Market Strategy - The core viewpoint is that the market is currently in a consolidation phase, which is necessary for building momentum for new highs. The Shanghai Composite Index has risen nearly 500 points, approaching 3500 points, indicating a positive market sentiment [3] - The market is expected to experience a period of horizontal consolidation, with short-term upward adjustments slowing down. Key factors influencing this include geopolitical tensions, economic data, and upcoming mid-year reports [3] Economic Governance - Recent economic policies are shifting towards addressing issues like "anti-involution" and preventing disorderly expansion, which opens new investment opportunities. The focus on improving corporate cash flow and settling debts is highlighted as a potential fiscal highlight for the second half of the year [4] - The central government's emphasis on "anti-involution" indicates a significant shift in economic governance, aiming for sustainable development rather than mere scale expansion [4] Industry Comparison - The market is expected to show characteristics of high-low switching in the short term, with a focus on sectors like electronics, non-ferrous metals, and agriculture. The financial sector remains strong, with continued interest in high-dividend stocks [5] - The report recommends sectors benefiting from recent policy changes, including steel, construction materials, and machinery, while also highlighting themes like production limits to stabilize prices and the low-altitude economy [5] Global Economic Overview - In the U.S., the job market remains stable, with a 1.7% increase in the S&P 500 index and a 1.1% rise in the Shanghai Composite Index. Commodity prices have also seen significant increases, indicating a positive economic outlook [7] - In Europe, the Eurozone's HICP inflation rate has slightly increased, while the unemployment rate remains low, suggesting a stable economic environment [8] Southbound Capital Flow - The first quarter of 2025 saw a record net inflow of southbound capital, primarily driven by institutional investors. The total net inflow from various investment entities is estimated to be around 100 billion yuan [14][16] - Different institutions show varying preferences for sectors, with significant inflows into technology and banking sectors. The report anticipates that the total net inflow for the year could exceed 100 billion yuan, driven by public and insurance funds [16] Consumer Goods Sector - The health supplement market is projected to grow significantly, with a market size of 232.3 billion yuan in 2024, reflecting a 4% year-on-year increase. The market is expected to expand due to changing consumer demographics and increasing health awareness [20] - Key segments within the health supplement market, such as fish oil and coenzyme Q10, are experiencing rapid growth, driven by consumer demand for specific health benefits [21]