Report Industry Investment Rating - Not provided in the given content Core View of the Report - The major indices of the two markets had a strong consolidation on Tuesday to repair technical indicators, and the trading volume remained high. Hedge funds' net buying of Chinese stocks last week reached the highest level in seven weeks, making China the market with the largest capital inflow on the platform since August. The year 2025 has seen a "quantitative boom" in the quantitative circle. Continuous capital inflows will drive the stock market to maintain an upward trend [1][2]. Summary by Relevant Catalogs Market Review - On Tuesday, the major indices of the two markets had a strong consolidation, showing mixed trends to repair technical indicators. The trading volume was 2.58 trillion yuan, still relatively high. The CSI 1000 Index closed at 7,242 points, up 5 points or 0.07%; the CSI 500 Index closed at 6,655 points, down 12 points or -0.19%; the SSE 300 Index closed at 4,223 points, down 16 points or -0.38%; the SSE 50 Index closed at 2,812 points, down 26 points or -0.93%. Among industry and theme ETFs, those with the highest gains were Communication ETF, Gem Artificial Intelligence ETF Cathay, 5G ETF, Cloud 50 ETF, and Robot 50 ETF, while those with the highest losses were Tianhong Innovative Drug ETF, Leading Military Industry ETF, and Southern Securities ETF. Among the sector indices of the two markets, those with the highest gains were consumer electronics, home appliance parts, communication equipment, motor manufacturing, and industrial Internet index, while those with the highest losses were medical services, glass fiber, insurance, aviation equipment, and securities index. The settlement funds of stock index futures for the CSI 1000, SSE 300, CSI 500, and SSE 50 indices had net outflows of 5.5 billion, 5.1 billion, 1.8 billion, and 0.9 billion yuan respectively [1]. Important Information - The State Council meeting emphasized continuously stimulating consumption potential, systematically clearing restrictive measures in the consumption field, and accelerating the cultivation and expansion of new growth points such as service consumption and new - type consumption. It also aimed to increase effective investment, give play to the leading and driving role of major projects, and actively promote private investment [1]. - Data from Goldman Sachs' Prime Brokerage (GS PB) showed that hedge funds' net buying of Chinese stocks last week reached the highest level in seven weeks, making China the market with the largest capital inflow on the platform since August [1]. - In just eight months of 2025, the quantitative circle has witnessed a "quantitative boom" comparable to 2019 and even surpassing 2020. Many quantitative institutions have quietly enjoyed a "silent bull market" with substantial floating profits [1]. - According to data compiled by Zishitang, among 53 quantitative private equity funds' CSI 500 enhanced products (with institutional scale all above 1 billion yuan, including 26 "10 - billion - scale giants"), the average return in 2025 was about 28.4%, while the CSI 500 Index only rose 10.4% during the same period [1]. - Zhaopin data showed that in the second quarter, the number of recruitment positions in the humanoid robot field increased by 398.1% year - on - year, far leading the growth rate. Technical talents proficient in algorithms and mechanical structure design have become highly sought - after in the job market [1]. - Apollo's chief economist said that consumer spending usually accounts for 70% of the US GDP, and private consumption is usually the main driving force for US GDP growth. However, in the first half of the year, the contribution of data center investment to US GDP growth was the same as that of consumer spending. The contribution of consumer spending has been declining, while that of data center construction has been rising [1]. - The drag effect of US trade tariffs is becoming increasingly apparent in Europe. In June, the exports of the 27 EU countries to the US decreased by 10% year - on - year to just over 40 billion euros (about 46.8 billion US dollars), the lowest level in two years [2]. - JPMorgan Chase said that multiple alternative inflation indicators showed that inflation not only failed to continue to decline, but the sticky part of core inflation was accelerating again, and a considerable part of its persistence was not related to tariffs. Unless the economy falls into recession, the persistent inflation will not support the Fed to take more aggressive easing policies [2]. - Goldman Sachs said that among the S&P 500 component stocks that have announced their earnings reports, 60% of the companies' earnings per share exceeded expectations by more than one standard deviation, mainly due to companies' multiple strategies such as supplier negotiations, supply chain adjustments, cost cuts, and passing on price increases to consumers, and the weakening of the US dollar provided additional impetus for corporate sales growth [2]. Market Logic - The major indices of the two markets had a strong consolidation on Tuesday to repair technical indicators. Hedge funds' net buying of Chinese stocks last week reached the highest level in seven weeks, making China the market with the largest capital inflow on the platform since August. The Shanghai Composite Index hit a nearly 10 - year high on Monday, and the total A - share market capitalization of A - share companies exceeded 100 trillion yuan, a record high. The year 2025 has seen a "quantitative boom" in the quantitative circle, and many quantitative institutions have enjoyed a "silent bull market" with floating profits [2]. Future Market Outlook - The major indices of the two markets had a strong consolidation on Tuesday to repair technical indicators, and the trading volume remained high. The State Council meeting emphasized measures to stimulate consumption and investment. Hedge funds' net buying of Chinese stocks reached a seven - week high. Goldman Sachs believes that the Chinese humanoid robot industry is iterating products at an amazing speed with a clearer commercialization path. The Fed may use currency depreciation to deal with debt, and the probability of a September interest rate cut by the Fed has risen to 100%. The "de - Americanization" of global financial asset reallocation is expected to accelerate the inflow of international funds into A - shares. The strong consolidation of major indices after continuous rises is a normal technical trend, and continuous capital inflows will drive the stock market to maintain an upward trend [2]. Trading Strategy - Stock index futures directional trading: The strong consolidation of major indices after continuous rises is a normal technical trend, and continuous capital inflows will drive the stock market to maintain an upward trend [2]. - Stock index options trading: With continuous capital inflows, investors can choose to buy out - of - the - money long - term call options on growth - type stock indices [2].

Core Insights - The A-share market has reached a significant milestone with the Shanghai Composite Index hitting a nearly ten-year high and total market capitalization surpassing 100 trillion yuan, indicating a new valuation phase for the market [1] - In 2025, the quant investment sector has experienced a "silent bull market," with many quant funds achieving substantial returns, reminiscent of the strong performance seen in 2019 and even surpassing 2020 [1][16] - Quantitative private equity funds focusing on the CSI 500 index have shown remarkable performance, with many products yielding over 30% returns year-to-date as of August 8, 2025 [2][10] Quantitative Fund Performance - As of August 8, 2025, at least 14 quant institutions reported annual returns exceeding 30%, with the leading product, "Xing*2," achieving a return of 41.54% [2][3] - The average return for the CSI 500 enhanced strategy among 53 quant private equity products was approximately 28.4%, significantly outperforming the CSI 500 index, which only rose by 10.4% [10][12] Market Context and Strategy - The CSI 500 enhanced strategy has been a cornerstone for many quant private equity firms, known for its long-standing performance and ability to attract institutional capital [4][5] - The current strong performance of the CSI 500 enhanced strategy is expected to surpass the previous bull market peak in 2021, indicating a robust recovery and growth potential in the quant sector [5][16] Unique Market Conditions - The current market environment is characterized by rising indices and enhanced strategy performance, leading to a rare combination of relative and absolute returns for investors [14][16] - The quant sector's ability to generate excess returns in a favorable market context has made 2025 a standout year, comparable to the peak years of 2019 and 2020 [16][17]

Group 1 - The number of private securities investment funds registered in July reached 1,203, setting a new monthly record for the year, indicating a recovery in the private placement market as investor enthusiasm rises [1] - Quantitative products remain the main force in the registration of new private funds, with notable firms like Nine Kun Investment and Ming Cong Investment launching new products [1] - The overall private fund issuance market shows a warming trend, with the number of registered funds in previous months being lower, such as 1,075 in June and 1,138 in April [1] Group 2 - Guangdong Hongxi Fund Management announced the suspension of fundraising for some of its traditional quantitative CTA products starting August 1, 2025, to focus on existing investors and enhance service quality [2] - The firm has managed assets between 5 billion and 10 billion yuan, emphasizing a cautious management principle regarding strategy capacity limits [2] - Other quantitative private funds have also announced similar suspensions, indicating a trend of selective fundraising in the market [3] Group 3 - The private fund issuance market is experiencing uneven performance, with quantitative funds attracting more capital compared to subjective funds, which struggle to achieve significant fundraising [3] - Some leading subjective private funds have also paused new client subscriptions, reflecting a cautious approach to managing growth and performance [3] - The macro environment is perceived as favorable for quantitative funds this year, leading to rapid sellouts of popular products, while many private institutions still face fundraising challenges [3]