Focus on Industry Trends and Policy Directions

Looking ahead, brokerage analysts note that with potential profit-taking pressure above the 3,600-point level, chasing rallies is not advisable. For holdings that have surged significantly, consider locking in profits incrementally at highs. However, quality stocks consolidating at low levels with gradual upward momentum—showing no rapid spikes or excessive volume—can be held for rotation opportunities.

Galaxy Fund suggests that A-share market policies and industrial upgrades may jointly drive sector rotation:

• Cyclical sectors could see valuation repairs amid "anti-involution" policies and infrastructure stimulus.

• Tech sectors may benefit from AI breakthroughs, semiconductor cycles, and mid-year earnings catalysts.

E Fund Australia highlights the market's sustained strength, with capital inflows fueled by profit effects and optimism. Short-term risks appear limited, while medium-term prospects are bolstered by policy support and liquidity (Fed rate cut expectations). The index may hit new highs in H2.

Key Focus Areas:

1. Industry trends: Tech growth (AI, defense, innovative drugs);

2. Policy directions: Service consumption, cyclical sectors boosted by mega-projects, and "anti-involution" fields like renewables.
   Additionally, with the August tariff exemption deadline approaching, the late-July U.S.-China trade talks may heighten market sensitivity to tariff risks.

Strategies (per Wu Jiaxiang):

• Tech growth (robotics, semiconductor equipment, gaming/media);

• High-growth sectors (insurance, defense, rare earths, offshore wind, pharma, non-ferrous metals).

For Hong Kong stocks, internet, non-bank finance, pharma, and dividend plays remain mid-term picks amid domestic policy tailwinds and easing global headwinds.