Core Viewpoint - The ChiNext Index has shown a strong upward trend, with a significant increase of over 3% in a single day, approaching last year's high, confirming a slow bull market trend [2][4]. Market Review - The recent slight adjustment in the ChiNext Index was primarily due to short-term profit-taking pressures, with no significant changes in the underlying fundamentals [4]. - The acceleration in the index's rise this week is linked to the progress in the photovoltaic sector, particularly after news from CATL regarding the suspension of mining operations, which improved market expectations for supply and demand [5]. - Additionally, the rising expectations for interest rate cuts by the Federal Reserve, supported by recent inflation data, have contributed to the bullish sentiment in the market [5]. Investment Value of ChiNext - The core investment value of the ChiNext Index remains strong, with limited downside risk and substantial upward momentum [6]. - The dual drivers of policy and liquidity are in play, with supportive measures from the government and a maintained loose liquidity environment [6][7]. - The strong fundamentals in key sectors such as new energy, biomedicine, and technology are expected to drive growth, with significant revenue and profit growth projected for 2025-2026 [8][9]. Valuation Metrics - The current valuation of the ChiNext Index is at historical lows, with PE, PB, and PS ratios significantly below those of other major indices [10][11]. - Specific valuation metrics include a PE of 34.16x, a PB of 4.33x, and a PS of 3.63x, all indicating a favorable entry point for investors [11]. Historical Performance - Historically, the ChiNext Index has outperformed during bull markets, with past increases exceeding 100% in previous cycles [13]. - The index has rebounded approximately 50% since its low in September 2024, suggesting potential for further gains based on historical averages [13][15]. Investment Strategy - The ChiNext Index is positioned as a core target for investors looking to capitalize on the second wave of the A-share bull market, with a recommendation for gradual accumulation based on long-term industry trends [15].

Core Viewpoint - The ChiNext board is becoming the leading flagbearer of the current bull market's second wave, with historical patterns indicating that the "mid-air refueling station" phase in a bull market often brings excess returns [1] Market Performance - As of today, the ChiNext index has experienced five consecutive days of gains, reaching a new high for the year, continuing its strong performance since mid-July [3] - The ChiNext ETF's latest circulating scale has grown to 8.692 billion yuan as of July 22, indicating accelerated capital allocation towards the ChiNext [3] Core Drivers - Improvement in the overseas environment, with the Fed's recent dovish signals and a decline in the dollar index below 97, stabilizing the RMB around 7.05 [3] - Domestic policy measures have intensified, with the State Council approving substantial initiatives to promote the development of the private economy, alongside a net liquidity injection of 150 billion yuan through MLF operations [4] - The acceleration of industrial upgrades is evident, with leading companies in the ChiNext, such as Zhongji Xuchuang and Xinyi Sheng, reporting significant performance exceeding expectations [4] Market Characteristics and Future Outlook - Market trading volume has significantly increased, with total A-share turnover rising from approximately 1.5 trillion yuan to nearly 2 trillion yuan [5] - Valuation advantages remain, as the ChiNext index's valuation percentile is still below 40%, significantly lower than other indices like CSI 300 and SSE Composite [5] - Signs of market rotation are emerging, with funds shifting from value sectors like banks to technology growth stocks, which is beneficial for market stability [5] Investment Strategy - Historical bull market trends suggest that the ChiNext index has the potential for further upward movement, having rebounded approximately 50% since September 24 [6] - The upcoming Fourth Plenary Session is expected to raise policy expectations, with August typically being a favorable month for growth stocks [6] - Recommended focus areas include AI computing (Zhongji Xuchuang, Xinyi Sheng), innovative pharmaceuticals (Kanglong Chemical, Taige Pharmaceutical), and new energy (Ningde Times, Yiwei Lithium Energy) [6]

Market Review - The A-share market saw all major broad-based indices rise last week, with the CSI 1000, STAR 50, and CSI 500 indices leading with returns of 3.79%, 2.67%, and 2.63% respectively, while the CSI 300, SSE Composite, and ChiNext indices lagged behind with returns of 1.39%, 1.56%, and 1.61% respectively [7][11] - The trading volume of major broad-based indices decreased last week, with all indices positioned at 75%-90% of their historical percentile levels over the past 52 weeks [12][13] - The defense, aerospace, and computer sectors performed well, with returns of 7.44%, 7.07%, and 6.46% respectively, while the oil, real estate, and utilities sectors underperformed with returns of -1.28%, -0.74%, and -0.02% respectively [14][15] Fund Issuance - A total of 25 new funds were established last week, with a combined issuance scale of 20.856 billion yuan, showing a decrease compared to the previous week [3] - 36 funds were reported for issuance last week, including various ETFs and thematic funds [4][7] Fund Performance - The median returns for active equity, flexible allocation, and balanced mixed funds last week were 2.92%, 2.03%, and 1.61% respectively [22] - Alternative funds have shown the best performance this year, with a median return of 7.41%, while active equity, flexible allocation, and balanced mixed funds had median returns of 6.70%, 3.35%, and 1.02% respectively [22] Bond Market - The central bank's reverse repos net drained 881.3 billion yuan last week, with a total of 1.6592 trillion yuan maturing [16] - The median premium rate for convertible bonds was 28.81%, a decrease of 2.12% from the previous week [20] Fund Manager Changes - Last week, 41 fund companies had changes in the fund manager for 108 fund products, with notable changes in companies like Harvest Fund, Citic Prudential Fund, and Fortune Fund [29]