Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - This week, the anti - "involution" policy drove up the stock prices of related sectors, coupled with the rebound of the large - financial sector, leading to a recovery in market risk appetite. Overseas, the impact of US tariffs is gradually materializing. Domestically, attention should be focused on the expectations of the "Political Bureau Meeting of the CPC Central Committee" in July, with anti - "involution" expected to be one of the important themes. Strategically, opportunities for market style rotation should be monitored, and it is recommended to go long on IF stock index futures on dips [10][11]. Summary by Directory 1. Weekly Assessment and Strategy Recommendation - **Important News**: Include the start of the Yarlung Zangbo River downstream hydropower project, the release of the "Rural Highway Regulations", power consumption growth, state - owned asset optimization, potential innovation in the Sci - tech Innovation Board, possible large - scale redemptions of bond funds, and Trump's proposed tariff policy [10]. - **Economic and Corporate Earnings**: China's Q2 GDP annual rate was 5.2%, with positive performance in consumption, industrial added value, and exports. However, the real estate sector continued to decline, and there was still significant pressure to stabilize prices. The social financing scale and money supply showed certain growth [10]. - **Interest Rates and Credit Environment**: The 10Y treasury and credit bond interest rates rebounded synchronously, with unchanged credit spreads. The DR007 interest rate rebounded seasonally at the end of the month, and liquidity tightened temporarily [10]. - **Trading Strategies**: Hold a small number of IM long positions in the long - term due to its medium - to - low valuation and long - term discount. Hold IF long positions for six months as a new round of interest rate cuts may benefit high - dividend assets [12]. 2. Spot and Futures Markets - **Market Indexes**: Data for major indexes such as the Shanghai Composite Index, Shenzhen Component Index, and others are not available. The AH ratio was 123.52, down 2.19% from 126.28 [14]. - **Futures Contracts**: Data for various stock index futures contracts including IF, IH, IC, and IM are not available [15]. - **Volume and Ratio Analysis**: Multiple charts show historical data on trading volume, open interest, basis, and contract ratios of stock index futures [17][19][21][23][28][30]. 3. Economic and Corporate Earnings - **Economic Indicators**: Q2 GDP actual growth was 5.2%. In June, the manufacturing PMI was 49.7%, up 0.2 percentage points from May. Consumption growth slowed to 4.8%. Exports remained resilient with a 5.8% year - on - year increase. Investment growth was 2.8%, with declines in manufacturing, real estate, and infrastructure investment [35][38][41]. - **Corporate Earnings**: In Q1 2025, the revenue growth rate of all A - share non - financial listed companies slightly declined compared to Q4 but was still higher than Q3 last year. The operating net cash flow increased year - on - year and improved compared to Q4, mainly due to reduced inventory [44]. 4. Interest Rates and Credit Environment - **Interest Rates**: The 10 - year treasury bond yield and 3 - year AA - corporate bond yield are presented in charts. The DR007 interest rate and 7 - day reverse repurchase rate, along with reverse repurchase volume, show liquidity and policy rate trends. Sino - US 10 - year bond interest rates and spreads, as well as the relationship between interest rates and exchange rates, are also analyzed [47][50][52]. - **Credit Environment**: In June 2025, M1 growth was 4.6% and M2 growth was 8.3%. The social financing increment was 4.20 trillion yuan, with government bonds and corporate short - term loans being the main contributors [57]. 5. Capital Flows - **Inflow**: This week, the new share issuance of equity - biased funds was 194 million shares, and the net margin purchase was 392 million yuan [63][66]. - **Outflow**: This week, major shareholders had a net increase in holdings of 3883 million yuan, and the number of IPO approvals was 1 [69]. 6. Valuation - The price - to - earnings ratio (TTM) of the Shanghai 50 was 11.41, the CSI 300 was 13.51, the CSI 500 was 30.73, and the CSI 1000 was 40.26. The price - to - book ratio (LF) of the Shanghai 50 was 1.26, the CSI 300 was 1.42, the CSI 500 was 2.06, and the CSI 1000 was 2.29 [73].