Group 1 - The A-share market showed significant recovery on June 30, with the CSI A500 Index ETF (563880) rising by 1.11%, reversing the previous two days' losses [1] - The market is expected to maintain its strong performance into July, supported by monetary easing policies and improving demand [2][3] - The CSI A500 Index ETF focuses on leading companies across three levels of industries, providing a better opportunity to capture market uptrends [3] Group 2 - Core assets represented by the CSI A500 Index are expected to demonstrate strong profitability and resilience, with a projected net profit growth rate of 0.28% for 2024, outperforming the broader market [4] - The valuation of the CSI A500 Index ETF is relatively reasonable, with a price-to-earnings ratio of 15.12, compared to 133.76 for the CSI 2000 Index, indicating greater upside potential for core assets [4] - The CSI A500 Index ETF offers the lowest comprehensive fee rate in the market, with a management fee of only 0.15% and a distribution mechanism that allows for monthly evaluations of dividends [6]

Market Outlook - The market is expected to show an upward breakthrough in July, with technology and non-bank sectors likely to outperform [2][3][21] - Fiscal indices and resilient consumption have led to a marginal improvement in total demand growth in Q2, creating a favorable environment for upcoming mid-year performance disclosures [3][21] - Despite high-frequency data indicating export pressures in the second half, total demand is expected to remain stable, reducing the likelihood of significant economic downturns [3][21] Industry Recommendations - Focus on sectors with expected mid-year performance improvements, particularly in technology, consumer goods, and midstream manufacturing [4][17] - Recommended sectors include electronics (semiconductors), machinery (automation equipment), pharmaceuticals (chemical drugs), defense and military, non-ferrous metals (industrial, precious, and minor metals), and computers [4][17] - Key investment tracks for July include solid-state batteries, domestic computing power, non-bank finance, defense and military, and innovative pharmaceuticals [18] Economic Indicators - Total demand growth rebounded to 5.7% in May, indicating stability, with industrial enterprise revenue growth at 3.2% [22][23] - Government financing has significantly contributed to social financing growth, supporting economic recovery and creating a favorable financial environment for the stock market [24][27] - Fiscal spending has accelerated, with a 26% year-on-year increase in broad fiscal spending in the first five months, playing a crucial role in improving economic data [30]