Looking at valuation and growth prospects, opportunities for investment in four asset classes deserve attention.

The rotation and rise of sectors such as military industry and pharmaceuticals have pushed the Shanghai Composite Index to briefly surpass the 3600-point mark. With the market conditions improving, investors are focusing on how to explore targets with greater potential for rise and larger excess return from the perspective of valuation and cost performance. Combining overall market valuation levels and fundamental analysis, institutional personnel indicate that the valuation of the non-ferrous metals, ultra-high voltage, and power equipment sectors is relatively low at present and they have better growth prospects; for the technology growth direction, which is one of the main investment themes for the second half of the year, opportunities in sectors such as semiconductor equipment and materials, and the Sci-Tech Innovation Board are worth seizing. However, for sectors with valuations at absolute low levels, the improvement in valuations relies on various factors, and a low valuation itself is not a sufficient condition for exploring excess returns.