Core Viewpoint - The small-cap market is expected to continue its upward trend as long as the market remains accommodative, with significant performance observed in indices like the CSI 2000 and CSI 1000, which have outperformed major indices like the S&P 500 [1][9]. Group 1: Market Performance - As of July 3, 2025, the CSI 2000 index has achieved a year-to-date increase of 15.41%, outperforming the S&P 500 by nearly 7 percentage points [1][2]. - The CSI 1000 index also shows strong performance, indicating that small-cap stocks are currently leading the market [1][2]. Group 2: ETF Performance - The CSI 2000 Enhanced ETF (159552) has seen significant inflows, with a total of 600 million in large subscriptions despite recent market fluctuations [2]. - The 1000 Enhanced ETF (159680) has demonstrated a clear upward trend over recent months, with a cumulative excess return of 33.10% since its inception [5][6]. Group 3: Market Drivers - Three main factors are driving the small-cap bull market: high concentration of specialized and innovative companies in the CSI 2000 and CSI 1000 indices, supportive policies for technology growth, and the high liquidity sensitivity of small-cap stocks [7][9]. - The current market environment is characterized by a focus on long-term competitiveness rather than short-term gains, suggesting a more sustainable growth trajectory for small-cap stocks compared to previous bull markets [9][10].

Group 1 - A-shares indices opened higher on June 27, with Xiaomi automotive concept stocks experiencing significant gains [1] - The A500 ETF by Harvest (159351) saw a rapid increase in trading volume, exceeding 250 million yuan in a single session, and had a total trading volume of over 3.3 billion yuan the previous day [1] - The A500 ETF has shown a year-to-date share change rate of 20.98%, ranking first among similar products [1] Group 2 - Xiaomi officially launched its first SUV, the Xiaomi YU7, with prices starting at 253,500 yuan, and received over 289,000 pre-orders within the first hour of sales [2] - Analysts from Dongfang Securities noted that the rapid order growth for the Xiaomi YU7 reflects strong consumer recognition of the product and the Xiaomi brand, indicating potential benefits for related companies in the automotive supply chain [2] - Zhongyuan Securities highlighted that the current average price-to-earnings ratio of the Shanghai Composite Index and the ChiNext Index is at a median level over the past three years, making it suitable for medium to long-term investment [2]

Core Viewpoint - The small-cap indices, represented by the CSI 1000 and CSI 2000, have shown strong performance with significant inflows into related ETF products, indicating a robust market sentiment and potential investment opportunities in these segments [1][2]. Group 1: Market Performance - The CSI 1000 index saw 9 stocks hitting the daily limit up, while the CSI 2000 had 28 stocks, reflecting a strong upward trend with respective gains of 0.47% and 0.72% [1]. - The CSI 1000 Enhanced ETF (159680) received a substantial inflow of 3 million in a single transaction, totaling a net inflow of 22.43 million over the past two trading days [1]. Group 2: ETF Performance - Both the CSI 1000 Enhanced ETF (159680) and the CSI 2000 Enhanced ETF (159552) have outperformed their benchmark indices, achieving excess returns of 7.36% and 13.41% respectively from the beginning of the year to June 25 [3]. Group 3: Driving Forces - The market's performance is driven by three main engines: 1. Liquidity and policy support, with multiple reductions in reserve requirements and interest rates enhancing market liquidity, benefiting small and micro enterprises [3][4]. 2. Enhanced strategies in ETFs that utilize active management to generate excess returns through industry rotation, stock selection, and risk control [6]. 3. A favorable environment for growth sectors, with policies supporting AI, robotics, military, semiconductors, and pharmaceuticals, aligning with the majority of the components in the CSI 1000 and CSI 2000 indices [4]. Group 4: Investment Strategy - The current market conditions resemble the bullish sentiment of September 2022, suggesting that growth stocks within the CSI 1000 and CSI 2000 indices are likely to be key focus areas for investors [7]. - Enhanced ETFs are positioned as offensive allocations in investment portfolios, with recommendations to balance risk by pairing with dividend or bank stocks for a better experience [8].

Group 1 - The cash flow ETF from Southern (159232) has risen by 0.29%, marking its fifth consecutive increase, with a turnover of 6.76% and a transaction volume of 38.3043 million yuan [1] - The index it tracks, the CSI All Share Free Cash Flow Index, increased by 0.21%, with notable gains from constituent stocks such as Yiming Pharmaceutical (up 3.42%), Bohai Ferry (up 2.95%), and Western Mining (up 2.77%) [1] - The fund aims to reflect the overall performance of listed companies with strong cash flow generation capabilities by focusing on the key financial indicator of free cash flow [1] Group 2 - Approximately 350 A-share companies are set to implement annual report dividend distributions this week, with a total dividend amount exceeding 200 billion yuan [1] - CITIC Securities suggests that after June, dividend assets may present a favorable timing for investment, recommending investors to maintain focus on dividend and new sectors [2] - The top ten weighted stocks in the CSI All Share Free Cash Flow Index include Midea Group, China Shenhua, and China National Offshore Oil Corporation, indicating a concentration in high cash flow generating companies [2]

Core Viewpoint - The recent "624" rally is reminiscent of last year's "924" event, with Hong Kong's tech index outperforming the Hang Seng Tech index significantly since April 2023 [1][4]. Performance Comparison - Since the "924" rally, the Hong Kong tech index has increased by 49.75%, outperforming the Hang Seng Tech index by nearly 6 percentage points; since the low on April 8, 2023, it has risen by 21.54% [3][4]. - The Hang Seng Tech index has shown a growth of 20.37% since April 8, 2023, and 43.26% since September 24, 2022 [4]. Sector Analysis - The Hong Kong tech index benefits from a larger number of constituent stocks (50) compared to the Hang Seng Tech index (30), which contributes to its superior performance [4]. - The strong performance of innovative pharmaceuticals within the Hong Kong tech index, which accounts for 8.5% of the index, has also contributed to its outperformance [4]. Investment Recommendations - For investors looking to invest in Hong Kong stocks, the Hong Kong tech index should be prioritized over the Hang Seng Tech index [5]. - The Hong Kong Tech 50 ETF (159750) has gained 0.69% recently and is a popular choice among investors, offering T+0 trading convenience [5][6]. ETF Performance - The Hong Kong Tech 50 ETF has increased by 50.15% since the "924" rally and 12.78% since April 8, 2023, with multiple recent highs [6][8]. - The Hong Kong Dividend Low Volatility ETF (520550) has also performed well, with a 17.69% increase since the "924" rally and 19.86% since April 8, 2023, achieving 35 new historical highs this year [6][8].

Market Overview - A-shares opened lower but closed higher, with the Shanghai Composite Index at 3381.58 points, up 0.65%, and a trading volume of 442.8 billion yuan. The Shenzhen Component Index closed at 10048.39 points, up 0.43%, with a trading volume of 679.8 billion yuan [1] - The computer, defense, and coal sectors led the gains, while food and beverage, and home appliances sectors lagged [1] Geopolitical Events - On June 21, U.S. President Trump announced the completion of attacks on Iranian nuclear facilities, prompting calls from Iranian officials for missile strikes on U.S. naval vessels and the blockade of the Strait of Hormuz [1] - U.S. Vice President Pence stated that any disruption of shipping in the Strait would be "suicidal" for Iran, as the Iranian economy heavily relies on this route [1] - The market reacted calmly to these developments, with gold and oil prices initially rising but later declining, indicating a low perceived risk of the Strait being closed [1] A-share Market Sentiment - Short-term risk appetite in A-shares has decreased, with coal and banking sectors leading the gains again [2] - Port data has shown early signs of decline, and the macroeconomic focus is shifting from external demand to domestic policy [2] - Increased geopolitical tensions in the Middle East pose additional risks, but such event-driven trades are considered difficult and short-lived [2] Bond Market Outlook - The continued easing of monetary policy and weakening domestic data may lead to better performance in the bond market [3] - The current bond market rally is supported by a more favorable monetary easing environment compared to previous rounds [3] - Major banks are actively buying short-term government bonds, leading to a decline in short-term interest rates and a steepening yield curve [3] Financial Sector Performance - The Financial ETF (510230) rose by 1.35%, driven primarily by the banking sector [4] - The banking sector has shown a broad-based increase, with various types of banks reaching new highs [4] Banking Sector Analysis - The trading logic of the banking sector has shifted significantly, moving from a strong positive correlation with macroeconomic fundamentals to a strong negative correlation with the ten-year government bond yield [7] - The market has begun to downplay the impact of bank fundamentals, particularly net interest margins, due to the perceived dividend stability of bank stocks [8] - Despite a narrowing net interest margin, banks have improved asset quality, which supports higher valuations [10] Investment Recommendations - Investors are advised to focus on financial ETFs (510230) and consider buying on dips, given the current market conditions and the banking sector's performance [10]

Group 1 - The A-share market showed mixed performance with the national free cash flow index slightly declining by approximately 0.15%, while component stocks experienced varied movements, with Jinjiang Shipping leading gains and Dazhenglin facing losses [1] - The low-fee free cash flow ETF (159201) actively traded in line with the index adjustment, currently holding a scale of 3.698 billion yuan, leading among similar products [1] - CITIC Securities indicated that the previously strong-performing Hong Kong new consumption and innovative pharmaceutical sectors have recently undergone significant adjustments, impacting related A-share sectors, with liquidity and risk appetite in Hong Kong facing ongoing challenges [1] Group 2 - The free cash flow ETF (159201) closely tracks the national free cash flow index and has demonstrated strong long-term performance [1] - The free cash flow stock selection strategy offers substantial allocation value, with a portfolio structure that significantly differs from traditional dividend strategies, showing stronger aggressiveness in value markets, making it an excellent complement to defensive strategies [1]

Market Overview - The three major A-share indices showed mixed performance in the morning session, with the Shanghai Composite Index up by 0.08%, the Shenzhen Component Index down by 0.19%, and the ChiNext Index down by 0.56% [1] - The total market turnover for the half-day was 686.3 billion yuan, a decrease of 119.6 billion yuan compared to the previous day [1] - Over 3,200 stocks in the market were in the red [1] Sector Performance - The top-performing sectors included liquor, photovoltaic equipment, and solid-state batteries [1] - The sectors with the largest declines were brain-computer interfaces and short drama games [1] ETF Performance - Among ETFs, the liquor ETF (512690) led with a gain of 2.56%, followed by the Hong Kong non-bank financial ETF (513750) with a 2.54% increase, and the Hong Kong Stock Connect financial ETF (513190) up by 2.53% [2] - Conversely, the S&P Consumer ETF (159529) saw the largest decline at -4.00%, followed by the S&P 500 ETF (159612) down by 3.57%, and the National Index 2000 ETF (159505) down by 2.48% [3]

Group 1 - The core viewpoint highlights the strong performance and increasing popularity of the Hong Kong Dividend Low Volatility ETF (520550), which has reached historical highs multiple times since 2025, with a net inflow exceeding 20 million on June 17 and a total inflow of 533.3 million over the past five days, bringing its total scale to over 500 million [1] - The Hong Kong dividend assets have been consistently favored by investors, with the total scale of the Hong Kong Dividend ETF exceeding 40 billion, and an inflow of 10.7 billion in 2025, representing a growth of 40% [1][3] - Southbound funds have shown a continuous inflow into high-dividend sectors such as banks and public utilities, with net purchases of bank stocks exceeding 200 billion over the past year, indicating a strong preference for high-dividend, low-valuation assets [3][4] Group 2 - In the current low interest rate environment, dividend assets exhibit relatively stable profitability and high dividends, making them attractive compared to one-year and three-year deposit rates [4][5] - The Hang Seng Hong Kong Stock Connect High Dividend Low Volatility Index has a dividend yield of 8.1%, significantly higher than the China Securities Bank Index at 5.75% and the CSI 300 Index at 3.39% [5][8] - The index currently has a PE (TTM) of 7 times and a PB of 0.6 times, indicating a lower valuation compared to similar indices and a higher safety margin [9][10] Group 3 - The Hong Kong Dividend Low Volatility ETF (520550) implements monthly dividend assessments, currently distributing 0.04 yuan per ten shares, with a dividend ratio of approximately 0.37% [12] - The ETF has a management fee of 0.2%, the lowest among similar products in the market, making it a cost-effective long-term investment option [12]

Group 1 - The A-share market saw all three major indices open lower but subsequently turned positive, with the Sci-Tech Innovation Board Composite Index rising by 0.55% as of June 16, 2025 [1] - Notable stock performances included Jin Cheng Zi hitting the daily limit, Yue Kang Pharmaceutical increasing by 11.09%, and Hai Zheng Sheng Cai rising by 10.66% [1] - The Sci-Tech Innovation Board ETF, Huaxia (589000), increased by 0.64%, with a recent price of 0.94 yuan, and has shown a cumulative increase of 1.08% over the past two weeks [1] Group 2 - In 2024, the total R&D investment for the Sci-Tech Innovation Board reached 168.08 billion yuan, with a compound annual growth rate of 10.7% over the last three years [2] - The median ratio of R&D investment to operating income was 12.6%, leading all A-share sectors [2] - By the end of 2024, over 120,000 invention patents had been formed, with more than 20,000 new invention patents added in that year alone [2] Group 3 - The Sci-Tech Innovation Board ETF closely tracks the Sci-Tech Innovation Board Composite Index, which consists of eligible listed companies on the Sci-Tech Innovation Board and includes dividend distributions in its performance [2]