The A-share market continued to repair the pattern, with industries such as food and beverage, power and new energy, and semiconductors rising highly, while dividend assets that were strong in the early stage were differentiated. Looking ahead, the institution believes that the main A-share indices are expected to show a volatile and strong trend in the short term, and investors still need to pay close attention to the changes in policy, capital and external factors. In terms of allocation, the internal differentiation of the dividend sector will continue, and with the further clarification of the market inflection point, the allocation cost performance of the high-performance growth sector has improved. At the same time, the performance disclosed in the semi-annual report will become an important transaction clue in the market.
The top five main net inflows into the industry sector: new energy vehicles, automobiles, wind power, PCB boards, textiles and garments; The top five main net inflows into the concept sector: Industrial Internet, Baidu Concept Stocks, Huawei Hongmeng, Internet of Vehicles/Vehicle Road Cloud, and Stalls Economy; The top 10 main net inflows into individual stocks: Cialis, Jinshan Office, Zhengdan shares, public transportation, N Keli Equipment, Dongfang Precision, Tianfu Communication, National Technology, Industrial Fulian, Jinlong shares
Since the beginning of this year, many Hong Kong stock funds have performed well in the volatile market, with their net value rising by more than 10%. According to the latest disclosure of the fund's second quarter report, some fund managers significantly increased their positions in Hong Kong stocks in the second quarter, and at the same time increased their holdings of Internet leaders and high-dividend stocks, so they achieved significant excess returns. As of July 17, southbound funds have bought 370.742 billion yuan this year, exceeding the net purchase amount in 2023 and 2022. Standing at the current point in time, fund managers believe that there are still many investment opportunities in Hong Kong stocks in the second half of the year based on factors such as capital, fundamentals and valuation.
As the Fed's interest rate cut expectations heat up, innovative drug companies that need continuous financing support will benefit from it, and the most difficult moment for the pharmaceutical industry has passed. In recent years, the pharmaceutical and biological sector has been constantly adjusting, and in every rebound, many investors will ask this question. Recently, the pharmaceutical and biological sector has rebounded again, in view of the excellent weight loss effect of tirpatide and the rising obesity rate in mainland China to the market demand for GLP-1, tirpatide is expected to quickly increase sales in China. At the same time, tirpatide will drive the arrival of the dual-target (GLP-1R/GIPR) era, and domestic GLP-1 industry chain companies are expected to usher in development opportunities.
The Science and Technology Innovation Board ushered in the fifth anniversary of its opening, and in the current context of vigorously developing new quality productivity, the Science and Technology Innovation Board has strengthened the support of the capital market for "hard technology" through a series of institutional innovations, and continued to build the "main front" for cultivating new quality productivity. With the promulgation of the "Eight Articles of the Science and Technology Innovation Board", the M&A and restructuring business is expected to become a new focus of the investment banking business of securities companies, and the burst of the Science and Technology Innovation Board is expected to drive the re-emergence of the technology sector. Riding the bull and watching the bear believes that the rebound of technology stocks will directly determine whether the A-share market can continue to rise, from the current trend, the positive of the science and technology board will change the current weak pattern of the technology sector, there is no doubt about this!
Since the listing of the first batch of companies on the STAR Market in 2019, the domestic public fund industry has actively invested in the STAR Market, on the one hand, actively exploring excess returns through active equity products, and on the other hand, deploying index products to accurately support the development of "hard technology" enterprises on the STAR Market. Wind data shows that as of the end of June 2024, the management scale of domestic science and technology innovation theme funds is close to 200 billion yuan, of which the scale of index funds has reached more than 180 billion yuan. In the latest disclosure of the second quarter report of public funds in 2024, many fund managers said that they are optimistic about the long-term trend opportunities of technological innovation. With the rapid iteration of large models, the maturity of multimodality, and the gradual explosion of applications, the production efficiency will be greatly improved, and the investment opportunities in the field of artificial intelligence are worth paying attention to.
The Shanghai Composite Index is still sluggish, and the market is out: "Only when the US stock market falls, will there be funds to buy A-shares!" Powell's recent remarks further pointed to the greater likelihood of the Fed cutting interest rates, while United States economic data also provided data support for rate cuts, and in June, following the cooling of the US non-farm payrolls data, inflation data was also lower than expected, so the market's probability of a rate cut by the Fed in September was further increased. The Fed's interest rate cut can affect A-shares through the logic of global capital flows and asset earnings, which is good for A-shares.
The ChiNext index has performed strongly recently, and individual stocks in the dividend sector have fallen relatively sharply, but the logic of bottoming out dividend assets still exists, and we continue to pay attention to high-quality assets with good quality and relatively low valuations. At present, the overall valuation of the A-share market is still at the bottom of the historical period, and with the increase in the steady growth policy in the second half of the year combined with the medium and long-term reform dividends, there is no need to be pessimistic about the subsequent performance of A-shares. In terms of allocation, during the interim performance disclosure period, sectors and individual stocks with better performance than market expectations are expected to have relative performance; Combined with reform and policy support, we will focus on the field of scientific and technological innovation, especially the sectors with the logic of industrial independence.