Group 1 - The A-share market showed a trend of initial decline followed by recovery in Q2, with significant drops in major indices due to "reciprocal tariffs" but later rebounded due to stabilizing funds and increased local asset allocation [1] - By June 30, the quarterly gains for major indices were as follows: Shanghai Composite Index at 3.26%, SSE 50 at 1.74%, CSI 300 at 1.25%, CSI 500 at 0.98%, and CSI 1000 at 2.08% [1] - Structural opportunities were identified in sectors such as new consumption, innovative pharmaceuticals, dividends, military, and solid-state batteries despite limited upward space for indices [1] Group 2 - The Ministry of Finance, State Taxation Administration, and Ministry of Commerce announced a tax credit policy for foreign investors to encourage long-term investment and reinvestment in China, particularly benefiting advanced manufacturing and modern service industries [2] - The policy aims to guide capital into the real economy and prevent financial speculation, with a focus on substantial equity investments rather than secondary market trading [2] - This initiative is expected to attract foreign capital into A-share market, especially benefiting "specialized, sophisticated, and innovative" companies with market values below 20 billion [2] Group 3 - A trend of de-dollarization is prompting some foreign capital to consider entering the Chinese stock market, with a survey indicating increased investor willingness to wait for more easing signals before increasing positions [3] - Key points to monitor in July include the mid-year reporting period for companies with significant profit growth, the expiration of the 90-day exemption from reciprocal tariffs, and an important meeting at the end of July [3] - The evolution of policies in the second half of the year is expected to be crucial for the A-share market's performance, with potential policy actions anticipated in late Q3 or early Q4 [3]