Core Viewpoint - The "Beautiful Act" proposed by President Trump may undermine the recent positive investment trends in the U.S. due to its "retaliatory tax" provisions, which could deter foreign investors from U.S. assets and make European assets more attractive [1]. Group 1: Impact of the "Beautiful Act" - The "Beautiful Act" includes a provision (Clause 899) that allows the U.S. Treasury to impose a maximum tax rate of 20% on foreign investors earning income from U.S. investments [1][5]. - The proportion of European investors in U.S. investments has increased from 15% in 2009 to 45% by the end of Q4 2024, but signs indicate a potential reversal of this trend [1]. - The implementation of Clause 899 could lead to significant tax burdens on foreign entities, potentially reaching a combined tax rate of 50% for withholding and branch profits taxes [5][7]. Group 2: European Market Performance - European investor confidence is rising, with the STOXX 50 index increasing over 10% since early 2025 and the DAX index up more than 21% year-to-date [1]. - The euro has appreciated nearly 10% against the U.S. dollar since the beginning of the year, reflecting a strengthening European market [1]. Group 3: Legislative Status - The "Beautiful Act" was narrowly passed by the House of Representatives with a vote of 215 to 214 and is currently under Senate review, with expectations for completion of the legislative process between June and July [9]. - If passed, the act is projected to generate an additional $116 billion in tax revenue for the U.S. government over the next decade [7].

Macro Insights - The Caixin China Manufacturing PMI fell to 48.3 in May, marking the first contraction since October of the previous year, with production and new orders both dropping to their lowest levels since December 2022 and October 2022 respectively [3] - The OECD has revised down its global GDP growth forecast for 2025 to 2.9%, previously at 3.1%, and also lowered the 2026 forecast from 3.0% to 2.9% [4] Bond Market Insights - In May, the issuance of ETFs experienced a decline for the fourth consecutive month, with only 11.068 billion units issued, the lowest in five months, while bond funds dominated the market with a 55.07% share [6] Corporate Alerts - Longshan City Investment announced that its chairman is under investigation for serious violations of discipline and law [7] - The Shaanxi Xixian New Area Development Group has 70.399 billion yuan in restricted assets, accounting for 88.87% of its net assets, with overdue financing amounts reaching 443 million yuan [8] - Shenzhen Longguang Holdings announced that its restructuring and grace period proposals were not approved, with total debts of 27.8532 billion yuan as of April 30, 2025 [9] - The Qinhan New City project has generated only 8.1 million yuan in revenue against an expected 260.2 million yuan due to macroeconomic slowdown [10] - Wenzhou Public Utilities Group reported an increase in borrowings of 3.824 billion yuan, representing 29.52% of its net assets as of the end of the previous year [11] Stock Market Insights - The Shenzhen Component Index and ChiNext Index will undergo sample adjustments, effective June 16, with multiple stocks being added [13] - NIO reported a Q1 2025 adjusted net loss of 6.279 billion yuan, compared to a net loss of 4.903 billion yuan in the same period last year [15] Industry Alerts - The Ministry of Commerce responded to the EU's proposed restrictions on Chinese companies participating in public procurement for medical devices, condemning it as a discriminatory measure [36] - The National Federation of Industry and Commerce's automotive dealers' association called for a resistance against "involutionary" competition, particularly price wars [37] - The domestic refined oil prices have increased for the fourth time this year, with gasoline and diesel prices rising by 65 yuan and 60 yuan per ton respectively [39] - The China Coal Transportation and Marketing Association reported weak coal consumption since April, with high inventory levels and declining prices [40]

Group 1 - The US has accused China of violating the Geneva consensus, while China's Ministry of Foreign Affairs has firmly opposed these accusations and emphasized the need for mutual respect and factual accuracy in bilateral relations [2][4] - The US President has announced an increase in tariffs on imported steel and aluminum from 25% to 50%, effective June 4, 2025 [2] - South Korea's presidential election results show Lee Jae-myung from the Democratic Party winning with a vote share of 49.42%, marking a significant political shift [2] Group 2 - Japan's 10-year government bond auction saw a significant increase in demand, with the bid-to-cover ratio rising from 2.54 to 3.66, indicating strong market interest [3] - China's Caixin Manufacturing PMI for May recorded 48.3, a decline of 2.1 percentage points from April, marking the first drop below the critical point since October 2024 [4][11] Group 3 - The Chinese Ministry of Commerce has initiated the "Service Consumption Season" for 2025, focusing on integrating various sectors to stimulate service consumption [5] - The second "Belt and Road" Science and Technology Exchange Conference is scheduled for June 10-12 in Chengdu, aiming to enhance international cooperation in technology [5] Group 4 - The Shenzhen Stock Exchange has announced a periodic adjustment of index samples, with changes effective from June 16, including the addition of several companies to various indices [6] - The Hong Kong stock market has seen 28 IPOs in 2025, raising a total of 776.8 billion HKD, with expectations for around 80 new listings by year-end [7] Group 5 - NIO reported Q1 2025 revenue of 12.035 billion CNY, up from 9.909 billion CNY year-on-year, with a projected delivery guidance of 72,000 to 75,000 vehicles for Q2 [8] - The Chinese trust industry managed assets worth 29.56 trillion CNY by the end of 2024, reflecting a growth of 23.58% year-on-year [14] Group 6 - The US stock market indices closed higher, with the Dow Jones up 0.51% and the S&P 500 up 0.58%, driven by strong performance in technology stocks [22] - The issuance of bonds by listed companies in China has exceeded 2.41 trillion CNY in 2025, showing an 11.79% year-on-year increase [25]

Group 1: New Energy Vehicle Policy - The Ministry of Commerce and four other ministries announced the launch of the 2025 New Energy Vehicle Rural Promotion initiative, aimed at increasing the adoption of electric vehicles in rural areas and supporting the "dual carbon" goals [4] - The initiative is expected to accelerate the adoption of fast-charging technology and upgrade core components such as motors, batteries, and electronic controls, with a focus on related supply chain companies [4] - The rural market is anticipated to become a significant growth area for new energy vehicles, with increasing acceptance of various vehicle types including electric passenger cars, electric logistics vehicles, PHEVs, and fuel cell buses [4] Group 2: Xiaomi's YU7 Pricing and Strategy - Xiaomi's founder Lei Jun stated that the company will not engage in a price war and emphasized that the official pricing for the YU7 will be confirmed shortly before its launch [6][7] - The YU7 is positioned as a "luxury high-performance SUV" with a standard range of 835 km, maximum horsepower of 690 PS, and a 0-100 km/h acceleration time of 3.23 seconds [7] - Xiaomi's investment in the YU7's intelligent driving development is projected to reach 3.5 billion yuan, indicating a strong commitment to quality and performance [7] Group 3: Industry Competition and Profitability - The new energy vehicle market is experiencing intensified competition, with some companies facing challenges such as low capacity utilization and declining sales margins [4] - Despite significant sales, BYD's net profit is only 17.5% of Toyota's, highlighting a substantial gap in profitability between Chinese and global automotive leaders [12] - The Chinese passenger car market has shown rapid growth, surpassing 27 million units in 2024, indicating potential for further expansion compared to developed markets [16]

Group 1: Open Market Operations - The central bank conducted a 7-day reverse repurchase operation on June 3, totaling 454.5 billion yuan at a fixed rate of 1.40%, with a bid and winning amount of 454.5 billion yuan [1] - On the same day, 830 billion yuan in reverse repos matured, resulting in a net withdrawal of 375.5 billion yuan [1] Group 2: Funding Conditions - The interbank market showed a balanced but slightly loose funding condition, with the overnight weighted average rate for deposit institutions around 1.40% and non-bank institutions borrowing at approximately 1.55% [3] - The latest overnight financing rate in the U.S. was reported at 4.35% [3] Group 3: Interbank Certificates of Deposit - The latest transaction for one-year interbank certificates of deposit in the secondary market was around 1.71% [6] Group 4: Major Interest Rate Bond Yields - The yields for various government bonds were as follows: - 1Y: 1.4625% - 2Y: 1.4800% - 3Y: 1.4875% - 5Y: 1.5450% - 7Y: 1.6300% - 10Y: 1.6770% [9] Group 5: Recent City Investment Bonds (AAA) Spread Trends - The article discusses the trends and data regarding the spreads of city investment bonds, indicating ongoing monitoring of the market [10] Group 6: National Debt Futures Closing - The closing prices for national debt futures were as follows: - 30-year main contract increased by 0.03% - 10-year main contract decreased by 0.03% - 5-year main contract decreased by 0.04% - 2-year main contract decreased by 0.04% [12] Group 7: Economic Indicators - The Caixin China Manufacturing Purchasing Managers' Index (PMI) for May recorded at 48.3, a decrease of 2.1 percentage points from April, marking the first drop below the critical point since October 2024 [13] - In May, the central bank conducted a 700 billion yuan reverse repurchase operation, with a net withdrawal of 200 billion yuan for the month [13] Group 8: Global Macro Outlook - The OECD has revised down its global GDP growth forecast for 2025 to 2.9% from 3.1%, and for the U.S. to 1.6% from 2.2% [15] Group 9: Bond Market News - Notable bond market events include: - New World Development's issuance of $3.4 billion perpetual securities - Jin Ke Co.'s restructuring plan entering the execution phase - Kunming City Investment facing two new enforcement actions involving over 220 million yuan [16]

1 、商务部：敦促美方与中方相向而行，共同维护日内瓦经贸会谈共识 5 、特斯拉在法国销量暴跌 67% 创近三年新低 // 宏观预警 // // 今日关注 // 1 、商务部：敦促美方与中方相向而行，共同维护日内瓦经贸会谈共识 商务部新闻发言人就美方有关言论答记者问表示，《中美日内瓦经贸会谈联合声明》是双方 在相互尊重、平等协商原则下达成的重要共识，成果来之不。我们敦促美方与中方相向而 行，立即纠正有关错误做法，共同维护日内瓦经贸会谈共识，推动中美经贸关系健康、稳 定、可持续发展。如美方一意孤行，继续损害中方利益，中方将继续坚决采取有力措施，维 护自身正当权益。 // 中国债券预警 // 1 、郑裕彤家族所持新世界多只永续债急跌创新低 据券商中国，郑裕彤家族所持新世界突生变数。新世界发展早盘一度狂跌超 10% 。另外，新世 界多只永续债急跌创新低。究其主要原因，新世界于 5 月 30 日盘后公告称，四只永续债延迟派 息。分析师表示，永续债延迟派息不会引发违约，但需要偿还的总金额将会累积，因此长期而 言，新世界所面临的下行风险将仍然存在。 // 中国股票预警 // 1 、本周共有 38 家公司限售股陆续解禁 不包 ...

Focus Review - The article discusses the potential impact of Trump's decision to raise steel tariffs to 50%, which may lead to retaliatory measures from the EU, indicating ongoing uncertainty in global trade policies [1] - The article highlights that the core asset pricing power is gradually shifting towards Hong Kong, with the potential for more quality leading companies to list in Hong Kong, catalyzing a shift in A-share market style towards core assets [2][3] Equity Market - Hong Kong's structural changes and cyclical improvements are expected to attract global allocation funds, which may spill over into A-shares, benefiting core assets with high and stable ROE [2] - The article notes that the demand for convertible bonds may increase due to a mismatch in supply and demand, potentially leading to a bull market in this sector [3] Industry Research - The article mentions that the consumer, cyclical, and self-controlled sectors are likely to gain more attention as A-share earnings improve despite external tariff disturbances [8] - It also points out that the Hong Kong innovative drug sector is entering a "harvest period," with most valuations still within a reasonable range, indicating long-term growth potential [9] - The defense and military sector is highlighted as leading in performance, driven by expectations of accelerated domestic engine development due to potential U.S. export restrictions [10] Macro and Fixed Income - The article discusses the downward shift in the central rate of funding, which is expected to benefit short-term assets, as the bond market returns to a fundamental pricing logic [16] - It emphasizes that the convertible bond market may experience a bull market due to supply-demand mismatches, with a gradual upward trend expected in the coming years [18] Asset Allocation - The article suggests a balanced and defensive asset allocation strategy in response to external risks, highlighting the importance of dividend assets and technology innovation investments in the A-share market [20] - It notes that the Hong Kong market is stabilizing due to low valuations and policy support, with increasing domestic pricing power as southbound capital flows continue [20]

Core Viewpoint - The development of the ETF market in China is driven by the need for diversified new index supply to address homogenization and enhance market quality and expansion [3][6]. Market Expansion and Challenges - The Chinese ETF market is experiencing strong growth, with 1,164 products and a total scale exceeding 4.1 trillion yuan, marking seven consecutive years of rapid increase since 2018 [2]. - Stock, QDII, and commodity ETFs have surpassed actively managed products, with stock ETFs holding over 70% market share [2]. - Bond ETFs have low penetration, indicating significant growth potential [2]. - Broad-based index ETFs dominate the market, with 72% of tracking scale concentrated in the top ten indices, and the CSI 300 index alone accounts for over 35% [2]. - The increasing concentration of indices reflects investor preference for high liquidity, but it also results in low median scale for half of the ETFs, leading to operational cost pressures and potential losses for many fund companies [2]. Addressing Homogenization through New Index Supply - The key challenge for enhancing the ETF market lies in diversifying index supply, as the current market is dominated by a few index providers, leading to severe product homogenization and intense competition [3]. - Many fund companies are operating at a loss due to management fees not covering costs, highlighting the need for new index offerings [3]. - The involvement of market-oriented institutions like Wind in index compilation can enrich ETF product types and alleviate competitive pressure among fund companies, fostering a healthier competitive ecosystem [3]. Market Potential for Hot Indexes - The ability to quickly launch hot indices is crucial, and institutions like Wind can leverage financial technology and data capabilities to capture market trends and policy directions [4]. - Wind's hot indices, such as the Mao Index and Ning Combination, are expected to evolve into ETF products, providing investors with more diversified asset allocation tools [4]. Innovation through AI in Index Development - To achieve diversified index supply, enhancing research efficiency and innovation is essential, aligning with Wind's Wind Alice AI index strategy platform [5]. - This platform democratizes strategy research, allowing users to generate and analyze strategies quickly and efficiently, significantly reducing the time and expertise required [5]. - The introduction of such intelligent tools lowers the barriers and cycles for index development, facilitating differentiated competition and driving the ETF market towards a richer and more mature phase [6].

Group 1 - The US claims that China has violated the consensus reached during the Geneva trade talks, while China's Ministry of Commerce firmly rejects these accusations and urges the US to correct its erroneous actions [2] - The A-share market is expected to experience downward pressure in the short term due to various disturbances, but institutions remain optimistic about structural opportunities, particularly in dividend assets, growth, and consumption sectors [2][3] - The EU expresses regret over the US's decision to increase tariffs on steel and aluminum, which adds to economic uncertainty across the Atlantic [2] Group 2 - China's manufacturing PMI rose by 0.5 percentage points in May, indicating improved manufacturing sentiment, while the export container freight index has also rebounded [3] - The People's Bank of China conducted a 700 billion yuan reverse repurchase operation in May to maintain liquidity in the banking system, despite a net withdrawal of 200 billion yuan [3] - The Ministry of Ecology and Environment plans to establish around 100 key laboratories by 2035 to enhance environmental science and technology in China [3] Group 3 - In the first four months of the year, China's total social logistics amounted to 115.3 trillion yuan, a year-on-year increase of 5.6% [4] - During the Dragon Boat Festival holiday, an estimated 657 million people are expected to travel across regions in China, reflecting a 3.0% year-on-year increase [4] Group 4 - The Hang Seng Index closed down 0.57% at 23,157.97 points, with significant declines in pharmaceutical and real estate stocks [5] - As of June 3, 28 listed companies have successfully removed their ST (special treatment) status this year, primarily through financial improvements and restructuring [5][6] Group 5 - 104 private equity firms have emerged as major holders in 97 newly listed ETFs, with a total of 1.783 billion shares held, indicating strong interest in ETFs [6] - *ST Hengli is under investigation by the China Securities Regulatory Commission for suspected false disclosures in its financial reports [6] Group 6 - The automotive industry is facing declining profitability due to intense competition, with profit margins expected to drop to 4.3% in 2024 [9] - In the first five months, the top 100 real estate companies in China acquired land worth 405.19 billion yuan, a year-on-year increase of 28.8% [9] Group 7 - The South Korean government is holding an emergency meeting with major steel manufacturers to discuss the impact of increased US tariffs on steel and aluminum [9] - India's government has finalized a new electric vehicle policy allowing companies to import EVs at a reduced tariff, contingent on local manufacturing investments [10] Group 8 - The global airline industry is projected to achieve a net profit of $36 billion in 2025, showing improvement from previous forecasts [10] - Chinese biopharmaceutical company has reported promising results from a clinical trial for a lung cancer treatment, outperforming a leading competitor [11] Group 9 - Tesla's sales in Europe have significantly declined, with France experiencing a 67% drop in sales [11] - Meta Platforms aims to enable brands to fully utilize AI for ad creation by the end of next year [11] Group 10 - The US Treasury is facing scrutiny over its debt levels, with concerns that rising debt could trigger a global bond market crisis [12] - The ISM manufacturing PMI for the US in May was reported at 48.5, indicating contraction in the manufacturing sector [12] Group 11 - The UK government plans to expand its nuclear submarine fleet amid rising geopolitical tensions [13] - Japan is expected to engage in new trade negotiations with the US, with a potential agreement anticipated soon [13] Group 12 - The US steel stocks surged following the announcement of increased tariffs, with companies like Steel Dynamics seeing gains of over 10% [15] - The three major US stock indices experienced slight gains, with notable performances from companies like Nike and Boeing [15] Group 13 - European stock indices showed mixed results, with Germany's DAX index declining by 0.28% [16] - Major Asian stock indices also had varied performances, with Japan's Nikkei 225 dropping by 1.3% [16] Group 14 - Concerns over the US's growing federal budget deficit have led investment firms to shift away from long-term US Treasury bonds [17] - US Treasury yields have collectively risen, with the 30-year yield reaching 4.963% [17] Group 15 - International precious metals futures saw widespread gains, with COMEX gold futures rising by 2.74% [18] - Oil prices increased significantly, with US crude oil futures rising by 3.7% [18] Group 16 - Goldman Sachs is investigating potential tariffs on copper imports following the US's increase in steel and aluminum tariffs [19] - The firm has adjusted its aluminum price forecasts for 2025, reflecting market dynamics [19] Group 17 - The US dollar index fell by 0.75%, with most non-US currencies appreciating against the dollar [20] - Morgan Stanley predicts that the dollar will decline significantly by mid-next year due to economic factors [20]

Core Viewpoint - The article discusses the intersection of trendy toys and finance, highlighting the significant price appreciation of Labubu's blind boxes and the explosive growth of its blockchain tokens, suggesting a remarkable transformation of an IP into a highly valuable asset [1] Group 1 - Labubu's blind boxes, originally priced at 99 yuan, have seen a price premium of 20 times, indicating strong market demand and consumer interest [1] - The blockchain tokens associated with Labubu experienced a daily surge of 500%, showcasing the volatility and potential for high returns in the digital asset space [1] - The article raises questions about how an IP can transition from trendy toys to a mature asset class with over 300% growth, inviting insights from industry experts [1]