Market Overview - The A-share market saw most major indices rise today, with the Shanghai Composite Index up by 0.23% closing at 3384.10 points, the Shenzhen Component Index up by 0.58% closing at 10203.50 points, and the ChiNext Index up by 1.17% closing at 2048.61 points [1][9] - The total trading volume in the Shanghai and Shenzhen markets reached 1.29 trillion yuan, an increase of 137.4 billion yuan compared to the previous trading day [1] Industry Performance - Among the Shenwan first-level industries, the leading sectors were communication, electronics, computers, media, and machinery equipment, with increases of 2.62%, 2.31%, 2.12%, 1.27%, and 0.98% respectively [1] - The sectors that experienced declines included beauty care, textiles and apparel, agriculture, forestry, animal husbandry, fishery, comprehensive, and pharmaceutical biology, with decreases of 3.07%, 1.81%, 1.79%, 1.30%, and 1.01% respectively [1] Concept Sector Performance - The top-performing concept sectors included circuit boards, digital currency, IDC, 5G, big data, memory, cloud computing, financial technology, technology leaders, cameras, smart speakers, consumer electronics manufacturing, cybersecurity, virtual reality, and artificial intelligence [2]

Market Overview - The three major indices in the A-share market continued to rise, with the ChiNext Index increasing by over 1% and total trading volume slightly expanding to over 1.17 trillion [1] - The recent PMI data from the National Bureau of Statistics and Caixin indicates that both are in the contraction zone, highlighting insufficient demand as a primary issue [1][2] Economic Policy and Trade - U.S. President Trump announced an increase in tariffs on imported steel and aluminum from 25% to 50%, effective June 4, 2025, which may create uncertainty for companies in formulating long-term strategies [2] - The domestic steel industry faces short-term cost pressures, but policies like "old for new" may partially offset these challenges [2] Manufacturing Sector Insights - The Caixin manufacturing PMI for May recorded 48.3, a decrease of 2.1 percentage points from April, marking the first drop below the critical point since October 2024 [2] - Both official and Caixin PMI data are in the contraction zone, with the Caixin data reflecting a more significant decline, likely due to its focus on small and medium-sized enterprises [2] Market Performance - On June 4, the A-share market saw the Shanghai Composite Index close at 3376.20 points, up 0.42%, and the Shenzhen Component Index at 10144.58 points, up 0.87% [3] - Among the sectors, beauty care, comprehensive, and textile apparel led the gains, while transportation, defense, and public utilities experienced declines [3] Capital Flow - The market turnover reached 11,776.08 billion, an increase from the previous trading day, with the margin financing balance reported at 18,044.88 billion, also up from the prior day [4]

Core Viewpoint - The report highlights the net inflow and outflow of funds across various industries, indicating a significant divergence in market performance among sectors, with transportation seeing the highest inflow and computer industry facing the largest outflow [1][2]. Industry Summary Net Inflow - Transportation industry recorded a net inflow of 1.479 billion, with a price change of 0.90% and a turnover rate of 1.01%, showing a 40.74% increase in trading volume compared to the previous day [1]. - Banking sector saw a net inflow of 0.546 billion, with a price change of 0.67% and a turnover rate of 0.23%, but a decrease in trading volume by 13.37% [1]. - Non-banking financials had a net inflow of 0.508 billion, with a price change of 0.26% and a turnover rate of 0.87%, experiencing a 9.20% increase in trading volume [1]. Net Outflow - The computer industry experienced the largest net outflow of 3.464 billion, with a price change of -0.90% and a turnover rate of 3.63%, showing a 6.76% increase in trading volume [2]. - The communication sector faced a net outflow of 0.276 billion, with a price change of -0.97% and a turnover rate of 1.59%, reflecting a 6.52% increase in trading volume [2]. - The electronic industry had a net outflow of 2.715 billion, with a price change of -0.60% and a turnover rate of 1.95%, showing a slight decrease in trading volume by 0.43% [2].