Market Performance - The North Exchange 50 Index declined by 2.7% this week, closing at 1,419.61 points as of August 1, 2025, which is a larger drop compared to the Shanghai and Shenzhen 300 Index (-1.75%), the ChiNext Index (-0.74%), and the Sci-Tech Innovation 50 Index (-1.65%) [10] - The average market capitalization of North Exchange A-shares is 3.113 billion yuan, with a total of 269 constituent stocks [24] Liquidity and Trading Activity - The average daily trading volume for North Exchange A-shares decreased by 19.25% to 25.1 billion yuan this week, with a daily turnover rate of 5.94%, down by 1.06 percentage points [10] - The trading volume for North Exchange A-shares this week was 125.5 billion yuan, compared to 155.4 billion yuan the previous week [26] Industry News and Economic Policies - The National Development and Reform Commission announced the allocation of 800 billion yuan for "two heavy" construction funds and 735 billion yuan for central budget investments, with an additional 690 billion yuan planned for "two new" funds by October [18] - The U.S. Federal Reserve maintained the federal funds rate at 4.25%-4.50%, but internal divisions are growing, with two members voting for a 25 basis point cut, marking the first dissent since 1993 [20] Investment Recommendations - The report suggests focusing on stocks with high mid-year growth and those benefiting from industrial catalysts, particularly in the solid-state battery sector and AI technology [5] - The current price-to-earnings (PE) ratios for North Exchange A-shares, ChiNext, Shanghai Main Board, Shenzhen Main Board, and Sci-Tech Innovation Board are 50.92, 38.12, 12.37, 20.95, and 60.29 respectively, indicating a high valuation environment [11] Risks - Potential risks include policy risks, liquidity risks, and the risk of corporate earnings not meeting expectations, which could negatively impact stock prices [39]

Core Viewpoint - The A-share market experienced a decline on July 31, with all three major indices falling over 1%, while Huawei-related stocks saw significant gains, indicating a strong market reaction to Huawei's new AI cloud services launch [2] Group 1: Market Performance - On July 31, the A-share market saw a full-day adjustment, with all three major indices dropping more than 1% [2] - *ST Guangdao surged by 29.94%, leading the market, while other stocks like Siquan New Materials, Digital Certification, and Yidian Tianxia all hit the daily limit of 20% [2] - A total of 11 stocks related to Huawei reached their daily limit, showcasing a strong sector performance [2] Group 2: Huawei's New Launch - At the WAIC event, Huawei showcased its 384 super node hardware and the new generation Ascend AI cloud service based on CloudMatrix 384 super nodes [2] - The new AI cloud service is fully operational in data centers located in Wuhu, Gui'an, Ulanqab, and Ling'er [2]