In July, China market continued to show a downward trend. Although the economy as a whole was moving towards recovery, most industries experienced a decline compared to the previous month, only exports and certain manufacturing sectors performing better than expected. In July, The Third Plenum of the 20th CCP Central Committee concluded and largely in line with market expectation. the Party leadership required implementations to enhance the fiscal capacity of local governments, stabilize the domestic economy, guard against financial risks, and reduce long-term risks.

The Party leadership focused on cultivating new high-quality productivity through integrating various resources, reforming traditional mechanisms, supporting private enterprises, and developing education. Comprehensive measures were taken, including increasing investment in private enterprises and education, to promote new productivity. The Party leadership also decided to further introduce a series of policies to stimulate consumption and strengthen support for long-term bonds such as equipment upgrading and trade-in after the Central Political Bureau meeting.

Currently, investor confidence remains weak. Market still faces pressure from public fund redemptions and has experienced a significant correction after a rebound. We expect that the market's real recovery will still depend on the actual level of economic recovery.