1. Report Industry Investment Rating No information provided in the content. 2. Core Viewpoints of the Report - This week (from May 12th to May 16th), the funds rate increased, the large - scale banks' lending increased, and the funds leverage decreased. The net financing of certificates of deposit decreased, and the yields to maturity of certificates of deposit at all tenors increased. In the cash bond trading, the main buyers were rural commercial banks, mainly increasing their holdings of 7 - 10Y interest - rate bonds. The scale of funds' increased holdings decreased, insurance companies increased their holdings of 15 - 30Y ultra - long interest - rate bonds, and wealth management products increased their allocation of certificates of deposit [3]. 3. Summary by Relevant Catalogs 3.1 Monetary Fundamentals - This week, there were 961.1 billion yuan of reverse repurchases and 125 billion yuan of 1 - year MLF maturing. From Monday to Friday, the central bank respectively injected 43, 180, 92, 64.5, and 106.5 billion yuan of reverse repurchases, with a total injection of 486 billion yuan during the period. The net liquidity injection for the whole week was - 475.1 billion yuan [3][8]. - The funds price increased. As of May 16th, R001, R007, DR001, and DR007 were 1.65%, 1.63%, 1.63%, and 1.64% respectively, with changes of 12.92BP, 4.46BP, 14.05BP, and 9.65BP compared to May 9th, and were at the 26%, 10%, 26%, and 7% historical quantiles respectively [3][13]. - The net borrowing scale of the main funds lenders increased. The main lending institutions (large - scale commercial/policy banks and joint - stock banks) had a net borrowing of - 1.76 billion yuan for the whole week, with an increase of 446.3 billion yuan in the net borrowing scale compared to the previous week. The trading volume of pledged repurchase increased, with an average daily trading volume of 7.14 trillion yuan and a single - day maximum of 7.51 trillion yuan, an increase of 4.85% compared to the previous week's average daily value. The proportion of overnight repurchase transactions increased, with an average daily proportion of 88.4% and a single - day maximum of 89.6%, an increase of 2.57 percentage points compared to the previous week's average daily value [3]. - The leverage ratio of broad - based funds decreased slightly. As of May 16th, the leverage ratios of banks, securities firms, insurance companies, and broad - based funds were 103.1%, 196.0%, 125.8%, and 105.4% respectively, with changes of 0.71BP, - 11.18BP, - 2.19BP, and - 0.29BP compared to May 9th, and were at the 12%, 11%, 52%, and 35% historical quantiles respectively [3][28]. 3.2 Certificates of Deposit and Bills - This week, the issuance scale of certificates of deposit decreased, and the net financing decreased month - on - month. The total issuance was 513.24 billion yuan, a decrease of 344.49 billion yuan compared to the previous week; the total maturity was 576.2 billion yuan, an increase of 68.87 billion yuan compared to the previous week. The net financing was - 62.96 billion yuan, a decrease of 413.36 billion yuan compared to the previous week [3][32]. - By bank type, large - scale commercial banks had the highest issuance scale. This week, the issuance scales of certificates of deposit by state - owned banks, joint - stock banks, city commercial banks, and rural commercial banks were 197.63 billion yuan, 67.47 billion yuan, 161.99 billion yuan, and 73.49 billion yuan respectively, with changes of - 71.06 billion yuan, - 220.22 billion yuan, - 46.49 billion yuan, and 15.48 billion yuan compared to the previous week [32]. - By tenor type, the 3M issuance scale was the highest. The issuance scales of 1M, 3M, 6M, 9M, and 1Y certificates of deposit were 21.83 billion yuan, 290.03 billion yuan, 80.39 billion yuan, 2.85 billion yuan, and 118.44 billion yuan respectively, with changes of - 7 billion yuan, 74.02 billion yuan, - 102.04 billion yuan, - 107.36 billion yuan, and - 202.11 billion yuan compared to the previous week [33]. - This week, the bill rates increased. As of May 16th, the 3M direct discount rate and transfer discount rate of state - owned shares, and the 6M direct discount rate and transfer discount rate of state - owned shares were 1.19%, 1.19%, 1.13%, and 1.18% respectively, with changes of 4BP, 5BP, 1BP, and 5BP compared to May 9th [48]. 3.3 Institutional Behavior Tracking - This week, the main buyers in the cash bond market were rural commercial banks, with a net purchase of 154 billion yuan, an increase compared to the previous week; the main sellers were securities companies, with a net sale of 250.5 billion yuan, an increase compared to the previous week [3][50]. - This week, funds had a net purchase of 63.9 billion yuan in cash bonds, including a reduction of 67.9 billion yuan in interest - rate bonds, an increase of 62.4 billion yuan in credit bonds, an increase of 50.4 billion yuan in other (including Tier 2 capital bonds and perpetual bonds), and an increase of 18.8 billion yuan in certificates of deposit. By tenor, interest - rate bonds were mainly reduced in the 7 - 10 - year range, and credit bonds were mainly increased in the less - than - 1 - year range [50]. - This week, wealth management products had a net purchase of 111.1 billion yuan in cash bonds, including an increase of 16.5 billion yuan in interest - rate bonds, an increase of 13.3 billion yuan in credit bonds, a reduction of 1.3 billion yuan in other (including Tier 2 capital bonds and perpetual bonds), and an increase of 82.4 billion yuan in certificates of deposit. By tenor, interest - rate bonds were mainly increased in the 20 - 30 - year range, and credit bonds were mainly increased in the less - than - 1 - year range [50].

Investment Rating - The report maintains an "Outperform" rating for the basic chemical industry [2] Core Viewpoints - The basic chemical sector has shown better performance than the market, with a year-to-date increase of 5.1%, outperforming the Shanghai Composite Index by 4.7 percentage points [19] - Recent easing of US-China tariff policies has boosted global economic confidence, leading to a recovery in chemical product demand and prices [32] - Key projects in leading companies are gradually coming online, which is expected to restore valuation expectations [33] - The capital expenditure in the chemical industry has shown a downward trend, confirming the turning point in the capacity cycle [34] Summary by Sections 1. Core Viewpoints - Policy initiatives are expected to improve supply-demand dynamics, creating investment opportunities in the chemical sector [16] - Core assets are entering a long-term value zone, with potential for valuation and profit recovery [16] - Supply constraints in certain sectors are likely to lead to price elasticity and performance improvements for specific companies [17] - Demand certainty is expected to rise in sectors like civil explosives and modified plastics, which are poised for growth [18] 2. Overall Performance of the Chemical Sector - The basic chemical industry index increased by 1.8% during the week, outperforming both the Shanghai Composite Index and the ChiNext Index [19] - Year-to-date, the basic chemical industry index has increased by 5.1%, significantly outperforming the broader market indices [19] 3. Individual Stock Performance in the Chemical Sector - Among 424 stocks in the basic chemical sector, 303 stocks rose while 110 fell during the week [27] - The top ten performing stocks included Yushansha A (+50.6%) and Jitai Co. (+47.1%) [27] 4. Key News and Company Announcements - Recent US-China tariff adjustments are seen as a potential best configuration window for leading chemical companies [31] - The easing of tariffs is expected to stimulate export demand and improve the pricing environment for various chemical products [32] - Major projects from leading companies are expected to come online, enhancing their market positions [33]

Investment Rating - The report maintains an "Outperform" rating for the pharmaceutical and biotechnology industry [2]. Core Insights - The report highlights the significant market potential for tricuspid regurgitation treatments due to a large patient base and increasing surgical volumes, with a notable rise in procedures from 257 in 2017 to 17,232 in 2024 [4][8]. - The report emphasizes the high technical barriers in developing tricuspid valve products, with few approved products globally, suggesting a focus on companies like Jianshi Technology, which has promising clinical data for its LuX-Valve Plus product [4][21]. - The report notes the overall positive performance of the pharmaceutical sector, with the Shenwan Pharmaceutical and Biotechnology Index rising by 1.27% in the week of May 12-16, 2025, outperforming the CSI 300 Index by 0.16% [25][39]. Summary by Sections 1. Tricuspid Regurgitation Market Potential - The prevalence of valvular heart disease in China is significant, with a weighted prevalence rate of 3.8% [7]. - Among patients aged 60 and above with moderate to severe valvular heart disease, mitral and tricuspid regurgitation account for 57.2% and 42.8%, respectively [11]. - The rapid increase in commercial surgical procedures indicates a growing market, with a jump from 257 surgeries in 2017 to 17,232 in 2024 [8][9]. 2. Market Performance and Trends - The pharmaceutical sector's index has increased by 2.48% year-to-date, outperforming the CSI 300 Index by 3.64% [25]. - The top-performing stocks in the pharmaceutical sector during the week included Tuoxin Pharmaceutical (+45.03%) and Jiao Da Ang Li (+35.59%) [39]. - The report suggests a focus on companies leveraging AI in healthcare, particularly those with substantial patient data and innovative drug development [4][21]. 3. Clinical Data and Product Development - Jianshi Technology's LuX-Valve Plus shows promising one-year follow-up data, with a composite event rate of 12.50% and an all-cause mortality rate of only 4.17% [20][24]. - The product has completed its domestic registration clinical one-year follow-up and is actively submitting data for approval, potentially becoming the first domestic and second global TTVR product [20][21]. - The report encourages monitoring the upcoming clinical data presentation at the European Cardiovascular Congress on May 22, 2025 [20].

Investment Rating - The report maintains an "Outperform" rating for the non-ferrous metals industry [2]. Core Viewpoints - Precious metals are expected to remain favorable in the long term despite recent fluctuations in gold prices, which saw a slight decline of 0.38% during the week of May 12-16. The easing of international trade tensions is contributing to this outlook, although uncertainties remain [4]. - Industrial metal prices have mostly declined, with notable changes in aluminum prices due to regulatory actions in Guinea affecting mining rights [4]. - The report highlights a positive trend in rare metals, particularly praseodymium-neodymium oxides, and tungsten prices, driven by a recovery in manufacturing demand [4]. - Energy metals, particularly lithium, have seen price declines, prompting a focus on future demand growth in this sector [4]. - The report suggests a favorable investment environment for the non-ferrous metals sector, driven by anticipated monetary easing from the Federal Reserve and domestic fiscal policies [4]. Summary by Sections 1. Industry Data Review 1.1 Precious Metals - Gold prices are expected to stabilize and potentially rise due to ongoing global trade uncertainties and the weakening position of the US dollar [4]. 1.2 Industrial Metals - Recent price movements include copper at 78,140 CNY/ton (+0.4%), aluminum at 20,130 CNY/ton (+3.4%), and nickel at 124,060 CNY/ton (-0.3%) [27]. 1.3 Rare Metals - Prices for praseodymium-neodymium oxides have increased by 5.1% week-on-week, indicating a recovery in demand [29]. 1.4 Energy Metals - Lithium carbonate prices have decreased, with industrial-grade lithium carbonate at 63,150 CNY/ton (-3.1%) and battery-grade at 64,800 CNY/ton (-3.0%) [34]. 2. Market Data - The non-ferrous metals sector saw a weekly increase of 0.61%, with specific segments like metal new materials and small metals performing variably [35]. 3. Key Events of the Week - Guinea's government has reclaimed mining rights for 51 mining licenses, including bauxite and gold, which may impact global supply chains [42].

Investment Rating - The report maintains an "Outperform" rating for the pharmaceutical and biotechnology industry [2]. Core Insights - The report highlights the significant market potential for tricuspid regurgitation treatments due to a large patient base and increasing surgical volumes. The prevalence of valvular heart disease in China is reported at 3.8%, with a notable increase in surgical procedures from 257 in 2017 to 17,232 in 2024 [4][7][8]. - The report emphasizes the high technical barriers in developing tricuspid valve products, with few approved products globally. As of January 2025, only the Edwards EVOQUE system has received CE and FDA approval, while domestic companies like Jianshi Technology and Qiming Medical are making progress [4][13][21]. - Jianshi Technology's LuX-Valve Plus shows promising one-year follow-up data, indicating a composite event rate of 12.50% and an all-cause mortality rate of only 4.17%. If approved, it could become the first domestic and second global TTVR product [4][20][24]. Market Performance - The report notes that the pharmaceutical and biotechnology sector index rose by 1.27% from May 12 to May 16, 2025, outperforming the CSI 300 index by 0.16%. Year-to-date, the sector index has increased by 2.48%, again outperforming the CSI 300 by 3.64% [25][36]. - The top-performing stocks during this period included Tuoxin Pharmaceutical (+45.03%), Jiao Da Ang Li (+35.59%), and Yong'an Pharmaceutical (+32.05%) [39][42]. Monthly Investment Strategy - The report suggests focusing on companies leveraging AI in healthcare, particularly those with substantial patient data and insurance data, as they are expected to have significant application potential. Additionally, attention is recommended for innovative drugs and companies showing fundamental improvements [4][36]. - The monthly investment portfolio includes companies such as Kangfang Biotech, Zai Ding Pharmaceutical, and Tianjin Pharmaceutical [4].

Investment Rating - The report maintains an "Outperform" rating for the non-ferrous metals industry [2]. Core Viewpoints - Precious metals are expected to remain strong in the long term despite recent fluctuations in gold prices, which saw a slight decline of 0.38% during the week of May 12-16. The easing of international trade tensions is contributing to this outlook, although uncertainties remain [4]. - Industrial metal prices have mostly declined, with notable changes in aluminum prices due to regulatory actions in Guinea affecting mining rights [4]. - The report highlights a positive outlook for small metals, particularly in the context of increasing demand for tungsten driven by manufacturing recovery [4]. - Energy metals, particularly lithium, have seen price declines, prompting a focus on future demand growth in this sector [4]. - The report recommends investment in the non-ferrous metals sector, particularly in companies like Shandong Gold, Chifeng Jilong Gold Mining, and Zijin Mining, as the Federal Reserve enters a rate-cutting cycle [4]. Summary by Sections 1. Industry Data Review 1.1 Precious Metals - Gold prices are expected to be supported by long-term trends despite short-term volatility [4]. 1.2 Industrial Metals - SHFE prices for copper, aluminum, lead, zinc, tin, and nickel showed changes of 0.4%, 3.4%, 1.0%, 1.3%, 1.4%, and -0.3% respectively [27]. 1.3 Small Metals - Prices for praseodymium-neodymium oxide have increased, reflecting a positive trend in demand [28]. 1.4 Energy Metals - Lithium prices have decreased, with a focus on the future demand for energy metals [34]. 2. Market Data - The non-ferrous metals sector saw a 0.61% increase, with specific segments like metal new materials and small metals performing well [35]. 3. Important Events Review - Guinea's government has reclaimed mining rights for 51 mining licenses, impacting aluminum and other metal prices [42].

Investment Rating - The investment rating for the company is "Buy (Maintain)" [3] Core Views - The company has announced a share repurchase plan with a total amount between RMB 1 billion and RMB 2 billion, aimed at supporting employee stock ownership plans or equity incentives [6] - The Inner Mongolia base has completed its production ramp-up, currently producing over 9,000 tons of olefins daily, which translates to an annualized output of 3.29 million tons, exceeding the designed capacity of 3 million tons per year [7] - The company is expected to see a significant increase in quarterly profits as it enters a phase of full production, with a positive outlook on cost improvements due to falling coal prices [7] - The company is expanding its growth potential with a new coal-to-olefins project in Xinjiang, which is expected to have a capacity of 4 million tons per year [7] - The share repurchase reflects management's confidence in the company's future growth and aims to align the stock price with its intrinsic value [7] Financial Summary - The company’s projected net profits for 2025-2027 are RMB 14.305 billion, RMB 16.972 billion, and RMB 18.754 billion, representing year-on-year growth of 125.7%, 18.6%, and 10.5% respectively [7] - The expected earnings per share (EPS) for the same period are projected to be RMB 1.95, RMB 2.31, and RMB 2.56 [7] - Revenue is forecasted to grow significantly from RMB 32.983 billion in 2024 to RMB 61.470 billion in 2027, with a compound annual growth rate (CAGR) of approximately 10.6% [9] - The gross margin is expected to improve from 33.1% in 2024 to 42.1% in 2027, indicating enhanced profitability [9]

Inflation Data Summary - In April, the CPI decreased by 0.1 percentage points year-on-year to +2.3%, while month-on-month it increased by +0.2% from a previous value of -0.1%[3] - The core CPI (excluding food and energy) remained stable year-on-year at 2.8%, with a month-on-month increase of +0.2% compared to +0.1% previously[4] - The April CPI data was below market expectations, primarily influenced by a further decline in energy prices[5] Food and Energy Prices - Food inflation month-on-month was -0.1%, down 0.5% from the previous value, while year-on-year it was 2.8%, a decrease of 0.2%[5] - Energy prices fell further to -3.5% year-on-year from -3.2% the previous month, with a month-on-month increase of +0.7%[5] - The significant drop in egg prices (-12.7%) contributed to a 1.6% decrease in the inflation of meat, poultry, fish, and eggs[5] Core CPI Insights - Core goods inflation year-on-year recorded 0.2%, up from 0.0% previously, while month-on-month inflation was 0.1% compared to -0.1%[6] - Core services inflation slightly decreased to 3.6% year-on-year from 3.7% in March, with a month-on-month increase to 0.3%[6] - The contribution rates to CPI from core services, core goods, food, and energy were +2.172%, +0.039%, +0.372%, and -0.273% respectively[6] Future Inflation Expectations - The CPI is expected to recover moderately, with a forecasted year-end CPI of approximately 3.28% for December 2025[6] - The probability of the personal consumption expenditures price index (PCEPI) exceeding 2.5% in the next 12 months has decreased significantly from 63.66% in March to 5.40% in April 2025[6] - Risks include potential secondary inflation, slower-than-expected economic progress, and geopolitical uncertainties[6]

Investment Rating - The industry investment rating is "Outperform the Market" (maintained) [2] Core Viewpoints - The report highlights a significant reduction in bilateral tariffs between China and the US, which is expected to improve demand for industrial metals and support price recovery [6] - Copper prices are anticipated to rise due to declining inventory levels and improved demand forecasts, with SHFE copper inventory dropping approximately 55.9% to 80,705 tons as of May 9, 2025 [6] - The aluminum market is expected to see price increases driven by limited supply and improving demand, particularly in transportation and power sectors [6] - The report emphasizes the recovery of export channels for coal, coke, and steel, with a notable indirect export of steel products to the US [6] Summary by Sections Market Performance - The report indicates a market performance comparison showing a 29% increase in the non-ferrous metals sector compared to the CSI 300 index [3] Related Research - The report references several related studies, including a weekly report on non-ferrous metals and specific company analyses, indicating a positive outlook for gold and silver prices [4][5] Investment Recommendations - Recommended stocks for copper include Zijin Mining, Luoyang Molybdenum, Tongling Nonferrous Metals, and Western Mining, while for aluminum, Yunnan Aluminum, Shenhuo Group, and China Hongqiao are suggested [6]

Report Industry Investment Rating No relevant content provided. Core View of the Report The tariff exemption greatly exceeded market expectations, and the tariff trading is capricious, with the consensus expectation likely to reverse. Equities have odds, while bonds require caution. A robust trading framework should be established to guide investments in the year of tariffs. The impact of tariffs on the bond market should also be closely monitored [5][12]. Summary by Directory 1. How to Analyze the So - called "Reciprocal Tariffs"? - The most common analogy is to compare the "reciprocal tariffs" to the continuation of the 2018 China - US trade war, which affects the risk appetite of equity assets and the counter - cyclical adjustment mechanism. The intuitive "fast thinking" is that increased tariffs lead to reduced exports, affecting GDP and shifting the interest rate center downward [13]. - However, "comparing to 2018" is a view mainly held by A - share investors. The US economic and investment circles emphasize the 1930s Smoot - Hawley Tariff Act, but its reference value is questionable. The current trade war is a cyclical change in US trade policy, and tariffs are also a political movement to some extent [15][16]. - The market's previous over - pessimistic pricing and the current view that tariffs have quickly failed may oversimplify the complexity of the political impact of tariffs [20]. 2. The Cyclical Perspective of US Trade Policy - Since its establishment, the US federal government has been closely related to tariffs, with the initial goals of maintaining fiscal balance and protecting manufacturing. Economic and industrial changes lead to changes in tariff policies under the political cycle [7][21]. - Tariff policy is a policy that emphasizes regions rather than parties. Trade concept changes often play an important role in the six party realignments in US history [23]. - The current differences in the Trump administration are normal in US democratic politics and do not necessarily mean the failure of the tariff bill. In 2025, few technology companies, ordinary consumers, or manufacturing unions support the current radical tariff bill [26]. 3. The Economic Results of Trade Policy: Doubtful and Unimportant - The economic impact of trade policy can be understood from two aspects: its impact on the economy determines the direction and magnitude of the market, and its feedback on trade policy affects the market rhythm. The economic results of tariffs, both positive and negative, are doubtful [32]. - Historical evidence shows that trade protection policies have limited effects on enhancing industrial competitiveness and may have negative impacts on consumers and the overall economy [37]. 4. How to Set up a Robust and Investment - Guiding Trading Framework in the Year of Tariffs? - Step 1: Set a baseline for the possible final outcome of tariffs by reviewing the historical cyclical tariff policies of the US. - Step 2: Make qualitative predictions, such as the dollar appreciation ratio, the intervention rhythm of administrative departments and Congress, the frequency of opposition cases or lawsuits, and the counter - impact of public opinion and asset prices on tariff policy intensity. - Step 3: Conduct long - short trading if the implied expectation of short - term market fluctuations exceeds the set baseline, and adjust the baseline expectation if new developments deviate from the assumptions [39]. 5. Back to the Domestic Bond Market: Pay Attention to the Technical Attenuation of Tariff Factors - Since March, the bond market has experienced "oversold rebound → trading tariff factors → correction of tariff factors". In May, the bond market is likely to return to the main logic of March, and the reasons behind the "liability shortage" may not have simply ended [7][41][42].