A-share market's closing review | A-share experienced a huge shake in the afternoon, with the Shanghai Composite Index rising to high points before falling back to close up by 0.32%. The concept of innovative drugs showed a strong performance.

On July 4th, there was a huge earthquake in the A-share market in the afternoon. With the strong performance of the large financial sector, the Shanghai Composite Index rose by 1% at one point, hitting the 3500 level to reach a new high for the year, before pulling back. By the close, the Shanghai Composite Index was up 0.32%, the Shenzhen Component Index was down 0.25%, and the ChiNext Index was down 0.36%. Zheshang believes that in July, the market will have some clearer trading opportunities, but at the same time, there will be more uncertainties. The pricing theme may revolve around "internal policy brewing + interim report performance disclosure + external changes heating up." Market volatility may also increase as a result. In terms of market trends, the hotspots are quite mixed, with most hotspots rising and then falling. In terms of sectors, the large financial sector showed strength, with banks and insurance companies leading the gains. Concepts like cross-border payments and stablecoins were active, and stocks like Shanghai Pudong Development Bank hit new highs. There was also a focus on the "anti-burnout" concept, with steel and other cyclical stocks maintaining strength. Additionally, power stocks were active, and the innovative pharmaceutical sector showed strength. Looking ahead, Central China points out that the pace of long-term capital entering the market is accelerating, ETF size is steadily increasing, and insurance funds continue to flow in, providing substantial support to the market. Hot sectors: 1. The large financial sector showed strength at one point, with banks and insurance leading the way. Stocks like Shanghai Pudong Development Bank and others hit new highs. 2. The "anti-burnout" concept was hot, with cyclical stocks like electricity and steel maintaining strength. 3. The innovative pharmaceutical sector showed strength, with certain stocks hitting upper limits. Institutional views: 1. Zheshang believes that uncertainty in the market will increase in July, but there are also clearer trading opportunities. 2. Central China predicts that the short-term market will mainly see steady upward fluctuations. 3. Dongxing believes that the market is likely to enter a new round of slow growth and that July may see a continuation of the upward trend.