In the last week of August, domestically, the GEM registered boots were launched. The stock prices of the first eighteen companies listed on the stock market fluctuated greatly, which led to a significant increase in the activity of the entire GEM, and some low-priced stocks experienced consecutive daily limit; foreign countries, the United States Economic data shows signs of stabilization and recovery. The Fed’s policy statement continues to be dovish, US stocks have repeatedly set new highs, and the overall external market has also shown a rebound situation, which has boosted the market’s confidence in economic recovery to a certain extent. In the end, the Shanghai Composite Index closed up 0.68%, and the Shenzhen Composite Index closed up 2.47%. From a structural point of view, large and mid-cap stocks are generally dominant. SSE 50 and CSI 300 closed up 2.66% and 2.55% respectively, ranking high in the major indexes, while CSI 1000 closed up only 0.15%, ranking bottom. It is worth mentioning that the performance of small-cap stocks has seen a huge divergence. The performance of the ChiNext Composite Index closed up 5.32%. The average market value of the index is close to that of the CSI 1000, and the performance is different, indicating the enthusiasm of funds for small-cap stocks. Limited to the ChiNext. In terms of trading volume, the average daily trading volume of the two cities continued to decline by 10.8%. Combined with the index trend, internal and external uncertainties have increased. OTC funds have fallen into a wait-and-see situation. The fear of high funds on the market has become more obvious, triggering demand for adjustments. Market volatility has intensified, the effect of making money has declined rapidly, and the activity of individual stocks has decreased.

The top three CITIC's first-tier industries with gains this week are food and beverage (7.6%), catering and tourism (4.96%) and medicine (4.18%). The remaining sectors with better performance include electrical equipment, machinery, and transportation. The market risk appetite has dropped significantly this week, and the market’s emphasis on performance and valuation has increased significantly. The leading food and beverage and pharmaceutical companies have generally reported beautiful interim reports and continued to rise this week. The last three gains were commercial retail (-3.01%), coal (-1.81%), and military industry (-1.74%). The remaining sectors with poor performance include real estate, nonferrous metals, and steel. In the early stage, the commercial and retail sector was catalyzed by themes such as tax exemption and cross-border e-commerce. Some stocks rose sharply. Recently, the market risk appetite has declined, and thematic stocks have generally recovered, which dragged down the index.

Looking into the third quarter, due to the obvious economic recovery, the probability that the margin of monetary policy will continue to relax is small, coupled with the surge in the number of IPOs, and the continuous conflict between China and the United States, we believe that short-term risk appetite is still suppressed, and the probability of index-level market is not high. Band opportunities are the mainstay.