Core Viewpoint - The A-share market has reached new highs in 2023, with all three major indices showing positive growth, indicating a strong market sentiment and potential for continued upward movement [1][2]. Market Performance - As of July 22, 2023, the Shanghai Composite Index rose by 0.62% to 3581.86, the Shenzhen Component Index increased by 0.84% to 11099.83, and the ChiNext Index gained 0.61% to 2310.86 [2]. - The total trading volume in the Shanghai and Shenzhen markets was 1.89 trillion yuan, an increase of 193.1 billion yuan compared to the previous trading day, with over 2500 stocks rising and more than a hundred stocks hitting the daily limit [2]. Sector Performance - The infrastructure sector showed strong performance, particularly in cement stocks, which experienced a surge in limit-up stocks. Other sectors such as coal, organic silicon, pork, liquor, precious metals, and Hainan Free Trade Zone also saw significant gains [4]. - Specific stocks in the hydropower sector, including Poly Union, China Power Construction, and Jiangnan Chemical, saw nearly 20 stocks hit the daily limit [5]. - The coal sector experienced a notable afternoon rally, with companies like Lu'an Environmental Energy, Jinkong Coal Industry, and Shanmei International seeing eight stocks hit the daily limit [6]. Capital Flow - Main capital inflows were observed in the coal, machinery equipment, and precious metals sectors, while outflows were noted in pharmaceuticals, public utilities, and education sectors [7]. - Individual stocks such as Great Wall Military Industry, Kweichow Moutai, and Tebian Electric Apparatus received net inflows of 929 million yuan, 782 million yuan, and 578 million yuan, respectively [8]. - Conversely, stocks like Northern Rare Earth, Wolong Electric Drive, and Construction Industry faced net outflows of 883 million yuan, 701 million yuan, and 676 million yuan, respectively [9]. Institutional Insights - Guorong Securities suggests that the market's upward trend is likely to continue [10]. - Dexun Securities notes that the indices are steadily rising, showcasing a healthy structure of price increase and volume growth, with strong bullish momentum and improved market sentiment [11]. - Zhongtai Securities indicates that the current market sentiment is high, fueled by recent large-scale infrastructure announcements, and suggests maintaining a relatively optimistic outlook while focusing on sectors like robotics and low-altitude economy [11].

Core Viewpoint - The investment strategy emphasizes focusing on industry prosperity and selecting quality stocks based on macroeconomic trends and sector performance [2][3]. Group 1: Industry Focus and Investment Strategy - The investment approach is centered around industry prosperity, utilizing a macro perspective to identify key investment points across various sectors [2][3]. - The current A-share market has over 5,000 listed companies, making it challenging to select individual stocks efficiently; thus, focusing on industry research can mitigate risks associated with single stocks [2]. - The investment style has evolved to prioritize industry dynamics rather than relying solely on individual stock performance [3]. Group 2: Importance of Expectations and Imagination - Stock prices reflect investors' expectations about a company's future; thus, having a compelling narrative is crucial for attracting investment [4][5]. - Successful stocks often have a strong narrative that aligns with broader economic trends, such as the rise of premium consumer goods driven by economic growth and consumer upgrading [4]. - The sustainability of industry growth rates is critical for assessing industry prosperity, distinguishing between current performance and future expectations [5]. Group 3: Timing and Market Dynamics - Different industries have varying optimal investment timings; for instance, technology stocks may require different strategies at different growth stages [5]. - The recent surge in AI-related sectors highlights the need to focus on structural details rather than just macro narratives, with an emphasis on high-dividend stocks that also exhibit growth potential [6].