Report Industry Investment Rating No relevant content provided. Core Viewpoints - The market continued to rise last week, with cyclical sectors leading the gains. The real estate, steel, and non-bank finance sectors were among the top three gainers, while coal, banking, and automotive sectors were among the top three losers. The core driver of the market was the expectation of supply-side reform and the "small essay" about the restart of shantytown renovation on the demand side, which led to a joint upward movement of cyclical and growth sectors. With the policy focusing on the supply side, the supply and demand are moving towards balance, which is beneficial for price index repair and has a positive impact on the stock market's profitability. The strong market last week was also supported by a high market risk appetite, including factors such as the non-escalation of trade friction risks, new highs in the US stock market, and positive domestic policy paths. The bullish pattern of the market is expected to continue as long as there are no unexpected negative factors. The factors that could reverse the trend may be intensified external risk disturbances or a shift in domestic policies towards structural adjustment, which need to be dynamically tracked. This week, attention should be paid to the release of domestic economic data [1][2]. Summary by Relevant Catalogs Market Review and Outlook - **Market Performance**: Last week, the market continued to rise, with cyclical sectors leading. The real estate, steel, and non-bank finance sectors were the top three gainers, while coal, banking, and automotive sectors were the top three losers. The market's core driver was the expectation of supply-side reform and the "small essay" about the restart of shantytown renovation on the demand side, leading to a joint upward movement of cyclical and growth sectors. The market's strength was also supported by a high market risk appetite, including factors such as the non-escalation of trade friction risks, new highs in the US stock market, and positive domestic policy paths [1]. - **Future Outlook**: Currently, although the index is at a relatively high level, the market risk appetite remains positive. Without unexpected negative factors, the bullish pattern of the market is expected to continue. The factors that could reverse the trend may be intensified external risk disturbances or a shift in domestic policies towards structural adjustment, which are difficult to predict in advance and need to be dynamically tracked. This week, attention should be paid to the release of domestic economic data [2]. - **Factors to Watch**: Domestic economy, progress of the "anti-involution" policy implementation, and expectations of the Federal Reserve's policies [3]. Strategy Recommendations - **Short-term Strategy**: For intraday trading, the 1-minute and 5-minute K-line charts can be used as a reference. The stop-loss and take-profit levels for IF, IH, IC, and IM can be set at 76 points/95 points, 58 points/31 points, 66 points/121 points, and 84 points/142 points respectively [4]. - **Trend Strategy**: Adopt a strategy of buying on dips. The core operating ranges for the IF2507, IH2507, IC2507, and IM2507 contracts are expected to be between 3894 and 4095 points, 2686 and 2810 points, 5842 and 6234 points, and 6227 and 6646 points respectively [4]. - **Cross-variety Strategy**: Due to the unclear trend, it is recommended to wait and see [5]. Market Data Review - **Global Stock Index Performance**: Last week, global stock indices showed mixed performance. In the US, the Dow Jones Industrial Average fell 1.02%, the S&P 500 index fell 0.31%, and the Nasdaq Composite Index fell 0.08%. In Europe, the UK's FTSE 100 index rose 1.34%, Germany's DAX index rose 1.97%, and France's CAC40 index rose 1.73%. In the Asia-Pacific market, the Nikkei 225 index fell 0.61%, and the Hang Seng Index rose 0.93%. The Shanghai Composite Index rose 1.09% [8]. - **Domestic Index Performance**: Since 2025, major domestic indices have all risen. Last week, all major market indices also showed an upward trend [8]. - **Industry Performance in Spot Market**: In the CSI 300 index, most industries rose last week, with the pharmaceutical, telecommunications, and industrial sectors leading the gains. In the CSI 500 index, most industries also rose, with the financial real estate, energy, and raw material sectors leading the gains [10]. - **Stock Index Futures Performance**: Last week, the IM2507 contract of stock index futures had the largest increase and the largest amplitude among the main contracts. The trading volume and open interest of stock index futures both increased. The basis (futures - spot) of the main contracts of stock index futures and the cross-variety ratios also showed certain trends [12][14][20]. - **Index Valuation**: Based on weekly data, the price-to-earnings ratio (TTM) of the Shanghai Composite Index is 14.93 times, the CSI 300 index is 13.02 times, the SSE 50 index is 11.18 times, the CSI 500 index is 27.66 times, and the CSI 1000 index is 36.02 times [21][22]. - **Market Fundamentals**: The number of new investors in the two markets and the share of newly established equity funds showed certain trends. The capital interest rate declined last week, and the central bank had a net capital withdrawal [24].