Core Viewpoints - Various style indices experienced adjustments last week, with cyclical and growth styles seeing the most significant declines due to recent rapid increases leading to overvaluation and short-term profit-taking [3][7] - The expectation for a Federal Reserve rate cut in December has increased, although there remains considerable disagreement among officials regarding this decision [10] Market Liquidity - Overall market liquidity remains sufficient, with average daily trading volume close to 2 trillion yuan despite recent fluctuations [11] - The margin financing balance has stabilized around 2.5 trillion yuan, indicating a steady recovery since the beginning of the year [11] - Long-term capital inflows are evident, with insurance funds' stock investments increasing by 1.19 trillion yuan to 3.62 trillion yuan by the end of Q3 2025 [11] Market Analysis - The market is undergoing a corrective phase, with major indices experiencing declines, influenced by external factors affecting the technology sector and changing expectations regarding the Federal Reserve's interest rate policy [13][15] - Despite the adjustments, there are signs of potential positive changes, including strong inflows into equity ETFs and a shift in external factors towards a more favorable outlook regarding the Federal Reserve's rate decisions [15] Industry and Theme Allocation - Focus on growth sectors such as technology and advanced manufacturing, which have seen some overvaluation corrections while maintaining high overall economic vitality [5][15] - Continuous attention to "anti-involution" policies, particularly in sectors like electric equipment and basic chemicals where fundamentals are improving and valuations are reasonable [5] - Emphasis on domestic demand improvement, with potential opportunities in machinery, home appliances, automobiles, and consumer electronics benefiting from domestic policies [5][15]

- The "Four-Wheel Drive" model was constructed to analyze market opportunities, particularly focusing on growth sectors such as technology and advanced manufacturing. The model suggests that these sectors are gradually presenting layout opportunities after stabilizing from previous adjustments[7] - The model's construction process involves tracking transaction congestion levels, sector rotation signals, and cyclical analysis. It integrates multiple indicators to identify potential growth opportunities in specific sectors[7] - Evaluation of the model indicates its effectiveness in identifying short-term structural opportunities, especially in sectors with significant prior adjustments and subsequent stabilization[7] - The model's backtesting results are not explicitly provided in the report[7]

Core Viewpoint - The article highlights the increasing capital flow into high dividend sectors, particularly banks, amidst a backdrop of technology stock buybacks and sustained policy benefits, suggesting a continued preference for a "dumbbell" investment style [3][4]. Group 1: Market Performance - As of July 10, 2025, the Hang Seng High Dividend Yield Index (HSSCHKY) rose by 0.85%, with notable increases in stocks such as CITIC Bank (up 4.27%) and China Ping An (up 3.64%) [3]. - The Bosera Hang Seng High Dividend ETF (513690) increased by 0.87%, reaching a latest price of 1.04 yuan, and has seen a cumulative rise of 4.35% over the past month [3]. - The ETF recorded a turnover rate of 1.32% with a transaction volume of 61.75 million yuan, averaging a daily transaction of 315 million yuan over the past week [3]. Group 2: Fund Flows and Performance - The Bosera Hang Seng High Dividend ETF has achieved a latest scale of 4.638 billion yuan and a share count of 4.518 billion, marking a one-year high [4]. - Over the past five days, the ETF has experienced continuous net inflows, totaling 510 million yuan, with a peak single-day inflow of 429 million yuan [4]. - The ETF's financing buy-in amount reached 5.009 million yuan, with a financing balance of 6.4729 million yuan [4]. Group 3: Historical Returns and Risk Metrics - The Bosera Hang Seng High Dividend ETF has seen a net value increase of 39.38% over the past two years, ranking 103 out of 2224 in the index stock fund category [4]. - The ETF's highest monthly return since inception was 24.18%, with an average monthly return of 4.96% [4]. - As of July 4, 2025, the ETF's Sharpe ratio over the past year was 1.60, indicating strong risk-adjusted returns [4]. Group 4: Fee Structure and Tracking Accuracy - The management fee for the Bosera Hang Seng High Dividend ETF is 0.50%, while the custody fee is 0.10% [5]. - The ETF closely tracks the Hang Seng High Dividend Yield Index, with a tracking error of 0.051% over the past month [5]. - The top ten weighted stocks in the index account for 28.61% of the total index, including companies like Yanzhou Coal and China Petroleum [5].