The Shanghai Composite Index rose above 3666 points, aiming for a seventh consecutive day of gains! The Innovative Medicine ETF (517380) by Tianhong has seen strong inflows for 12 consecutive days, while the Aerospace and Defense ETF (159241) by Tianhong

Gelonghui, August 12th | Benefiting from the bullish extension of tariffs between China and the U.S., the Shanghai Composite Index closed up 0.51% at 3,666.33 points at noon today, aiming for a seventh consecutive day of gains and continuing to set new highs for the year. The innovative drugs and aerospace and defense sectors led the declines, with the Yinhua CSI Innovative Drugs Industry ETF (517380) falling by 0.78% and the TH Aerospace and Defense ETF (159241) dropping by 2.1%. However, these ETFs saw contrarian buying, with 16 million units being purchased. In fact, as of the close of trading yesterday, both ETFs had seen significant inflows. The Yinhua CSI Innovative Drugs Industry ETF (517380) has seen net subscriptions for 12 consecutive days, totaling RMB 187 million, with both volume and price rising to a record high, increasing to RMB 779 million. The ETF's share volume has surged by 123.36% this year, and its year-to-date return has reached 47%. The TH Aerospace and Defense ETF (159241) has attracted over RMB 35 million in the past three days, with its size doubling in less than three months since listing, reaching a new record high of RMB 506 million. As the A-share market approaches the 3,700-point resistance level that has formed over the past decade, the market expects short-term consolidation to digest the pressure from profit-taking, particularly in the previously strong innovative drugs and defense sectors. However, institutions are generally bullish on the long-term investment value of the defense and innovative drugs sectors, especially with the upcoming September 3rd military parade serving as a catalyst. According to a research report by China Securities Co., Ltd., while the A-share market may face some resistance in the short term, it remains in a bull market, and any pullback presents a good opportunity for investment. Key industries to focus on include defense, AI computing power, and innovative drugs. HTSC's global strategy continues to be bullish on large financials, healthcare, and defense.