Group 1: Global Economic Impact - The ongoing geopolitical influences and misalignment of monetary policies are expected to fundamentally reshape purchasing power across both private and public sectors in the medium to long term [1] - Japan's prolonged ultra-loose monetary policy is reportedly helping the country emerge from a "deflation trap," with the yen's depreciation significantly boosting overall demand [1] - Despite a 40% increase in the average price of second-hand homes in Tokyo over five years and a nearly 20% rise in major stock indices, the actual purchasing power of residents has declined due to high input inflation [1] Group 2: Domestic Market Overview - The domestic equity market has shown continued volatility, with a notable focus on the fourth quarter as a critical period for industry information and monetary policy direction [2][34] - The uncertainty in policy is expected to decrease marginally, while the sustainability of the computing power sector will face ongoing scrutiny from the market [34] - Smaller stocks are anticipated to benefit more from the market's expansion trends compared to larger stocks [34] Group 3: Convertible Bond Market - The convertible bond market has seen an overall increase of 0.48% during the week, with 20 out of 29 sectors experiencing gains [47] - The average daily trading volume in the convertible bond market reached 636.11 billion yuan, reflecting a significant increase of 29.75 billion yuan from the previous week [47][48] - Approximately 63.48% of convertible bonds recorded an increase in value, with 15.37% of bonds rising more than 2% [48] Group 4: Sector Performance - Among the 31 sectors, 19 experienced gains, with retail, non-bank financials, and beauty care leading the way with increases of 6.66%, 2.90%, and 2.87% respectively [45] - Conversely, sectors such as electronics and power equipment faced declines, with drops of -3.28% and -3.12% respectively [45]

Core Viewpoint - The domestic substitution logic is gaining momentum, with the cloud computing ETF Huatai (159273) continuing to rise, reflecting strong investor interest and inflows [1][3]. Group 1: Market Performance - The cloud computing ETF Huatai (159273) saw a rise of over 1.2% today, following a previous increase of 4.63% [1]. - Over the past five days, the ETF has recorded net inflows on four occasions, accumulating over 120 million yuan [1]. - Major component stocks of the ETF are performing well, with notable increases such as Huasheng Tiancai hitting the daily limit and Zhongke Shuguang rising over 8% [3]. Group 2: Tencent's Financial Performance - Tencent reported a revenue of 364.53 billion yuan for the first half of 2025, marking a 14% year-on-year increase, with a net profit of 124.38 billion yuan, up 16% [5]. - In Q2 2025, Tencent's revenue reached 184.50 billion yuan, a 15% increase year-on-year, with a net profit of 63.05 billion yuan, up 10% [5]. - The growth in Tencent's main business segments includes a 16% increase in value-added services revenue, driven by a 22% rise in gaming revenue [5][10]. Group 3: AI Integration and Business Growth - AI is significantly enhancing Tencent's business operations, with advertising revenue in Q2 2025 increasing by 20% to 35.8 billion yuan, benefiting from AI-driven improvements [9]. - The cloud computing segment also saw a 19% increase in enterprise service revenue, driven by AI demand [9]. - Tencent's gaming revenue in Q2 2025 grew by 22% to 59.2 billion yuan, surpassing expectations, with strong performances in both domestic and international markets [10]. Group 4: Investment Opportunities - The report highlights the potential for investment in AI-related hardware and services, particularly in the context of increasing demand for computing power and domestic AI server needs [12][13]. - The cloud computing ETF Huatai (159273) is positioned to capture opportunities in the AI-driven cloud computing sector, covering a wide range of related industries [15].

Core Viewpoint - The artificial intelligence (AI) sector is experiencing positive momentum, with the China Securities Artificial Intelligence Industry Index and related ETFs showing significant gains, indicating strong investor interest and potential growth in the industry [1][3]. Group 1: Index Performance - As of July 18, 2025, the China Securities Artificial Intelligence Industry Index (931071) increased by 0.36%, with notable gains from constituent stocks such as Deepin Technology (8.31%) and Kingsoft Office (3.39%) [1]. - The AI ETF (515980) has achieved a six-day consecutive increase, with a weekly cumulative rise of 8.18% as of July 17, 2025 [1]. Group 2: Liquidity and Trading Volume - The AI ETF recorded a turnover rate of 5.91% and a total trading volume of 193 million yuan on the day [3]. - The average daily trading volume for the AI ETF over the past week was 291 million yuan, with the latest fund size reaching 3.243 billion yuan [3]. Group 3: Fund Performance Metrics - The AI ETF has seen a net value increase of 44.77% over the past year, ranking 434 out of 2917 index equity funds, placing it in the top 14.88% [3]. - Since its inception, the AI ETF has recorded a maximum monthly return of 30.38% and an average monthly return of 6.80% during rising months [3]. Group 4: Top Holdings - As of June 30, 2025, the top ten weighted stocks in the China Securities Artificial Intelligence Industry Index accounted for 52.07% of the index, with companies like Zhongji Xuchuang and iFlytek leading the list [4]. Group 5: Market Developments - Nvidia announced on July 15, 2025, that it would resume sales of the H20 chip in China, which had previously been restricted due to U.S. government regulations [6]. - The introduction of new chip series like the B30 by Nvidia is anticipated to meet export restrictions, suggesting ongoing demand for AI-related technologies [7].