During the morning session, A-shares experienced modest upward fluctuations, with the Shenzhen Component Index, CSI 300, and STAR 50 reaching new phase highs. The ChiNext Index broke above 2,900 points, while the Beijing Stock Exchange 50 saw slight adjustments. Rising stocks significantly outnumbered declining ones, with trading volumes remaining stable.

Sector-wise, gold, pharmaceutical and biotechnology, advertising and marketing, and general retail led the gainers, while aerospace equipment, glass and glass fiber, insurance, and wind power equipment sectors declined.

**Gold Prices Surge**

Gold stocks collectively rose in early trading, with the sector index opening higher and climbing unilaterally by over 4%, setting a historical high. Half-day trading volume nearly matched the previous trading day's full-day volume. Western Gold hit the daily limit within approximately 4 minutes of opening, while Shengda Resources, Yuguang Gold and Lead, and Hunan Silver also posted strong daily limit gains.

Overnight, international spot gold prices surged significantly. This morning, domestic gold futures followed suit with substantial gains, with the main contract rising over 2% intraday and briefly breaking through the 800 yuan barrier, reaching a 2.5-month high. Silver futures' main contract soared even more dramatically, jumping over 4% intraday and consecutively breaking through multiple integer levels at 9,400, 9,500, 9,600, and 9,700 yuan, setting a historical high.

Recently, international tensions have intensified again, boosting safe-haven sentiment. Ukraine's attacks on Russian oil export terminals have damaged pipeline infrastructure, reducing Russia's Ust-Luga oil export terminal's September daily output to approximately 350,000 barrels, only half of normal capacity.

The Israeli military also announced that the tactical ceasefire in Gaza that began at 10 AM local time on the 29th does not apply to Gaza City, declaring the area a "dangerous combat zone." The Israeli Defense Forces explained this decision was made based on situational assessment and political directives.

Additionally, Trump's proposed 50% tariff on Indian goods has sparked market concerns about global economic slowdown, further enhancing gold's safe-haven appeal. The United States will release several important economic indicators this week: Tuesday's August ISM Manufacturing PMI, Wednesday's JOLTS job openings, Thursday's ADP employment data, weekly unemployment claims and ISM Services PMI, with Friday's August non-farm payroll report being the most crucial.

Guosen Securities stated they are strategically bullish on gold again after six months, with the main logic stemming from "insufficient global safe-haven assets" to "questionable Federal Reserve independence," leading to a second discount in dollar credibility. Global central banks' continued allocation remains a necessary condition for gold price stability.

**Fund Managers Increase Pharmaceutical Holdings**

Pharmaceutical and biotechnology concept stocks, which had been adjusting for several days, collectively surged again in the morning session. Chemical pharmaceuticals, innovative drugs, generic drugs, and weight-loss drug subsectors all rose over 2% with increased volume. Haichen Pharmaceutical, YIPINHONG, DEZHENG HEALTH, and Joincare posted daily limits or gains exceeding 10%.

Hong Kong pharmaceutical stocks also surged strongly, with the Hong Kong Stock Connect Innovative Drug Select Index, Hong Kong Stock Connect Healthcare Index, and Hang Seng Biotech Index all rising over 4%. Jacobio soared over 23% intraday, reaching a near 2.5-year high, while Clover Biopharmaceuticals, EdiGene, and Ark Biopharmaceutical all surged over 10%.

On the news front, Shandong Provincial Drug Administration and Shandong Provincial Department of Finance recently jointly issued the "Shandong Provincial Generic Drug Quality and Efficacy Consistency Evaluation Subsidy Fund Management Measures and Implementation Rules," continuing to support and incentivize Shandong's drug marketing authorization holders to conduct generic drug consistency evaluations. The rules take effect from September 1, 2025, and remain valid until August 31, 2027.

Furthermore, with the completion of 2025 interim report disclosures, among over 100 pharmaceutical and biotechnology companies on the STAR Market, 67 achieved year-over-year revenue growth, 73 were profitable, and 58 achieved year-over-year net profit growth. Combined revenue reached 251.109 billion yuan with net profits of 31.862 billion yuan, representing year-over-year growth of 1% and 14% respectively.

Interim report statistics show that top pharmaceutical industry fund managers significantly increased their pharmaceutical holdings in the second quarter.

Ge Lan's CECEP Healthcare newly entered the top ten tradable shareholders of Eddingpharm, Livzon Pharmaceutical Group, Betta Pharmaceuticals, Olicance, First Approved Holdings, and Dizal Pharmaceutical. CECEP Healthcare Innovation newly entered Nutraceutical's top ten tradable shareholders, while CECEP Healthcare significantly increased its Nutraceutical holdings by 13.9178 million shares, an increase of 222.11%.

In the second quarter, Zhao Bei's ICBC Credit Suisse Frontier Medical newly entered the top ten tradable shareholders of chemical pharmaceutical stock Olicance, medical device stock Hotgen Biotech, and biological products stocks RemeGen and 3SBio.

Fu Pengbo's Ruiyuan Growth Value also increased its holdings in EverFront Bio, while Zhu Shaoxing's Fuguo Tianhui Growth Mix (LOF) newly entered Kexing Biopharm's top ten tradable shareholders.

AVIC Securities noted that as drug and consumable volume-based procurement continues to advance, companies with high safety margins, strong innovation capabilities, rich product pipelines, and favorable competitive landscapes are expected to benefit continuously over the long cycle. They recommend continued focus on innovative drugs and their supply chains, high-end medical devices, while exploring undervalued second-tier blue chips.