Core Viewpoint - The current market trend shows a rapid rotation between value and growth stocks, reminiscent of the market dynamics observed from 2013 to 2017, with potential for various sectors to experience upward momentum [4][5][6][26]. Market Performance - The overall market closed higher today, returning to a rating of 4.5 stars, with small and mid-cap stocks showing more significant gains compared to large-cap stocks [1][2][3]. - The Hong Kong stock market has been relatively sluggish, experiencing a decline today, despite having seen three waves of increases since last September [8][9][10]. Historical Comparison - The current market conditions are compared to the period from 2013 to 2017, where the A-share market faced a bear market due to poor fundamentals and declining corporate profits [13][28]. - The introduction of stimulus policies in 2014 led to a significant recovery in the market, particularly in the financial sector, which drove the overall market upward [14][15]. - The years 2016-2017 saw a recovery in the fundamentals of listed companies, leading to a slow bull market for value stocks, while growth stocks experienced a downturn [21][24]. Future Outlook - The market is expected to follow a similar trajectory to 2013-2014, with a potential recovery in corporate fundamentals anticipated in the latter half of 2024, coinciding with expected interest rate cuts by the Federal Reserve [28][29][30]. - The first wave of the upcoming market rally is likely to be led by the financial sector, with small-cap and technology stocks expected to follow suit in 2025 [31][32]. Investment Strategy - The investment approach remains consistent: buy during market dips and sell during peaks, while maintaining patience for optimal exit opportunities [45][47]. - The prolonged bear market from 2022 to 2024 has provided ample opportunities for accumulating quality assets through systematic investment [46].

Group 1 - The A-share index family will undergo significant adjustments and new index releases on June 16, enhancing the index system to meet the growing demand for diversified investment options [1][2] - The Shenzhen Stock Exchange will replace 20 samples in the Shenzhen Component Index, with 10 companies from the main board and 10 from the ChiNext, while the ChiNext Index will replace 8 samples [1][5] - The adjustments reflect the rapid development of China's macro economy and the continuous expansion of the A-share market in terms of listed companies and market capitalization [2][6] Group 2 - The manufacturing sector will account for 73% of the Shenzhen Component Index after the adjustments, indicating a solid foundation for the real economy [3][4] - The ChiNext Index will have a strategic emerging industry weight of 92%, with significant contributions from new generation information technology, new energy vehicles, and biotechnology [3][4] - Approximately 60% of the new samples in the Shenzhen Component Index have established "quality return dual enhancement" action plans, indicating a commitment to improving investor satisfaction [4][6] Group 3 - The adjustments to major indices like the CSI 300, CSI 500, and CSI 1000 will include the addition of several new companies, enhancing market representation [5][6] - The introduction of the new Shanghai Composite 580 Index aims to provide a more comprehensive view of small and mid-cap companies in the Shanghai market [6][7] - The new index system will cover 50% of the number of securities in the Shanghai market and nearly 90% of market capitalization, promoting a more diversified investment landscape [7]