Group 1 - The fund aims to capture investment opportunities in the modern service sector as China transitions its economic development model, targeting stable returns that exceed the performance benchmark while strictly controlling investment risks [2][10]. - The fund's investment strategy includes asset allocation, industry selection, and stock picking within the defined modern service theme, with a focus on sectors such as consumer services and emerging consumption trends [2][10]. - The fund's performance benchmark is a combination of 70% of the CSI Service Industry Index return and 30% of the Shanghai Government Bond Index return [4][10]. Group 2 - As of the end of the reporting period, the total fund shares amounted to 156,994,467.89, with the A share net value at 1.7061 RMB and a growth rate of 13.91%, while the C share net value was 1.6845 RMB with a growth rate of 13.74% [2][10]. - The fund's asset allocation at the end of the reporting period consisted of 87.66% in stocks and 5.56% in bonds, indicating a strong focus on equity investments [12][10]. - The fund's performance over the past three months showed a net value growth rate of 13.91% for A shares and 13.74% for C shares, significantly outperforming the benchmark return of 2.13% [4][10]. Group 3 - The fund manager, Galaxy Fund Management Co., Ltd., has committed to managing the fund with principles of honesty, diligence, and responsibility, ensuring compliance with relevant laws and regulations [8][10]. - The fund has not engaged in any significant abnormal trading activities or conflicts of interest during the reporting period, maintaining fair treatment across different investment portfolios [9][10]. - The fund's investment portfolio did not include any stocks subject to trading restrictions or any significant holdings in convertible bonds or precious metals during the reporting period [13][10].

Market Overview - On July 17, the Hang Seng Index fell by 0.08%, closing at 24,498.95 points, with a total net inflow of HKD 1.855 billion through the southbound trading channel [1] - The total trading volume for the southbound trading was HKD 134.723 billion, with a net buy of HKD 1.855 billion [1] Southbound Trading Details - In the Shanghai Stock Exchange southbound trading, the total trading amount was HKD 85.121 billion, with a net buy of HKD 1.668 billion [1] - In the Shenzhen Stock Exchange southbound trading, the total trading amount was HKD 49.602 billion, with a net buy of HKD 0.187 billion [1] Active Stocks - The most actively traded stock in the Shanghai Stock Exchange southbound trading was Xiaomi Group-W, with a trading amount of HKD 38.09 billion, despite a closing price drop of 2.01% [1][2] - Other notable stocks included Guotai Junan International and Alibaba-W, with trading amounts of HKD 37.54 billion and HKD 34.26 billion, respectively [1] - In the Shenzhen Stock Exchange southbound trading, Xiaomi Group-W also led with a trading amount of HKD 26.80 billion [2] Net Buy/Sell Analysis - The highest net buy was for Xiaomi Group-W at HKD 6.06 billion, while the highest net sell was for Pop Mart at HKD 4.78 billion, which closed down by 0.87% [1][2] - In the Shenzhen Stock Exchange, Meituan-W had the highest net buy at HKD 3.30 billion, closing up by 1.13%, while Tencent Holdings had the highest net sell at HKD 3.79 billion, closing up by 0.10% [2]

Group 1 - The current market is characterized as a "slow bull" phase, with the Shanghai Composite Index fluctuating around 3500 points, indicating a lack of potential for a "crazy bull" market [1][2][8] - The market is in the sixth cycle since 2005, showing a disconnection between the Shanghai Composite Index and macroeconomic short cycles, reflecting a weak macroeconomic backdrop [10][20] - The management is actively working to prevent a repeat of the brief "crazy bull" markets seen in 2006-2007 and 2014-2015, which could lead to prolonged bear markets [10][20] Group 2 - The outlook for 2025 suggests a prolonged "slow bull" market, with a focus on time over height, influenced by long-term capital inflows, particularly in dividend-related sectors like banking and insurance [4][20] - The investment logic for upstream industries is challenging due to weak PPI, while downstream industries are expected to perform better, aligning with domestic consumption policies [4][20] - The consumer sector may face significant differentiation, with new consumption segments likely to attract more capital, depending on the strength of policy support [20][21] Group 3 - The 2025 market is expected to operate under a combination of the new "National Nine Articles" and a "four trillion" investment trend, with a high probability of a "slow bull" market [21] - Key areas of focus for 2025 include technology, green initiatives, consumption, and infrastructure, as highlighted in the government work report [21] - The market is anticipated to experience slight upward fluctuations in July, supported by long-term capital inflows, particularly in dividend sectors [21]

Group 1 - The Hong Kong stock market showed strong performance today, with the Hong Kong Innovative Drug 50 ETF (513780) rising over 3% and achieving a three-day consecutive increase [1] - The premium rate for the Hong Kong Innovative Drug 50 ETF is -0.57%, with a trading volume of 178 million yuan, which is an increase of 62.07% compared to the same time yesterday [1] - The fund supports T+0 trading, and the trading volume has decreased by 36.5 million units over the past month [1] Group 2 - Other related ETFs also showed positive performance, with the Hong Kong Consumer ETF (159735) increasing by 0.24%, the Hong Kong Automobile ETF (520600) rising by 0.66%, the Hong Kong Securities ETF (513090) up by 0.72%, and the Hang Seng Technology ETF (513260) gaining 0.14% [1]

Group 1 - China aims to be a promoter of mutually beneficial global industrial and supply chains, emphasizing collaboration and openness [1] - The country is committed to ensuring the stability of global supply chains and contributing to world economic recovery [1] - China will focus on the digital, intelligent, and green transformation of global supply chains [1] Group 2 - The State Council is working on policies to strengthen domestic circulation as a strategic move for stable economic growth [2] - Key actions include boosting consumer spending, optimizing policies for consumption, and increasing investment in emerging sectors [2] - The government aims to enhance the internal dynamics of domestic circulation by addressing existing bottlenecks [2] Group 3 - The government is focusing on high-quality development in the new energy vehicle sector, addressing irrational competition [3] - Measures include cost investigations, price monitoring, and ensuring compliance with payment commitments by major manufacturers [3] - The goal is to establish a long-term mechanism for fair competition and promote innovation and quality improvement [3] Group 4 - China has made significant progress in establishing international standards for quantum dot light conversion films, marking a breakthrough in the nano-display field [4] - The implementation of these standards is expected to accelerate the large-scale production and application of quantum dot films [4] - This development is set to invigorate the trillion-yuan display industry [4] Group 5 - The People's Bank of China in Guangdong has introduced special funding measures to support innovation, consumption, and foreign trade [5] - The "Three 100 Billion" initiative has facilitated loans amounting to 92.9 billion yuan in key sectors [5] - This reflects a commitment to a moderately loose monetary policy to stimulate economic activity [5] Group 6 - Heilongjiang Province has introduced 21 measures to support the development of the ice and snow economy, aiming for high-quality growth [6] - The focus is on developing a modern ice and snow industry system, enhancing sports, culture, equipment, and tourism [6] - The policies are designed to leverage the effects of the Asian Winter Games and position the province as a leading destination for ice and snow tourism [6] Group 7 - There is a growing enthusiasm for foreign debt financing in China, with a significant increase in panda bond registrations [7] - In the first half of the year, panda bond registrations surged by 165%, with total issuance reaching 84.4 billion yuan [7] - This trend indicates strong interest from foreign entities in the Chinese market [7] Group 8 - Guangdong Province is prioritizing the development of embodied robotics and low-altitude economy as key industries [8] - The province aims to enhance traditional industries through digital and green technologies while fostering innovation in new sectors [8] - This strategic focus includes advancements in new energy vehicles and emerging technologies like AI and quantum science [8] Group 9 - Nvidia's CEO highlighted China's unique advantages in developing humanoid robots, citing strong AI capabilities and a robust manufacturing base [9] - The combination of advanced technology and manufacturing strength positions China favorably in the robotics sector [9] - This optimism reflects the potential for significant advancements in robotics technology within the country [9] Group 10 - Beijing's Economic Development Zone has launched funding support policies for 6G technology and industry innovation [10] - The initiative includes financial backing for enterprises involved in major 6G technology projects, with support up to 30 million yuan [10] - The measures aim to enhance competitiveness in core 6G technologies through targeted actions [10]

Group 1 - The upcoming Japanese Senate elections may lead to the ruling coalition losing its majority, which could negatively impact the country's $6.8 trillion stock market [1] - The Japanese stock market has underperformed compared to the MSCI global index this month, raising concerns about the potential governance capabilities of a weak minority government [1][4] - Political uncertainty is eroding investor confidence, as evidenced by a 1.2% decline in the Tokyo Stock Exchange index after three months of gains [4] Group 2 - Historical data indicates that if the ruling party loses in elections, the market may take 35 to 75 days to bottom out, with an average total decline of about 8% [4] - Analysts warn of a potential "triple whammy" in the Japanese financial market, affecting stocks, bonds, and currency if extreme political factions gain power [6] - A weaker yen could benefit exporters affected by U.S. tariffs, while opposition parties' proposals to cut food consumption taxes may boost consumer stocks [6] Group 3 - The election may have profound implications for corporate governance reforms, a key driver of recent stock market gains in Japan [7] - The potential coalition formation by the ruling party could alter its stance on corporate governance, which investors may not be fully aware of [8] - Rising populism in Japan is reflected in increasing support for new political parties advocating for changes in profit distribution models [8]

Core Viewpoint - The article introduces a comprehensive index map that includes various commonly used stock indices, their codes, selection rules, industry distribution, average and median market capitalization of constituent stocks, and the number of constituent stocks, which will be regularly updated for easy reference [1][2]. Group 1: Types of Indices - The index map includes several categories of stock indices: broad-based indices, strategy indices, industry indices, thematic indices, and overseas indices [4][8]. Group 2: Broad-based Indices - Examples of broad-based indices include: - CSI 300 (000300.SH): Comprises 300 large-cap stocks from the Shanghai and Shenzhen stock exchanges, with an average market cap of 1,888.48 billion and a median of 907.96 billion [5]. - CSI 500 (000905.SH): Includes 500 stocks ranked 301-800 by market cap, with an average market cap of 279.59 billion and a median of 259.32 billion [5]. - CSI 800 (000906.SH): Covers 800 stocks, with an average market cap of 882.92 billion and a median of 340.58 billion [5]. Group 3: Strategy Indices - Strategy indices focus on specific investment strategies, such as: - CSI Dividend (000922.CSI): Selects 100 stocks with high dividend yields and stable dividends, with an average market cap of 1,970.77 billion [6]. - Shanghai Dividend (000015.SH): Comprises 50 stocks with high dividend yields from the Shanghai Stock Exchange, with an average market cap of 2,828.36 billion [6]. - Shenzhen Dividend (399324.SZ): Includes 40 stocks with stable dividend histories and high dividend ratios, with an average market cap of 984.44 billion [6]. Group 4: Industry Indices - Industry indices represent specific sectors, such as: - CSI Medical (930641.CSI): Selects stocks involved in traditional Chinese medicine production and sales, with an average market cap of 151.90 billion [7]. - CSI Real Estate (399393.SZ): Comprises 50 stocks from the real estate sector with significant market capitalization and liquidity, with an average market cap of 189.85 billion [7]. Group 5: Thematic Indices - Thematic indices focus on specific investment themes, such as: - CSI Consumer (000932.SH): Selects major consumer industry stocks from the CSI 800 index, with an average market cap of 1,155.60 billion [7]. - CSI Innovation (931152.CSI): Includes up to 50 representative companies involved in innovative drug research, with an average market cap of 485.93 billion [7].

Summary of Key Points Core Viewpoint - On July 16, the Hang Seng Index fell by 0.29%, with southbound funds recording a total transaction amount of HKD 128.80 billion, resulting in a net inflow of HKD 16.03 billion [1]. Southbound Fund Transactions - The total transaction amount for southbound funds was HKD 128.80 billion, with buy transactions amounting to HKD 65.20 billion and sell transactions at HKD 63.60 billion, leading to a net buy of HKD 16.03 billion [1]. - The southbound trading through Stock Connect (Shenzhen) had a total transaction amount of HKD 46.84 billion, with net selling of HKD 4.06 billion, while the trading through Stock Connect (Shanghai) had a total transaction amount of HKD 81.96 billion, resulting in a net buy of HKD 20.09 billion [1]. Active Stocks - The most actively traded stock by southbound funds was Alibaba-W, with a total transaction amount of HKD 88.05 billion, followed by Guotai Junan International and Pop Mart, with transaction amounts of HKD 76.18 billion and HKD 58.30 billion, respectively [1]. - The stocks with the highest net buying included Meituan-W with a net buy of HKD 8.57 billion, followed by China Construction Bank with HKD 7.59 billion and CanSino Biologics with HKD 1.30 billion [1]. - Tencent Holdings had the highest net selling amount of HKD 17.57 billion, with other notable net sells from Xiaomi Group-W and Kingsoft Cloud at HKD 2.67 billion and HKD 1.69 billion, respectively [1]. Continuous Net Buying and Selling - Meituan-W was the only stock to receive continuous net buying for more than three days, with a total net buy of HKD 66.08 billion over eight days [2]. - The stocks with the highest continuous net selling included Tencent Holdings and Xiaomi Group-W, with total net sells of HKD 35.78 billion and HKD 19.75 billion, respectively [2].

Economic Growth - In the first half of 2025, China's GDP reached 660,536 billion yuan, with a year-on-year growth of 5.3%[1] - In June, the industrial added value above designated size grew by 6.8% year-on-year, accelerating by 1.0 percentage points from May[1] - The total retail sales of consumer goods in June amounted to 42,287 billion yuan, with a year-on-year growth of 4.8%, down 1.6 percentage points from May[1] Investment and Consumption - From January to June, fixed asset investment (excluding rural households) was 248,654 billion yuan, with a year-on-year growth of 2.8%, down 0.9 percentage points from January to May[1] - In June, the month-on-month growth of fixed asset investment was only 0.5%, a significant drop of 2.4 percentage points from May[12] - The decline in consumption was particularly pronounced in the catering sector, where growth plummeted from 5.9% in May to 0.9% in June[15] Trade and Employment - In June, the total import and export volume reached 38,527 billion yuan, with a year-on-year growth of 5.2%, including exports of 23,394 billion yuan, up 7.2%[1] - The urban surveyed unemployment rate in June remained stable at 5.0%, consistent with the previous month and the same month last year[16] - The export growth rate in June was 5.8%, significantly higher than the expected 3.2%[40]

Economic Performance - In Q2 2025, GDP grew by 5.2% year-on-year, a slowdown from Q1, with nominal GDP growth at 3.9%, down by 0.7 percentage points from Q1[2] - For the first half of 2025, GDP growth reached 5.3%, exceeding the annual target of around 5%[5] - The contribution rates of the three drivers of economic growth in Q2 were 52.3% from final consumption, 24.7% from capital formation, and 23% from net exports[2] Consumption Trends - In June, retail sales growth slowed to 4.8% year-on-year, with cumulative growth at 5%[2] - The decline in restaurant income was significant, dropping by 5 percentage points to 0.9% in June[11] - The "old-for-new" subsidy policy's impact weakened in June, affecting consumer spending[19] Investment Insights - Fixed asset investment in H1 2025 totaled 248,654 billion yuan, with a year-on-year growth of 2.8%, down from 3.7%[23] - Manufacturing investment saw a significant decline, with a growth rate of 7.5%, down by 1 percentage point[25] - Infrastructure investment growth was 4.6% in H1, a decrease of 1 percentage point from the previous month[31] Real Estate Market - Real estate investment fell by 11.2% year-on-year in H1 2025, with residential investment down by 10.4%[51] - The sales area of new residential properties decreased by 3.5% in H1, indicating ongoing demand weakness[40] - In June, the prices of second-hand homes in first-tier cities turned downward, while new home prices in first-tier cities showed a narrowing decline[40] Industrial Production - Industrial added value in June grew by 6.8% year-on-year, with a cumulative growth of 6.4% for H1[53] - The manufacturing sector's growth was driven by strong performance in the automotive and high-tech industries, with growth rates of 11.4%[59] - The production-sales rate in June was 93.3%, indicating a significant drop and suggesting overproduction relative to demand[63]