Macro Dynamics - The Chinese Foreign Ministry expressed support for efforts that contribute to a peaceful resolution of the crisis, welcoming continued contact between Russia and the United States to improve relations and promote a political solution to the Ukraine crisis [2] Trade and Regulatory Updates - The Ministry of Commerce announced an extension of the anti-subsidy investigation period for imported dairy products originating from the EU until February 21, 2026, due to the complexity of the case [3] - The Shanghai Stock Exchange reported that 64 companies have been listed this year, with a total fundraising amount of 648.21 billion yuan, including 342.33 billion yuan from 15 IPOs on the main board [4] Market Data - A-shares saw a collective increase, with the Shanghai Composite Index rising by 0.85%, the Shenzhen Component Index by 1.73%, and the ChiNext Index by 2.84%. The total trading volume reached approximately 27,641.63 billion yuan, an increase of about 5,195.51 billion yuan from the previous trading day [12] - The Hong Kong stock market closed with the Hang Seng Index down 0.14% while the Hang Seng Tech Index rose by 0.82% [13] Company Dynamics - Chen Rui resigned as the legal representative of two Bilibili-related companies, with Huang Shengsheng taking over [14] - Dongfeng Group plans to sell a 50% stake in Dongfeng Honda Engine Company, currently in the pre-listing stage, with the listing deadline set for September 12 [15] - China Shipbuilding Industry Corporation announced that the Shanghai Stock Exchange has accepted its application for voluntary termination of stock listing [16] - The total box office for the 2025 summer movie season has surpassed 10 billion yuan, with "Nanjing Photo Studio," "Wang Wang Mountain Little Monster," and "Lychee of Chang'an" leading the box office rankings [17]

Market Activity - On July 11, the A-share market showed active trends with 61 stocks hitting the daily limit up, and a total of 17 stocks achieved consecutive limit ups, resulting in a success rate of 69% for limit orders [1] - The market focused on several strong stocks, with Sifang New Materials achieving a remarkable five consecutive limit ups, and Guotou Zhonglu also performing well with a T-shaped limit up, reaching five consecutive limit ups [1] - Stocks like Jingyi Co. and Yamaton achieved their fifth limit up within eight trading days through reverse limit up strategies [1] Stock Performance - Among the stocks with consecutive limit ups, Forest Packaging demonstrated a strong performance with seven consecutive limit ups, while companies like Shuangwei New Materials, Nanhua Futures, and Hemei Group achieved three consecutive limit ups [1] - ST Yazhen maintained an impressive performance with 12 limit ups over 15 days, while Yamaton and Jingyi Co. kept a pace of five limit ups over eight days [2] Market Sentiment and Capital Inflow - The market showed positive sentiment with active participation from investors, as evidenced by over 15 billion yuan in limit order funds supporting Shuangwei New Materials, and several other stocks like Sifang New Materials and Jin'an Guoji also receiving billions in limit order funds [1] - The total trading volume in the Shanghai and Shenzhen markets exceeded 1.7 trillion yuan, marking the highest level in nearly four months, indicating a significant increase in overall market activity and investor engagement [1] Sector Performance - The non-ferrous metal sector was notably active, with stocks like Hunan Silver and China Nonferrous Metals achieving limit ups [1] - The rare earth permanent magnet sector also showed strength, with companies like Northern Rare Earth and Jingyuntong achieving two consecutive limit ups, while Baogang Group and China Rare Earth also hit limit ups [1] - The securities IT sector attracted capital interest, with stocks like Jinzhen Co. and Guo'ao Technology hitting limit ups [1]

Core Viewpoint - The approval of Guotai Junan International to provide cryptocurrency trading services marks a significant breakthrough for Chinese financial institutions, catalyzing a bullish sentiment in both A-shares and Hong Kong stocks, particularly in the financial sector [2][3][4]. Group 1: Market Dynamics - A-shares and Hong Kong stocks have shown a recent recovery, with the ChiNext Index surpassing 2100 points and the Hang Seng Index stabilizing above 24000 points, indicating a technical breakout [3]. - The military industry sector is leading the market due to expectations surrounding military parades and equipment upgrades, while high-growth areas like computing, solid-state batteries, and autonomous driving are attracting capital [3]. - Non-bank financial sectors, including brokerages and fintech companies, are benefiting from capital market reforms and consumer credit support policies, suggesting a potential for continued valuation recovery [3][4]. Group 2: Regulatory and Policy Environment - The issuance of 19 consumption promotion measures by six departments, along with a large-scale policy loan tool, is driving a recovery in service consumption, education, and local living sectors [3]. - The approval of a full license for virtual asset trading by a Chinese brokerage signifies a shift from traditional brokerage services to a model encompassing digital assets, consulting, and cross-border payments [4]. Group 3: Financial Technology and Investment Opportunities - The current market rally is driven by speculative themes rather than a comprehensive bull market based on economic recovery or earnings growth, primarily triggered by the approval of stablecoin trading [5]. - Stablecoins, due to their blockchain foundation, enhance cross-border payment efficiency, presenting significant potential in international finance [5]. - The International Monetary Fund (IMF) emphasizes the rapid development of digital currency payments and blockchain technology, suggesting that companies with strong underlying technology capabilities will play a crucial role in the evolving financial landscape [6]. Group 4: Credit Market and Banking Sector - The financial conditions index indicates a slight tightening, reflecting marginally tighter monetary conditions, while the bond market remains relatively loose [6][7]. - The recent capital increase of 520 billion yuan by state-owned banks, fully subscribed by the Ministry of Finance, demonstrates government support for banks to bolster capital and stabilize financial conditions [7]. - The potential for accelerated credit issuance by banks following capital expansion is expected to benefit urban investment, infrastructure, and policy-related corporate bonds [7].