Market Overview - The market experienced fluctuations with mixed performance across the three major indices, with the Shanghai Composite Index briefly surpassing 3600 points before retreating [1] - The overall market saw a high rate of stock volatility, with a 50% rate of stocks hitting their daily limit down [1] - The total trading volume for the day reached 1.9 trillion yuan [1] Hot Topics Yarlung Tsangpo River Hydropower Project - Stocks related to the Yarlung Tsangpo River hydropower project continued to surge, with companies like China Power Construction and Huaxin Cement hitting their daily limit up [4] - The project has garnered significant market attention, leading to a valuation recovery for infrastructure stocks due to low valuations and high dividend yields [5] Consumer Sector - The consumer sector showed strong activity, with companies such as Hanchang Group and Nanjing New百 hitting their daily limit up [6] - The World Health Organization raised alarms regarding the spread of the chikungunya virus, which could impact public health and consumer behavior [6] Nuclear Fusion Sector - The nuclear fusion sector saw notable movements, with companies like GuoJi Heavy Industry and XueRen Group experiencing significant gains [8] - The establishment of China Fusion Energy Co., a subsidiary of China National Nuclear Corporation, was announced, with an investment of approximately 11.49 billion yuan from various stakeholders [8] Stock Performance Yarlung Tsangpo River Project Stocks - Key stocks in this sector included: - ShanHe Intelligent: 10.67 yuan, +10.00%, market cap 11.445 billion yuan - Tibet Tianlu: 12.75 yuan, +10.01%, market cap 16.93 billion yuan - Deep Water Regulation Institute: 27.82 yuan, +20.02%, market cap 6.206 billion yuan [5][16] Consumer Sector Stocks - Notable performers included: - Hanchang Group: 10.92 yuan, +9.97%, market cap 3.22 billion yuan - Nanjing New百: 7.55 yuan, +10.06%, market cap 8.796 billion yuan - Rainbow Group: 22.65 yuan, +10.00%, market cap 2.38 billion yuan [7][16] Nuclear Fusion Stocks - Key stocks included: - GuoJi Heavy Industry: 4.09 yuan, +9.95%, market cap 29.503 billion yuan - XueRen Group: 11.44 yuan, +10.00%, market cap 7.443 billion yuan [9][10]

Core Viewpoint - The Yibin Municipal Committee has approved a decision to promote the deep integration of culture and tourism, aiming to build an international tourism city and enhance the city's overall capabilities through five key areas: strengthening cultural foundations, shaping the city's image, improving services, empowering development, and establishing a working system [1][2]. Group 1: Development Goals - The decision sets the goal of building an international tourism city, focusing on the deep integration of culture and tourism as a crucial strategy for urban development [1][2]. - Yibin aims to create a tourism development pattern that integrates scenic areas and urban spaces, enhancing the city's brand image and providing high-quality services and experiences for both residents and visitors [1][2]. Group 2: Key Areas of Focus - The "Three Places" initiative will leverage Yibin's rich cultural and tourism resources to enhance its international and domestic recognition [2]. - The "Three Centers" initiative will focus on creating a vibrant sports event center, a fashionable performing arts center, and a quality consumption center to attract tourists and enhance regional influence [3][4]. Group 3: Cultural and Ecological Development - Yibin will develop a cultural landmark by promoting its historical and modern aesthetics, enhancing its identity as "the first city of the Yangtze River" and protecting historical cultural districts [2]. - The ecological vacation destination will be established by enhancing ecological resources and creating a harmonious relationship between nature and tourism [2]. Group 4: Economic Empowerment - The development of the cultural and tourism industry is seen as a means to promote material and spiritual wealth among the populace, ultimately enhancing their sense of happiness and pride [4]. - The strategy aims to drive economic growth and increase income through the integration of culture and tourism with various industries, providing strong momentum for building a modern regional center city [4].

Economic Overview - In Q2, the actual GDP growth was 5.2% year-on-year, while nominal GDP growth fell to 3.9%, marking a decline of 0.2 and 0.7 percentage points from Q1 respectively[4] - The nominal GDP growth rate has dropped below 4%, the lowest in nearly three years, primarily due to strong supply and weak demand characteristics[23] Supply and Demand Balance - Q3 is expected to see a balance between supply and demand, driven by the implementation of "anti-involution" policies and improved confidence in the real sector[2] - The recovery in consumption is gradually being confirmed, with "anti-involution" policies likely being a key factor influencing Q3 economic performance[4] Investment Trends - Fixed asset investment in Q2 grew by only 1.8% year-on-year, a significant drop of 2.4 percentage points from Q1, with infrastructure and manufacturing investments experiencing widespread contraction[11] - In June, fixed asset investment saw a month-on-month decline of 0.1%, marking a historical low[11] Consumer Behavior - The nominal growth rate of social retail sales in Q2 was 4.5%, slightly down by 0.1 percentage points from Q1, indicating a moderate increase in consumer spending[19] - In June, social retail sales growth fell to 4.8%, a significant drop of 1.6 percentage points from the previous month, with most categories experiencing a broad decline[20] Inflation and Market Dynamics - The report suggests that moderate inflation positively impacts corporate operations and household balance sheets, with expectations of a gradual recovery in nominal GDP growth[2] - The bond market is currently benefiting from a low inflation environment and ample liquidity, although the upward potential for bond prices is limited in the short term[27] Geopolitical and Policy Risks - Risks include geopolitical tensions and the potential for policy changes that exceed expectations, which could impact economic stability[3]

Core Viewpoint - The A-share market is expected to enter a phase characterized by the convergence of policy implementation and mid-term performance verification, with structural trends likely dominating the market [1][2] Group 1: Market Performance and Trends - The Shanghai Composite Index closed at 3559 points, marking a new high for the year, with the market showing signs of structural differentiation and volatility in Q2 [1] - High dividend and defensive sectors performed strongly, reflecting market preference for stable cash flow and high dividends amid uncertain macroeconomic recovery [1][2] - The technology sector experienced internal differentiation, with the AI-related communication industry leading, while semiconductor and hardware sectors showed limited growth [2][3] Group 2: Investment Strategy - The investment strategy emphasizes a balanced approach, focusing on high-quality growth stocks with long-term industry trends and performance stability, while also considering defensive value sectors [3] - The fund has maintained a high allocation to the AI industry while adjusting the internal composition to increase exposure to AI infrastructure and leading application companies with stronger performance [4] - As of the end of Q2 2025, the fund achieved a net value growth rate of 59.27% over the past year, significantly outperforming the benchmark return of 10.93% by 48.34% [4]

Market Overview - The market continues to rise, returning to a rating of 4.7 stars [1] - Large-cap stocks show slight gains, while small and mid-cap stocks experience more significant increases [2] - The banking index slightly declines, but value style indices continue to rise, driven by news of large infrastructure projects [2] - The A-share market has seen a strong performance, with a continuous rise for five weeks, returning to levels seen around last year's National Day [3] Bull Market Analysis - A question arises whether the current rise in A-shares and Hong Kong stocks indicates a bull market; definitions of a bull market vary [6] - Internationally, a technical bull market is defined as a rebound of over 20% from a bear market low; A-shares and Hong Kong stocks have rebounded over 20% since the low in May [7] - Investor sentiment often reflects a bull market when most participants are in profit, which typically occurs in the later stages of a bull market [8] - Historical bull markets show that small bull markets usually reach around 3 stars, while larger bull markets can reach 1-star bubble valuations [9] Market Structure - Bull markets are often structural rather than uniform; historical examples include small-cap bull markets in 2014-2015 and large-cap value bull markets in 2016-2017 [14] - The 2007 bull market was unique in that it saw broad increases across all categories, while most others are characterized by specific styles or themes outperforming [15] - Low-valued stocks will eventually see upward movement, as seen with value indices that underperformed from 2019-2021 but are expected to rise from 2022-2024 [17] Market Dynamics - Bull markets are not characterized by continuous rises; significant corrections of 10-20% can occur even in strong bull markets [18] - Recent performance of the Hong Kong technology index, which rose over 60%, exemplifies a bull market, but it was not a straight rise [20] - The relationship between stock performance and earnings growth is crucial, as rising profits combined with valuation increases create a double effect during bull markets [23] Investment Strategies - The "Monthly Salary Treasure" investment strategy has lowered its minimum investment to 200 yuan and introduced a regular investment feature [25][29] - This strategy aims to meet regular cash flow needs, employing a balanced 40:60 stock-bond strategy to achieve excess returns [28] - The current market rating of 4.7 stars is considered suitable for investment in the "Monthly Salary Treasure" strategy [30]

Group 1 - In the first half of 2025, Chinese companies listed in the US demonstrated strong resilience amidst global market fluctuations, characterized by diverse industry development, balanced regional distribution, and a counter-trend increase in fundraising amounts [2][10] - A total of 45 Chinese companies successfully went public in the US, accounting for 22% of the US IPO market, significantly surpassing the 30 companies from the same period last year [3] Group 2 - The industry distribution of Chinese companies going public in the US shows that 37.21% are in the industrial and service sectors, followed by technology at 23% and consumer at 19%, indicating a shift towards a more diversified international presence [5] - The fundraising situation revealed that approximately $870 million was raised by Chinese companies in the US, with 71% of companies raising less than $10 million, while only 5% raised over $100 million, indicating a polarization in fundraising scales [7] Group 3 - The regional distribution indicates that 18 out of 40 Chinese companies are from Hong Kong, making up 45% of the total, followed by Zhejiang with 4 companies, and Guangdong and Fujian with 3 each, reflecting the influence of regulatory frameworks on listing locations [8] - Despite uncertainties in the global IPO market, the fundraising scale for Chinese companies increased by 22% year-on-year, representing 5.6% of the total IPO fundraising in the US during the same period, showcasing continued interest from the US market in Chinese enterprises [10] Group 4 - The characteristics of Chinese companies going public in the US in the first half of 2025 highlight the international hub role of Hong Kong and the rise of innovative companies from the mainland, driving market dynamics [11] - Looking ahead, the trend suggests that Chinese companies will continue to seek listing opportunities abroad, providing differentiated investment opportunities despite challenges such as rising regulatory costs and geopolitical risks [11]

Core Viewpoint - The revaluation of Chinese assets has become a focal point for both domestic and international investors, with a belief that undervalued Chinese assets, particularly in high-tech sectors, will attract foreign investment as they shift from underweight to benchmark positions [1][2]. Investment Opportunities - Chinese assets are generally undervalued compared to other emerging markets, making them attractive for systematic foreign investment [2]. - Key sectors identified for potential investment include: - New energy vehicle (NEV) supply chain, which is complete and mature, showing strong capabilities across all stages from raw material supply to vehicle manufacturing and sales [2]. - Artificial intelligence (AI) sector, particularly in areas like chip computing power, large models, and core applications [2][3]. - High-end manufacturing, including humanoid robots and intelligent equipment, where Chinese companies hold global competitive advantages [2]. - Consumer sector, which benefits from a large market and stable growth due to economic development and consumer upgrades [2]. - Cyclical industries that have been undervalued due to real estate and debt cycles, expected to see value recovery with economic stabilization and policy adjustments [2]. AI Sector Insights - The emergence of DeepSeek has significantly boosted the A-share AI sector, indicating strong growth potential [3]. - The AI industry is evolving, with different stages focusing on various development priorities, and while significant breakthroughs have been made, there is still a distance to achieving true "intelligent" machines [3]. - The rapid iteration of foundational large models in both domestic and international markets continues to drive the AI sector, with infrastructure companies expected to perform well [3]. Application of AI - Numerous "unicorn" companies are emerging across various AI applications, including IT, education, entertainment, and national defense, with many expected to see high revenue growth starting in 2024 [4]. - Leading companies in the AI space are approaching valuations in the hundreds of billions, indicating strong market interest and potential [4]. - Despite current financial metrics being average, the early-stage development of these companies warrants close monitoring for future growth [4].

Group 1 - The number of newly established foreign-invested enterprises in China increased by 11.7% year-on-year in the first half of the year [11] - The Southwest Oil and Gas Field achieved a record high in natural gas production in the first half of the year [13] - A series of key energy and transportation projects under the "14th Five-Year Plan" are steadily advancing [5] Group 2 - The third Chain Expo reached over 6,000 cooperation intentions [10] - The typhoon "Wipha" made landfall in the coastal area of Guangdong [9] - The first batch of "good housing" construction experience lists has been released [12]

- The report identifies the market's uptrend by analyzing the distance between the 120-day and 20-day moving averages of the WIND All A index, which has expanded from 3.04% to 4.04%, indicating a continued uptrend[2][10][17] - The core observation variable for the market's uptrend is the "profitability effect," which is currently positive at 3.76%, suggesting that incremental funds are likely to continue entering the market[2][4][11] - The industry allocation model recommends sectors such as Hong Kong innovative drugs, Hong Kong securities, and Hang Seng consumption, with additional opportunities in the photovoltaic sector due to anti-involution benefits[3][4][11] - The TWO BETA model continues to recommend the technology sector, with a focus on military and AI applications[3][4][11] - The valuation indicators show that the WIND All A index's overall PE is at the 70th percentile, indicating a moderate level, while the PB is at the 30th percentile, indicating a relatively low level[3][11] - Based on the short-term trend judgment and the position management model, the report suggests an 80% position for absolute return products with the WIND All A index as the main stock allocation[3][11] Model Backtesting Results - The distance between the 20-day and 120-day moving averages of the WIND All A index is 4.04%, indicating a continued uptrend[2][10][17] - The profitability effect value is 3.76%, which is significantly positive, suggesting that the market is likely to continue its uptrend despite short-term fluctuations[2][4][11]

Global Macro Environment - The US economy shows positive data, but inflation risks remain, with the Federal Reserve expected to cut interest rates twice in 2025 at a slower pace [2] - China's economic recovery is weak, with limited effects from policy stimulus, facing challenges from a real estate market crisis and external tariff pressures [3] - Other countries, including the EU and emerging economies, are following the Fed's rate cuts but must balance the pressure from a strengthening dollar, while geopolitical risks in the Middle East and Ukraine persist [3] Vietnam Economic and Stock Market Outlook - Vietnam's economic growth is projected at 7% for 2024 and between 6.0%-6.5% for 2025, driven by trade, FDI, manufacturing, and consumption, with significant long-term potential from government reforms and infrastructure projects like the North-South high-speed railway [4] - The VN-Index has opportunities for breakthroughs amid volatility, with a positive scenario potentially pushing it above 1450 points, supported by GDP growth, an expected 20% increase in EPS, market upgrade expectations (such as FTSE potentially upgrading Vietnam to emerging market status), and easing geopolitical risks [4]