Domestic Market Overview - The Shanghai Composite Index closed at 3582.3 points, up 0.01%, while the Shenzhen Component Index closed at 11059.04 points, down 0.37%. The ChiNext Index decreased by 0.01%, and the STAR Market 50 Index increased by 0.45%. The total trading volume of the A-share market was 18984 billion, slightly down from the previous day [1][4][9] - Among the 30 sectors tracked by CITIC, 4 sectors saw gains, with non-bank financials, home appliances, and banks leading the increase. Conversely, building materials, defense, and comprehensive finance experienced significant declines [1][4][9] Overseas Market Overview - On July 23, all three major U.S. stock indices rose, with the Dow Jones Industrial Average increasing by 1.14%, the S&P 500 rising by 0.78%, and the Nasdaq gaining 0.61%. Notably, Merck rose nearly 3%, and UnitedHealth Group increased by over 2% [2][4] News Highlights - The Ministry of Commerce announced that He Lifeng will visit Sweden from July 27 to 30 for economic and trade talks with the U.S. [3][11] - The Hainan Free Trade Port is set to officially start its full island closure operation on December 18 this year, implementing a series of liberalization policies [3][12] - The Public Security Bureau will strengthen the regulation of "smart driving" systems in vehicles [3][14] - A cross-provincial real estate registration mechanism has been established among Beijing, Shanghai, Hangzhou, Guangzhou, and Shenzhen, benefiting over 90 million people [3][15] - The U.S. and Japan have reached an agreement on tariff negotiations, reducing the tariff rate on Japan from 25% to 15% [3][17]

Market Performance - On July 23, 2025, the Shanghai Composite Index fluctuated and lost the 3600-point level, closing at 3582.30, up 0.01%[15] - The Shenzhen Component Index fell by 0.37%, closing at 11059.04, while the ChiNext Index decreased by 0.01%[15] - Total market turnover was 18642.75 billion CNY, a decrease of 284.50 billion CNY from the previous trading day[15] Sector and Style Analysis - Among the 30 CITIC first-level industries, most sectors declined; leading sectors included Non-Bank Financials (up 1.31%), Home Appliances (up 0.51%), and Banks (up 0.38%)[20] - The worst-performing sectors were Building Materials (down 2.56%), Defense and Military (down 1.80%), and Comprehensive Finance (down 1.35%)[20] - In terms of investment style, Financials outperformed, followed by Consumption and Growth, while Large-Cap Value stocks led over Large-Cap Growth stocks[20] Capital Flow - On July 23, 2025, the net outflow of main funds was 646.03 billion CNY, with large orders seeing a net outflow of 346.87 billion CNY and super large orders a net outflow of 299.17 billion CNY[24] - Small orders continued to see a net inflow of 609.73 billion CNY, while medium orders had a slight inflow of 10.19 billion CNY[24] ETF Trading Activity - Major ETFs such as the Huaxia SSE 50 ETF and the Huatai-PB CSI 300 ETF saw varied trading volumes, with the SSE 50 ETF trading at 21.25 billion CNY, an increase of 2.14 billion CNY from the previous day[29] - The CSI 500 ETF had a trading volume of 17.65 billion CNY, up by 3.66 billion CNY, while the CSI 1000 ETF traded at 10.37 billion CNY, an increase of 2.32 billion CNY[29] Global Market Overview - On July 23, 2025, major Asia-Pacific indices closed higher, with the Hang Seng Index up 1.62% at 25538.07 points and the Nikkei 225 up 3.51% at 41171.32 points[33] - In contrast, European indices showed mixed results, with the DAX down 1.09% and the FTSE 100 up 0.12%[33]

Market Performance - In Q2 2025, major A-share indices generally rose, with the North Star 50 increasing by 13.85% and the Shanghai Composite Index rising by 3.26%[13][17] - The top five performing sectors included Comprehensive Finance (32.16%), National Defense and Military Industry (16.03%), and Banking (12.62%) while the worst performers were Food and Beverage (-5.13%) and Home Appliances (-3.45%) [17][18] Fund Issuance and Positioning - A total of 66 equity-oriented active funds were established in Q2 2025, with a total share of 338.57 billion, marking an increase in issuance compared to the previous quarter[2][25] - The average stock positions of various types of equity-oriented active funds increased, with mixed equity funds reaching an average position of 88.46%[29] Sector and Stock Holdings - The top five sectors with increased holdings were Communication, Banking, National Defense and Military Industry, Non-Bank Financials, and Media, with Communication and Banking seeing increases of over 1%[4][42] - The top five stocks with the largest increases in holdings were Zhongji Xuchuang, Xinyi Sheng, Hudian Co., Shenghong Technology, and SF Express, while the largest reductions were seen in BYD, Kweichow Moutai, and Wuliangye[5][43] Billion Fund Holdings - The largest changes in holdings among billion-dollar funds were observed in SF Express, Xinlitai, and Ningde Times, with the National Defense and Military Industry sector seeing a significant increase from 0 to 10.76 billion[6] Southbound Capital Analysis - In Q2 2025, the top five stocks held by southbound funds included Tencent Holdings, Xiaomi Group, and Alibaba, with notable increases in holdings for Sinda Biopharmaceuticals and Pop Mart[7]

Core Insights - The central viewpoint indicates that the central bank's net injection of 1.2 trillion yuan is expected to improve liquidity expectations, with a notable increase in financing buy-ins and significant net inflows from southbound funds [1][2]. Macro Liquidity - Domestic liquidity saw a decline in both 2-year and 10-year government bond yields, with the yield spread widening. The central bank's open market net injection was 1.2011 trillion yuan, while 3,000 million yuan was withdrawn through MLF in July [2][12]. - Internationally, the 2-year U.S. Treasury yield decreased while the 10-year yield increased, leading to a rise in the dollar index. The 10-year U.S. Treasury yield rose to 4.44%, and the dollar index reached 98.46, with the China-U.S. 10-year bond yield spread widening to -2.77% [2][17]. Market Liquidity - Public funds: In July 2025, 71 new funds were established, with 39 being equity funds, totaling approximately 11.6 billion shares issued [3][22]. - ETF funds: 15 new equity ETFs were established in July 2025, with a total issuance of 6.8 billion shares [3][25]. - Southbound funds: There was a significant net inflow of southbound funds, totaling 735.9 billion yuan year-to-date, with major inflows into non-bank financials, pharmaceuticals, and consumer services [3][32][34]. - Margin financing: The average financing buy-in amount was 148.8 billion yuan, reflecting a 6.3% increase week-on-week, with significant net inflows in the computer, machinery, and electronics sectors [4][39]. Fundraising - In July, there were 4 IPOs raising approximately 22.1 billion yuan, with total equity financing around 43.4 billion yuan [4][45].

Summary of Key Points Core Viewpoint - The public fund industry has reported strong performance in Q2 2025, with both total fund management scale and non-monetary fund management scale reaching historical highs, indicating a positive trend in the market [1][2]. Fund Management Scale - As of the end of Q2 2025, the total public fund management scale reached 34 trillion yuan, while the non-monetary fund management scale was 20 trillion yuan, both marking historical peaks [2][3]. - The total public fund scale increased by 7.04% from Q1 2025 and by 10.76% year-on-year from Q2 2024 [2]. - The non-monetary fund scale grew by 6.85% from the previous quarter, reaching 20.11 trillion yuan [2]. Fund Types and Performance - The largest market scales were seen in money market funds and bond funds, with sizes of 13.93 trillion yuan and 10.77 trillion yuan, reflecting increases of 7.32% and 8.74% respectively [3]. - Equity funds reached a scale of 4.74 trillion yuan, growing by 6.06% quarter-on-quarter, while mixed funds saw minimal growth [3]. - Commodity funds and fund of funds (FOF) experienced significant growth, with increases of 47.79% and 10.28%, respectively [3]. Investment Trends - Public funds increased their allocations to the financial and technology sectors, with increases of 1.82% and 1.71%, while reducing allocations to the consumer sector by 3.9% [5]. - The top three sectors by allocation weight were electronics, pharmaceuticals, and power equipment & new energy, with weights of 18.88%, 11.11%, and 8.8% respectively [5]. - Notably, the automotive sector, which had seen significant investment in the previous quarter, experienced a reduction in holdings [6]. Major Holdings - The top ten holdings of public funds included Tencent Holdings, CATL, and Kweichow Moutai, with Tencent's total market value held by public funds at approximately 59.2 billion yuan [6][7]. - New entrants to the top ten holdings included Xiaomi Group and New Yisheng, while BYD and Wuliangye exited the list [7]. Investor Behavior - Investors showed a preference for money market funds, bond funds, commodity funds, and QDII funds, leading to net subscriptions in these categories, while equity funds and FOFs faced net redemptions [8][9]. - The total fund share exceeded 30 trillion shares by the end of June, with a net subscription of 1.25 trillion shares in the quarter [8]. - Money market funds and bond funds were the main contributors to net subscriptions, with net subscriptions of 887.67 billion shares and 459.25 billion shares, respectively [9]. Redemption Trends - Equity funds experienced net redemptions totaling 140.27 billion shares, with actively managed equity funds leading in redemptions [10]. - FOFs also faced net redemptions of 5.53 billion shares, indicating a shift in investor sentiment away from these products [11].

- The report tracks the performance of growth factors, highlighting that growth factors performed well across different market capitalizations, with higher excess returns in large-cap stocks[2][42][43] - The report mentions that the growth factor had a strong performance in the past week, with specific factors such as (current consensus forecast rev_FY1 - 3 months ago consensus forecast rev_FY1) / 3 months ago consensus forecast rev_FY1 absolute value, (current ROE - last year's ROE) / last year's ROE absolute value, single-quarter EPS growth rate, R&D to sales ratio, and operating income_TTM / average total assets showing excess returns of over 1% relative to the CSI All Share Index[2][42][43] - The report provides detailed excess returns for various factors over different time periods, with factors like tot_rd_ttm_to_assets, dp_historical, jor, mom3_rating_score_90d, and mom3_rev_fy1 showing significant excess returns over the past week and month[2][44] - The report also analyzes factor performance across different indices (CSI 300, CSI 500, CSI 1000, and CSI 2000), noting that factors such as fix_ratio, sue1, peg, yoy_roe, and yoy_eps_q performed well across all indices, with better performance in large-cap indices[2][45][46] - The report evaluates the performance of quantitative portfolios, noting that the enhanced portfolios based on financial report coverage for CSI 300, CSI 500, and CSI 1000 achieved positive absolute and excess returns over the past week, month, and year[2][47][48] - The report provides specific performance metrics for the enhanced portfolios, including absolute returns, relative returns, and annualized excess returns, with the CSI 300 enhanced portfolio achieving an absolute return of 230.84% and an annualized excess return of 10.89% since 2015[2][48][49] - The report lists the top 30 holdings for each enhanced portfolio, including stocks like JinkoSolar, Inspur Information, and Weir Group for the CSI 300 enhanced portfolio, and stocks like Shanghai Jahwa, Kedali, and Lianlong for the CSI 500 enhanced portfolio[2][58]

Core Viewpoint - The current A-share market is likely to maintain a strong oscillating trend, similar to the second half of 2014, driven by liquidity and policy easing factors [1][2][3] Group 1: Market Trends - The A-share market in the second half of 2014 and from April to July 2020 was primarily driven by liquidity and policy easing, with a weak economic backdrop but rising stock indices [2] - The current market is expected to continue a structural slow bull trend, with short-term oscillations leaning towards strength [3] - Economic recovery remains weak, with pressures on exports and a potential decline in real estate investment, while corporate earnings are showing signs of recovery [3] Group 2: Sector Performance - In the current environment, sectors such as media, building materials, agriculture, computer, and home appliances are showing superior mid-year profit growth [1] - Growth sectors like media, automotive, pharmaceuticals, power equipment, and new energy, along with blue-chip sectors such as agriculture, non-bank financials, food and beverage, and home appliances, are considered to have high cost-performance ratios [1][3] Group 3: Investment Strategy - Short-term investment strategy suggests a balanced allocation between technology growth and undervalued blue-chip stocks, focusing on sectors with upward policy and industry trends [1][3] - In July and August, the market style is expected to be balanced, with growth potentially outperforming value in August due to economic recovery trends and continued liquidity [4]

Report Summary 1. Report Industry Investment Rating No information about the industry investment rating is provided in the report. 2. Core Viewpoints - In the primary market, 9 green bonds were newly issued in the inter - bank and exchange markets from July 14 to July 18, 2025, with a total issuance scale of about 8.579 billion yuan, a decrease of 26.246 billion yuan compared to the previous week [1]. - In the secondary market, the weekly trading volume of green bonds from July 14 to July 18, 2025, totaled 52.3 billion yuan, a decrease of 10 billion yuan compared to the previous week [2]. - The overall deviation of the weekly average trading price valuation of green bonds from July 14 to July 18, 2025, was not large. The discount trading amplitude was greater than the premium trading, and the proportion of discount trading was higher than that of premium trading [3]. 3. Summary by Relevant Catalogs Primary Market Issuance - **Number and Scale**: 9 green bonds were issued, with a total scale of about 8.579 billion yuan, down 26.246 billion yuan from the previous week [1]. - **Issuance Term**: Most issuance terms were 3 years [1]. - **Issuer Nature**: Included central enterprise subsidiaries, local state - owned enterprises, Sino - foreign joint - ventures, and other enterprises [1]. - **Subject Rating**: Mostly AAA and AA+ grades [1]. - **Issuer Region**: Beijing, Anhui, Sichuan, Zhejiang, Shanghai, and Tianjin [1]. - **Bond Types**: Science and technology innovation bonds, commercial bank ordinary bonds, private placement corporate bonds, credit ABS, and general corporate bonds [1]. Secondary Market Trading - **Total Trading Volume**: The weekly trading volume was 52.3 billion yuan, a decrease of 10 billion yuan compared to the previous week [2]. - **By Bond Type**: The top three in trading volume were non - financial corporate credit bonds (25.6 billion yuan), financial institution bonds (20.8 billion yuan), and interest - rate bonds (4.3 billion yuan) [2]. - **By Issuance Term**: Green bonds with a term of less than 3 years had the highest trading volume, accounting for about 88.61% [2]. - **By Issuer Industry**: The top three industries in trading volume were finance (21.5 billion yuan), public utilities (13.5 billion yuan), and transportation equipment (1.8 billion yuan) [2]. - **By Issuer Region**: The top three regions in trading volume were Beijing (16.8 billion yuan), Guangdong (6 billion yuan), and Hubei (4 billion yuan) [2]. Valuation Deviation of Top 30 Individual Bonds - **Discount Bonds**: The top three discount bonds were 24 Kangfu Leasing ABN001 Priority (Green) (-1.1390%), GK Guoneng 02 (-0.9872%), and 24 Fengdian G2 (-0.4418%). The main industries of the issuers were energy, real estate, and public utilities, and the regions were mainly Beijing, Guangdong, and Guizhou [3]. - **Premium Bonds**: The top four premium bonds were 25 Shuineng G1 (0.3293%), 21 Chongqing Rail Transit GN003 (Carbon - neutral Bond) (0.1777%), Kunpeng 19A2 (0.1201%), and 25 Deda G2 (0.1079%). The main industries of the issuers were finance, public utilities, and transportation, and the regions were mainly Beijing, Guangdong, Yunnan, and Jiangxi [3].

Group 1 - The core viewpoint indicates that during the week of July 10-16, the A-share market saw an increase in margin financing balance, with a general rise in turnover rates and trading volumes across major indices. The PE valuation percentiles for major indices mostly increased, with the CSI 1000 leading the gains [1][2][3]. Group 2 - The stock-bond yield spread increased, indicating a relatively high investment cost-effectiveness in equity investments. As of July 16, 2025, the dividend yield of the CSI 300 was 3.06%, while the 10-year government bond yield was 1.66%, resulting in a stock-bond yield of -1.40%, which is higher than the average since the beginning of 2025 by 0.30 percentage points [13][16]. - The average margin financing balance for the week was approximately 1.89 trillion yuan, an increase of 1.10% compared to the previous week. The proportion of financing purchases in total A-share trading volume rose to 10.48%, up by 0.47 percentage points [16][19]. - Major indices experienced a general increase in trading volumes, with the CSI 300 showing the largest increase of 27.81% compared to the previous week, followed by the Shanghai Composite Index with an 18.54% increase [19][20]. Group 3 - The PE valuation percentiles for major indices mostly increased, with the CSI 1000 leading with a rise of 2.7 percentage points, followed by the CSI 500 with a 1.9 percentage point increase. The PB valuation percentiles also saw a general increase, with Wind's dual innovation index rising the most by 3.0 percentage points [23][27]. - Among different styles, the consumer sector led the increase in PE valuation percentiles by 1.2 percentage points, followed by the cyclical sector with a 1.0 percentage point increase. In terms of PB valuation percentiles, the cyclical sector saw the largest increase of 13.5 percentage points [31][35]. - In terms of industry performance, the oil and petrochemical sector led the increase in PE valuation percentiles by 4.0 percentage points, while the public utilities sector saw a decline of 1.8 percentage points [45][48].

Group 1 - As of July 16, 2025, the Hong Kong Stock Connect Non-Bank ETF (513750) reached a record size of 7.451 billion, with a year-to-date growth of 844.35% [1] - The ETF's latest share count is 4.840 billion, also a record high since its inception [1] - The index tracking the non-bank financial theme (931024) experienced a decline of 0.82% on the same date, with mixed performance among constituent stocks [1] Group 2 - The Hong Kong Stock Connect Non-Bank ETF has seen a net asset value increase of 74.06% over the past year, ranking 57 out of 2915 index stock funds, placing it in the top 1.96% [2] - The ETF's highest monthly return since inception was 31.47%, with the longest consecutive monthly gain being 4 months and a total increase of 38.25% [2] - The top ten weighted stocks in the index account for 77.92%, with major holdings including China Ping An, AIA, and Hong Kong Exchanges and Clearing [2] Group 3 - Recent policies aimed at enhancing financial market construction and expanding high-level financial openness are expected to create significant business opportunities for non-bank financial institutions [3] - The insurance sector is anticipated to benefit from new regulations promoting long-term investments, while brokerage firms are expected to maintain high trading activity levels [3] - The Hong Kong Stock Connect Non-Bank ETF is the first and only ETF tracking the non-bank index, with over 60% of its composition in insurance stocks [3]