Investment Rating - The industry is rated as "stronger than the market," indicating an expected increase of over 10% in the industry index relative to the CSI 300 index over the next six months [17]. Core Viewpoints - The A-share market experienced a slight upward trend after an initial decline, with significant performance in the pharmaceutical, communication equipment, aerospace, and semiconductor sectors, while insurance, banking, agriculture, and precious metals lagged behind [2][3][7]. - The average price-to-earnings ratios for the Shanghai Composite Index and the ChiNext Index are currently at 14.78 times and 41.32 times, respectively, which are at the median levels of the past three years, suggesting a suitable environment for medium to long-term investments [3][16]. - The market is characterized by a dual driving force of policy and capital, with a gradual upward trend established despite short-term technical adjustment pressures [3][16]. Summary by Sections A-share Market Overview - On July 29, the A-share market showed a pattern of initial decline followed by a slight recovery, with the Shanghai Composite Index finding support around 3587 points and closing at 3609.71 points, up 0.33% [7][8]. - The total trading volume for both markets was 18,296 billion, slightly lower than the previous trading day [7][16]. Future Market Outlook and Investment Recommendations - The report suggests focusing on technology growth and cyclical manufacturing as the main investment themes, while also keeping an eye on high-dividend banks, public utilities, and strategic emerging industries [3][16]. - Short-term investment opportunities are recommended in the pharmaceutical, communication equipment, aerospace, and semiconductor sectors [3][16].

Market Review - The market showed a downward trend this week, with the Shanghai Composite Index struggling to maintain the psychological level of 3400 points, indicating potential difficulty in sustaining this level without significant trading volume [2] - The micro-cap stock index formed a high-level doji, suggesting caution towards small micro-cap stocks [2] - The Hong Kong stock market formed a long upper shadow on the weekly chart, with the A/H premium reaching a new low, indicating a higher probability of a pullback in Hong Kong stocks or an increase in A-shares to return to a normal range [2] - A short-term head has formed, necessitating vigilance and partial position control, with the 20-week moving average serving as a key support level [2] Sector Analysis - There has been a noticeable acceleration in sector rotation, with over half of the sectors showing movement recently, including anti-tariff, military, innovative pharmaceuticals, new consumption, gaming media, CPO, oil and gas, and precious metals [3] - The trend is weak when sectors retreat, emphasizing the need for quick entry and exit strategies and active sector switching when trends reverse [3] Future Focus - Among various broad indices, the STAR Market has performed the weakest, particularly in sectors like semiconductors, computing power, and robotics, which have been in a weak adjustment trend since March [4] - Financial policies, such as the introduction of growth tiers in the STAR Market and the upcoming listing of new stocks with STAR attributes, may boost interest in semiconductor and technology stocks, although this may take time and requires accompanying trading volume [4] - A defensive approach is recommended before taking offensive positions [4]

Market Overview - The Shanghai and Shenzhen stock indices opened lower on June 16 but showed slight gains by midday, with the Shanghai Composite Index at 3378.77 points, up 0.05% and a trading volume of approximately 308 billion [1] - Resource stocks, including oil, natural gas, and coal, led the early gains, while sectors like airports, precious metals, and cultivated diamonds saw minor declines [1] Sector Performance - The oil and gas industry continued its upward trend from June 13, with significant increases in gaming stocks and notable gains in sectors such as wind power, digital currency, cross-border payments, AI, and film and television [1] - The North Stock 50 Index reported a 0.86% increase, indicating strong performance in certain sectors [1] Economic Indicators - In May, the total retail sales of consumer goods reached 41,326 billion yuan, reflecting a year-on-year growth of 6.4%, which is an acceleration of 1.3 percentage points from the previous month [4] - The industrial added value for large-scale industries grew by 5.8% year-on-year, while the service production index increased by 6.2% [4] Logistics and Delivery Sector - The postal industry in China completed a total of 861.8 billion delivery items in the first five months, with express delivery volume reaching 787.7 billion items, marking a year-on-year growth of 20.1% [5] - The revenue from the express delivery business amounted to 592.4 billion yuan, showing a 10.3% increase compared to the previous year [5]