Core Viewpoint - The market is experiencing a broad upward trend with significant participation from retail investors, particularly in sectors like new energy and AI computing, while institutional investors are rationally reallocating funds towards high-growth areas with clear industrial trends and policy support [4][6]. Market Performance - A total of 4,855 stocks rose, indicating a strong profit-making effect, with sectors such as solid-state batteries, photovoltaics, wind power, silicon energy, and CPO leading the gains [4]. - The trading volume in the two markets was 2.30 trillion yuan, down 9.42%, reflecting a "volume contraction rebound" characteristic, suggesting that the market's rebound is more of a technical correction rather than a trend reversal [4]. Fund Flow - There was a net outflow of 2.783 billion yuan from institutional funds, while retail investors showed a net inflow, indicating a divergence in investment behavior [5]. - Institutions are shifting funds from defensive sectors to high-growth sectors like new energy and AI computing, while retail investors are actively chasing popular themes of the day [6]. Investor Sentiment - Retail investor sentiment is notably high, with 75.85% of investors feeling optimistic about the market [7]. - The proportion of investors increasing their positions is 25.69%, while 21.26% are reducing their positions, indicating a generally positive outlook among retail investors [11].

Core Viewpoint - The article discusses the current state of the stock market, emphasizing that despite recent volatility, the bull market is still ongoing and investors should not panic. It highlights the importance of sector rotation and identifies potential investment opportunities within the technology sector and other low-performing areas [1][2][17]. Market Dynamics - The market has experienced increased volatility since last week, which is a normal reaction following a continuous rise in indices [2]. - There is still an influx of incremental capital into the market, with significant household savings poised to enter [3][5]. - As of July, household deposits reached 160 trillion, indicating a relatively high level compared to past bull markets [8]. Government and Institutional Support - The government currently shows no intention to suppress the stock market, contrasting with the 2015 bull market when strict measures were implemented [15]. - The government has been actively buying to support the market, which has helped maintain index stability [15][17]. Sector Rotation and Investment Opportunities - The article predicts that sector rotation is inevitable, with past trends showing that popular sectors often experience corrections [18]. - Current hot sectors include AI computing and robotics, which are expected to see continued interest despite potential short-term adjustments [19][20]. - Other sectors such as consumer goods and non-bank financials are also highlighted as potential areas for investment, especially with upcoming policy changes and seasonal factors [21]. Investment Strategy - Investors are advised to focus on core stocks with strong industry logic rather than chasing smaller, less established stocks [21]. - A suggested strategy is to maintain a stable portfolio of key stocks to better manage market fluctuations, as the bull market is expected to continue [22].

Core Insights - The rapid development of artificial intelligence (AI) in China, particularly in large models, has become a global focus, with 478 large AI models released by Q1 2024, second only to the United States [2] - The maturity of China's large model industry is evident in its comprehensive research and development system, which includes theoretical methods, algorithm frameworks, and hardware-software collaboration [4] - The construction of self-built computing power is crucial for the core competitiveness of large language models, with China's computing power scale reaching 180 EFlops in 2022, a 28.6% year-on-year increase, ranking second globally [4] Industry Development - The demand for computing power in AI services is increasing, and there is a need to effectively utilize existing supercomputing and intelligent computing centers to avoid resource waste [5] - The establishment of an AI infrastructure system should not overly emphasize integrated layouts but should support diverse developments under national policy guidance [5] - The use of large models to create specialized models can achieve high precision with low energy consumption, highlighting the importance of strategic planning and division of labor in AI computing power services [5]

Core Viewpoint - The article emphasizes that the current market dynamics indicate a continuation of the bull market, driven by technology stocks and government support, despite recent volatility and sector rotation [2][5][20]. Market Dynamics - Recent market fluctuations are seen as a normal reaction following a period of continuous index growth, with significant adjustments occurring in popular technology stocks [3][5]. - The market is at a critical juncture, with uncertainty about whether it will decline further or continue upward, albeit with sector shifts [3][21]. Fund Flows and Liquidity - There is still an influx of incremental capital into the market, with a significant amount of household savings poised to enter [6][12]. - As of July, household deposits reached 160 trillion, indicating a high ratio compared to total market capitalization during past bull markets [12][14]. - The current leverage levels in the market are different from those in 2015, suggesting a more stable environment for growth [9]. Government Support - The government currently shows no intention to suppress the stock market, contrasting with the actions taken during the 2015 bull market [18]. - Government-controlled banks are expected to intervene to stabilize the index if necessary, making significant declines in the Shanghai Composite Index less likely [18][20]. Sector Rotation - The article notes that sector rotation is a common occurrence in the A-share market, with previous trends indicating that popular sectors eventually face corrections [21]. - Current hot sectors include AI computing and robotics, which are expected to experience volatility but maintain an upward trajectory in the long term [22][23]. - Other sectors, such as consumer and non-bank financials, are also highlighted as potential areas for investment, especially with upcoming policy changes and traditional consumption peaks [24]. Investment Strategy - Investors are advised to focus on core stocks with strong industry logic rather than chasing various hot topics, as this approach may yield better results amid market fluctuations [26]. - The article suggests that maintaining a diversified portfolio of key sectors will help navigate the ongoing bull market effectively [26].

Industry Investment Rating - The industry investment rating is "Outperform the Market" and is maintained [1] Core Viewpoints - The report emphasizes the growth potential of AI infrastructure, predicting the market could reach USD 171.21 billion by 2029, with a CAGR of 20.12% from 2024 to 2029 [4] - Major cloud providers are significantly increasing their investments in infrastructure, with Alibaba Cloud planning to invest over CNY 380 billion in the next three years [4] - The demand for AI and data solutions is surging, as evidenced by Snowflake's financial performance, which exceeded expectations with a 32% year-on-year revenue increase [6] Summary by Relevant Sections Industry Basic Situation - The closing index is 5786.18, with a 52-week high of 5841.52 and a low of 2844.68 [1] Relative Index Performance - The relative performance of the computer industry shows fluctuations, with a notable increase of 96% from September 2024 to August 2025 [3] Recent Research Reports - The report highlights the strategic focus on AI infrastructure, addressing challenges such as computational bottlenecks and data silos, which are critical in the era of large models [4] - Companies like Tencent Cloud and SenseTime are also expanding their infrastructure capabilities, with Tencent planning new data centers in the Middle East and Indonesia [5] Investment Recommendations - Suggested companies for investment include those in cloud computing such as Deepin Technology and Kingsoft Cloud, as well as AI-related firms like XH Technology and DaMeng Data [7][8]

Group 1 - The core viewpoint of the article highlights the performance of the Shanghai Stock Exchange Science and Technology Innovation Board Growth Index, which consists of 50 stocks with high growth rates in revenue and net profit, predominantly in the electronic and pharmaceutical industries, accounting for nearly 75% of the index [3] - As of the midday close, the index has experienced a decline of 3.2% [3] - The rolling price-to-earnings (P/E) ratio of the index stands at 217.7 times, indicating a high valuation relative to earnings [3] Group 2 - The index was launched on November 4, 2022, and is designed to track high-growth companies within the Science and Technology Innovation Board [3] - The valuation metrics used, such as rolling P/E ratio and valuation percentile, are closely related to corporate earnings and are suitable for industries that are relatively stable and less affected by economic cycles [3] - The index's historical performance and valuation data are referenced up to September 1, 2025, providing a future outlook for investors [3]

Report Industry Investment Rating No relevant content provided. Core Viewpoints - The equity market continued its structural slow - bull trend in the month, with A - share major indices hitting new highs for the year. The "dumbbell - style" asset allocation was prominent. The policy promoted supply - side reform in over - capacity industries, and the technology growth sector regained activity. The market is expected to maintain a volatile upward trend in the coming month, and investors are advised to focus on sectors with strong performance certainty and capture rotation opportunities among different sectors [3][70]. - In the operation strategy, as the market has accumulated a certain increase and entered the quarterly report period, with obvious rotation characteristics, investors can buy IM on dips and use IH for defense with an appropriate position [4]. Summary According to the Table of Contents Macro Economy - **CPI Situation**: The month's CPI remained flat at a low level, mainly dragged down by the food sub - item. The core CPI continued to rise to 0.8%. The prices of industrial consumer goods and services were stronger than seasonal, driving the CPI to rise to 0.4% month - on - month, slightly higher than the average of the past ten years. The food price decreased by 1.6% year - on - year, with the decline widening by 1.3 percentage points compared to the previous month [12]. - **PPI Situation**: The month's PPI decreased by 3.6% year - on - year, with the decline remaining the same. From the demand side, extreme weather and international environment uncertainty led to a slowdown in construction and suppressed the demand for building materials. From the supply side, hydropower replaced thermal power, causing electricity prices to fall. Although the anti - involution policy narrowed the price decline in some industries, the overall price improvement was limited, highlighting the need for more demand - side policy support [13]. - **Export Situation**: The month's export increased by 7.2% year - on - year and decreased by 1.0% month - on - month (in US dollars). The "rush - to - export" effect was an important reason for the acceleration of exports. Exports to the US continued to be under pressure, while exports to the EU, ASEAN, India, and Latin America increased [16]. - **Consumption and Real Estate**: The month's total retail sales of consumer goods increased by 3.7% year - on - year. The growth rate of commodity retail decreased, and the catering industry was still weak. The real estate demand needed to be boosted, with the prices of second - hand and new houses diverging, and the investment decline continuing to widen [21]. - **Manufacturing PMI**: The month's manufacturing PMI rose 3.1 percentage points to 51.5%, remaining in the expansion range for two consecutive months. There was structural differentiation in sub - indicators, with the new export order index still below the boom - bust line, and the cost pressure on mid - and downstream enterprises remaining [22]. - **Policy**: The central bank maintained the LPR, and the government issued special treasury bonds to support consumer goods replacement and "two - major" construction projects. The Politburo meeting continued the "seeking progress while maintaining stability" tone, emphasizing more active fiscal and moderately loose monetary policies [27]. Market Review - **A - share Performance**: In the month, the A - share market rose unilaterally. The central bank's MLF operation increased market liquidity, driving the major indices up. The technology sector led the rise, and foreign capital showed obvious signs of return. Most industries in the Shenwan primary industry rose, with communication and electronics leading [33][34]. - **Market Style**: In the month, different styles, scales, and performance segments of the A - share market showed differential rises. The growth style index led with a 15.93% increase, and large, medium, and small - cap indices all rose by more than 10%. The market risk preference increased, and the investment concept became more rational [37]. - **Liquidity**: From the specified period, the A - share market's average daily trading volume increased by 34.5% month - on - month, and the newly established equity - oriented fund shares increased by 112.5% month - on - month, indicating increased market activity and institutional capital inflows [45]. - **Market Sentiment**: The month's market trading enthusiasm was significantly high, with daily trading volume often exceeding 1 trillion yuan. The market risk preference recovered, and the turnover rate of major indices increased, especially in the science and technology innovation and ChiNext indices [48]. Private Equity Strategy - **Basis Analysis**: The month's basis showed significant volatility, with convergence in the first half and widening in the second half. This had a significant impact on neutral strategies, both increasing risks and providing potential arbitrage opportunities [54]. - **Private Equity Sub - strategy Performance**: In the month, all private equity strategies achieved positive returns. The long - only strategy and the arbitrage strategy led with single - month returns of 18.2% and 16%, respectively [57]. - **Index - Enhancement Strategy**: In the month, the excess returns of CSI 300, CSI 500, and CSI 1000 index - enhancement strategies showed significant differentiation. In the long - term, small and medium - cap index - enhancement strategies continued to lead [61]. - **Market Neutral Strategy**: The month's market neutral strategy environment improved, with an average return of 1.17% and about 83.87% of products achieving positive returns. The market's differentiated market provided more space for long - short hedging strategies [66].

Market Performance - A-shares continued strong performance with the Shanghai Composite Index reaching a high of 3879.05 points during the session, closing at 3862.65 points, up 0.12% [1] - The Shenzhen Component Index and the ChiNext Index rose by 0.11% and 0.55%, respectively [1] Gold Market - The precious metals sector saw significant gains, with international gold prices reaching new highs; COMEX gold futures peaked at $3552 per ounce, marking a year-to-date increase of approximately 35% [4][5] - London spot gold prices also rose, reaching $3486.16 per ounce, just shy of the historical high of $3500 from April 22 [5] - Domestic gold futures in China saw a rise of over 2%, hitting a new high of 802 yuan per gram [5] - Major stocks in the gold sector, such as Western Gold and Xiaocheng Technology, saw substantial increases, with Western Gold hitting the daily limit [5][6] AI Computing Sector - The AI computing sector exhibited mixed performance; stocks like Xuanji Information and Liyang Chip reached daily limits, while Cambrian Technology experienced a decline of nearly 3% [3][9] - Cambrian Technology's stock fluctuated significantly, dropping over 8% at one point but stabilizing to a decrease of 2.98% by midday [11] - Reports indicated that Alibaba's procurement rumors regarding Cambrian Technology were unfounded, but the company continues to advance its AI chip development [13] Alibaba's Market Activity - Alibaba's stock surged over 16% in Hong Kong, with a market capitalization increase of approximately 400 billion HKD, reaching a total market value of 2.59 trillion HKD [14] - The company reported a revenue of 247.65 billion yuan for Q1 of the 2026 fiscal year, with a net profit of 43.12 billion yuan, reflecting a year-on-year growth of 76% [16] - Alibaba's investment in AI and cloud infrastructure reached 38.6 billion yuan, a 220% increase year-on-year, indicating a strong commitment to expanding its AI capabilities [16] Innovative Drug Sector - The innovative drug sector saw significant activity, with stocks like MicroPort Medical rising over 14% and achieving a year-to-date increase of over 109% [17] - The approval of 43 innovative drugs in the first half of the year, a 59% increase year-on-year, highlights the growing focus on drug development in China [17] - The Hang Seng Biotechnology Index has seen a year-to-date increase of over 101%, reflecting strong investor interest in the pharmaceutical sector [17]

Group 1 - The A-share market shows mixed performance with the Shanghai Composite Index down 0.02% and the ChiNext Index up 0.03% [1] - Key sectors with notable gains include insurance, precious metals, real estate, brain-computer interfaces, and liquor [1] - Long-term bullish outlook for the Chinese stock market is supported by expected monetary and fiscal policies, with historical precedents indicating potential for a bull market [1] Group 2 - Strong market sentiment and high risk appetite are driving significant trading activity, particularly in growth technology stocks with attractive valuations [2] - The focus is on sectors with high elasticity for growth, supported by performance metrics and potential catalysts [2] - Short-term potential for stock indices to rise is acknowledged, but with limited upside, leading to a "high-low rotation" investment strategy [3]

Group 1 - The market is expected to continue its upward trend, supported by strong resilience and a rebound after a brief adjustment [1] - The AI computing sector remains a focal point for investment, particularly following Nvidia's earnings report [1] - Current market stability is underpinned by supportive policies, technological advancements, and ongoing narratives against internal competition [2] Group 2 - The pharmaceutical industry is witnessing significant changes due to AI applications, with a notable increase in efficiency and innovation [3] - Major pharmaceutical companies are actively engaging in AI strategies, indicating a robust pipeline and forward-looking investments [3] - The return on investment in innovative research and development is accelerating, driven by advancements in technology [3]