Macro Strategy - Public fiscal expenditure in June showed a year-on-year growth rate of 0.38%, with a cumulative growth rate of 3.4% for the first half of the year, maintaining around 4% overall. However, the fiscal revenue and expenditure gap for the first half of the year was -25,705 billion, higher than the -20,658 billion in the same period of 2024, indicating no improvement in fiscal conditions [2][3] - The LPR remained unchanged in July, with the one-year LPR at 3.00% and the five-year LPR at 3.50%. This stability aligns with market expectations, reflecting the positive effects of the LPR adjustment made in May [2][3] Stock Market Overview - A-share indices showed a fluctuating upward trend from July 21 to July 25, with the Shanghai Composite Index rising by 1.67%, the Shenzhen Component Index by 2.33%, and the ChiNext Index by 2.76%. The STAR Market Index saw the highest weekly fluctuation at 4.36% [3][5] - The market's upward momentum is primarily driven by the commencement of the Yarlung Tsangpo River downstream hydropower project, boosting infrastructure-related sectors, and the continued strength of the technology sector. The GDP growth for the first half of the year was 5.3% year-on-year, laying a foundation for the market's upward trend [5][6] Investment Recommendations - The A-share market is expected to operate in a "slow bull" manner in 2025, supported by policies aimed at stabilizing the stock market and overlapping trends from the new "National Nine Articles" and similar to the "Four Trillion" investment [7] - Key sectors to focus on in 2025 include technology, green energy, consumption, and infrastructure, as highlighted in the government work report [7] - In the short term, the market may experience downward adjustments in August due to uncertainties surrounding US-China tariff negotiations, despite the overall positive economic performance in the first half of the year [7] North Exchange Overview - As of July 25, 2025, the North Exchange had 268 listed stocks, with an average total market value of 8,520.87 billion, an increase of 2.36% from the previous week [9][10] - The liquidity of the North Exchange improved significantly, with an average trading volume of 1.427 billion shares, up 39.13%, and an average trading value of 31.082 billion, up 42.36% [10] Industry Insights Semiconductor Industry - The company Micron is leveraging an AI+SaaS strategy to enhance its platform and integrated development path, significantly improving its competitive advantage. In 2024, the AI+SaaS business revenue reached 842 million, accounting for 54% of total revenue [32][33] - The marketing SaaS market in China is projected to grow from 35.6 billion in 2024 to 74.5 billion by 2027, with a CAGR of 29.3%, indicating substantial growth potential [33] Pharmaceutical Industry - The ADC (Antibody-Drug Conjugate) market is experiencing explosive growth, with the global market size expected to rise from 7.9 billion in 2022 to 14.1 billion in 2024, and projected to exceed 68.5 billion by 2030, reflecting a CAGR of 30.1% [26][27] - The CDMO (Contract Development and Manufacturing Organization) sector is becoming increasingly essential due to the high technical barriers of ADC drugs, with the market size expected to grow from 0.1 billion in 2018 to 2.1 billion in 2022, and projected to reach 2.45 billion by 2030 [27][28] Investment Suggestions - The semiconductor sector is expected to benefit from the growth of KA clients and the rapid deployment of AI applications, leading to a high growth period for the company's SaaS business [36] - In the pharmaceutical sector, companies with ADC-related technology reserves, such as WuXi AppTec and Haoyuan Pharmaceutical, are recommended for investment due to their significant growth potential in the CDMO space [30][31]