Report Summary 1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report - A-shares continued to rise strongly with ample market liquidity, and the margin balance returned above 2 trillion yuan for the first time in a decade, with the margin trading balance reaching a new high since July 1, 2015. The current stock index valuation is still supported, and it is advisable to buy stock indices opportunistically [5][6] 3. Summary by Relevant Catalogs Money and Bond Market - DROO1 closed at 1.32 with a 0.10 bp increase, DR007 at 1.46 with a 1.12 bp increase, GC001 at 1.50 with a 4.50 bp decrease, and GC007 at 1.49 with a 0.50 bp increase [4] - SHBOR 3M closed at 1.56 with a 0.10 bp increase, LPR 5-year at 3.50 with no change, 1-year treasury bond at 1.37 with a 0.52 bp decrease, 5-year treasury bond at 1.56 with a 0.97 bp decrease, 10-year treasury bond at 1.70 with a 0.40 bp decrease, and 10-year US treasury bond at 4.22 with no change [4] - The central bank conducted 138.5 billion yuan of 7-day reverse repurchase operations, with 309 billion yuan of reverse repurchases maturing, resulting in a net withdrawal of 170.5 billion yuan. This week, 1.6632 trillion yuan of reverse repurchases will mature, with 495.8 billion, 449.2 billion, 309 billion, 283.2 billion, and 126 billion maturing from Monday to Friday respectively [4] - In July, the SLF had a net withdrawal of 300 million yuan, MLF a net injection of 10 billion yuan, PSL a net withdrawal of 23 billion yuan, short-term reverse repurchase a net injection of 18.8 billion yuan, and outright reverse repurchase a net injection of 20 billion yuan. No open market treasury bond transactions were conducted in July [4] Stock Market - The CSI 300 closed at 4113 with a 0.24% increase, SSE 50 at 2797 with a 0.24% increase, CSI 500 at 6357 with a 0.86% increase, and CSI 1000 at 6861 with a 1.09% increase [5] - The trading volume of the Shanghai and Shenzhen stock markets reached 1.7341 trillion yuan, an increase of 138 billion yuan from the previous day. Most industry sectors rose, with the shipbuilding sector rising significantly, and the rubber products, motor, aerospace, gaming, general equipment, and auto parts sectors leading the gains, while the traditional Chinese medicine, pharmaceutical commerce, and chemical pharmaceutical sectors led the losses [5] - IF volume was 73,908 with an 8.2% decrease, and open interest was 253,006 with a 1.0% decrease; IH volume was 36,686 with a 9.9% decrease, and open interest was 91,160 with a 1.7% decrease; IC volume was 72,137 with a 9.5% increase, and open interest was 219,342 with a 2.0% increase; IM volume was 176,382 with a 13.6% increase, and open interest was 341,310 with a 3.4% increase [5] Futures Premium and Discount Situation - Premium and discount rates for different contracts of IF, IH, IC, and IM are presented, with specific values for the current month, next month, current quarter, and next quarter contracts [7]

Report Summary 1. Report Industry Investment Rating - Not provided in the given content 2. Core View of the Report - The seven - department joint guidance on financial support for new industrialization has made relevant beneficiary sectors perform strongly. Current stock index valuations are still supported. For example, although the P/E ratio of CSI 300 has returned to the median, the ERP is still at a historical high (74.25% quantile). With Huijin shoring up liquidity, valuation factors are expected to continue to play a role. The strategy is to go long on stock indices opportunistically this week [7] 3. Summary by Relevant Catalogs 3.1 Money Market - DROO1 closed at 1.31 with a - 0.03bp change, DR007 at 1.44 with a - 0.73bp change, GC001 at 1.55 with a 24.00bp change, and GC007 at 1.49 with a 3.00bp change. SHBOR 3M was at 1.56 with a - 0.10bp change, and LPR 5 - year remained at 3.50 with no change [4] - 1 - year Treasury bond was at 1.37 with a 0.24bp change, 5 - year at 1.57 with a - 0.49bp change, 10 - year at 1.70 with a - 0.89bp change, and 10 - year US Treasury at 4.22 with a - 1.00bp change [4] - The central bank conducted 1607 billion yuan of 7 - day reverse repurchase operations yesterday at an operating rate of 1.40%. With 4492 billion yuan of reverse repurchases maturing on the same day, the net withdrawal was 2885 billion yuan. This week, 16632 billion yuan of reverse repurchases will mature in the central bank's open market, with maturities of 4958 billion, 4492 billion, 3090 billion, 2832 billion, and 1260 billion yuan from Monday to Friday respectively [4] - In July, the SLF had a net withdrawal of 3 billion yuan, MLF a net injection of 1000 billion yuan, PSL a net withdrawal of 2300 billion yuan, short - term reverse repurchases a net injection of 1880 billion yuan, and outright reverse repurchases a net injection of 2000 billion yuan. There were no open - market Treasury bond transactions in July [4][5] 3.2 Stock Market - CSI 300 closed at 4103, up 0.8%; SSE 50 at 2791, up 0.77%; CSI 500 at 6303, up 0.66%; and CSI 1000 at 6787, up 0.71%. The trading volume of the Shanghai and Shenzhen stock markets was 15961 billion yuan, an increase of 975 billion yuan from the previous day. Most industry sectors closed higher, with communication equipment, consumer electronics, plastic products, insurance, auto parts, banking, transportation equipment, and wind power equipment sectors leading the gains, while the traditional Chinese medicine sector led the losses [6] - IF volume was 80521, up 4.4%; IF open interest was 255640, up 0.4%. IH volume was 40737, up 5.8%; IH open interest was 92725, up 0.7%. IC volume was 72420, down 15.1%; IC open interest was 215144, down 0.8%. IM volume was 155305, down 17.9%; IM open interest was 329938, down 2.1% [6] 3.3 Futures Market (Stock Index Futures Basis) - IF basis for the current - month contract was 7.52%, 0.00% for the next - month contract, 0.01% for the current - quarter contract, and 3.25% for the next - quarter contract. IH basis for the current - month contract was 1.74%, - 0.08% for the next - month contract, - 0.20% for the current - quarter contract, and - 0.19% for the next - quarter contract. IC basis for the current - month contract was 21.91%. IM basis for the current - month contract was 17.79%, 12.61% for the next - month contract, 11.73% for the current - quarter contract, and 11.29% for the next - quarter contract [8]