Market Overview - The Shanghai Composite Index rose to a new high, surpassing 3700 points during intraday trading, with the ChiNext Index and the STAR Market Index also showing positive movements [1] - As of the midday close, the Shanghai Composite Index increased by 0.2% to 3690.88 points, while the Shenzhen Component Index and the ChiNext Index fell by 0.15% and 0.23% respectively [1] - The total trading volume across the Shanghai and Shenzhen markets reached 1.4314 trillion yuan [1] Sector Performance - Sectors such as military, automotive, steel, coal, oil, and chemicals experienced declines, while insurance and brokerage sectors saw gains [1] - The semiconductor sector showed an upward trend, and concepts related to digital currency and brain engineering were active [1] Investment Sentiment - Dongguan Securities noted that the Shanghai Composite Index has broken through the previous high of 3674 points from 2024, indicating a strong overall market trend [1] - The current market rally has been characterized by low volatility and low drawdowns, reflecting the characteristics of a mature market [1] - The continuous increase in margin financing indicates a recovery in market confidence, suggesting that the market may maintain a strong trend in the short term [1] Future Outlook - The market is expected to continue its upward trend supported by liquidity and fundamental recovery, with the index potentially rising gradually [1] - Recommended sectors for investment include large financials, machinery, technology, media, telecommunications (TMT), and consumer goods [1]

Core Viewpoint - The article introduces a comprehensive index map that includes various commonly used stock indices, their codes, selection rules, industry distribution, average and median market capitalization of constituent stocks, and the number of constituent stocks, which will be regularly updated for easy reference [1][2]. Group 1: Types of Indices - The index map includes several categories of stock indices: broad-based indices, strategy indices, industry indices, thematic indices, and overseas indices [4][2]. Group 2: Broad-based Indices - Examples of broad-based indices include: - CSI 300 (000300.SH): Comprises 300 large-cap stocks with an average market cap of 1,929.37 billion and a median of 955.29 billion [5]. - CSI 500 (000905.SH): Comprises 500 mid-cap stocks with an average market cap of 295.98 billion and a median of 271.81 billion [5]. - CSI 800 (000906.SH): Comprises 800 stocks with an average market cap of 908.50 billion and a median of 358.74 billion [5]. Group 3: Strategy Indices - Strategy indices focus on specific investment strategies, such as: - CSI Dividend (000922.CSI): Selects 100 stocks with high dividend yields and stable dividends, with an average market cap of 1,963.17 billion [6]. - Shanghai Stock Exchange Dividend (000015.SH): Comprises 50 stocks with high dividend yields from the Shanghai Stock Exchange, with an average market cap of 2,809.85 billion [6]. Group 4: Industry Indices - Industry indices reflect the performance of specific sectors, such as: - Financial Sector Index: Represents the performance of up to 50 banking stocks with an average market cap of 3,507.12 billion [7]. - Real Estate Sector Index: Comprises 50 stocks from the real estate industry with an average market cap of 195.47 billion [7]. Group 5: Thematic Indices - Thematic indices focus on specific investment themes or trends, providing insights into particular market segments [8].

Group 1 - The stock of East China Semiconductor (东芯股份) reached its daily limit, trading at 68.88 yuan with a transaction volume of 40.21 billion yuan and a turnover rate of 14.25% as of 10:43 AM on August 4 [1] - Among stocks on the Sci-Tech Innovation Board, 368 stocks were up, with 35 stocks rising over 5%. Notable gainers included East China Semiconductor and Kesi Technology, both up by 20.00%, while significant decliners included Kexing Pharmaceutical, down 11.40% [1] - The stock market showed a volatility of 15.47% during the trading session [1] Group 2 - In terms of capital flow, East China Semiconductor experienced a net outflow of 816 million yuan in the previous trading day, with a total net outflow of 1.155 billion yuan over the last five days [2] - As of August 1, the margin trading balance for East China Semiconductor was 1.166 billion yuan, with a financing balance of 1.163 billion yuan, reflecting an increase of 84.27 million yuan or 7.81% from the previous trading day [2] - The total margin trading balance increased by 312 million yuan over the last ten days, representing a growth of 36.59%, with financing balance growth of 36.48% and a significant increase in the short selling balance by 86.75% [2]

Market Overview - The market continues to show a volatile and differentiated pattern, with the Hang Seng Tech Index recording five consecutive declines while the Shanghai Composite Index rose against the trend [1] - As of midday, the Shanghai Composite Index increased by 0.52% to 3628.53 points, reaching a new high for the period, while the Shenzhen Component Index slightly fell by 0.06% and the ChiNext Index declined by 0.71% [1] - The trading volume in both Shanghai and Shenzhen markets reached 1.1 trillion yuan, maintaining an active level despite a decrease of approximately 43 billion yuan from the previous day [1] Sector Performance - Traditional cyclical industries supported the Shanghai Index, with steel (up 1.91%) and oil & petrochemicals (up 1.79%) leading the gains, while defensive sectors like food & beverage (up 1.02%) and pharmaceuticals (up 0.99%) showed resilience [1] - Conversely, technology manufacturing sectors such as electric equipment (-1.42%), computers (-0.66%), and communications (-0.69%) faced pressure, indicating a shift of funds from high-valuation growth sectors to undervalued blue-chip stocks [1][2] Industry Trends - The healthcare sector rose by 1.92%, and the energy sector increased by 1.65%, following international oil price fluctuations [2] - The information technology sector (-0.89%) and consumer discretionary sector (-1.37%) faced challenges, with automotive and components (-4.03%) and semiconductors (-3.79%) leading the declines [2] - The Hang Seng and Shanghai-Hong Kong Smart and Electric Vehicle Index fell by 2.61%, indicating a temporary slowdown in the growth momentum of the new energy industry chain [2] Investment Strategy - The current market shows characteristics of "strong Shanghai, weak Shenzhen, weight-based support, and thematic rotation," with clear signs of fund switching between high and low valuations [3] - Short-term operations should closely track fund flows and focus on sectors with clear policy guidance, such as infrastructure and energy, which benefit from increased fiscal policies [3] - In the medium term, while the technology sector may experience fluctuations, it remains a significant growth driver, particularly in areas like artificial intelligence infrastructure and robotics [3]

Group 1 - The core viewpoint of the news is the ongoing discussions between the EU and the US regarding trade relations, with a potential agreement on tariff reductions being a focal point [1][4][5] - Trump stated that the likelihood of reaching a trade agreement with the EU is around 50%, which caused a temporary drop in the euro against the dollar [1][5] - EU officials expressed optimism about reaching a trade agreement, potentially involving a 15% tariff rate, similar to a recent agreement with Japan [5][6] Group 2 - A face-to-face meeting is scheduled for July 27 in Scotland to further discuss trade cooperation and related disputes between the EU and the US [5][6] - Trump has previously announced a 30% tariff on EU imports starting August 1, with additional tariffs on specific industries, including a 25% tariff on automobiles and parts [5][6] - The EU is seeking to establish lower tariff quotas for certain steel and aluminum products and hopes for exemptions in specific sectors [6] Group 3 - Trump indicated that most trade agreements are expected to be finalized before August, with plans to issue around 200 tariff letters to other trading partners [7] - He downplayed the possibility of the UK negotiating a deal by removing its digital services tax in exchange for lower US tariffs on steel and aluminum [7] - Australia has recently lifted restrictions on US beef imports, which Trump praised as a positive step in trade negotiations [8]

Group 1 - The core viewpoint of the article is the release of the "Measurement Support Action Plan for the Development of New Quality Productivity in Industries (2025-2030)" by the State Administration for Market Regulation and the Ministry of Industry and Information Technology, focusing on key measurement technology research and application in industries such as new energy and new materials [1][2] Group 2 - In the new energy sector, the plan emphasizes measurement needs related to solar, wind, nuclear, hydrogen, marine, biomass, and geothermal energy, including research on key core technology equipment, energy production and storage infrastructure, and measurement technologies for carbon capture and emissions [1] - The plan outlines the establishment of a measurement support project database to collect project needs nationwide, select key projects, and develop specific project advancement plans, ensuring effective collaboration and supervision [2] Group 3 - In the new materials sector, the plan focuses on measurement testing needs for inorganic non-metallic materials, high-performance fibers, advanced semiconductor materials, and new display materials, aiming to improve quality stability and reduce production costs [2] - The plan calls for the development of specialized measurement testing equipment and methods, as well as the establishment of public measurement service platforms to enhance the connection between measurement, product standards, and testing technologies [2]

Core Viewpoint - The article introduces a comprehensive index map that includes various commonly used stock indices, their codes, selection rules, industry distribution, average and median market capitalization of constituent stocks, and the number of constituent stocks, which will be regularly updated for easy reference [1][2]. Group 1: Types of Indices - The index map includes several categories of stock indices: broad-based indices, strategy indices, industry indices, thematic indices, and overseas indices [4][8]. Group 2: Broad-based Indices - Examples of broad-based indices include: - CSI 300 (000300.SH): Comprises 300 large-cap stocks from the Shanghai and Shenzhen stock exchanges, with an average market cap of 1,888.48 billion and a median of 907.96 billion [5]. - CSI 500 (000905.SH): Includes 500 stocks ranked 301-800 by market cap, with an average market cap of 279.59 billion and a median of 259.32 billion [5]. - CSI 800 (000906.SH): Covers 800 stocks, with an average market cap of 882.92 billion and a median of 340.58 billion [5]. Group 3: Strategy Indices - Strategy indices focus on specific investment strategies, such as: - CSI Dividend (000922.CSI): Selects 100 stocks with high dividend yields and stable dividends, with an average market cap of 1,970.77 billion [6]. - Shanghai Dividend (000015.SH): Comprises 50 stocks with high dividend yields from the Shanghai Stock Exchange, with an average market cap of 2,828.36 billion [6]. - Shenzhen Dividend (399324.SZ): Includes 40 stocks with stable dividend histories and high dividend ratios, with an average market cap of 984.44 billion [6]. Group 4: Industry Indices - Industry indices represent specific sectors, such as: - CSI Medical (930641.CSI): Selects stocks involved in traditional Chinese medicine production and sales, with an average market cap of 151.90 billion [7]. - CSI Real Estate (399393.SZ): Comprises 50 stocks from the real estate sector with significant market capitalization and liquidity, with an average market cap of 189.85 billion [7]. Group 5: Thematic Indices - Thematic indices focus on specific investment themes, such as: - CSI Consumer (000932.SH): Selects major consumer industry stocks from the CSI 800 index, with an average market cap of 1,155.60 billion [7]. - CSI Innovation (931152.CSI): Includes up to 50 representative companies involved in innovative drug research, with an average market cap of 485.93 billion [7].

- Model Name: CSI 500 Enhanced Portfolio; Model Construction Idea: The model aims to outperform the CSI 500 index by selecting stocks with higher expected returns based on quantitative strategies[2][58] - Model Construction Process: The model uses a quantitative strategy to select stocks from the CSI 500 index. The portfolio's performance is evaluated based on its excess return over the CSI 500 index. The specific construction process involves selecting stocks with higher expected returns and adjusting the portfolio weights accordingly[58][61] - Model Evaluation: The model has shown a significant excess return over the CSI 500 index, indicating its effectiveness in enhancing returns[58][61] - Model Name: CSI 300 Enhanced Portfolio; Model Construction Idea: The model aims to outperform the CSI 300 index by selecting stocks with higher expected returns based on quantitative strategies[2][65] - Model Construction Process: The model uses a quantitative strategy to select stocks from the CSI 300 index. The portfolio's performance is evaluated based on its excess return over the CSI 300 index. The specific construction process involves selecting stocks with higher expected returns and adjusting the portfolio weights accordingly[65][66] - Model Evaluation: The model has shown a significant excess return over the CSI 300 index, indicating its effectiveness in enhancing returns[65][66] - Factor Name: Value Factor; Factor Construction Idea: The value factor aims to capture the excess returns of stocks that are undervalued relative to their fundamentals[2][70] - Factor Construction Process: The value factor is constructed by ranking stocks based on their valuation ratios, such as price-to-book (P/B) and price-to-earnings (P/E) ratios. Stocks with lower valuation ratios are considered undervalued and are given higher weights in the factor portfolio[70][76] - Factor Evaluation: The value factor has shown high excess returns, indicating its effectiveness in capturing the returns of undervalued stocks[70][76] - Factor Name: Residual Volatility Factor; Factor Construction Idea: The residual volatility factor aims to capture the excess returns of stocks with lower idiosyncratic risk[2][70] - Factor Construction Process: The residual volatility factor is constructed by ranking stocks based on their residual volatility, which is the volatility of the stock's returns unexplained by market movements. Stocks with lower residual volatility are given higher weights in the factor portfolio[70][76] - Factor Evaluation: The residual volatility factor has shown high excess returns, indicating its effectiveness in capturing the returns of low-risk stocks[70][76] - Factor Name: Non-linear Size Factor; Factor Construction Idea: The non-linear size factor aims to capture the excess returns of stocks with specific size characteristics that are not linearly related to market capitalization[2][70] - Factor Construction Process: The non-linear size factor is constructed by ranking stocks based on their non-linear size characteristics, which may include measures such as the square or cube of market capitalization. Stocks with specific size characteristics are given higher weights in the factor portfolio[70][76] - Factor Evaluation: The non-linear size factor has shown significant negative excess returns, indicating its ineffectiveness in capturing the returns of stocks with specific size characteristics[70][76] Model Backtest Results - CSI 500 Enhanced Portfolio, Excess Return: 46.94%, Maximum Drawdown: -4.99%[58][61] - CSI 300 Enhanced Portfolio, Excess Return: 31.61%, Maximum Drawdown: -5.86%[65][66] Factor Backtest Results - Value Factor, Excess Return: High[70][76] - Residual Volatility Factor, Excess Return: High[70][76] - Non-linear Size Factor, Excess Return: Significant Negative[70][76]

Economic Negotiations Progress - The UK and US have reached a limited trade agreement covering automotive (10% tariff) and aerospace (duty-free) sectors, but steel and pharmaceutical tariffs remain unresolved [1] - Canada has restarted negotiations with the US after canceling the digital services tax on June 30, aiming to reach an agreement by July 21, while previously imposing a 50% tariff on over-quota steel without further adjustments mentioned [1] - The EU is willing to accept a 10% universal tariff but seeks quotas and exemptions for automotive and steel products, along with lower tax rates for critical industries like pharmaceuticals and semiconductors, while insisting on digital sovereignty not being negotiable [1] - Japan faces a key obstacle with a 25% automotive tariff, with the Japanese side prepared for potential delays in negotiations, while Trump hinted at unilaterally imposing a 30%-35% tariff and threatening to issue a warning to Japan [1] - South Korea proposed a "comprehensive solution" including exemptions for automotive and steel tariffs, but the US remains cautious, with South Korea requesting an extension for negotiations, expected to be decided by July 8 [1] India-US Negotiation Stalemate - The negotiations between India and the US are currently stalled, with India seeking the removal of reciprocal tariffs and concessions on steel and automotive tariffs, while maintaining agriculture as a "red line"; the US desires further reductions in tariffs on agricultural products, automobiles, and alcoholic beverages [2] US Position and Actions - The US Agriculture Secretary indicated that Trump may exempt tariffs on agricultural products that are difficult to grow domestically, such as cocoa beans or coffee [3] - A "final ultimatum" has been issued, warning that if negotiations fail, tariffs could revert to a maximum of 50% by July 9, with Trump stating he does not plan to extend the negotiation deadline [3] - The US is adjusting its negotiation strategy by seeking to narrow the scope of trade agreements, allowing countries that agree to these limited agreements to avoid harsher reciprocal tariffs, while still imposing the existing 10% basic tariff; reports suggest that the US will prioritize negotiations with India before addressing issues with Japan [3]

Group 1 - UBS forecasts a 6% year-on-year growth in EPS for the CSI 300 A-shares by 2025, assuming current US-China tariffs remain unchanged [1] - A-shares are expected to experience limited downside with potential upward catalysts from policy changes, long-term capital inflows, and structural reforms [1] - The "national team" may increase holdings to stabilize the market in extreme scenarios [1] Group 2 - UBS analyzed five categories of capital flows and their potential impact on market styles amid macroeconomic uncertainties [2] - Central Huijin, representing the "national team," significantly entered the market during corrections, with 70% of its investments flowing into the CSI 300 ETF in 2024 [2] - Long-term investors and insurance companies favor high-dividend stocks and bank shares, creating a synergistic effect with Central Huijin [2] - Retail and short-term investors, along with quantitative funds, are expected to drive small-cap stocks to outperform large-cap stocks [2] - Public funds are facing sluggish issuance, negatively impacting growth sectors dominated by public funds [2] - Southbound capital is anticipated to continue flowing into new economy sectors, albeit at a slightly slower pace [2] Group 3 - UBS outlines five scenarios for industry preferences and investment themes [3] - Export-oriented industries, domestic consumption, and high-dividend sectors are highlighted across various scenarios, with a focus on technology and AI [6] - Easing trade tensions could benefit export-oriented sectors and boost high-beta industries, while defensive and high-dividend stocks may attract more investor interest under adverse conditions [6] - Strong policy stimulus is expected to benefit the consumption and real estate sectors the most, while moderate policy efforts may lead to inflows into service industries and AI themes [6] Group 4 - A list of recommended stocks includes PetroChina, Yangtze Power, and others, with respective price targets and upside potential [7] - PetroChina has a market cap of 165.08 billion RMB, with a target price of 11.80 RMB, indicating a 31% upside [7] - NAURA Technology shows a significant upside potential of 37% with a target price of 566.50 RMB [7] - Tuopu has the highest upside potential at 75%, with a target price of 81.00 RMB [7]