CSI 300 Down 1.75%
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This week, the A-share market maintained a “rebound attempt” pattern, with index movements generally weak, reflecting that the current market sentiment remains cautious. The SSE Index(000001) fell by 0.94% for the week, although under short-term pressure, the index has risen 32.36% from its one-year low, moving away from the bottom zone. The CSI 300(000300) and Shenzhen Index(399001) declined by 1.75% and 1.58% respectively, in a phase of correction, with trading volumes also decreasing on a month-on-month basis, requiring continued observation of capital replenishment momentum. The ChiNext(399006) saw a weekly decline of 0.74%, being 53.60% higher than its yearly low, maintaining an upward trend technically. The Hang Seng Index(HSI), however, was dragged down by overall fluctuations in Hong Kong stocks, falling 3.47%, with the market highly sensitive to changes in the external environment.
In the U.S., performance was mixed; the Nasdaq Composite(0NDQC) edged up 0.07%, hitting new annual highs, while the S & P 500 Index(0S&P5) retreated 0.77%, yet still holding a robust structural trend. On the data front, U.S. ADP employment rose significantly to 104,000 in July, far exceeding expectations of 75,000, markedly reinforcing judgments about the resilience of the labor market. Meanwhile, the core PCE price index increased to 2.8% year-over-year, surpassing market forecasts, compounded by an unexpected large increase in crude oil inventories to 7.698 million barrels, heightening concerns over potential inflation volatility. Despite the Fed maintaining interest rates as expected, recent data may limit room for rate cuts at the September meeting, with ongoing attention required on July-August inflation and employment figures. Huatai Securities pointed out that uncertainties in the Fed’s monetary policy path remain a significant variable in the global markets in the short term.
On the domestic policy front, the Central Political Bureau meeting signaled a dual focus on “stabilizing growth” and “risk prevention,” explicitly calling for strengthening real estate destocking, promoting the scaled commercial application of artificial intelligence, and emphasizing the use of “extraordinary measures” to consolidate the foundation for recovery. Recently, the National Development and Reform Commission has been actively deploying efforts to accelerate the construction of a unified national market, promote trade-ins of consumer goods, with the fourth batch of RMB 69 billion to be issued in October; the State Taxation Administration also introduced new regulations clarifying that foreign investors can enjoy tax credits when reinvesting distributed profits. These policies are expected to provide bottom-line support for economic recovery in the second half of the year through continuous transmission.
In terms of industry performance, the leading sector this week was Telecom-Fiber Optics(G3552IG.CN), with a gain of 9.45%. Although some leading stocks experienced short-term adjustments, the industry as a whole benefited from the ongoing advancement of 5G infrastructure, computing power networks, and other new communication infrastructures. Following closely was Computer-Networking(G3574IG.CN), with a rise of 8.56%, where AI and cloud computing-related concepts performed strongly, spurred by continuous policy support for the “Digital China” initiative, boosting sector heat. Medical-Ethical Drugs(G2830IG.CN) also recorded a weekly gain of 4.45%, driven by positive expectations from medical insurance negotiations and innovative drug benefits, attracting notable capital inflows. Overall, market hotspots this week were concentrated in the TMT and pharmaceutical sectors, reflecting investors’ sustained focus on growth directions under policy stimulus.
The average decline of the TOP33 this week was -0.68%, with 11 stocks rising and 22 declining, presenting a divided market scenario. Among them, Victory Git.Tech.Huizhou ‘A'(300476) stood out, with its stock price increasing by 23.03%. The company specializes in high-density printed circuit boards (HDI, etc.), widely used in servers, new energy vehicles, medical devices, and other high-growth areas. Possessing leading manufacturing capabilities within the PCB industry chain, the company holds multiple certifications including ISO/TS16949, information security, and intellectual property systems. Currently, the company’s EPS Rating and RS Rating both stand at 99, indicating excellent profitability and market performance; with an O’Neil Score of 68, showcasing strong characteristics supported by both technical and fundamental aspects. Despite an industry rating of 77, which is relatively strong, future attention should be paid to whether its sector can enter even stronger zones.
Overall, the current A-share market is in a “rebound attempt” phase, with continuously increasing policy support. However, given that corporate earnings are still in the early stages of recovery and trading volumes have not effectively expanded, index movements may still exhibit volatility. It is advised to focus on stocks within the top 40 ranked industries by O’Neil, with outstanding fundamentals and supportive capital flows, seizing structural opportunities. Attention should also be paid to key macroeconomic data releases and policy rhythm changes around mid-August to gauge subsequent market trends.
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published on August 1, 2025