On July 18, the second-quarter reports of the Guangfa Global Select Stock Fund and Guangfa Shanghai-Hong Kong-Shenzhen New Starting Point Fund, managed by Li Yaozhu, the champion and star fund manager of the 2023 public offering market, were released. As of the end of the second quarter, the top ten largest holdings of Guangfa Global Select were NVIDIA (NVDA.US), ServiceNow Inc. (NOW.US), Meta Platforms Inc. (META.US), Apple Inc. (AAPL.US), Microsoft (MSFT.US), Alphabet Inc. (GOOG.US), Amazon.com Inc. (AMZN.US), Eli Lilly and Company (LLY.US), Synopsys Inc. (SNPS.US), and Richemont International SA. Compared to the end of the first quarter, Apple Inc. entered the top ten largest holdings while Salesforce Inc. exited. It is worth noting that this year, Li Yaozhu broke the "curse of the champion." The Shanghai-Hong Kong-Shenzhen funds and QDII funds managed by him have all entered the top ranks of the market performance. The Guangfa Shanghai-Hong Kong-Shenzhen New Starting Point Fund has a year-to-date return of 18.82%, while the Guangfa Global Select Stock Fund has achieved a year-to-date performance of 23.3%. Specifically, as of the end of the second quarter, the equity investment position of Guangfa Global Select reached 86.19%. In terms of net asset value, the net asset value growth rate of the Guangfa Global Select Class A Fund shares was 4.30% in the second quarter, with a benchmark return rate of 4.79%; the net asset value growth rate of Class C Fund shares was 9.11%, with a benchmark return rate of 8.41%. Li Yaozhu stated that the main theme of the global market in the second quarter is still AI. While the AI industry trend is strong, there are not many companies that can actually translate this trend into performance. In the U.S. economy, all macroeconomic indicators except for PMI are slowing down. The consumer industry also faces significant pressure this quarter as US residents have exhausted their excess savings since March. Therefore, with the scarcity of AI performance and the cooling of the U.S. economy, market hotspots are concentrating on fewer stocks. In China, domestic policies continue to maintain a stable growth tone, and the Chinese economy is expected to maintain a certain resilience in the medium to long term. In terms of industry, this quarter, Anthropic released Claude 3.5, surpassing OpenAI's latest model GPT-4o in most evaluation indicators. Li Yaozhu believes that the competition among large models has officially entered an era of "tri-polar competition" where the abilities of OpenAI, Anthropic, and Google cannot be ignored. The intense competition among large model companies is very favorable for the growth of AI computing power, however, commercialization in AI has not yet seen a capital expenditure (Capex) scale matching the annual billions of dollars. Therefore, in addition to the release of GPT-5, this year is also eagerly awaited to see if the largest smartphone companies can make breakthroughs in end-side applications. In terms of operation, the Guangfa Global Select Fund continued to diversify portfolio risks from a global allocation perspective in the second quarter. Li Yaozhu pointed out that the AI trend will continue, but the rising valuations and crowding of some companies will increase price volatility risks. He hopes to mitigate risks through a relatively diversified allocation. On this basis, the portfolio continued to reduce holdings of overvalued semiconductor and software companies, increased holdings of stable platform technology companies, and raised the allocation of high-dividend assets in China. In addition, the second-quarter report of the Guangfa Shanghai-Hong Kong-Shenzhen New Starting Point Fund showed that as of the end of the second quarter, the equity investment position reached 85%. In the second quarter, the A class fund shares had a net asset value growth rate of 7.25%, the C class fund shares had a net asset value growth rate of 7.15%, with a benchmark return rate of 2.79% for the same period. In terms of holdings, the Guangfa Shanghai-Hong Kong-Shenzhen New Starting Point Fund's holding strategy leans towards dividend blue-chip stocks. In the second quarter, Li Yaozhu significantly increased holdings in the dividend leader track, China Mobile (00941), moving it from the fifth largest holding to the first largest holding. Additionally, he also significantly increased holdings in Zijin Mining (02899) and CNOOC Ltd. (00883), reflecting Li Yaozhu's awareness that this year's trend in the Hong Kong stock market is similar to that of A shares - the "best choice" in stock selection for fund managers in A shares has actually become the most profitable strategy in the Hong Kong stock market this year. In terms of operation, Li Yaozhu stated that the portfolio increased the allocation of high dividend companies in Hong Kong during the second quarter. These companies have long-term value in terms of configuration; in addition, resources are still heavily allocated to state-owned enterprises, with continued optimism for long-term valuation opportunities among them.