Market Performance - On July 29, the Shanghai Composite Index rose by 0.33%, the Shenzhen Component Index increased by 0.64%, and the ChiNext Index surged by 1.86%[1] - The total trading volume in the Shanghai and Shenzhen markets approached 1.8 trillion yuan, showing a slight increase compared to the previous trading day[1] - Over 2,200 stocks in the two markets experienced gains, indicating a strong market performance[1] Sector Highlights - Key sectors that saw significant gains included telecommunications, pharmaceuticals, electronics, steel, oil, and defense industries[1] - The ChiNext Index's strong performance was driven by technology growth stocks, particularly in the innovation drug and computing power supply chains[2] Capital Flow - On July 29, net inflows into the Shanghai Stock Exchange amounted to 13.446 billion yuan, while the Shenzhen Stock Exchange saw net inflows of 8.955 billion yuan[3] - The top three sectors for capital inflow were semiconductors, communication equipment, and medical services, while the largest outflows were from state-owned banks, urban commercial banks, and the electricity sector[3] Economic Policies - The Ministry of Agriculture and Rural Affairs announced a plan to boost agricultural product consumption, involving 23 specific measures to stimulate market growth[4] - The establishment of a third central enterprise automobile group aims to enhance the development of smart connected new energy vehicles[5][6] Monetary Policy - The People's Bank of China conducted a 449.2 billion yuan reverse repurchase operation, resulting in a net injection of 234.4 billion yuan into the market[7] Trade Statistics - In the first half of the year, trade between China and Central and Eastern European countries reached 522.88 billion yuan, marking a 6.8% year-on-year increase[8] Fund Management - In the second quarter, public funds increased their holdings in bank stocks, with the banking sector reaching its highest allocation in nearly four years[12] - QDII funds have begun to impose purchase limits, with some funds suspending large subscriptions due to high demand[13]

Core Viewpoint - The recent trend of fund subscription limits reflects a response to significant performance gains in the active equity fund sector, with many funds experiencing substantial inflows and subsequently implementing restrictions to manage investor behavior and maintain stability [1][2][5]. Fund Subscription Limits - Da Cheng Fund has reduced the subscription limit for its Da Cheng Global USD Bond Fund's RMB share to 50,000 yuan as of July 29 [1]. - A total of 225 funds have seen year-to-date growth exceeding 50%, with 12 funds currently suspended from subscriptions and 21 funds limiting large subscriptions [2]. - Notable funds like Huatai-PineBridge Hong Kong Advantage Select have reported year-to-date returns of 134.72% and 135.08% for their A and C classes, respectively [2]. Performance and Market Trends - The active equity fund sector has rebounded significantly, with many funds experiencing over fivefold growth in size during the second quarter [2]. - Small-cap stocks have outperformed large-cap stocks in the first half of 2025, driven by favorable industry trends and macroeconomic conditions [2]. - Despite the positive performance, some funds are limiting subscriptions to prevent investors from chasing high returns and to manage volatility [2][4]. Fund Management Strategies - Funds like Nuon Multi-Strategy have focused on small-cap stocks, which have contributed to their net value growth, although they also exhibit higher volatility [3][4]. - The strategy of limiting subscriptions is aimed at maintaining portfolio stability and preventing forced adjustments due to large inflows [5]. - Some funds have implemented subscription limits to mitigate the impact of large institutional investments and to avoid dilution of returns [5].

Group 1 - QDII funds have started to impose subscription limits, with Dachen Fund adjusting the limit for its global dollar bond fund's RMB share to 50,000 yuan in direct sales channels [1] - Wanji Nasdaq 100 has suspended subscriptions for amounts exceeding 500,000 yuan, while the top-performing fund of the year, Huatai-PB Hong Kong Advantage Selected Mixed (QDII), has also stopped accepting new subscriptions, reporting a year-to-date net return of 134.72% [1] - Guotai S&P 500 ETF has also suspended subscriptions as of yesterday [1]