CSI 300 rose by 1.09%.
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This week, the A-share market maintained a “trying to rebound” state, with several core indices continuing their upward trend, reflecting funds’ positive response to improvements in economic fundamentals and signals of policy bottoming out. The SSE Index(000001) gained 0.69% for the week, steadily standing above multiple short to medium-term moving averages. Currently, it is 6.19% above its 200-day moving average, with technical structures continuously strengthening. The CSI 300(000300) performed slightly stronger with a weekly increase of 1.09%. Growth sectors continued to lead the rise; the Shenzhen Index(399001) and the ChiNext(399006) increased by 2.04% and 3.17% respectively, reflecting that the tech growth style has once again received support from improved risk appetite.
In terms of Hong Kong stocks, the Hang Seng Index(HSI) saw a weekly gain of 2.84%, approaching a one-year high, benefiting from improved external sentiment, corporate profit expectations recovery, and continuous inflows of southbound funds. Currently, the index stands 13.74% above its 200-day moving average, maintaining a strong technical pattern.
Overseas markets remained robust, with both the Nasdaq Composite(0NDQC) and the S & P 500 Index(0S&P5) hitting new yearly highs, rising by 1.45% and 0.6% respectively. In particular, the Nasdaq, driven by expectations of tech giants’ earnings reports and the AI boom, is only 0.13% away from its one-year peak, further consolidating the structure of the US stock bull market. The US June CPI annual rate reached 2.7%, which, although in line with expectations, still shows sticky core inflation. Coupled with the unexpectedly high June retail sales month-on-month rate (0.6% vs 0.1%), it indicates the resilience of American consumption. Despite Trump’s frequent pressure for interest rate cuts, Fed Chairman Powell remains cautious, leading to some pullback in market pricing for July rate cuts. However, initial jobless claims fell to 221,000 this week, hinting at the labor market’s resilience, thus limiting the overall policy space of the Fed.
Domestically, GDP grew by 5.3% year-over-year in the first half of the year, with the second quarter seeing a growth of 5.2%, higher than expected. Industrial added value, M1 growth rate, and export performance all exceeded market expectations, establishing a rhythm of macroeconomic fundamental recovery. Accompanied by the central bank’s trillion-level reverse repo operations, the intention to stabilize liquidity is evident. Institutions such as CITIC Securities and CICC generally expect “structural easing” to continue, while fiscal policies are also actively responding, like studying ways to remove consumption restrictions and regulate the competitive order of new energy vehicles, aiming to further stimulate the intrinsic dynamics of domestic circulation.
Meanwhile, the Central Urban Work Conference and articles in Qiushi magazine emphasize “high-level opening up”, indicating that internal reforms and external cooperation will drive together, evolving the macro environment towards favoring the capital market.
On an industry level, Telecom-Fiber Optics(G3552IG.CN) led with a weekly gain of 12.84%, mainly benefiting from AI data center capacity expansion and the restart of 5G deployment, with upstream demand for optical modules and chips being boosted simultaneously. This, coupled with improved export data, lifted market sentiment. Wholesale-Electronics(G3577IG.CN) rose by 7.73% this week, despite a short-term adjustment, quality companies within the industry have full orders, and strategies of localization and supply chain security continue to support medium to long-term prosperity. Medical-Ethical Drugs(G2830IG.CN) saw a weekly gain of 6.91%, benefiting from marginal easing of centralized procurement and favorable policies for innovative drugs, showing signs of valuation repair momentum among leading varieties in the sector, becoming one of the stable defensive directions favored by funds.
Among the TOP33, the average gain for the week reached 3.04%, with 21 stocks rising, and structural differentiation somewhat easing. Among them,Eoptolink Tech.’A'(300502) stood out most, with a weekly gain of 39.01%. The company belongs to the electronic-components sector, specializing in the R&D and manufacturing of optical modules, showing significant growth potential under the trends of 5G and data center expansion. Its RS rating and EPS rating both stand at 99, reflecting rapid profit growth and a strong breakthrough in stock prices. Although its industry ranking is 51, slightly below the preferred range, the company’s strong vertical integration capabilities and well-established global layout position it to benefit continuously from the prosperous track of optical communication.
Overall, the market is in a “trying to rebound” phase, with noticeable rotation of structural hotspots. Policy and economic data dual benefits enhance market resilience. It is recommended to focus on the realization of individual stock performances during the concentrated disclosure period of mid-year reports, while combining MarketSmith industry strength and technically strong structures, focusing on digging into stocks oriented towards new productivity in growth mainlines, controlling drawdowns, and choosing the strong to follow.
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published on July 18, 2025