Group 1 - On July 29, 30 out of 31 primary industries in the Shenwan index received net financing inflows, with the pharmaceutical and biotechnology sector leading at a net inflow of 3.437 billion [1] - Other industries with significant net financing inflows included electronics (1.712 billion), banking (1.462 billion), power equipment (851 million), defense and military (747 million), food and beverage (671 million), non-bank financials (669 million), telecommunications (602 million), and non-ferrous metals (556 million) [1] Group 2 - A total of 2008 individual stocks received net financing inflows on July 29, with 191 stocks having inflows exceeding 30 million [1] - Among these, 26 stocks had net inflows exceeding 100 million, with Xinyi Technology leading at 1.14 billion [1] - Other notable stocks with high net inflows included Cambrian (780 million), WuXi AppTec (356 million), Guotai Junan (257 million), Minsheng Bank (241 million), Yili (219 million), Huatai Securities (202 million), Shanghai Electric (202 million), and Fosun Pharma (199 million) [1]

Group 1 - Main capital outflow in the last two weeks totaled -207.70 billion, with only banking and comprehensive sectors seeing net inflows [2] - Current margin trading balance is 1,941.99 billion, up 3.64% from the previous period, with financing balance at 1,928.37 billion and securities lending balance at 13.62 billion [2] - In the last two weeks, the number of rising stocks exceeded the number of falling stocks, with the top three rising sectors being non-ferrous metals, steel, and building materials [2] Group 2 - Overall A-share strength analysis score is 6.35, indicating a neutral to strong market condition [2] - Positive market factors continue to accumulate, suggesting that the fundamentals will improve over time [3] - The market currently lacks a clear main line, but short-term focus can be on industries benefiting from "anti-involution" [3]

1. Report Industry Investment Rating - Not provided in the content 2. Core Viewpoints of the Report - This week, boosted by the "anti - involution" concept and the positive news of Yaxia Hydropower Station, the pro - cyclical sectors collectively soared, and the index continued to rise. The Shanghai Composite Index achieved four consecutive weekly gains. The daily average trading volume of the two markets increased by 19.56% compared with last week, and the margin trading balance continued to rise above 1.9 trillion. Domestic hot money accelerated its inflow, showing signs of over - heating market sentiment in the short term. The commodity futures market mostly rose, and the bond market corrected significantly due to the impact of the equity market [1][10]. - As August approaches, a series of major events, such as the Politburo meeting's tone - setting, the results of the third round of Sino - US economic and trade negotiations, and the monetary policy decisions of the Federal Reserve and the Bank of Japan, may trigger market fluctuations. Investors are advised to be cautious in the short term, control their positions, and avoid blind operations in the face of uncertainties. They can appropriately focus on growth sectors with relatively reasonable valuations, such as AI applications, cloud computing, and science and technology innovation chips. From a medium - term allocation perspective, high - dividend assets are still the preferred bottom - position assets, and hedging assets such as gold and treasury bonds can be combined to build a diversified portfolio to smooth out volatility risks and seize structural opportunities [15]. 3. Summary According to the Directory 3.1 This Week's Market Review 3.1.1 Industry Index - Coal, steel, non - ferrous metals, building materials, and construction sectors led the gains this week. The trading volume proportions of coal, building materials, construction, steel, and transportation sectors increased significantly compared with last week, while the trading activity of the comprehensive financial sector decreased significantly. The coal sector soared 8.00%, and its trading volume proportion reached a new high in the past four weeks at 1.16%. The pro - cyclical sectors strongly led the rise, while the trading activities of technology sectors such as electronics, computer, media, and communication cooled down, and their trading volume proportions reached new lows in the past four weeks. The bank sector, which was strong in early July, led the decline this week, and its trading volume proportion was at a new low in the past four weeks at 2.00% [10]. - The leverage factor and book - to - market ratio factor had the highest gains this week, while the residual volatility factor had a large decline. The IH contract remained at a premium, indicating that investors were more optimistic about large - cap stocks, and the discount of the IM contract continued to narrow. The average and median returns of neutral hedge funds this week were 0.10% and 0.17% respectively [10]. 3.1.2 Market Style - Affected by the "anti - involution" concept and the positive news of Yaxia Hydropower Station, all five CITIC style indices rose this week, with the cyclical style leading the gains. The growth sector rose 2.54% this week, and its trading volume proportion decreased to a new low in the past four weeks at 47.94%. The consumer style index rose 1.59%, and its trading volume proportion was basically the same as last week. The financial style index performed weakly, only rising slightly by 0.36%, and its trading volume proportion increased to 8.09%. The stable style index rose 1.74%, and its trading volume proportion increased significantly to a new high in the past four weeks at 5.43%. The cyclical style index rose 3.51%, and its trading volume proportion increased to a new high in the past four weeks at 25.81% [14]. - All major broad - based indices rose this week. The mid - cap stocks represented by the CSI 500 showed an obvious catch - up effect. Based on the CSI A - share index, the Shanghai - Shenzhen 300 and CSI 2000 indices only rose 1.69% and 1.81% respectively, while the CSI 500 index rose 3.28% this week, and the trading volume proportions of the Shanghai - Shenzhen 300 and CSI 500 indices both increased to new highs in the past four weeks [14]. 3.2 Active Equity Funds 3.2.1 Top - Performing Funds in Different Theme Tracks This Week - The report divides active equity funds into single - track and double - track funds based on six sectors: TMT, financial real estate, consumption, medicine, manufacturing, and cyclical sectors. Single - track funds are those with a position in a certain sector greater than 70% for multiple consecutive periods, and double - track funds are those with positions in two sectors both greater than 30% for multiple consecutive periods [19]. 3.2.2 Top - Performing Funds in Different Strategy Categories - The report classifies funds into deep - undervalued, high - growth, high - quality, quality - growth, quality - undervalued, GARP, and balanced - cost - effective types based on investment styles and strategies, and lists the top - performing funds in each type this week [20]. 3.3 Index - Enhanced Funds 3.3.1 This Week's Excess Return Distribution of Index - Enhanced Funds - The average and median excess returns of CSI 300 index - enhanced funds were 0.05% and 0.03% respectively; those of CSI 500 index - enhanced funds were - 0.11% and - 0.13% respectively; those of CSI 1000 index - enhanced funds were 0.05% and 0.03% respectively; those of CSI 2000 index - enhanced funds were 0.24% and 0.36% respectively; those of CSI A500 index - enhanced funds were - 0.02% and - 0.07% respectively; those of ChiNext index - enhanced funds were - 0.29% and - 0.13% respectively; and those of STAR Market - ChiNext 50 index - enhanced funds were - 0.22% and - 0.05% respectively [24]. - The average and median absolute returns of neutral hedge funds were 0.10% and 0.17% respectively; those of quantitative long - only funds were 2.07% and 2.05% respectively [25]. 3.4 This Week's Bond Fund Selections - The report comprehensively screened the medium - and long - term bond - type fund pool and short - term bond - type fund pool based on indicators such as fund size, return - risk indicators, the latest fund size, Wind Fund secondary classification, three - year rolling return, and three - year maximum drawdown [41]. 3.5 This Week's Fund High - Frequency Position Detection - Active equity funds significantly increased their positions in the electronics (0.41%) and computer (0.27%) industries this week; they significantly reduced their positions in the power equipment and new energy (0.23%), basic chemicals (0.11%), and agriculture, forestry, animal husbandry, and fishery (0.10%) industries. From a one - month perspective, the positions in the electronics (1.77%) and computer (1.06%) industries increased significantly, while the positions in the food and beverage (0.55%) and power equipment and new energy (0.62%) industries decreased significantly [3]. 3.6 This Week's US Dollar Bond Fund Weekly Tracking - Not provided in the content

Core Viewpoint - A-shares experienced fluctuations in the morning session, with the ChiNext index rising over 1% at one point, while the Shanghai Composite Index briefly surpassed 3600 points before retreating [1] Market Performance - The three major stock indices opened near flat, dipped, and then strengthened, but collectively retreated before the noon close, with the Shanghai Composite Index down 0.17% and the Shenzhen Component down 0.16%, while the ChiNext index rose 0.10% [1] - The total trading volume in the Shanghai and Shenzhen markets exceeded 1 trillion yuan, with over 3500 stocks in the green [1] Sector Performance - The film and theater, PEEK materials, insurance, and brokerage sectors showed significant gains, while coal, non-ferrous metals, and hydropower concept stocks experienced declines [1] - A particular highlight was the stock of Shangwei New Materials, which surged over 15%, marking a year-to-date increase of over 1000%, making it the first stock to achieve a tenfold increase in 2025 [1]

Quantitative Models and Construction Timing Model: Three-Dimensional Timing Framework - **Model Name**: Three-Dimensional Timing Framework - **Construction Idea**: The model integrates liquidity, divergence, and prosperity indices to assess market timing opportunities. It aims to identify optimal investment periods by analyzing these three dimensions. [7][12][14] - **Construction Process**: 1. **Liquidity Index**: Tracks market liquidity trends using aggregated data from financial markets. 2. **Divergence Index**: Measures market disagreement or dispersion among participants. 3. **Prosperity Index**: Evaluates economic and market growth indicators. 4. Combine these indices into a unified framework to determine market timing signals. - **Evaluation**: The model has historically shown strong performance in identifying favorable market conditions. [7][12][14] Funds Flow Convergence Strategy - **Model Name**: Funds Flow Convergence Strategy - **Construction Idea**: Combines financing and large-order flows to identify industries with synchronized capital inflows. [28][31][33] - **Construction Process**: 1. **Financing Factor**: Defined as the net financing buy minus net financing sell, neutralized by Barra market capitalization factor. Calculated as the two-week change in the 50-day moving average. 2. **Large-Order Factor**: Measures net inflows based on industry transaction volume, neutralized by time series. Calculated using the 10-day moving average. 3. Combine the two factors, excluding extreme industries and large financial sectors, to enhance strategy stability. 4. Backtest results show annualized excess returns of 13.5% since 2018, with an IR of 1.7. [31][33] - **Evaluation**: The strategy demonstrates stable positive excess returns and lower drawdowns compared to other convergence strategies. [31][33] --- Quantitative Factors and Construction Style Factors - **Factor Name**: Value, Size, Volatility, Liquidity - **Construction Idea**: Style factors are constructed to capture specific market characteristics such as valuation, size, risk, and liquidity. [35][36] - **Construction Process**: 1. **Value Factor**: Measures the performance of low-valuation stocks relative to high-valuation stocks. 2. **Size Factor**: Tracks the performance of small-cap stocks versus large-cap stocks. 3. **Volatility Factor**: Compares low-volatility stocks to high-volatility stocks. 4. **Liquidity Factor**: Evaluates the performance of low-liquidity stocks against high-liquidity stocks. - **Evaluation**: Value factor recorded positive returns (+0.92%), while size (-0.21%), volatility (-2.38%), and liquidity (-2.23%) factors showed negative returns, reflecting market preferences for low-risk and low-liquidity stocks. [35][36] Alpha Factors - **Factor Name**: Momentum (mom_1y, mom_2y), Turnover Standard Rate (turnover_stdrate_1m, turnover_stdrate_3m), Analyst Forecast (ana_cov) - **Construction Idea**: Alpha factors aim to capture excess returns through predictive metrics such as price momentum, turnover rates, and analyst forecasts. [38][40] - **Construction Process**: 1. **Momentum Factors**: Measure stock returns over 1-year and 2-year periods. 2. **Turnover Standard Rate Factors**: Evaluate turnover rates over 1-month and 3-month periods. 3. **Analyst Forecast Factor**: Tracks the number of analyst forecasts over the past 90 trading days. - **Evaluation**: Momentum factors (mom_1y: +1.58%, mom_2y: +1.26%) and turnover factors (turnover_stdrate_1m: +1.30%, turnover_stdrate_3m: +1.56%) performed well, indicating strong predictive power. Analyst forecast factor (ana_cov: +1.22%) also showed positive returns. [38][40] Cross-Index Factors - **Factor Name**: PE_G, SUE, Turnover Standard Rate (turnover_stdrate_1m, turnover_stdrate_3m) - **Construction Idea**: These factors are designed to perform across different market indices, including large-cap and small-cap stocks. [41][42] - **Construction Process**: 1. **PE_G Factor**: Measures the difference between PE rankings and expected net profit growth rankings. 2. **SUE Factor**: Tracks net profit changes over the past eight quarters. 3. **Turnover Standard Rate Factors**: Evaluate turnover rates over 1-month and 3-month periods. - **Evaluation**: PE_G and SUE factors performed better in large-cap indices (e.g., HS300: PE_G +4.97%, SUE +4.09%) compared to small-cap indices (e.g., CN2000: PE_G +1.15%, SUE +1.34%). Turnover factors also showed higher returns in large-cap indices. [41][42] --- Backtesting Results Timing Model: Three-Dimensional Timing Framework - **Liquidity Index**: Positive trend observed - **Divergence Index**: Declining trend - **Prosperity Index**: Rising trend - **Overall Signal**: Full allocation recommended [7][12][14] Funds Flow Convergence Strategy - **Annualized Excess Return**: 13.5% - **IR**: 1.7 - **Weekly Excess Return**: +0.2% - **Absolute Weekly Return**: +2.8% [31][33] Style Factors - **Value**: +0.92% - **Size**: -0.21% - **Volatility**: -2.38% - **Liquidity**: -2.23% [35][36] Alpha Factors - **Momentum (mom_1y)**: +1.58% - **Momentum (mom_2y)**: +1.26% - **Turnover Standard Rate (turnover_stdrate_1m)**: +1.30% - **Turnover Standard Rate (turnover_stdrate_3m)**: +1.56% - **Analyst Forecast (ana_cov)**: +1.22% [38][40] Cross-Index Factors - **PE_G (HS300)**: +4.97% - **PE_G (CN2000)**: +1.15% - **SUE (HS300)**: +4.09% - **SUE (CN2000)**: +1.34% - **Turnover Standard Rate (turnover_stdrate_1m, HS300)**: +6.99% - **Turnover Standard Rate (turnover_stdrate_1m, CN2000)**: +0.02% [41][42]

Core Insights - The computer industry experienced the highest net inflow of funds today, amounting to 2.924 billion, with a price change of 1.26% and a turnover rate of 4.76% [1] - The non-ferrous metals industry saw the largest net outflow of funds, totaling -6.911 billion, with a price change of -0.23% and a turnover rate of 3.17% [2] Industry Summary - **Computer**: - Trading volume: 8.471 billion - Change in trading volume: +28.75% - Turnover rate: 4.76% - Price change: +1.26% - Net inflow: 2.924 billion [1] - **Electronics**: - Trading volume: 6.432 billion - Change in trading volume: -2.26% - Turnover rate: 2.33% - Price change: +1.37% - Net inflow: 2.348 billion [1] - **Media**: - Trading volume: 4.620 billion - Change in trading volume: +34.83% - Turnover rate: 3.15% - Price change: +0.34% - Net inflow: 1.154 billion [1] - **Real Estate**: - Trading volume: 4.233 billion - Change in trading volume: -10.37% - Turnover rate: 1.94% - Price change: +0.63% - Net inflow: 0.406 billion [1] - **Non-ferrous Metals**: - Trading volume: 6.943 billion - Change in trading volume: -16.87% - Turnover rate: 3.17% - Price change: -0.23% - Net outflow: -6.911 billion [2] - **Pharmaceuticals**: - Trading volume: 9.362 billion - Change in trading volume: -1.78% - Turnover rate: 3.43% - Price change: -0.20% - Net outflow: -3.409 billion [2] - **Construction Materials**: - Trading volume: 3.155 billion - Change in trading volume: -2.65% - Turnover rate: 4.24% - Price change: -1.69% - Net outflow: -3.028 billion [2] - **Machinery Equipment**: - Trading volume: 8.983 billion - Change in trading volume: -3.58% - Turnover rate: 3.32% - Price change: -0.42% - Net outflow: -5.476 billion [2]

Core Insights - The industrial economy in Hebei's Xingtai City is experiencing positive developments through smart workshop upgrades and digital transformation, leading to enhanced capacity and efficiency [2] - The industrial economy is characterized by stability, innovation, and quality improvement, with significant growth in key sectors [3][4][5] Group 1: Industrial Performance - The industrial added value for large-scale enterprises increased by 6.4% year-on-year in the first half of the year, demonstrating strong resilience [3] - The manufacturing sector's added value accounted for 25.7% of GDP, maintaining stability [3] - Key industries such as electrical machinery, automotive, electronics, and chemicals have shown rapid growth, contributing significantly to overall industrial growth [3] Group 2: Digital Transformation - The digital industry achieved a business revenue growth of 9.3% year-on-year, with a notable acceleration compared to the previous year [4] - By the end of June, the total number of 5G base stations reached 4.55 million, with 2.26 million users of gigabit broadband [4] - The digital transformation of industries is accelerating, with a digital R&D tool penetration rate of 86.2% among large-scale light industry enterprises [6] Group 3: Innovation and Technology - There were nearly 410,000 registered technology contracts nationwide, with a transaction value exceeding 3 trillion yuan, reflecting a year-on-year growth of 14.2% [5] - The integration of artificial intelligence in various sectors is creating new business models and driving economic growth [6] - The establishment of national manufacturing innovation centers and pilot platforms is ongoing, with a goal to cultivate over five national-level pilot platforms by the end of the year [5] Group 4: Future Development Strategies - The Ministry of Industry and Information Technology plans to implement strategies to stabilize growth in key industries such as steel and non-ferrous metals [7] - There is a focus on enhancing the quality of development through technological innovation and the integration of industry and technology [7] - Efforts will be made to optimize the business environment, reduce the burden on small and medium-sized enterprises, and strengthen industry standards [8]

Market Overview - The Shanghai Composite Index increased by 0.56% as of 10:28 AM, with a trading volume of 616.94 million shares and a transaction amount of 721.71 billion yuan, representing a 4.85% increase compared to the previous trading day [1]. Industry Performance - The top-performing sectors included: - Non-bank Financials: up 2.43% with a transaction amount of 642.69 billion yuan, led by Zhongyin Securities, which rose by 10.04% [1]. - Steel: up 1.24% with a transaction amount of 89.74 billion yuan, led by Baogang Co., which increased by 10.00% [1]. - Non-ferrous Metals: up 1.23% with a transaction amount of 444.39 billion yuan, led by Jingyi Co., which rose by 10.05% [1]. - The sectors with the largest declines included: - Building Materials: down 0.89% with a transaction amount of 92.53 billion yuan, led by Zaiseng Technology, which fell by 9.33% [2]. - Comprehensive: down 0.58% with a transaction amount of 11.51 billion yuan, led by Dongyangguang, which decreased by 2.06% [2]. - Textile and Apparel: down 0.43% with a transaction amount of 69.51 billion yuan, led by Jihua Group, which dropped by 5.08% [2].

Market Overview - The Shanghai Composite Index increased by 0.36% as of 13:58, with a trading volume of 963.91 million shares and a transaction amount of 1,192.275 billion yuan, representing a 3.80% increase compared to the previous trading day [1] Industry Performance - The top-performing sectors included Media (1.38%), Banking (1.17%), and Agriculture, Forestry, Animal Husbandry, and Fishery (1.04%) [1] - The sectors with the largest declines were Non-ferrous Metals (-1.64%), Basic Chemicals (-0.50%), and Electronics (-0.37%) [2] Leading Stocks - In the Media sector, the leading stock was Zhongwen Online, which rose by 12.09% [1] - For Banking, Xiamen Bank led with a 2.99% increase [1] - In Agriculture, Guotou Zhonglu saw a significant rise of 10.03% [1] - The top decliner in Non-ferrous Metals was Luoyang Molybdenum, which fell by 5.04% [2] Trading Volume by Industry - Media sector had a trading volume of 416.89 billion yuan, up by 22.15% from the previous day [1] - Banking sector recorded a trading volume of 239.83 billion yuan, an increase of 0.73% [1] - Non-ferrous Metals had a trading volume of 488.69 billion yuan, with a decrease of 8.21% [2]

Market Overview - As of 10:28 AM, the Shanghai Composite Index increased by 0.02%, with a trading volume of 524.83 million shares and a transaction value of 619.32 billion yuan, representing a 0.99% increase compared to the previous trading day [1] Industry Performance - The steel industry showed the highest increase at 1.80%, with a transaction value of 83.15 billion yuan, up 14.76% from the previous day, led by Lingang Steel with a rise of 10.16% [1] - The banking sector rose by 1.08%, with a transaction value of 130 billion yuan, up 3.89%, driven by Everbright Bank which increased by 2.35% [1] - The coal industry increased by 0.92%, with a transaction value of 36.43 billion yuan, down 4.92%, led by Antai Group with a rise of 2.84% [1] Declining Industries - The beauty and personal care sector experienced the largest decline at -2.06%, with a transaction value of 26.46 billion yuan, led by Dengkang Oral Care which fell by 6.62% [2] - The non-ferrous metals industry decreased by 1.61%, with a transaction value of 258.36 billion yuan, led by Jingyi Co. which dropped by 8.30% [2] - The defense and military industry fell by 1.29%, with a transaction value of 284.49 billion yuan, led by Zhongke Haixun which decreased by 8.30% [2]