Core Viewpoint - The A-share market is experiencing mixed performance with active sectors such as film and engineering machinery, while resource stocks are underperforming. The market is expected to continue exploring niche opportunities within the "technology growth + cycle" themes as investor sentiment improves [1][4]. Group 1: Market Performance - As of July 28, the Shanghai Composite Index fell by 0.19%, the Shenzhen Component Index decreased by 0.11%, while the ChiNext Index rose by 0.34% [1]. - The film sector showed significant activity, with Happiness Blue Sea reaching a 20% limit up, alongside other companies like Hengdian Film and China Film seeing gains [2]. Group 2: Sector Insights - The film industry is benefiting from the release of the anti-war film "Nanjing Photo Studio," which grossed 157 million yuan on its opening day, indicating strong box office performance [2]. - Analysts suggest focusing on leading cinema chains such as Wanda Film and Hengdian Film due to the successful exploration of cinema space redevelopment and the summer film release schedule [2]. Group 3: Institutional Perspectives - CITIC Securities notes a typical "water buffalo" market characteristic, with increasing net inflows from institutional investors and a growing participation from retail investors, driven by a positive market sentiment [3]. - Industrial sectors such as non-ferrous metals, telecommunications, innovative pharmaceuticals, military industry, and gaming are highlighted for potential rotation and investment opportunities [3][4]. - According to Caisun Securities, the current market sentiment shows resilience against negative news, with a bullish outlook for the continuation of the current market trend despite potential short-term adjustments [5].

Core Viewpoint - The A-share market is expected to maintain a strong performance in the second half of the year, with potential to challenge the 2024 high points due to ongoing trading activity and favorable policy conditions [1][16]. Group 1: Market Outlook - Most brokerages believe that the current trading heat remains strong, and the market is likely to continue its upward trend as the profit effect becomes evident [1][9]. - The overall valuation center of the A/H shares is expected to be revised upward due to the anticipated decline in the risk-free interest rate, which is seen as a key driver for the market's rise in 2025 [4][5]. - The market is currently experiencing a "water buffalo" characteristic, where the divergence between fundamentals and liquidity may not last long, suggesting a need for observation of future fundamental improvements [3][6]. Group 2: Investment Strategies - Investors are advised to focus on sectors with safety margins and consider left-side trading opportunities, as many undervalued industries are gaining attention [6][11]. - The strategy should include increasing exposure to technology growth stocks and cyclical manufacturing sectors, as these areas are expected to benefit from the ongoing market dynamics [12][16]. - The "反内卷" (anti-involution) policy is expected to enhance the profitability of A-share companies, providing a solid foundation for future market performance [10][16]. Group 3: Sector Focus - Key sectors to watch include aerospace equipment, wind power, gaming, robotics, and digital economy, which are anticipated to have significant rebound potential [10][11]. - The technology and cyclical sectors are gaining consensus among various funds, indicating a strong interest in these areas for future investment [12][13]. - The upcoming World Artificial Intelligence Conference (WAIC) is expected to catalyze interest in specific technology segments, particularly those that have been underperforming [6][12].