Industrial Securities: High-risk偏 funds dominated inflows in July, with foreign capital and insurance funds warming up simultaneously.

On August 10, Jin10 reported that Industrial Securities released a research report stating that the market is gradually entering a bull run mindset. Funds with higher risk appetite saw a more significant net inflow in July, while funds with lower risk appetite embraced structural opportunities, actively seeking and exploring underpriced segments within the main lines. Insurance funds continue to significantly increase their allocation to equity assets, while also gradually expanding their allocation from narrowly defined dividend assets such as finance and utilities to a broader range of dividend assets. The new issuance and redemption of active equity funds continued to show marginal improvement in July, and the low point of the negative cycle on the liability side may have quietly passed. Similarly, foreign capital saw positive changes in July, with EPFR reflecting that foreign capital has begun to flow back, and the increase in the northbound trading proportion indicates a recovery in foreign capital’s participation and allocation willingness towards A-shares.