Market Overview - A-shares experienced a pullback this week, with sectors such as innovative drugs, CRO, and film box office showing the highest gains, while small metals, coal, and rare earth permanent magnets faced the largest declines [1] - The Shanghai Composite Index fell by 1.8%, the CSI 500 Index decreased by 1.6%, the ChiNext Index dropped by 0.7%, the STAR Market 50 Index declined by 1.7%, and the Hang Seng China Enterprises Index decreased by 3.8% [1][3] Index Performance - The rolling P/E ratios for major indices are as follows: - CSI 300 Index: 13.2 times - CSI 500 Index: 15.3 times - ChiNext Index: 33.7 times - STAR Market 50 Index: 144.6 times - Hang Seng China Enterprises Index: 10.2 times [3] - The rolling P/E ratio percentiles indicate relative valuation levels, with the following percentiles: - CSI 300 Index: 52.2% - CSI 500 Index: 55.5% - ChiNext Index: 17.5% - STAR Market 50 Index: 99.3% - Hang Seng China Enterprises Index: 62.3% [3] Sector Composition - The CSI 300 Index comprises 500 large-cap, liquid securities covering 91 out of 93 three-level industries [4] - The ChiNext Index consists of 100 stocks with high market capitalization and liquidity, with strategic emerging industries accounting for over 55% of the index, particularly in power equipment, pharmaceuticals, and electronics [4] - The STAR Market 50 Index includes 50 large-cap, liquid stocks, with over 50% in semiconductors and nearly 75% combined in medical devices, photovoltaic equipment, and software development [4] - The Hang Seng China Enterprises Index includes 50 large-cap, actively traded stocks from mainland China listed in Hong Kong, with over 85% in consumer discretionary, financials, information technology, and energy sectors [4] Recent Performance Trends - Over the past month, the cumulative performance of major indices is as follows: - CSI 300 Index: +2.8% - CSI 500 Index: +3.6% - ChiNext Index: +9.4% - STAR Market 50 Index: +5.5% - Hang Seng China Enterprises Index: +0.9% [7] - Year-to-date performance shows: - CSI 300 Index: +3.1% - CSI 500 Index: +4.0% - ChiNext Index: +8.5% - STAR Market 50 Index: +4.8% - Hang Seng China Enterprises Index: +20.8% [7]

Group 1 - The A-share market is expected to see a rebound after a near-term correction, with a target of breaking through 3674 points before the end of June [3] - The Hong Kong market is viewed as more attractive for retail investors, with significant room for growth in indices like the Hang Seng Index and Hang Seng Technology Index, which are at historical low valuations [3] - Core stocks in the A-share market are gradually listing in Hong Kong, indicating a shift in investment focus [3] Group 2 - The overall market is likely to experience sideways movement, with no significant downturn expected unless there are unexpected negative or positive developments [5] - Major weight stocks have not seen substantial gains, but their price-to-earnings ratios limit the potential for significant declines, suggesting a stable outlook for sectors like banking, insurance, and consumer goods [5] - The market is characterized by sector rotation, with undervalued companies expected to recover while overvalued stocks may decline, emphasizing the importance of timing in investment strategies [7]