Core Viewpoint - The article provides a comprehensive analysis of the valuation metrics of various A-share indices, highlighting the current market conditions and sector performance in terms of price-to-earnings (P/E) and price-to-book (P/B) ratios, as well as other financial indicators. Valuation Metrics Summary - The overall A-share market has a P/E ratio of 17.2 and a P/B ratio of 1.79, with P/E percentile at 35.6% and P/B percentile at 23.28% [3]. - The North Star 50 index shows a notably high P/E ratio of 53.03, with a percentile of 97.24%, indicating a potentially overvalued market segment [4]. - The ChiNext index has a P/E ratio of 38.52, with a percentile of 34.73%, suggesting a relatively lower valuation compared to other indices [4]. Sector Performance Summary - The semiconductor sector has a high P/E percentile of 93.93, indicating strong investor interest and potentially high growth expectations [4]. - The insurance sector, in contrast, has a very low P/E percentile of 0.99, suggesting it may be undervalued compared to other sectors [4]. - The real estate sector has a P/E ratio of 30.53 with a percentile of 58.75%, reflecting moderate valuation levels [4]. Style Index Analysis - The CTV 50 index has a P/E ratio of 9.51, with a percentile of 74.08%, indicating a relatively high valuation among style indices [6]. - The dividend low volatility index shows a P/E ratio of 7.88, with a percentile of 73.30%, suggesting it is also highly valued [7]. - The small-cap growth index has a P/E ratio of 28.98, with a percentile of 67.19%, indicating a strong growth outlook [7].

- The report discusses the "Volume Timing Signal" model, which indicates a cautious outlook for all major indices as of August 8, 2025[22][23] - The "HS300 Upward Stock Proportion Sentiment Indicator" is introduced, calculated as the proportion of HS300 constituent stocks with positive returns over the past N days. This indicator is currently above 80%, signaling high market sentiment[23][25] - The "Momentum Sentiment Indicator" is explained, using two smoothed lines (fast and slow) with different windows (N1=50, N2=35). When the fast line exceeds the slow line, it signals a bullish market view. As of August 8, 2025, the fast line is above the slow line, maintaining a positive outlook[26][28] - The "Moving Average Sentiment Indicator" is based on the number of HS300 closing prices above eight moving averages (parameters: 8, 13, 21, 34, 55, 89, 144, 233). If the count exceeds 5, it indicates a bullish view. As of August 8, 2025, the HS300 index is in a positive sentiment zone[32][36] - Cross-sectional volatility analysis shows a week-on-week decline in HS300, CSI500, and CSI1000 indices, indicating a weaker short-term alpha environment. Over the past quarter, cross-sectional volatility for these indices is at mid-to-lower levels compared to the past six months[37][40] - Time-series volatility analysis also shows a week-on-week decline for HS300, CSI500, and CSI1000 indices, with the past quarter's volatility at mid-to-lower levels compared to the past six months, suggesting a weaker alpha environment[40][42]

Group 1 - The core viewpoint emphasizes the importance of evaluating fund managers' investment styles by referencing the valuation of style indices, such as large-cap value and growth indices, which often overlap with the holdings of active fund managers [2] - In the context of industry indices, if a fund manager heavily invests in specific sectors, the corresponding industry valuations can serve as a reference point for evaluation [3] - Key industries identified include consumer, pharmaceutical, and technology sectors, which were noted to be undervalued as of July 2025, indicating that active funds in these areas were also undervalued [4] Group 2 - The "Screw Nut Star Rating" indicator is utilized to assess the overall market valuation and is suitable for evaluating active fund valuations, with a rating of 4 to 5 stars indicating a favorable investment stage [5] - Once the rating falls below 4 stars, it is generally advised to cease further investments, while maintaining patience with existing holdings [5] - At a rating of 3 stars or above, it is advisable to consider selling for profit-taking [6]