Huatai Securities Co., Ltd. pointed out that A-shares hit new highs with increased volume last week, with trading funds continuing to remain active, and abundant stock market liquidity still serving as the primary driver of the current market rally.

First, from financial data perspective, there is a divergence between real economy credit and M1 year-over-year growth, with traditional industry beta remaining generally weak overall. Deposit data reflects signs of retail funds entering the market. If the stock market can establish sustained profit-making effects, liquid deposits represent one of the potential incremental sources in the future.

Second, the current entry of retail funds into the market is primarily through leveraging existing funds, as evidenced by leveraged funds' activity continuing to reach periodic new highs, while new account openings, new mutual fund issuances, and private fund registrations show improvement but with limited momentum. ETFs have experienced overall net outflows over the past month with intensifying sector differentiation.

Third, foreign capital and insurance funds are also potential incremental funds worth monitoring, with both showing increased activity recently.

The market trend remains strong, and it is recommended to maintain relatively high position levels.