Core Viewpoint - The China Hong Kong 300 Infrastructure Index (H300 Infrastructure) has shown positive performance, with a 2.03% increase over the past month, 6.29% over the past three months, and 9.35% year-to-date [1] Group 1: Index Performance - The H300 Infrastructure Index reported a value of 1898.50 points [1] - The index is designed to reflect the overall performance of listed companies in various sectors such as banking, transportation, resources, infrastructure, logistics, and leisure [1] Group 2: Index Composition - The top ten holdings of the H300 Infrastructure Index are: China Mobile (33.42%), CLP Holdings (8.6%), CK Hutchison (8.52%), China Telecom (5.35%), Hong Kong and China Gas (4.89%), Power Assets Holdings (4.79%), China Unicom (3.71%), Towngas China (3.19%), Cheung Kong Infrastructure (2.59%), and China Resources Power (2.49%) [1] - The index is fully composed of stocks listed on the Hong Kong Stock Exchange, with a sector breakdown of 52.64% in telecommunications services, 41.91% in utilities, 4.19% in construction and decoration, and 1.25% in transportation [1] Group 3: Index Adjustment Mechanism - The index samples are adjusted biannually, with changes implemented on the next trading day following the second Friday of June and December [2] - Weight factors are generally fixed until the next scheduled adjustment, with provisions for temporary adjustments in special circumstances [2]

南海之滨，总投资超百亿美元的埃克森美孚惠州乙烯项目正式投产，巨型装置奏响产业强音；北江上 游，重大水利工程黄茅峡水库破土动工，挖掘机铁臂挥舞勾勒治水新篇……盛夏时节，南粤大地建设热 潮澎湃。 大项目如同强劲的"磁场"，正以强大牵引力为广东经济注入持久动能。2025年上半年，广东GDP同比增 长4.2%，较一季度微升0.1个百分点，稳中向好态势初显。 关键之年，内外压力交织、挑战叠加，广东经济要实现从"半年稳"到"全年好"，需用足用活政策工具 箱、统筹整合各类资源，以决战决胜姿态高质量推进"两重"建设，着力激活民间投资，持续扩大有效投 资增量，既稳住当下经济大盘，更筑牢长远发展根基。 大项目加速布局 重塑经济地理新版图 近期陆续出炉的经济半年报，清晰勾勒出全国及地方发展脉络：在外需承压的背景下，内需成为稳经济 的"压舱石"——消费主导作用持续凸显，基础设施、先进制造业等领域的重点项目投资贡献亦较为突 出。 上半年，尽管房地产市场深度调整给广东稳投资带来挑战，但政府主导的基础设施投资仍逆势增长 2.1%。省发展改革委发布的数据显示，2025年安排省重点建设项目1500个，年度计划投资1万亿元。1 月至6月，省重点 ...

Economic Indicators - The Huachuang Macro WEI index rose to 6.35% as of July 27, up from 5.84% on July 20, marking an increase of 0.52 percentage points[2] - The land premium rate increased to 9% for the week ending July 27, with a four-week average of 6.9%, compared to 5.47% in June[11] Consumer Trends - Subway ridership in 27 cities averaged 81.53 million daily in July, roughly unchanged from last year, while domestic flight numbers increased by 0.8% year-on-year to 14,700 flights in early August[9] - Retail sales of passenger vehicles grew by 5% year-on-year as of July 27, down from 17% previously, indicating a slowdown in durable goods consumption[9] Trade and Shipping - Port container throughput fell by 6.5% week-on-week as of July 27, with a four-week cumulative year-on-year growth of 5.6%[24] - U.S. imports showed a decline, with a year-on-year drop of 20.5% in late July, and imports from China decreased by 25.6%[25] Commodity Prices - Prices for upstream photovoltaic materials and lithium carbonate have significantly dropped, with rebar prices down by 2.9% and lithium carbonate futures down by 13.7%[3] - The South China Glass Index fell by 19.1%, indicating a broader decline in commodity prices amid reduced "involution" sentiment[41] Debt and Financing - New special bond issuance reached 2.82 trillion yuan, achieving 64% of the annual target, faster than the previous year[5] - The Ministry of Finance reported six cases of local government hidden debt, emphasizing the need to manage and mitigate hidden debt risks[53]

Group 1 - The company, Jiangxi Changyun, confirmed that it does not engage in shipping business [2]

Group 1 - The Hang Seng Dividend Low Volatility ETF tracks the Hang Seng Stock Connect High Dividend Low Volatility Index, which consists of 50 stocks with good liquidity, continuous dividends, moderate dividend payout ratios, and low volatility, reflecting the overall performance of high dividend and low volatility companies in the Stock Connect range [4] - As of the midday close, the index increased by 0.3% with a rolling price-to-earnings ratio of 7.1 times [4] - The China Securities Dividend Value ETF tracks the China Securities Dividend Value Index, composed of 50 stocks with high dividend yields and prominent value characteristics, reflecting the overall performance of high dividend and value stocks, with banking, coal, and transportation industries accounting for approximately 80% [4] Group 2 - As of the midday close, the index increased by 0.4% with a rolling price-to-earnings ratio of 7.6 times [4] - The dividend yield is calculated as the sum of the last 12 months' cash dividends (pre-tax) divided by the market value of the stock [4] - The management fee for low-fee products is 0.15% per year, and the custody fee is 0.05% per year [5]

Core Viewpoint - The recent adjustment in the A-share market is a result of profit-taking pressure and changes in expectations after a period of continuous gains, with a focus on the impact of domestic and international economic indicators and policies [1][4][44]. Changes in Expectations - **Decrease in Expectations for Incremental Policies and Cyclical Recovery**: The Politburo meeting in July did not announce significant new policies, emphasizing the need for macro policies to continue while being more detailed. The July PMI data showed a larger decline in domestic demand compared to external demand, indicating a slowdown in internal demand [1][9]. - **Increased Uncertainty Regarding the Fed's Rate Cut Schedule**: The Fed's July FOMC meeting maintained the current rate, with Powell expressing concerns about inflation and labor market resilience. Following disappointing non-farm payroll data, market expectations for a rate cut in September surged from 38% to 80% [2][20]. - **Diminished Expectations for Improvement in US-China Relations**: Recent US trade agreements with allies and ongoing tensions, such as the Nvidia H20 incident, have led to a more cautious outlook on US-China economic relations [3][27]. Unchanged Factors - **Global Monetary Easing and Abundant A-share Liquidity**: The environment remains supportive for equity markets, with the Politburo emphasizing the need for liquidity and lower financing costs. The two-margin financing has seen a net inflow of approximately 169 billion yuan from late June to the end of July [2][30]. - **Investor Bull Market Expectations Remain Intact**: Historical data shows that 5-10% pullbacks are normal during bull markets, and current investor sentiment remains high, suggesting a potential return to upward trends after adjustments [2][35]. - **Structural Prosperity in New Sectors**: The Ministry of Industry and Information Technology has outlined key areas for focus, including expanding domestic demand and technological innovation. Positive earnings forecasts are noted in sectors such as non-bank financials, metals, electronics, and agriculture [3][41].

Group 1 - The introduction of VAT on interest income from newly issued government bonds, local bonds, and financial bonds starting August 8 is expected to negatively impact financial stocks, particularly banks, which recently reached historical highs [3] - There is a potential shift of funds from high-valued financial stocks to lower-valued technology and consumer sectors, which warrants attention [3] - The U.S. market is experiencing pressure as Trump demands major pharmaceutical companies to reduce prices within 60 days, which may affect Chinese innovative drug companies with significant U.S. market revenue, such as BeiGene [3] Group 2 - In the second quarter, northbound funds increased their positions in financial, industrial, and healthcare sectors, with significant purchases in leading companies like CATL and Hengrui Medicine, while reducing holdings in liquor stocks [4] - A notable shift in funds from high-valued sectors to lower-valued themes indicates that smart money is beginning to position for opportunities in the second half of the year [4] - The real estate policy continues to strengthen with measures to cancel, reduce, and increase certain policies, which is crucial for long-term economic stability [4] Group 3 - The central bank is expected to lower the policy interest rate by 20-30 basis points and reduce the reserve requirement ratio by 0.5 percentage points in the second half of the year, which will provide support to the market [4] - The A-share market is likely to experience a bottoming rebound, with fluctuations around the 3500-point mark, suggesting a focus on low-valued technology and consumer stocks with stable performance and reasonable valuations [4] - Short-term strategies should involve cautious position management, waiting for market stabilization signals before making moves [4]

Market Overview - Global major stock indices faced pressure, primarily due to the unexpected slowdown in the US labor market and trade policy disruptions [1] - The US non-farm payrolls added only 73,000 jobs in July, the lowest monthly increase since April 2020, raising concerns about economic stagflation [1] - Major US indices saw declines: Dow Jones down 2.92%, S&P 500 down 2.36%, and Nasdaq down 2.17% [1] - European markets also weakened, with Germany's DAX down 3.27% and France's CAC40 down 3.68% [1] - Asian markets experienced declines, with Japan's Nikkei 225 down 1.58% and South Korea's composite index down 2.40% [1] Commodity Prices - Commodity prices showed mixed trends, with energy commodities performing strongly; INE crude oil rose by 3.79% [2] - Industrial metals faced pressure, with SHFE copper down 1.17% and aluminum prices also retreating [2] - Precious metals saw gains, with COMEX gold futures up 2.41% while SHFE silver fell by 4.84% [2] - The weak US employment data suppressed industrial demand expectations, while Trump's tariff policies raised supply chain concerns [2] - Global gold ETF holdings reached a historical high due to increased demand for safe-haven assets [2] Industry Performance - In the A-share market, the pharmaceutical and biotechnology sector rose by 2.95%, benefiting from favorable policies and strong growth among key drug companies [3] - The communication sector increased by 2.54%, driven by AI computing demand and accelerated 5G investments [3] - The media sector saw a 1.13% rise due to strong box office performance and the application of AI content generation technology [3] - The coal sector fell by 4.67% and non-ferrous metals by 4.62%, impacted by prior gains and weak industrial metal prices [3] - The real estate sector declined by 3.43% amid concerns over regulatory policies and industry adjustment pressures [3] Investment Focus - Short-term focus on three key areas: the artificial intelligence industry chain, innovative pharmaceuticals, and commodity supply-demand restructuring [4] - Investment strategy suggests selecting targets based on "high prosperity verification + dilemma reversal," focusing on AI computing infrastructure and innovative drug commercialization [4] - Long-term perspective indicates a likely upward trend in broad indices, with structural opportunities driven by industrial upgrades [4] - Key sectors to watch include technology (AI computing, military, innovative drugs), new consumption (smart home, health upgrades), and non-ferrous metals [4]

Industry Summary - Only the banking and transportation sectors received significant net inflows from main funds this week, with net inflows of 2.22 billion and 0.99 billion respectively [1] - Seven sectors, including computer, non-ferrous metals, electronics, power equipment, machinery, non-bank financials, and basic chemicals, experienced net outflows exceeding 10 billion [1] Company Summary - The top three companies with net inflows from main funds this week were Zhongsheng Pharmaceutical, Invec, and Tianfu Communication, with net inflows of 0.92 billion, 0.62 billion, and 0.61 billion respectively [1] - The companies that faced the highest net outflows included Dongfang Wealth, BYD, and CATL, with net outflows of 3.86 billion, 2.39 billion, and 1.91 billion respectively [1]

Market Overview - The Shanghai Composite Index fell by 0.94% this week, with six industries experiencing gains, led by the pharmaceutical and communication sectors, which rose by 2.95% and 2.54% respectively. Conversely, the coal and non-ferrous metals industries saw declines of 4.67% and 4.62% [1][2]. Fund Flow Analysis - A total of 211.86 billion yuan in net outflow was recorded in the two markets this week, with only one industry, banking, seeing a net inflow of 4.33 billion yuan. In contrast, 30 industries experienced net outflows, with the non-ferrous metals sector leading at 25.99 billion yuan, followed by the computer industry at 20.45 billion yuan [1][2]. Transportation Sector Performance - The transportation sector declined by 3.22% this week, with a net outflow of 3.85 billion yuan. Out of 124 stocks in this sector, 14 saw gains, with Chongqing Road and Bridge, Furan De, and Shentong Express leading with increases of 8.84%, 8.11%, and 7.00% respectively. However, 109 stocks experienced declines, with Dazhong Transportation, Dazhong Transportation, and Hainan Airlines showing the largest drops of 13.53%, 8.92%, and 8.28% respectively [3][4]. Top Gainers and Losers in Transportation - The top gainers in the transportation sector included: - Daqin Railway: -3.27% with a net inflow of 412.81 million yuan - Yunda Express: +1.64% with a net inflow of 179.76 million yuan - HNA Technology: 0.00% with a net inflow of 163.13 million yuan - The top losers included: - Dazhong Transportation: -8.92% with a net outflow of 407.79 million yuan - COSCO Shipping Holdings: -5.66% with a net outflow of 388.63 million yuan - Hainan Airlines: -7.50% with a net outflow of 326.10 million yuan [5][4].