Preface

With the Shanghai Stock Index propelling past the 3500 mark this week, there's growing anticipation over whether this momentum can be sustained. Amidst this financial flux, factors such as international trade dynamics and domestic policies are significant contributors to this growth. Investors eagerly await these cues as they strategize for the upcoming weeks.

Lazy bag

Key takeaways from the current market scenario indicate a potential continuation in the upward trend. Critical drivers include strong policy stimuli and international trade developments. Investors should remain vigilant for any shifts.

Main Body

This week, the Shanghai Stock Index marked a significant milestone by surpassing the 3500 mark, fueled by increased trading volumes, and reflecting a broadly positive market sentiment. Within this atmosphere of cautious optimism, the potential for sustained growth remains, as both challenges and opportunities lie ahead.

In previous assessments, it was highlighted that the market would likely experience a period of consolidation amidst both tangible pressures and positive signals. Key events such as international tariff negotiations and regional trade policies could heavily influence stock trajectories. For instance, the pending conclusion of U.S.-China tariff exemptions and Southeast Asia's trade policies, notably from Vietnam and Malaysia, are pivotal in steering market sentiments.

The week saw a broad-based recovery, with small-cap stocks outperforming larger counterparts. Industry-wise, sectors like real estate, non-bank finance, steel, and media entertainment took the lead. The performance of thematic concepts such as trading software and rare earth materials was notably impressive, signaling a potential reallocation of investments towards emerging sectors.

On the macroeconomic front, June's economic data unveil a complex picture. The national consumer price index saw a 0.1% year-on-year rise, with contrasting trends between urban and rural areas. Moreover, the producer price index showed a marked decrease, indicative of persistent deflationary pressures.

Looking ahead, the market's path is punctuated by strategic decisions from financial and trade authorities. Concurrently, global tariff adjustments and domestic innovation policies offer a blend of optimism and caution. With developed synergy between policy directions and market responses, sectors such as artificial intelligence, semi-conductors, and renewable resources are anticipated as focal investment areas.

Summarily, as we transition into the following week, market participants are optimistic yet cautious. The prevailing headwinds from external factors seem to be abating, while internal policy cues are asserting a stronger influence. The collective wisdom pivots around a sustained bullish approach, contingent upon consistent trading activity to reinforce market movements.

Key Insights Table