CITIC Securities: In July, funds led by high-risk preferences flowed in, and foreign insurance asset allocations also increased simultaneously.

Guosen Securities released a research report stating that the market is gradually entering a bullish mindset, with funds with higher risk preferences showing more significant net inflows in July, while funds with lower risk preferences are embracing structural opportunities and actively seeking and exploring undervalued niche areas within the main themes. Insurance funds continue the trend of significantly increasing their allocations to equities, while also gradually expanding their scope of dividend assets from narrow dividend assets such as finance and utilities to more broad dividend assets. The issuance and redemption of actively managed equity funds both continued to show marginal improvement in July, indicating that the downward cycle of liabilities may have quietly exited its trough. Similarly, foreign capital saw positive changes in July, with EPFR reflecting a return of foreign capital inflows, and the proportion of Northbound transactions increasing, indicating an increase in foreign capital participation in and willingness to allocate to A-shares.