Core Viewpoint - The Chinese stock market is experiencing a resurgence, with significant capital inflow into core assets, supported by high levels of household savings and a shift in asset allocation towards equities [1][3]. Group 1: Market Dynamics - The Shanghai Composite Index has surpassed 3,800 points, indicating a strong market momentum, with the A500 ETF seeing a 1.5% increase [1]. - Goldman Sachs reports that A-shares have become the most net-bought market recently, with a buying ratio of 1.1 times, and approximately 90% of stocks in the Shanghai and Shenzhen indices trading above their 50-day moving averages [2]. - There is a notable shift in household savings, with a significant portion moving from bank deposits to financial assets like stocks, as evidenced by a decrease of 1.1 trillion yuan in household deposits and a record increase of 2.14 trillion yuan in non-bank deposits [1][2]. Group 2: Investment Opportunities - The A500 index is highlighted as a suitable investment vehicle, as it is heavily weighted towards technology, communication services, and healthcare sectors, which are expected to drive future economic growth [2][4]. - The A500 ETF Dongcai (159380) has outperformed its peers, with a cumulative excess return of 7.3% since inception and a 5.6% excess return year-to-date, ranking it at the top among 30 A500 ETFs [4][6]. - Historical analysis suggests that focusing on leading stocks in booming sectors, while avoiding weaker sectors, is crucial for investors during bull markets [4].

Market Overview - The three major indices in the A-share market collectively rose, with the Shanghai Composite Index increasing by 0.62%, the Shenzhen Component Index by 0.84%, and the ChiNext Index by 0.61% [1][4] - Several infrastructure ETFs saw significant gains, including the Infrastructure ETF (516950.SH) which rose by 6.99%, and the Infrastructure ETF (159619.SZ) which increased by 6.44% [1][11] ETF Performance - The A500 ETF market experienced a significant shift, with the net asset scale of the top 10 A500 ETFs decreasing from 10 to 9, and the China A500 ETF (560610.SH) shrinking from 12.45 billion to 8.734 billion [2] - Central Huijin Investment increased its holdings in major broad-based ETFs by over 200 billion in Q2, indicating a strong commitment to stabilizing the capital market [3] Sector Performance - In the sector performance, coal, building materials, and construction decoration sectors ranked highest, with daily increases of 6.18%, 4.49%, and 3.38% respectively [6] - Over the past five trading days, the building materials, coal, and steel sectors also showed strong performance, with increases of 11.46%, 9.15%, and 7.68% respectively [6] ETF Categories - Among different ETF categories, strategy ETFs performed the best with an average increase of 1.56%, while bond ETFs had the worst performance with an average decrease of 0.04% [9] - The top-performing ETFs included the Coal ETF (515220.SH) with an increase of 8.25%, the Building Materials ETF (159787.SZ) with 7.91%, and the Infrastructure ETF (516950.SH) with 6.99% [12][11] Trading Volume - The top three ETFs by trading volume were the CSI 300 ETF (510300.SH) with a trading volume of 4.517 billion, the STAR 50 ETF (588000.SH) with 4.086 billion, and the A500 ETF (512050.SH) with 4.057 billion [14][15]