CSI 300 Rises 1.23%
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This week, A-shares maintained a “rebound attempt” status with most indices closing higher, improving market sentiment, albeit trading volume slightly decreased compared to the previous week, indicating that capital’s willingness to chase gains remains cautious. The SSE Index(000001) rose 2.11% for the week, just 1.07% away from its annual high point, having clearly stabilized above short and medium-term moving averages. The CSI 300(000300) rose 1.23%, with blue-chip heavyweight stocks performing slightly worse than the broader market. The Shenzhen Index(399001) gained 1.25%, while the ChiNext(399006) only increased by 0.49%, showing that funds still tend to selectively layout in small and mid-cap growth stocks.
In Hong Kong, the Hang Seng Index(HSI) rose 1.43%, mainly consolidating due to insufficient external capital inflows and low trading volumes. In overseas markets, US stocks continued their strong performance, with the Nasdaq Composite(0NDQC) rising 2.87%, significantly driven by tech stocks, and the S & P 500 Index(0S&P5) gaining 1.63%, still about 1.35% away from its one-year peak.
On the macro level, US economic data shows signs of weakening recovery momentum. The July ISM Manufacturing PMI fell to 48, below the boom-bust line, non-farm employment growth slowed to 73,000, initial jobless claims rose to 226,000, and the consumer confidence index slightly dropped to 61.7. These figures indicate clear signs of a slowdown in US economic growth, pushing up expectations for a near-term interest rate cut by the Federal Reserve. The bullish steepening trend of the US Treasury yield curve is significant, with market funds favoring risk assets even more. Additionally, crude oil inventories unexpectedly saw a substantial decline; fluctuations in the energy market deserve attention. CICC predicts that US inflation may see an upward turning point within the next 1-2 months, requiring continuous monitoring of price levels and monetary policy dynamics.
Domestically, on the policy front, seven departments jointly issued the “Guidance Opinion on Financial Support for New Industrialization”, clearly increasing financing support for advanced manufacturing and digital economy sectors, providing financial security for industrial upgrading. A major document promoting brain-computer interface industry development has been introduced, aiming for breakthroughs in key technologies by 2027, embodying a dual-wheel drive strategy of policy and technology. National plans to newly construct or reconstruct 300,000 kilometers of rural roads will improve infrastructure and boost regional economic development. On social welfare, the State Council announced the exemption of preschool education fees for one year at public kindergartens starting autumn 2025, reflecting a policy orientation balancing stable growth and improvement of people’s livelihood. The People’s Daily emphasizes the dual efforts of expanding domestic demand and countering “involution”, showing sustained policy-level support for economic transformation and structural adjustment.
Market hotspots are rapidly rotating; the Shanghai Composite achieved four consecutive days of gains, reaching new highs for the year, with foreign institutions continuing to view Chinese assets positively and recommending maintaining overweight positions. Accelerated technological innovation drives, OpenAI’s release of GPT-5, and Microsoft’s early adoption highlight the broad prospects of the AI industry, attracting attention to related concept stocks. The characteristics of structural market trends are evident, with significant differentiation in fund performance for the year, necessitating careful stock selection for investments.
In terms of sector performance, Telecom-Infrastructure(G4895IG.CN) led the market with a gain of 10.03%, benefiting from the construction of 5G base stations and the accelerated deployment of next-generation communication networks, driving active capital inflows due to expectations of infrastructure upgrades; Bldg-Hand Tools(G3548IG.CN) rose 7.87%, accompanied by stabilization in the real estate sector and gradual recovery of downstream home improvement demand, leading to improved earnings forecasts for related tool manufacturers; Elec-Scientific/Msrng(G3611IG.CN) increased by 7.86%, although there was slight fluctuation in the short term, overall benefiting from increased investment in scientific research and rising demands for industrial automation, receiving high market attention.
The average gain of TOP33 this week was 4.09%, with 24 stocks rising and 9 falling, highlighting the characteristics of structural market trends. Leading the gainers was Zhejiang Cfmoto Power(603129), which rose 16.31% for the week. Belonging to the leisure products industry with an industry rating of 38, the company holds a leading position in the global ATV market, boasting EPS Rating of 99 and RS Rating of 88, indicating both profitability and stock performance are at high levels. Benefiting from the rebound in outdoor leisure consumption at home and abroad and the push of new product cycles, the company’s high-end large-displacement models have seen continuous increases in market share, coupled with export growth bringing performance elasticity.
As the market enters the earnings season, it is expected that around 330 companies will release their earnings reports next week. Earnings disclosures will become an important node for testing market expectations and adjusting capital allocation. Investors need to pay attention to earnings guidance and the impact of earnings reports on individual stocks and sectors, carefully grasping market rhythms based on fundamental and technical signals, and guarding against stage-wise volatility risks.
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published on August 8, 2025