Market Performance - A-shares experienced a strong upward trend on July 22, with all three major indices reaching new highs for the year. The Shanghai Composite Index closed at 3581.86 points, up 0.62%, with a trading volume of 840.6 billion yuan. The Shenzhen Component Index closed at 11099.83 points, up 0.84%, with a trading volume of 1052.5 billion yuan. The ChiNext Index closed at 2310.86 points, up 0.61%, with a trading volume of 481.3 billion yuan. The total trading volume for both markets was 1.89 trillion yuan, an increase of 193.1 billion yuan from the previous trading day [1]. Sector Performance - Most industry sectors saw gains, with engineering machinery, coal, cement and building materials, steel, engineering consulting services, engineering construction, energy metals, and precious metals leading the way. Conversely, packaging materials, gaming, and banking sectors experienced declines [1]. Fund Flow and Investor Sentiment - The A-share market is witnessing a significant improvement in liquidity, with a notable increase in the financing balance, which rose by over 15 billion yuan, marking the highest increase since March 6. The total financing balance reached 1.904566 trillion yuan, with the Shanghai Stock Exchange reporting 959.609 billion yuan and the Shenzhen Stock Exchange reporting 938.876 billion yuan [5]. - The market's risk appetite has increased, with many institutions expressing optimism about future performance. The shift in investor sentiment is attributed to several factors, including the low valuation of "anti-involution" sectors and strong financial data from June, which supports mid-term profit expectations [5][6]. Institutional Insights - Multiple institutions, including Zhongjin Company, have noted that the A-share market is undergoing structural differentiation, with new sectors showing strong capital support. The focus is shifting towards technology and consumer sectors, which are gaining attention from foreign investors [6]. - The insurance capital allocation in A-shares is expected to increase from approximately 11% to 15% or higher over the next two to three years, with an annual net increase in allocation potentially reaching 300 to 500 billion yuan [3]. Regulatory Developments - The Ministry of Human Resources and Social Security is set to advance reforms in pension insurance, including national coordination and delayed retirement age, which may positively impact the market by enhancing fund management and investment capabilities [2].