Market Overview - In July, the net outflow of broad-based ETFs reached 85.2 billion CNY, continuing the trend from June[12] - The net outflow from the CSI A500 ETF was particularly significant, totaling 41.2 billion CNY, indicating profit-taking by institutional investors as the index approached its October 2024 high[12] - The net inflow for industry ETFs was 11.82 billion CNY, with financial real estate and cyclical manufacturing ETFs being the primary contributors, attracting 6.61 billion CNY and 5.46 billion CNY respectively[16] Bond Market - In July, large commercial banks and policy banks net purchased 305.5 billion CNY in interest rate bonds, a significant increase from 37.4 billion CNY in June[34] - Conversely, the net selling of interest rate bonds by joint-stock banks reached 471.3 billion CNY, up from 406.3 billion CNY in June[34] - Insurance companies increased their net purchases of interest rate bonds to 199 billion CNY, focusing on long-term bonds[37] Commodity Market - The gold ETF experienced a net outflow of 1.57 billion CNY in July, marking a shift from previous inflows[41] - Energy and soybean meal ETFs also saw net outflows of 0.11 billion CNY and 1.38 billion CNY respectively, while non-ferrous metal ETFs maintained a net inflow of 0.175 billion CNY[41] Liquidity and Monetary Policy - The central bank maintained a net injection of 236.5 billion CNY in July, utilizing various monetary policy tools without adjusting reserve requirements or interest rates[46] - The central bank's operations included a notable 200 billion CNY in medium-term lending facility (MLF) to stabilize the funding environment[46] Risk Factors - Key risks include escalating geopolitical tensions, domestic macroeconomic policies falling short of expectations, and potential economic downturns abroad[49]