Core Viewpoint - The report highlights the net inflow and outflow of funds across various industries, indicating a significant disparity in investment trends, with the communication sector experiencing the highest net inflow and the electric equipment sector facing the largest net outflow [1][2]. Industry Summary - **Communication**: - Net inflow of funds: 2.151 billion - Change in trading volume: +29.35% - Price change: +4.61% - Turnover rate: 2.13% [1] - **Computer**: - Net inflow of funds: 1.839 billion - Change in trading volume: +24.97% - Price change: +1.42% - Turnover rate: 5.02% [1] - **Electric Equipment**: - Net outflow of funds: -5.055 billion - Change in trading volume: +5.70% - Price change: -0.74% - Turnover rate: 3.28% [2] - **Non-banking Financial**: - Net outflow of funds: -2.960 billion - Change in trading volume: -19.95% - Price change: -0.59% - Turnover rate: 1.55% [2] - **Pharmaceutical**: - Net outflow of funds: -3.550 billion - Change in trading volume: +12.72% - Price change: -0.13% - Turnover rate: 2.72% [2] - **Basic Chemical**: - Net outflow of funds: -3.567 billion - Change in trading volume: +14.17% - Price change: -1.00% - Turnover rate: 2.65% [2] - **Steel**: - Net outflow of funds: -0.058 billion - Change in trading volume: -24.20% - Price change: -1.24% - Turnover rate: 2.04% [1] - **Real Estate**: - Net outflow of funds: -0.838 billion - Change in trading volume: +11.46% - Price change: -0.98% - Turnover rate: 2.72% [1]

Core Insights - The non-banking financial sector experienced the highest net inflow of capital today, amounting to 8.21 billion yuan, with a price change of 2.02% and a turnover rate of 3.22% [1][2] - The power equipment sector faced the largest net outflow of capital, totaling -3.83 billion yuan, with a price change of -0.18% and a turnover rate of 3.29% [1][2] Industry Summary - **Non-banking Financial**: - Trading volume: 13.464 billion shares - Change in trading volume: +60.37% - Turnover rate: 3.22% - Price change: +2.02% - Net capital inflow: 8.21 billion yuan [1] - **Computer**: - Trading volume: 9.252 billion shares - Change in trading volume: +23.21% - Turnover rate: 5.20% - Price change: +1.93% - Net capital inflow: 6.20 billion yuan [1] - **Power Equipment**: - Trading volume: 8.180 billion shares - Change in trading volume: +0.04% - Turnover rate: 3.29% - Price change: -0.18% - Net capital outflow: -3.83 billion yuan [2] - **Real Estate**: - Trading volume: 5.910 billion shares - Change in trading volume: -6.93% - Turnover rate: 2.71% - Price change: +0.16% - Net capital outflow: -1.24 billion yuan [2] - **Banking**: - Trading volume: 7.548 billion shares - Change in trading volume: +28.32% - Turnover rate: 0.57% - Price change: -2.41% - Net capital outflow: -2.15 billion yuan [2]

Core Insights - As of July 8, the latest market financing balance reached 1,851.893 billion yuan, an increase of 5.488 billion yuan compared to the previous trading day [1] - Among the 22 first-level industries, the computer industry saw the largest increase in financing balance, rising by 0.965 billion yuan [1] - The industries with notable increases in financing balance also include non-bank financials, public utilities, and electrical equipment, with increases of 0.907 billion yuan, 0.693 billion yuan, and 0.669 billion yuan respectively [1] - Conversely, nine industries experienced a decrease in financing balance, with food and beverage, petroleum and petrochemicals, and steel showing the largest declines of 0.221 billion yuan, 0.162 billion yuan, and 0.145 billion yuan respectively [1][2] Industry Summary - The light manufacturing industry recorded the highest growth rate in financing balance, with a latest balance of 13.268 billion yuan, reflecting a 1.81% increase [1] - Public utilities, telecommunications, and textile and apparel industries followed with growth rates of 1.60%, 0.81%, and 0.77% respectively [1] - The steel, petroleum and petrochemicals, and social services industries had the largest declines in financing balance, with latest balances of 14.069 billion yuan, 25.147 billion yuan, and 9.915 billion yuan, showing decreases of 1.02%, 0.64%, and 0.58% respectively [1][2]

Core Viewpoint - The A-share market showed positive performance today, with the Shanghai Composite Index rising by 0.58% and trading volume increasing by 13.14% compared to the previous trading day [1] Industry Performance - The construction materials, electronics, and electrical equipment sectors experienced the highest gains, with increases of 2.38%, 2.36%, and 2.28% respectively [1] - Conversely, the utilities, agriculture, forestry, animal husbandry, and transportation sectors faced the largest declines, with decreases of 0.54%, 0.15%, and 0.13% respectively [1] Trading Data - Total trading volume reached 704.97 billion shares, with a total transaction value of 8853.31 billion yuan [1] - Among individual stocks, 3918 stocks rose, including 55 hitting the daily limit up, while 1246 stocks fell, with 7 hitting the daily limit down [1] Leading Stocks - In the construction materials sector, "International Composite Materials" led with a gain of 20.00% [1] - In the electronics sector, "N Yi Tang" surged by 148.52%, marking the highest increase [1] - "Shouhang New Energy" in the electrical equipment sector also rose by 20.00% [1]

Focus Review - Hong Kong released the "Digital Asset Development Policy Declaration 2.0," emphasizing stablecoins as a core tool for financial innovation and integration with the real economy, leading to a significant increase in the stablecoin index by 16.7% from June 23 to June 27 [3] Equity Market - Hong Kong stocks are expected to experience significant upward potential, with valuations at historical lows and support from technology and consumer sectors [5] - The long-term narrative for A-shares is strengthened by the "China-US strategic standoff," with policy support for the technology sector and innovation-driven industries [6] - A-shares may see a rebound in sectors such as brokerage firms, the Sci-Tech Innovation Board, and Hang Seng Technology, with brokerages being a key indicator of a bull market [7] Industry Research - Global stablecoin regulatory improvements and domestic policies are driving the rise of digital currencies and cross-border payments, with a focus on themes like digital currency and AI products [12] - The cyclical manufacturing sector presents potential opportunities, particularly in industries with high prosperity rates such as military, food and beverage, and electronics [13] - The technology sector, especially computing and communication, is experiencing a rebound, driven by the approval of cryptocurrency trading qualifications for financial institutions [14] Macroeconomic and Fixed Income - The bond market is viewed neutrally to bearish for US and German bonds, with a focus on emerging markets and A/H shares [18] - The bond market lacks clear new drivers, with ongoing uncertainties in the external environment [19] - Structural opportunities in the bond market are emphasized, particularly in the Sci-Tech Board [20] Asset Allocation - Mid-term strategies suggest focusing on sectors with performance releases and clear industry trends, including technology and dividend-paying stocks [22] - Recommendations include investing in technology sectors like AI, digital currency, and semiconductors, while also considering undervalued Hong Kong stocks [23]

Core Viewpoint - The report highlights the net inflow and outflow of funds across various industries, indicating a significant disparity in capital movement, with the media sector experiencing a net inflow while the electronics sector faced the largest net outflow [1][2]. Industry Summary - **Media**: - Net inflow of funds: 1.82 billion - Change in trading volume: +21.70% - Turnover rate: 2.98% - Price change: -0.48% [1] - **Electronics**: - Net outflow of funds: -54.08 billion - Change in trading volume: -4.55% - Turnover rate: 2.40% - Price change: -0.59% [1][2] - **Petrochemical**: - Net inflow of funds: 1.33 billion - Change in trading volume: +36.86% - Turnover rate: 1.09% - Price change: +0.86% [1] - **Household Appliances**: - Net inflow of funds: 0.03 billion - Change in trading volume: +37.17% - Turnover rate: 1.88% - Price change: -0.98% [1] - **Other Notable Industries**: - **Automotive**: Net outflow: -21.05 billion, Price change: -1.47% [2] - **Electric Equipment**: Net outflow: -23.52 billion, Price change: -1.45% [2] - **Telecommunications**: Net outflow: -24.30 billion, Price change: -0.83% [2] - **Machinery**: Net outflow: -25.38 billion, Price change: -1.56% [2] - **Pharmaceuticals**: Net outflow: -48.01 billion, Price change: -1.86% [2]

Market Overview - The three major indices experienced slight gains, with the Shanghai Composite Index closing at 3388.81, up by 0.04% [2] - The Shenzhen Component Index closed at 10175.59, up by 0.24%, while the CSI 300 Index rose by 0.12% to 3874.97 [2] Sector Performance - The top-performing sectors included Electronics (1.50%), Communication (1.39%), and National Defense & Military Industry (0.95%) [3] - Conversely, the worst-performing sectors were Beauty Care (-1.73%), Real Estate (-1.35%), and Building Materials (-1.22%) [3] Concept Index Performance - The PCB concept led the concept sectors with a gain of 3.29%, followed by the Sci-Tech New Shares at 2.80% [3] - The weakest concept sectors included Glyphosate (-2.82%) and Rare Earth Permanent Magnet (-2.57%) [3] Market Outlook - The market showed mixed performance with many stocks declining despite the slight rise in indices, indicating a lack of significant profit-making opportunities [4] - The market is expected to remain in a range-bound state due to ongoing divergence between bulls and bears, with potential for a rebound supported by economic resilience and policy backing [6] Policy Developments - The 2025 Lujiazui Forum introduced significant financial opening measures, including the establishment of a trading report library and a digital RMB international operation center [5] - The government plans to support consumer goods replacement policies with a budget of 300 billion yuan, of which 162 billion yuan has already been allocated [5]

Market Overview - The two markets experienced a significant net outflow of 13.056 billion yuan, with 1,755 stocks seeing net inflows and 2,757 stocks experiencing net outflows [2] - The Shanghai Composite Index closed down by 0.04% [2] Industry Performance - Eight industries saw net inflows from large orders, with the power equipment sector leading with a net inflow of 1.044 billion yuan and a 0.19% increase in its index [2] - The transportation sector followed with a net inflow of 855 million yuan and a 0.52% increase [2] - Twenty-three industries experienced net outflows, with the media sector seeing the largest outflow of 3.168 billion yuan, followed by the computer sector with 2.578 billion yuan [2] Individual Stock Performance - Twelve stocks had net inflows exceeding 200 million yuan, with Lakala leading at 733 million yuan and a 16.16% increase in its stock price [3] - Rongfa Nuclear Power followed with a net inflow of 653 million yuan and a 10.01% increase [3] - The average increase for stocks with net inflows over 200 million yuan was 11.50%, outperforming the Shanghai Composite Index [3] Notable Stocks with Net Inflows - Lakala: 7.33 billion yuan, 16.16% increase, Non-banking financial sector [3] - Rongfa Nuclear Power: 6.53 billion yuan, 10.01% increase, Power equipment [3] - Other notable stocks include China Merchants South Oil, BeiYinMei, and Red Sun [3] Notable Stocks with Net Outflows - Light Media had the highest net outflow of 1.260 billion yuan, with a -4.07% change [5] - Silver Zhi Jie and Tian Yang Technology followed with net outflows of 505 million yuan and 430 million yuan, respectively [5] - Other significant outflow stocks include Si Fang Jing Chuang and Guangsheng Youse [5]

Group 1 - Financial resources are accelerating towards the technology innovation sector, with 271,800 technology-based SMEs receiving loans, achieving a loan rate of 49.6%, an increase of 3.6 percentage points year-on-year [1] - Commercial banks are innovating mechanisms and optimizing financial service models to enhance the precision and effectiveness of financial services for technology finance, acting as a catalyst for innovation [1] Group 2 - In Suzhou, Innovent Biologics has become an industry leader with over 2 billion yuan in annual R&D investment, transitioning from a cash-burning phase to a successful commercialization of its first cancer drug, supported by a 250 million yuan syndicated loan from China Construction Bank [2] - The biopharmaceutical industry is a key sector in Suzhou, with China Construction Bank innovating the "Pipeline Loan" to match the long R&D cycles of new drugs, serving over 600 key biopharmaceutical enterprises with credit limits exceeding 16 billion yuan [2] Group 3 - Traditional bank loan products often fail to meet the long R&D cycles of technology SMEs, prompting banks to innovate credit mechanisms and develop long-term loan products to support technology innovation [3] - Shanghai Pudong Development Bank provided several million yuan in medium to long-term R&D loans to a leading logistics robot company, demonstrating the flexibility of financial support [3] Group 4 - Agricultural Bank of China introduced "Kejie Loan" for small and micro technology enterprises, allowing for online self-service financial products that utilize intellectual property and innovation scores to determine credit limits [4] - This innovation helps activate intangible assets, transforming patents into financial resources for companies facing funding challenges [4] Group 5 - Industrial and Commercial Bank of China provided a 10 million yuan intellectual property pledge loan to a high-tech enterprise in Guizhou, facilitating the conversion of core patent technologies into development momentum [5][6] Group 6 - The Ningbo Graphene Innovation Center's shareholder highlighted the challenges of obtaining loans due to a lack of traditional collateral, prompting China Construction Bank to innovate a specialized evaluation system for technology enterprises [7] - This system allowed for a rapid provision of 130 million yuan in credit to support the commercialization of new materials [7] Group 7 - Zhejiang Commercial Bank launched a "Talent Bank" that incorporates a talent value assessment system to provide credit support based on team members' academic achievements and industry experience, addressing the financing difficulties of asset-light technology enterprises [8] - The bank has supported over 4,000 high-level talent enterprises with a financing balance of 34.5 billion yuan [8]

Group 1 - The report indicates a market differentiation with micro-cap stocks outperforming, while the ChiNext index and cyclical stocks lag behind [3][10] - The valuation of broad market indices shows divergence, with micro-cap stocks, the CSI 2000, and stable stocks performing the best, while the ChiNext index, cyclical stocks, and the CSI 300 performed the weakest [3][10] - The report highlights that the industries with relatively cheap valuations include food and beverage, agriculture, forestry, animal husbandry, and public utilities [39][28] Group 2 - The report notes that the pharmaceutical, environmental protection, and national defense industries had the highest gains last week, while the automotive, electric equipment, and non-ferrous metals sectors performed the weakest [12][35] - Relative valuations show a decline in the ChiNext index compared to the CSI 300 in terms of PE and PB ratios [17][26] - The report states that the overall valuation of major indices is above the 50% historical percentile, with the ChiNext index at a low valuation compared to the past year [26][28] Group 3 - The report identifies that the current valuation of major industries is mixed, with non-bank financials, non-ferrous metals, telecommunications, electronics, agriculture, and home appliances at near one-year lows [35][39] - The report emphasizes that the current valuation levels of materials, equipment manufacturing, industrial services, transportation, consumption, and technology are all below the 50% historical percentile [28][39] - The report highlights that the current valuation of the environmental protection sector is at a high historical percentile, indicating strong performance expectations [39][50] Group 4 - The report mentions that the earnings expectations across various industries are nearly flat, with the largest upward adjustment in the environmental sector and the largest downward adjustment in electric equipment [50][50] - The report indicates that popular concepts such as cultivated diamonds, third-generation semiconductors, 6G, and robotics are at historically high valuation percentiles over the past three years [47][48]