Core Viewpoint - The article highlights that on July 17, the A-share market experienced a significant inflow of funds into industry-themed ETFs, totaling 1.891 billion yuan, while broad-based ETFs faced substantial outflows [2][4]. Fund Flows - On July 17, the overall stock ETF (including cross-border ETFs) saw a net outflow exceeding 500 million yuan, with the latest scale reaching 3.69 trillion yuan. Industry-themed ETFs had a net inflow of 1.891 billion yuan, while broad-based ETFs experienced a net outflow of 4.048 billion yuan [4]. - The China Securities A500 Index ETF recorded the highest net outflow of 1.634 billion yuan on the same day. Over the past five days, the Hong Kong Securities Index saw inflows exceeding 3.1 billion yuan, and the Sci-Tech 50 Index saw inflows exceeding 3 billion yuan [4]. Leading Fund Companies - E Fund's ETF reached a latest scale of 662.94 billion yuan, with an increase of 4.73 billion yuan on July 17 and a total increase of 62.29 billion yuan since 2025, reflecting a net inflow of 14.76 billion yuan [4]. - On July 17, E Fund's Hong Kong Securities ETF and Sci-Tech 50 ETF each had a net inflow of 260 million yuan, while the Robotics ETF saw a net inflow of 20 million yuan, and the Hang Seng Dividend Low Volatility ETF had a net inflow of 90 million yuan [4]. Popular Thematic ETFs - The leading industry-themed ETFs attracting capital included the Securities ETF, Dividend Low Volatility ETF, and Photovoltaic ETF, while broad-based ETFs like the Sci-Tech 50 ETF and Shanghai-Shenzhen 300 ETF also saw significant inflows [5][6]. - The top three ETFs by net inflow on July 17 were: 1. Securities ETF: 561 million yuan 2. Dividend Low Volatility ETF: 514 million yuan 3. Photovoltaic ETF: 337 million yuan [7]. Outflows from Broad-based ETFs - The article notes that broad-based ETFs such as the ChiNext ETF, Sci-Tech 50 ETF, and Shanghai-Shenzhen 300 ETF were among the largest outflows, indicating a shift in investor sentiment [8]. - The report from Guotai Fund suggests that the current liquidity environment remains a key support factor for the A-share market, with expectations for domestic demand recovery as policies are implemented [8].

Investment Focus - The report indicates that despite a cautious medium-term outlook, there is potential for a short-term market rebound following recent declines, especially if geopolitical tensions ease [1][10] - The Hang Seng Index experienced a strong rebound, rising 3.2%, with technology stocks showing significant recovery potential after sufficient corrections [1][10] - The report highlights that sectors such as materials, technology, and finance led the gains in the Hong Kong market, while A-shares saw strong performance in technology, materials, and industrials [1][10] Liquidity Analysis - Signs of liquidity disturbances have emerged, with the Hong Kong Monetary Authority (HKMA) responding quickly to strong-side convertibility triggers by injecting significant amounts of HKD into the market [2][11] - The HKMA's actions in May 2023 included selling nearly HKD 130 billion, which led to a drop in HIBOR to very low levels, impacting the HKD-USD interest rate spread [2][11] - The report notes that as liquidity remains loose, speculative trading has increased, with several low-priced stocks doubling in value within a single day [3][12] Southbound Fund Flows - Southbound fund inflows increased to HKD 28.4 billion amid easing Middle Eastern tensions, although this remains significantly lower than inflows seen earlier in the year [3][13] - Notable purchases included Guotai Junan International, while Alibaba and Tencent experienced moderate outflows, indicating shifting investor sentiment [3][13] - The report identifies that southbound funds primarily flowed into financials, pharmaceuticals, and semiconductors, while reducing exposure to communication services and energy [3][13] A-Share Market Dynamics - The brokerage sector's rally led to an increase in margin financing and securities lending balances, indicating renewed investor interest [4][14] - However, macroeconomic uncertainties may limit incremental capital inflows, potentially leading to funding supply pressures if margin financing continues to rise [4][14] - The banking sector experienced a sharp decline after sustained gains, reflecting signs of marginal liquidity weakening in the market [4][14] Market Outlook - The report concludes that while a short-term rebound is likely, the broader oscillation pattern in the market has not ended, with risks in high-flying sectors still not fully released [4][15] - Positive developments in U.S.-China relations and strong earnings expectations in overseas AI infrastructure stocks may support market sentiment in the short term [4][15] - Investors are advised to gradually reduce exposure during the rebound, particularly in sectors that have seen significant recent gains, to prepare for potential volatility [4][15]

Investment Focus - The market has entered a second phase of broad consolidation, with heightened volatility risks in micro-caps, new consumption, and innovative pharma sectors [1][8] - The Hang Seng Index dropped 1.5% and the Hang Seng Tech Index fell 2.0%, while A-shares also experienced declines [1][8] - Liquidity in the tech sector has been diverted towards innovative pharma and new consumption, but both sectors saw notable pullbacks this week [1][8] Hong Kong Market Dynamics - The sustainability of rallies in new consumption and innovative pharma depends on continued HKD liquidity and steady southbound inflows [2][9] - Recent pullbacks in innovative pharma have increased the AH premium from a 10-year average of 136 to 139, indicating H-shares are underperforming A-shares [2][9] - The liquidity in the Hong Kong market is tightening, influenced by large IPOs and upcoming listings [2][9] Southbound Capital Flows - This week saw a net inflow of HKD 16.3 billion, but only HKD 4.2 billion flowed in during the last three trading days of market decline [3][10] - Significant selling pressure was observed in Pop Mart, with HKD 1.8 billion sold, nearly erasing the past month's inflows [3][10] - Southbound capital mainly flowed into banks, healthcare, and consumer services, with limited outflows in communication services [3][10] A-Shares Performance - The liquor index rebounded 2.7% this week, supported by favorable media commentary, but the overall downtrend remains unaltered [4][11] - The banking sector continued to perform well, rising 2.6%, which helped stabilize large-cap defensives [4][11] - Micro-caps fell 2.2%, underperforming the broader market but still remain at elevated levels [4][11] Market Outlook - The broad consolidation pattern in the market is expected to continue, with high-flying sectors like micro-caps, new consumption, and innovative pharma yet to fully deflate [4][12] - The expiration of the 90-day tariff grace period on July 9 may lead to renewed pressure from U.S.-China negotiations [4][12] - Investors are advised to wait for better entry points, particularly near 21,000 on the Hang Seng Index and 3,200 on the Shanghai Composite [4][12] Short-Term Market Sentiment - Recent U.S. military actions against Iran may extend market downward momentum early next week [5][13] - If the market declines to key support levels, a bottoming rebound may occur [5][13] - The tech sector, after sufficient pullback, is believed to hold stronger rebound potential, particularly in edge AI and application software [5][13]

Group 1: AMD GPU Launch - AMD launched MI350X and MI355X GPUs on June 13, achieving a 4x increase in computing power and a 35x improvement in inference speed compared to the previous MI300X [1][3] - The MI350 series competes with NVIDIA's B200, featuring 1.6 times the memory capacity and comparable or superior training and inference speeds [3] - The MI350X has a maximum total board power (TBP) of 1000W, while the MI355X reaches 1400W, enhancing performance [3][4] Group 2: Future Developments - AMD plans to release the next-generation MI400 series in 2026, developed in collaboration with OpenAI, with expected performance improvements of 10x over the MI300 series [4] - The MI400 series will utilize the next-generation CDNA architecture, featuring 432GB HBM4 memory and 19.6TB/s memory bandwidth [4] Group 3: AI Applications and Innovations - The Chinese Academy of Sciences launched the "Enlightenment" system for fully automated chip design, which aims to surpass human-level design capabilities [5] - The system will continue to evolve through iterative cycles and explore various AI methodologies to enhance its design capabilities [5] Group 4: AI Financing Trends - Multiverse Computing completed a €1.89 billion (approximately $2.17 billion) Series B funding round, focusing on AI model compression technology that can reduce model size by up to 95% without performance loss [6][7] - The technology allows for significant speed improvements and cost reductions in inference, making it applicable for edge devices [7] Group 5: Investment Recommendations - The industry outlook remains positive for overseas computing power chains, with specific companies recommended for investment, including 嘉和美康, 科大讯飞, and 寒武纪, among others [2][8]