Founder Futures: Weighted stocks are relatively strong; technology and growth continue to be weak

Today’s market continues Friday’s trend from last week. Heavyweight stocks are relatively strong, supporting the broader index, while technology and growth sectors remain weak. Therefore, the four major futures contracts show divergence: IH is up, while IC and IM fall by more than 3%. Today also saw positive policy-level signals.

Multiple market institutions have received notices from regulators that they will attend a symposium with the CSRC today. The CSRC aims to listen to suggestions from all sides on promoting the stable and healthy development of the market. Meanwhile, two major state-owned capital operation platforms issued major shareholding-increase announcements on the evening of July 19: China Guoxin has used more than 50 billion yuan in relending and supporting funds to increase its holdings of central SOE stocks, and China Chengtong has also cumulatively invested nearly 10 billion yuan to position central SOEs and technology assets. Both institutions clearly stated they will continue to add more in the secondary market. This signal directly boosts market confidence.

We believe the pullback in the technology sector has not ended, while IH—which has been lackluster throughout the year—may hold steady and rebound. In the near term, it is recommended to focus mainly on waiting, and to go long after the market stabilizes. (Founder Futures)