Group 1: Major Asset Tracking - The bond market shows short-term rates nearly flat while long-term rates have slightly increased. The report suggests that the stock market's low volatility and weak fundamentals will limit upward potential, indicating a likely downward adjustment in volatility. Future inflows into bonds may be driven by risk-averse capital due to escalating geopolitical conflicts [16][7]. Group 2: A-Share Market - The A-share market experienced a decline, with the ChiNext index dropping by 1.36%. The total trading volume was 1.28 trillion, a slight increase of 0.08 trillion from the previous day. Only 689 stocks rose while 4,402 fell. The report emphasizes that weak fundamentals and low volatility reduce the likelihood of a bullish market, suggesting investors consider reallocating to lower-risk sectors such as dividends and agriculture [18][21]. Group 3: U.S. Stock Market - The U.S. stock market remains in a state of fluctuation, with the Federal Reserve maintaining the federal funds rate. The report notes that rising inflation pressures could lead to a downturn, with the Dow Jones falling by 0.1% and the S&P 500 by 0.03%. The report advises caution and suggests waiting for better buying opportunities as the market may be undergoing a second adjustment [23][9]. Group 4: Foreign Exchange Market - The onshore RMB against the USD was reported at 7.1913, an increase of 55 basis points from the previous close. The report indicates that the RMB is expected to strengthen further, potentially reaching around 7.1, driven by favorable trade conditions between China and the U.S. [26][10]. Group 5: Commodity Market - The Wenhua Commodity Index rose by 0.67%, with oil, polyester, and coal chemical sectors leading gains, while precious metals and grains declined. The report suggests a cautious approach due to high volatility in oil prices, but optimistic investors may consider light positions in commodities as technical indicators show signs of stabilization [29][11]. Group 6: Important Policies and News - Domestic policies include an upgrade to the "production reduction order" in the photovoltaic sector, with a projected 10-15% decrease in operating rates. The Ministry of Commerce is expediting the review of rare earth export licenses, and the financial regulatory authority has issued guidelines to prevent excessive competition in dividend insurance [34][32]. Group 7: International News - Internationally, North Korea has launched over ten rocket artillery rounds, and Japan plans to reduce the issuance of ultra-long-term bonds starting July. Additionally, U.S. officials are preparing for potential military actions against Iran, indicating heightened geopolitical tensions [33][36].

Investment Rating - The report indicates a positive outlook for the controlled nuclear fusion industry, highlighting its potential as a strategic choice for achieving carbon neutrality goals [4]. Core Insights - Controlled nuclear fusion is seen as a revolutionary energy solution due to its abundant energy, zero emissions, and high safety [4]. - The industry is entering a critical phase with multiple technological pathways, primarily magnetic confinement and inertial confinement, both of which are advancing towards engineering validation [4]. - The development of the industry chain is emphasized, with a focus on materials and equipment as core challenges [4]. - Support from policies and capital is accelerating the commercialization process, with significant investments from both domestic and international entities [4]. Summary by Sections 1. Multiple Technological Pathways: Magnetic Confinement and Inertial Confinement as Mainstream - The report discusses the two main approaches to fusion research: magnetic confinement (e.g., Tokamak, stellarator) and inertial confinement (e.g., NIF in the US) [4][11]. - Both technologies are progressing towards engineering applications, with magnetic confinement focusing on steady-state operation and inertial confinement aiming for ignition efficiency [4]. 2. Collaborative Development of the Industry Chain: Focus on Materials and Equipment - The industry chain includes upstream superconducting materials and radiation-resistant tungsten alloys, midstream equipment for ITER and domestic experimental reactors, and downstream applications led by companies like China National Nuclear Corporation [4][5]. - Key companies in the upstream include Jingda Co., Yongding Co., and West Superconducting [5]. 3. Policy and Capital Support: Future Extension Space is Promising - China's 14th Five-Year Plan explicitly supports nuclear fusion research, with significant investments from state-owned enterprises and research institutions [4][29]. - International investments have exceeded $6.2 billion, indicating strong global interest in fusion technology [4]. 4. Beneficiary Companies in the Industry Chain: Focus on Long-Term Growth Potential - The report identifies several companies with long-term growth potential, including West Superconducting, Lianchuang Optoelectronics, and Yongding Co., which are involved in key materials and equipment for fusion projects [5][49][54]. - The report highlights the importance of these companies in advancing fusion technology and their roles in major projects like the "Spark One" hybrid reactor [4][5].

Group 1: Major Asset Tracking - The bond market is experiencing narrow fluctuations, with short-term rates nearly flat and long-term rates slightly rising. The report suggests that the stock market's low volatility and weak fundamentals will limit upward potential, indicating a likely downward adjustment in the future. The bond market is expected to benefit from inflows of risk-averse capital as geopolitical conflicts escalate [18][6]. Group 2: A-Share Market - The A-share market saw a slight decline during the day, with the three major indices closing slightly higher. The total trading volume was 1.22 trillion, a minor decrease of 0.02 trillion from the previous day. A total of 1,727 stocks rose while 3,295 stocks fell. The report emphasizes that under weak fundamentals, the probability of a bull market driven by volume is low, and future market movements are likely to amplify volatility downward. Investors are advised to take profits and shift positions to low-yield sectors such as dividends, agriculture, and technology [22][23]. - In terms of industry performance, electronics, communications, and national defense sectors led the gains, while beauty care, real estate, and construction materials sectors lagged [22]. Group 3: US Stock Market - Concerns over escalating Middle East conflicts have led to declines in the three major US indices, with the Dow Jones down 0.7%, Nasdaq down 0.91%, and S&P 500 down 0.84%. The report indicates that rising US Treasury yields may become a focal point for market trading narratives, suggesting that if volatility can be successfully amplified, it may present a better buying opportunity [27][8]. Group 4: Foreign Exchange Market - The onshore RMB against the USD was reported at 7.1858, an increase of 34 basis points from the previous close. The report notes that the RMB has appreciated significantly due to better-than-expected trade data between China and the US, with expectations for the RMB to rise to around 7.1 [31][32]. Group 5: Commodity Market - The Wenhua Commodity Index rose by 1.18%, with oil, polyester, and chemical sectors leading the gains, while the steel sector lagged. The report advises caution due to high volatility in crude oil prices and suggests that optimistic investors may consider light positions [35][36].

Investment Rating - The report maintains a "Buy" rating for Hisense Home Appliances [6][78]. Core Views - The company is expected to benefit from the new round of "old-for-new" policies in China, alongside a recovery in export chains and relaxed tariff policies, leading to a sustained recovery in white goods demand [6][75]. - Hisense's central air conditioning segment continues to solidify its leading position in multi-split systems, while traditional large appliances are achieving deeper mid-to-high-end market penetration through differentiated competition strategies [6][75]. - The integration of Sanden, acquired in 2021, is anticipated to drive growth in the new energy thermal management business, contributing positively to the company's revenue performance [6][75]. Summary by Sections Basic Business - Hisense leads the domestic multi-split air conditioning market with a 23.1% share in 2024, maintaining its position for six consecutive years [4][24]. - The company has launched innovative products such as the first domestic 5G integrated central air conditioning series and a comprehensive solution for engineering applications [4][24]. - The overseas business is expanding through product development, channel expansion, and sports marketing, diversifying revenue sources and enhancing global presence [4][5]. Emerging Business - Following the acquisition of Sanden, Hisense has entered the new energy thermal management market, with investment returns from Sanden increasing from 0.88 billion to 2.23 billion CNY from 2021 to 2024, reflecting a CAGR of 36.14% [5][50]. - Sanden's strong technical foundation in compressors and its ability to maintain existing customer relationships while expanding new orders are expected to support future revenue growth [5][57]. Investment Recommendations - The report forecasts net profits for Hisense of 36.54 billion, 37.46 billion, and 38.93 billion CNY for 2025-2027, with corresponding EPS of 2.64, 2.70, and 2.81 CNY, indicating a PE ratio of 10.21, 9.96, and 9.59 times [6][78]. - The company is well-positioned to leverage the benefits of the "old-for-new" policy and the recovery of the export chain, which are expected to enhance white goods demand [6][75].

Economic Performance - In May, China's industrial added value increased by 5.8% year-on-year, slightly below the expected 5.9% and down from 6.1% in the previous month[5] - The total retail sales of consumer goods in May grew by 6.4%, exceeding the market expectation of 5.0% and up from 5.1% in April[5] - Fixed asset investment (excluding rural households) from January to May rose by 3.7%, below the expected 3.9% and down from 4.0% in the previous month[5] - The urban surveyed unemployment rate in May was 5.0%, down from 5.1% in the previous month[5] Industrial Production - The decline in industrial production growth is attributed to external factors, with a notable drop in export delivery values, which fell by 0.3 percentage points to 0.6%[9] - Domestic demand has provided support to industrial production, with the equipment manufacturing sector's added value growing by 9%, contributing 54.3% to industrial production[13] Consumer Spending - The growth in retail sales was driven by several factors, including ongoing consumption promotion policies and the early start of e-commerce sales events[19] - Key categories such as home appliances and communication equipment saw retail sales increase by 53% and 33% respectively, contributing 1.9 percentage points to total retail sales growth[19] Investment Trends - Fixed asset investment growth has slowed, with manufacturing investment showing resilience at 7.8% year-on-year in May, despite a decline from the previous month[25] - Infrastructure investment (excluding electricity, heat, gas, and water production and supply) grew by 5.6% from January to May, down 0.2 percentage points from the previous month[29] Employment Situation - The urban surveyed unemployment rate has shown a marginal improvement, remaining at 5.0% for three consecutive months, indicating a stable employment situation[37] - However, structural pressures in the labor market persist, with the unemployment rate for migrant workers rising to 5.0%[37]

Group 1: Social Financing and Credit Data - In May 2025, China's new social financing scale reached 22,894 billion RMB, exceeding the market expectation of 20,505 billion RMB and significantly higher than the previous month's 11,591 billion RMB[6] - New RMB loans in May 2025 amounted to 6,200 billion RMB, below the market expectation of 8,026 billion RMB and higher than the previous month's 2,800 billion RMB[6] - The year-on-year growth rate of social financing stock was 8.7%, maintaining a high growth level compared to the previous month[7] - Government bonds were a key support for social financing, with government bond financing in May 2025 reaching 14,633 billion RMB, a year-on-year increase of 2,367 billion RMB[33] Group 2: M1 and M2 Trends - M1 growth in May 2025 was 2.3%, an increase of 0.8 percentage points from the previous month, indicating improved liquidity in the economy[38] - M2 growth was 7.9%, slightly down from 8.0% in the previous month, reflecting a stable but slightly declining trend[38] - The gap between M1 and M2 growth rates has narrowed, suggesting a shift in deposit structures and liquidity dynamics[38] Group 3: Credit Performance and Structure - Total credit in May 2025 was weak, with new loans of 6,200 billion RMB, a year-on-year decrease of 3,300 billion RMB, indicating cautious lending behavior[10] - Corporate loans showed a significant contraction, with new corporate loans at 5,300 billion RMB, down 2,100 billion RMB year-on-year[16] - Household loans saw mixed performance, with short-term loans decreasing by 208 billion RMB and medium to long-term loans increasing by 746 billion RMB, indicating a slight improvement in household credit conditions[19]

Group 1 - The report indicates that the overall market experienced a net outflow of funds amounting to 82.66 billion, while trading activity increased with a total transaction volume of 6.86 trillion, reflecting a rise in turnover rate to 7.85% [6][8][23] - The IPO financing for the week was recorded at 2.653 billion, with a total of 3 companies participating, while refinancing reached 2.207 billion from 4 companies [32][31] - The report highlights that the net inflow of margin financing was 8.102 billion, with margin trading accounting for 8.59% of the total A-share transaction volume [23][24] Group 2 - The report notes a decrease in the issuance scale of equity funds to 1.282 billion, down from the previous week [19][20] - The report identifies the top three sectors for fund accumulation as pharmaceuticals, non-ferrous metals, and non-bank financials, while the sectors with the largest reductions were food and beverage, computers, and household appliances [20][21] - The report mentions that the total amount of restricted shares released was 62.41 billion, with the electronics, computers, and construction decoration sectors having the highest release volumes [36][37] Group 3 - The report states that the liquidity in the domestic market weakened, with a net withdrawal of 727 billion from open market operations [8][9] - The yield on 10-year government bonds decreased by 2 basis points, while the yield on 1-year bonds remained stable, leading to a narrowing of the yield spread [8][9] - The report indicates that the market anticipates a 96.7% probability that the Federal Reserve will not lower interest rates in June [6][16]

Group 1 - The market experienced a general decline, with financial and cyclical sectors performing the best, while the STAR 50, consumer, and CSI 2000 indices lagged behind [3][9] - Among industries, non-ferrous metals, petroleum and petrochemicals, and agriculture, forestry, animal husbandry, and fishery showed the highest gains, while household appliances, food and beverage, and building materials performed the weakest [11][12] - The relative PE of the ChiNext index to the CSI 300 decreased, and the relative PB also declined [16] Group 2 - The overall valuation of broad market indices fell, with the current valuations of major indices above the 50% historical percentile level, while the ChiNext index is at a low valuation compared to the past year [24] - Valuation differentiation is evident across industries, with financial real estate valuations above the 50% historical percentile, while materials, equipment manufacturing, industrial services, transportation, consumption, and technology are at or below the 50% level [26] Group 3 - The current valuation of the food and beverage, agriculture, forestry, animal husbandry, and public utilities sectors is relatively cheap, indicating potential investment opportunities [37] - The PB-ROE perspective shows that non-bank financials, public utilities, agriculture, food and beverage, and social services have lower PB-ROE ratios, suggesting they may be undervalued [40] Group 4 - Current popular concepts such as autonomous driving, cultivated diamonds, third-generation semiconductors, digital currency, 6G, robotics, central state-owned enterprises, and large aircraft are at historically high valuation percentiles over the past three years [43]

Quantitative Models and Construction Methods - **Model Name**: Report/Document Interpretation Workflow - **Model Construction Idea**: Automate the process of interpreting financial reports and extracting key information, including formulas, using AI agents and workflows[28][30] - **Model Construction Process**: 1. Use Coze's official file-reading plugin to extract document content and formula structures[30] 2. Configure prompt logic and output format using LLM nodes in the workflow[30] 3. Test the workflow by inputting a URL of a quantitative research paper, where the AI agent summarizes key information and accurately interprets formulas[31] - **Model Evaluation**: Demonstrates the ability to process complex financial documents and provide accurate formula interpretations, enhancing efficiency in financial research[31] - **Model Name**: Real-Time Financial Data Analysis Workflow - **Model Construction Idea**: Automate the retrieval and analysis of real-time financial data from web sources or plugins[35][38] - **Model Construction Process**: 1. Construct a workflow with a code-processing node to generate complete URLs based on user-input stock codes[38] 2. Use a data-scraping node to retrieve real-time financial data from websites like Sina Finance[35][38] 3. Input the data into the DeepSeek LLM node for comprehensive analysis, focusing on profitability, solvency, and operational efficiency[39] - **Model Evaluation**: Provides timely and structured financial insights, enabling informed decision-making in investment analysis[39] - **Model Name**: Research Report Summarization Workflow - **Model Construction Idea**: Automate the process of extracting and summarizing content from multiple research reports or news articles[52][55] - **Model Construction Process**: 1. Use Coze plugins to scrape HTML content from websites like Eastmoney[55] 2. Employ loop nodes to process multiple reports and extract relevant content[55] 3. Store the extracted data (e.g., titles, content, institution names, links) in Feishu multi-dimensional tables for further analysis[57] - **Model Evaluation**: Effectively consolidates and organizes large volumes of research data, improving accessibility and usability for financial analysts[57] Model Backtesting Results - **Report/Document Interpretation Workflow**: Successfully summarized key information and accurately interpreted formulas from a quantitative research paper[31] - **Real-Time Financial Data Analysis Workflow**: Generated detailed financial analyses based on real-time data, covering multiple financial metrics such as ROE, net profit, and cash flow[39][48] - **Research Report Summarization Workflow**: Efficiently extracted and stored structured data from multiple research reports, enabling streamlined analysis and reporting[57][60] Quantitative Factors and Construction Methods - **Factor Name**: None explicitly mentioned in the report Factor Backtesting Results - **Factor Results**: None explicitly mentioned in the report

Group 1: Major Asset Tracking - The bond market shows narrow fluctuations with a slight increase across the board, indicating that the weak fundamentals will limit the height of any potential rise, and future volatility is likely to adjust downward, benefiting from inflows of risk-averse funds [17] - In the context of escalating geopolitical conflicts, the demand for safe-haven assets may lead to a resurgence in bond prices as stock market volatility is expected to increase [17] Group 2: A-Share Market - The A-share market experienced a downward trend with a total trading volume of 1.5 trillion, an increase of 0.2 trillion from the previous day, with less than 800 stocks rising and over 4200 stocks declining, reflecting a decrease in market risk appetite due to geopolitical tensions [20] - Investors are advised to take profits and shift positions to sectors such as low-yield dividends, agriculture, and technology, as the likelihood of a bullish market is low under current weak fundamentals [20][21] Group 3: U.S. Stock Market - The U.S. stock market saw slight increases with the Dow Jones up 0.24%, Nasdaq up 0.24%, and S&P 500 up 0.38%, while concerns over rising bond yields and potential recession narratives may present better buying opportunities in the future [24] - The current market is likely in a phase of head consolidation, suggesting that investors should avoid short-term risks and wait for better buying points [24] Group 4: Foreign Exchange Market - The onshore RMB against the USD reported at 7.1814, a decrease of 13 basis points from the previous close, with expectations for the RMB to rise to around 7.1 due to favorable trade conditions [28] Group 5: Commodity Market - The Wenhua Commodity Index increased by 0.93%, with oil, polyester, and coal chemical sectors leading the gains, while construction materials and non-ferrous metals lagged behind, suggesting a cautious approach due to high volatility in oil prices [32]