highlights the "Small Happiness" consumption trend, indicating that new consumption does not rely on overall economic growth but rather on the expansion of consumption behaviors among niche groups [3][12] - The tourism sector, particularly in Changbai Mountain, has seen significant growth, with July 2025 visitor numbers reaching 810,200, a 37.8% year-on-year increase, marking a historical high for the month [4][51] - The duty-free sector is expected to benefit from the upcoming Hainan Free Trade Port's closure, which will allow visa-free entry for individuals from 85 countries, significantly increasing the user base for duty-free shopping [4][45] - The report emphasizes the potential of the "trendy play" sector, supported by recent policies aimed at stimulating consumption and industry regulation, which may favor compliant leading enterprises [5][53] - In the education sector, advancements in AI+ education are noted, with several companies launching AI-driven educational products, indicating a potential revenue surge for key players [6][63] - The medical beauty industry is undergoing optimization through refined operations, with leading institutions expected to capture more market share as new products are launched [6][73] Summary by Sections New Consumption - New consumption is characterized by emotional value rather than cost-effectiveness, with a shift from heavy asset allocation to frequent "small happiness" purchases [3][12] - The youth demographic (ages 15-24) is projected to drive consumption trends as they enter the labor market, while the adult demographic's influence is expected to diminish [15] Duty-Free and Tourism - The duty-free industry is poised for growth with the Hainan Free Trade Port's upcoming closure, enhancing the attractiveness of the region for international tourists [42][45] - Changbai Mountain's tourism data indicates a strong recovery and growth potential, particularly in the summer season [4][51] Trendy Play - The trendy play sector is expected to benefit from consumption policies and industry self-regulation, with long-term prospects for cultural products expanding overseas [5][53] Education - The AI+ education sector is gaining traction, with several companies launching innovative products that are expected to see significant revenue growth [6][63] Medical Beauty - The medical beauty industry is experiencing a shift towards refined operations, with new product launches expected to enhance market dynamics [6][73]