CSI 300 Up 1.54%
Editor’s Note: As always, we would appreciate any feedback you have. It will help us make this app more useful to you.
This week, the A-share market continued its “attempted rebound” trend, with major indices steadily rising. The market maintained a moderately optimistic sentiment supported by policy protection and improved external environment. The SSE Index(000001) rose by 1.4%, moving more than 5% above its 200-day moving average, maintaining a positive technical structure; theCSI 300(000300) gained 1.54% for the week, continuing its stable performance in large-cap stocks. The Shenzhen Index(399001)and ChiNext(399006)increased by 1.25% and 1.5% respectively, reflecting ongoing recovery momentum in growth-oriented styles. ChiNext has rebounded over 42% from its yearly low but still has considerable distance to its peak. In the Hong Kong market, the Hang Seng Index(HSI)fell 1.52% this week, oscillating near several short- and medium-term moving averages, facing technical repair pressure after a strong previous rebound.
International markets showed robust performance. The S & P 500 Index(0S&P5) and Nasdaq Composite(0NDQC) recorded gains of 1.72% and 1.62% respectively, both hitting new annual highs, with the technology sector leading the gains. The latest US June ISM Manufacturing PMI was 49, although still in contraction territory, it was higher than expectations and previous values, indicating marginal improvement in manufacturing activities. More importantly, ADP employment data unexpectedly showed a decrease of 33,000 jobs, the first decline since 2023, coupled with the moderate increase of 147,000 non-farm payroll jobs in June and an unemployment rate rise to 4.1%, further boosting market expectations for interest rate cuts within the year by the Federal Reserve. Although some Fed officials remain cautious, mainstream institutions like CITIC Securities and Goldman Sachs generally believe that the probability of a rate cut in September is relatively high.
On the policy front, the second-quarter meeting of the central bank’s monetary policy committee reiterated the need for “flexible, appropriate, and precise implementation of prudent monetary policies,” strengthening the willingness to support total demand. The China Securities Regulatory Commission (CSRC) also made frequent statements, emphasizing that “maintaining market stability is the primary regulatory task,” proposing to promote optimization of stock and bond financing and merger and acquisition mechanisms, providing institutional underpinning for the stock market through normalized stabilization mechanisms and capital market reforms. The Political Bureau meeting further emphasized the promotion of high-quality development, clearly focusing on technological innovation, real economy, and domestic consumption demand.
Regarding geopolitical and policy changes, Trump’s “Big and Beautiful Act” is about to be signed. Despite not significantly pushing up inflation in the short term, the tax cuts and tariff policies behind it have raised concerns about the stability of US fiscal conditions. Xinhua News Agency published multiple commentaries pointing out that the act may exacerbate uncertainties regarding the credibility of the US dollar and global capital flows. Meanwhile, the US announced the cancellation of some trade restrictions on China, to which China responded positively, potentially easing some Sino-US trade frictions and bringing marginal benefits to export-oriented enterprises in the A-share market.
In terms of industry performance, the highest gain this week was in Computer Sftwr-Gaming(G3584IG.CN), with a weekly increase of 9.07%. This sector received sustained attention due to the rotation of themes such as mini-games, cloud gaming, and AI creative applications, along with relevant policy support, becoming one of the strongest trends in this round of market activity. Following closely was the Wholesale-Electronics(G3577IG.CN) sector, with a weekly gain of 7.98%, driven by the recovery in demand for AI PCs, servers, and industrial automation, leading to strong rebounds among some core component distribution leaders. Bldg-Maintenance & Svc(G7340IG.CN) also performed well, with a weekly gain of 7.43%, reflecting the push from policies aimed at ensuring delivery and optimizing property management, improving market expectations for this sector.
The TOP33 portfolio averaged a gain of 3.54% this week, with 23 stocks rising. Among them, Grace Fabric Technology(603256)stood out the most, with a weekly gain of 23.89%. The company belongs to the electronic-components industry, specializing in mid-to-high-end electronic-grade fiberglass fabric widely used in smartphones, servers, and automotive electronics. With strong technological barriers and R&D capabilities, the company has been continuously recognized as a national high-tech enterprise with multiple patents. Its O’Neil Score is 73, and RS Rating reaches 98, indicating its stock performance far exceeds the broader market, with an EPS Rating as high as 80, demonstrating solid profitability. Despite the overall industry ranking being only in the middle range (65th), under the backdrop of sector rotation, such high-growth niche leaders can achieve excess returns.
Overall, the A-share market is currently experiencing a phase where policy support and economic marginal improvements resonate, with structural opportunities gradually emerging. Indices have risen above multiple moving averages, showing potential for continued short-term rebound momentum. In terms of market style, the main focus remains on technology (especially electronics and fintech) and policy-supported sectors (such as telecommunications and investment management). It is recommended to pay attention to high O’Neil Score stocks with solid fundamentals within strong industries.
What do you think? Please email us any questions or comments.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.
published on July 4, 2025