Core Viewpoint - The market sentiment remains strong, with the Shanghai Composite Index reaching new highs since October 8 of the previous year, driven by the banking sector and other heavyweight stocks. There are still numerous structural investment opportunities available despite the index nearing its peak [1]. Group 1: Market Performance - On July 7, the Shanghai Composite Index closed in the green, with the China Securities A500 ETF (159338) recording a trading volume exceeding 1.4 billion yuan [1]. - The market is entering a historically strong phase in July, which is expected to provide further structural guidance for investors [1]. Group 2: Index Composition - The China Securities A500 Innovation Index is compiled using an internationally recognized "industry balance" method, selecting 500 securities with large market capitalization and good liquidity across all secondary and 97% of tertiary industries [1]. - The index includes leading companies from almost all tertiary industries, achieving a true representation of "leading companies gathered" [1]. - The index compilation incorporates mechanisms such as mutual connectivity and ESG screening, aligning with the preferences of domestic and international institutional investors, which is beneficial for attracting long-term capital to core A-share assets [1]. Group 3: Investment Opportunities - Investors interested in core Chinese assets can focus on the China Securities A500 ETF (159338) [2]. - For those without stock accounts, the China Securities A500 ETF's connecting fund (022449) offers an opportunity to invest in core A-share assets [2].

Group 1 - The People's Bank of China announced a reduction in the reserve requirement ratio by 0.5 percentage points, expected to provide approximately 1 trillion yuan in long-term liquidity to the market [1] - The policy interest rate will be lowered by 0.1 percentage points from 1.5% to 1.4%, which is anticipated to lead to a similar decrease in the Loan Prime Rate (LPR) [1] - Following the recent rate cut, the A-share market experienced significant gains, with the Shanghai Composite Index rising by 2.89%, the Shenzhen Component Index increasing by 6.71%, and the ChiNext Index soaring by 10%, marking the largest single-day increases since March 2009 [1] Group 2 - The CSI A500 Index includes 500 securities selected from various industries, reflecting the overall performance of the most representative listed companies in China, covering 91 out of 93 sub-industries [1] - The CSI A500 Index has a coverage rate of 98%, significantly higher than the 68% coverage rate of the CSI 300 Index, and includes at least 80 "leading" companies from the sub-industries [1] - Investors interested in core A-share assets can consider the CSI A500 ETF (159338), which is the largest in its category [2]