Investment Strategy: The market may continue to reach new highs in mid to late August.

Jin10 data reported on August 3rd that招商策略 believes that looking ahead to August, the market may show a pattern of index fluctuations in early to mid-August, returning to its previous upward trend in late August, and possibly continuing to reach new highs. In early to mid-August, after a noticeable rise in the market, it enters the earnings disclosure month. Overall, the performance of listed companies is mixed; some stocks with significant gains in theme concepts face adjustment pressure before earnings disclosure. After the earnings disclosure in late August, it will re-enter a performance vacuum period. From a medium-term perspective, the semi-annual report is expected to confirm the logic of overall free cash flow improvement for listed companies, reinforcing the logic of re-evaluating A-shares. Meanwhile, the market is currently above the loss resistance level; after the accumulation of profit effects, incremental funds from outside are continuously flowing in. Ultimately, it is quite likely that A-shares will experience a pattern of first suppression followed by a rise in August, reaching new highs.