In the third week of August, domestically, although the central bank continued to do more than MLF, the LPR remained unchanged, but under the background that the ChiNext registration system is about to land, the market’s concerns about funding have increased; foreign countries, China and the United States The discussion of the first-stage economic and trade agreement was postponed, but as the number of new cases in the United States peaked and the economy restarted, the US dollar continued to weaken, the external market generally rebounded, and US stocks hit a new record high. In the end, the Shanghai Composite Index closed up 0.61%, and the Shenzhen Composite Index closed up 0.26%. From a structural point of view, the differentiation between large and small cap stocks is not obvious. The Shanghai Composite Index closed down 0.12%, while the ChiNext Composite Index closed down 0.7%. The absolute difference was not obvious.

In terms of trading volume, the average daily trading volume of the two cities fell slightly by 1.2%. Combined with the index trend, internal and external uncertainties have increased. OTC funds have fallen into the wait-and-see mode. The fear of high funds on the market has become more obvious, and the demand for adjustments has triggered Market volatility has intensified, the effect of making money has declined rapidly, and the activity of individual stocks has decreased.

The top three CITIC first-tier industries with gains this week are food and beverage (3.36%), power utilities (2.98%) and building materials (2.84%). The remaining sectors with better performance include media, coal, and light industry. This week, the market risk appetite has dropped significantly, and the market’s emphasis on performance and valuation has increased significantly. The food and beverage and power sectors are all boosted by the performance of leading companies’ performance. The last three gains were military industry (-3.97%), home appliances (-1.81%), and electronics (-1.71%). The remaining sectors with poor performance include catering and tourism, power equipment, and communications. In the context of declining market risk appetite, the military sector, which has experienced a huge increase in the previous period, is under pressure to pull back. The home appliance sector has also outperformed the market for several consecutive weeks, and the correction has little to do with fundamentals.

Looking forward to the third quarter, due to the obvious economic recovery, the probability that the margin of monetary policy will continue to loosen is small, and the number of IPOs has surged, and the Sino-US conflict has not subsided. We believe that short-term risk appetite is still suppressed. And band opportunities.