- The DecompGRU model was used to construct a weekly long-only stock selection portfolio, holding the top 200 stocks with the highest integrated scores based on the model. The portfolio is rebalanced weekly on the first trading day, using factor values updated after the previous Friday's close. Stocks from the CSI All Share Index are selected, excluding stocks with trading halts or price limits, and transaction costs are not considered. The benchmark for comparison is the CSI All Share equal-weighted index[7][9] - The DecompGRU model's stock scores were aggregated to construct an ETF rotation portfolio. The ETF pool is limited to industry and thematic ETFs, retaining only the ETF with the highest 5-day average trading volume if multiple ETFs track the same index. ETFs must meet minimum trading volume criteria (5-day average > 20 million and 20-day average > 10 million). The portfolio holds 2-6 ETFs per period and is rebalanced weekly without a fixed schedule. The benchmark for comparison is the Wind ETF Index[10][12] - A sentiment factor was constructed using user behavior data from Tonghuashun, aggregating stock-level heat metrics (browsing, watchlist, and click counts) normalized by market share on the same day and multiplied by 10,000. The sentiment factor serves as a proxy for "emotional heat" at the broader index, industry, and concept levels[14] - A simple rotation strategy was built based on weekly heat change rates (MA2 smoothed) for broad-based indices. On the last trading day of each week, the strategy buys the index with the highest heat change rate. If the "Others" group has the highest rate, the strategy remains in cash. The strategy's annualized return since 2017 is 8.74%, with a maximum drawdown of 23.5%. In 2025, the strategy achieved a return of 36.8%, compared to the benchmark's 35%[20][23] - A concept-level sentiment strategy was constructed by selecting the top 5 concepts with the highest weekly heat change rates. Stocks within these concepts were filtered to exclude the bottom 20% by market capitalization. Two portfolios were created: a "TOP" portfolio holding the top 10 stocks by total heat within each concept, and a "BOTTOM" portfolio holding the bottom 10 stocks. The BOTTOM portfolio achieved an annualized return of 15.71% with a maximum drawdown of 28.89%. In 2025, the BOTTOM portfolio returned 41.8%[40][41] - The DecompGRU TOP200 portfolio achieved a cumulative absolute return of 60.48% and an excess return of 34.62% relative to the CSI All Share equal-weighted index since its inception on March 31, 2025. The portfolio's maximum drawdown was 10.08%, with weekly and monthly win rates of 67.50% and 100%, respectively. In December 2025, the portfolio's absolute return was 7.57%, with an excess return of 5.46%[9] - The ETF rotation portfolio achieved a cumulative absolute return of 26.23% and an excess return of 1.56% relative to the Wind ETF Index since its inception on March 18, 2025. The portfolio's maximum drawdown was 7.82%, with weekly and monthly win rates of 60.98% and 66.67%, respectively. In December 2025, the portfolio's absolute return was 2.35%, with an excess return of -1.51%[12][13]

Market Overview - The A-share market experienced a collective rise, with the ChiNext Index leading the gains, and both the Shanghai Composite Index and Shenzhen Component Index reaching new highs for the year [2][5] - The Shanghai Composite Index closed at 3647.55, up 0.34%, while the Shenzhen Component Index rose by 1.46% to 11291.43 [2] - The total trading volume in the Shanghai and Shenzhen markets was 1.83 trillion, an increase of 116.7 billion compared to the previous trading day, marking the 18th consecutive trading day above 1.5 trillion [5] Sector Performance - The top-performing sectors included Power Equipment (up 2.04%), Communication (up 1.95%), and Computer (up 1.94%), while the banking sector saw a decline of 1.01% [2][3] - Notable concept stocks included PEEK materials and MicroLED, which saw significant gains, while gold concepts and certain metal sectors experienced declines [3] Technical Analysis - The Shanghai Composite Index successfully broke through the previous resistance level of 3650.50, indicating a strong short-term market condition [5] - The 5-day and 10-day moving averages formed a golden cross, suggesting bullish momentum, while the Shenzhen Component Index has entered an upward channel [5] Future Outlook - The market is expected to continue its upward trend, supported by positive domestic factors and increasing wealth effects, which may attract both domestic and foreign investments [5] - Key sectors to focus on include TMT (Technology, Media, and Telecommunications), public utilities, pharmaceuticals, and finance, as structural opportunities may arise [5]

Market Overview - The A-share market showed a mostly positive trend today, with the Shanghai Composite Index rising by 0.34% to close at 3647.55 points, and the Shenzhen Component Index increasing by 1.46% to 11291.43 points [1] - The total trading volume in the Shanghai and Shenzhen markets reached 182.7 billion yuan, an increase of 11.67 billion yuan compared to the previous trading day [1] Industry Performance - Among the primary industries, sectors such as power equipment, telecommunications, computers, electronics, food and beverage, and pharmaceuticals led the gains, while banking, oil and petrochemicals, coal, public utilities, transportation, and textiles faced declines [1] - The top-performing concept sectors included PEEK materials, lithium mining, stock trading software, cultivated diamonds, lithium iron phosphate batteries, circuit boards, lithium battery anodes, and power equipment [2]

Domestic Market Overview - The domestic market experienced a rise in both volume and price, with the Shanghai Composite Index closing at 3633.99 points, up 0.45%, and the Shenzhen Component Index closing at 11177.78 points, up 0.64% [1][4][9] - A total of 22 out of 30 sectors in the CITIC first-level industry index saw gains, with significant increases in machinery, defense, and coal sectors, while pharmaceuticals, comprehensive, and construction sectors faced declines [1][4][9] - The total trading volume of the A-share market reached 175.92 billion yuan, showing an increase compared to the previous day [1][4][9] Overseas Market Overview - All three major U.S. stock indices closed higher, with the Dow Jones up 0.18%, the S&P 500 up 0.73%, and the Nasdaq up 1.21%, driven by a more than 5% increase in Apple shares [2][4] - The index tracking seven major U.S. technology stocks rose by 1.74%, and most Chinese concept stocks also saw gains, with "Quantum Song" rising over 9% [2][4] Industry Insights - The retail sales of passenger cars in China for July reached 1.834 million units, a year-on-year increase of 7%, while wholesale figures also showed a 12% increase compared to the same month last year [3][15] - In the steel industry, key enterprises reported a daily crude steel production of 1.982 million tons in late July, marking a year-on-year increase of 0.43% [3][16] - The global manufacturing purchasing managers' index (PMI) for July was reported at 49.3%, indicating a slight decline, suggesting a weakening recovery in global manufacturing [20]

Market Overview - The A-share market experienced slight declines last Friday, with the Shanghai Composite Index down 0.4% to 3367.46 points, the Shenzhen Component Index down 0.07%, and the ChiNext Index down 0.19% [1][7] - The total trading volume in the A-share market was approximately 1.09 trillion yuan, with over 2800 stocks rising [1][7] - In terms of industry performance, the automotive and machinery equipment sectors led the gains, while the beauty and personal care sector lagged [1][7] - The Hong Kong Hang Seng Index fell 0.46% to 23345.05 points, while the US stock indices all closed higher, with the Dow Jones up 0.78%, S&P 500 up 0.70%, and Nasdaq up 0.52% [1][7] Important News - The China Securities Regulatory Commission (CSRC) approved amendments to the "Major Asset Restructuring Management Measures for Listed Companies," which will take effect immediately. Key changes include the establishment of a phased payment mechanism for restructuring shares, an increase in regulatory tolerance for financial condition changes, and the introduction of a simplified review process for certain restructuring transactions [2][8] - The Central Committee of the Communist Party of China and the State Council issued a revised "Regulations on Strictly Saving and Opposing Waste by Party and Government Agencies," emphasizing the importance of frugality and responsibility in government spending [5][9] Industry Insights - In April, India's diamond import value turned positive year-on-year, with lab-grown diamond rough imports increasing by 55% to 0.91 billion USD, while natural diamond rough imports also showed a positive year-on-year change [10][12] - The penetration rate of lab-grown diamonds in India's export market rose to 9.08%, up by 2.32 percentage points year-on-year, indicating a growing acceptance of these products [12] - The beauty and personal care sector saw a slight increase in fund allocation in Q1 2025, with the total market capitalization of the sector reaching 254.2 billion yuan, reflecting a 3.38% increase from the previous quarter [19][20] - The personal care and medical beauty sub-sectors are currently in an overweight position, while the cosmetics sector has reached a historical low in allocation [20][21] Strategic Collaborations - Huawei and UBTECH signed a comprehensive cooperation agreement to deepen collaboration in humanoid robotics, focusing on the development of intelligent technologies and multi-scenario applications [14][15] - Tencent Cloud and Yujian Technology also signed a strategic cooperation agreement to enhance humanoid robot technology development, aiming to reduce costs and accelerate industrialization [16][17]