A-share funds are surging: these sectors are quietly increasing their positions.

Since the rebound started on April 8, the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index have respectively risen by 16.05%, 19.26%, and 29.48% as of July 25. In terms of funding, as of July 24, the balance of margin financing in A shares has increased by 84.376 billion yuan since April 8, with listed companies repurchasing a total of 54.238 billion yuan, and both road funds adding nearly 140 billion yuan to A shares. In addition, northbound funds actively increased their positions in the A-share market in the second quarter; one of the important indicators of monitoring the trend of major funds, securities business departments in the Dragon Tiger List favored the chemical raw materials sector from April 8 to July 25. Analysts believe that the rapid increase in margin financing reflects a significant increase in market risk appetite, and there is still room for incremental funds in the A-share market in the future. Under the encouragement of policies, long-term funds such as insurance and pensions are accelerating their entry into the market. The stabilization and recovery of the Chinese economy and marginal improvement in the external environment will also help attract foreign capital inflows.