Group 1: Market Indicators - The A-share major indices declined during the week of November 18 to November 22, with the ChiNext Index experiencing the largest drop of 3.03% [10][11] - The average daily trading volume in the two markets was 17,064.38 billion yuan, a decrease of 21.79% compared to the previous week [18][19] - The electronic sector was the most active, with a trading volume of 11,588.53 billion yuan during the week [18][24] Group 2: Valuation Levels - As of November 22, the dynamic price-to-earnings (PE) ratio of the Sci-Tech Innovation Board (科创50) was at a historical percentile of approximately 82.39%, the highest among major A-share indices since 2010 [28][30] - By industry, sectors such as coal, electronics, and automotive exceeded the historical 50th percentile in terms of dynamic PE ratios, while sectors like social services and agriculture were below the 10th percentile [30][33] Group 3: Economic News and Policies - The Ministry of Finance announced a local government debt limit of 6 trillion yuan, aimed at enhancing the effectiveness of incremental policies [36] - The China Securities Regulatory Commission emphasized the importance of deepening the two-way opening of the capital market to support high-quality development [36] - The National Development and Reform Commission indicated that new policies would continue to support economic growth and investment, with a focus on enhancing productivity [36][37] Group 4: Investment Recommendations - The report suggests focusing on leading companies in downstream sectors that have shown significant improvement in performance during the third quarter [41] - Continuous attention is recommended for growth sectors related to new productivity, particularly in electronics, AI computing power, and low-altitude economy [41][42]

Investment Rating - The report maintains an "Outperform" rating for the social services industry [2]. Core Insights - As of Q3 2024, the fund's heavy holding ratio in the social services industry is 0.12%, remaining stable compared to Q2 2024. This ratio is below the historical average of 0.58%, indicating significant room for allocation increases. The number of funds holding social services stocks has increased to 339, up by 26 from the previous quarter, with a total market value of 8.325 billion yuan, an increase of 1.705 billion yuan [7][12]. Summary by Sections Heavy Holding Ratio - The heavy holding ratio for the social services industry remains low at 0.12%, ranking 26th among 31 first-level industries, up from 29th in Q2 2024. This is significantly below the five-year average of 0.58%, suggesting substantial potential for increased allocation [7][12]. Sector Analysis - The hotel and restaurant sector's heavy holding ratio is stable at 0.03%, while the tourism and scenic spots sector remains low at 0.02%. The professional services sector has seen a slight rebound, increasing by 0.02 percentage points to 0.06%. The education sector's holding ratio has decreased by 0.01 percentage points to 0.01% [15][19]. Individual Stocks - The top ten stocks in the social services sector account for a combined heavy holding ratio of 0.108%, a slight increase from Q2 2024. Leading stocks include Huace Testing, Shoulu Hotel, Songcheng Performance, and Jinjiang Hotel, with Huace Testing maintaining the highest heavy holding ratio [22][23].

Core Insights - The A-share market showed mixed performance with the Shanghai Composite Index rising by 0.07% to close at 3,370.40 points, while the Shenzhen Component Index fell by 0.07% and the ChiNext Index decreased by 0.09% [2][4] - The total trading volume in the A-share market reached 1.61 trillion RMB, with over 2,300 stocks experiencing gains [2][4] - In terms of sector performance, the computer and retail industries led the gains, while the telecommunications and oil & petrochemical sectors faced declines [2][4] - Concept sectors such as controllable nuclear fusion and superconducting concepts saw significant increases [2][4] - The Hong Kong market experienced a decline, with the Hang Seng Index dropping by 0.53% and the Hang Seng Tech Index falling by 1.24% [2][4] - In the overseas markets, all three major U.S. indices closed higher, with the Dow Jones up by 1.06%, the S&P 500 rising by 0.53%, and the Nasdaq increasing by 0.03% [2][4] Important News - The Ministry of Commerce issued policies aimed at promoting stable growth in foreign trade, which include expanding the coverage of export credit insurance, increasing financing support for foreign trade enterprises, optimizing cross-border trade settlements, and promoting the development of cross-border e-commerce [5] - Additional measures include supporting the export of specialty agricultural products, importing key equipment and energy resources, and enhancing the capacity for foreign trade maritime security [5]

Core Viewpoints - The A-share market showed a positive trend with the Shanghai Composite Index rising by 0.66% to 3,367.99 points, the Shenzhen Component Index increasing by 0.78%, and the ChiNext Index up by 0.5%. The total trading volume in the A-share market reached 1.61 trillion RMB, with over 4,300 stocks rising [1][6] - In the industry performance, the media and comprehensive sectors led the gains, while the banking sector experienced a decline. Concept sectors such as DRG/DIP, Kuaishou, and Sora saw significant increases [1][6] - The Hong Kong market also experienced slight gains, with the Hang Seng Index up by 0.21% and the Hang Seng Tech Index up by 0.41% [1][6] - Internationally, the US stock indices showed mixed results, with the Dow Jones up by 0.32%, the S&P 500 unchanged, and the Nasdaq down by 0.11%. European markets saw slight declines, while most Asia-Pacific markets also fell [1][6] Important News - The Ministry of Industry and Information Technology of China released new regulations for the photovoltaic manufacturing industry, encouraging a rational layout of photovoltaic projects and promoting cluster development. The minimum capital ratio for new and expanded photovoltaic manufacturing projects is set at 30% [3][6] Industry Insights - In the home appliance sector, public fund holdings have increased for seven consecutive quarters, with significant increases in white goods leaders, robotic vacuum cleaners, and appliance components. However, major black goods stocks have seen reductions in holdings [11] - The total market value of public funds in the home appliance sector reached 138.207 billion RMB by the end of Q3 2024, a 31% increase from Q2 2024, representing 4.38% of the total A-share market value [11] - The white goods sector, particularly Haier, Midea, and Gree, continues to see increased holdings, while black goods such as Hisense have faced reductions. The kitchen and bathroom appliance sectors have shown mixed results, with some stocks gaining and others losing [11] - The outlook for domestic sales is positive due to the implementation of replacement policies, while external sales are expected to benefit from interest rate cuts in the US and contributions from emerging markets [11]

Key Points - The report emphasizes the importance of deepening capital market reforms to strengthen the long-term positive foundation of China's capital markets [2][3] - The China Securities Regulatory Commission (CSRC) aims to promote technological innovation through reforms that enhance the coordination of investment and financing functions in the capital market [2][3] - The CSRC has introduced several policies to support mergers and acquisitions in the technology sector, including the "16 Articles for Sci-Tech Innovation" and "8 Articles for the Sci-Tech Innovation Board" [2][3] - The report highlights the commitment to strong regulation to mitigate risks and protect investor interests, with a focus on improving the effectiveness of investor protection measures [2][3] - The CSRC plans to enhance cross-border investment facilitation and deepen the two-way opening of the capital market, including improving the efficiency of overseas listing processes [2][3] - The report indicates that the ongoing reforms are expected to solidify the long-term positive outlook for China's capital markets and attract long-term capital allocation to the A-share market [2][3]

Investment Rating - The report maintains an "Outperform" rating for the home appliance industry [2]. Core Insights - The proportion of public fund holdings in the home appliance industry has increased for seven consecutive quarters, with significant increases in white goods leaders, robotic vacuum cleaners, and appliance components, while major black goods stocks have been reduced. The domestic sales are expected to improve due to the implementation of the old-for-new policy, and external sales are anticipated to benefit from interest rate cuts in the US and contributions from emerging markets. The report suggests continued focus on leading white goods stocks, real estate-related recovery opportunities, and stocks with a second growth curve [2][20]. Summary by Sections 1. Fund Holdings in the Home Appliance Industry - As of Q3 2024, the total market value of public fund holdings in the home appliance sector reached 138.207 billion, a 31.0% increase from Q2 2024, accounting for 4.38% of the total A-share market value, which is 2.15 percentage points higher than the benchmark [8][11]. - The SW home appliance industry index rose by 16.85% in Q3 2024, achieving a relative return of 0.78% compared to the CSI 300 index [8][11]. 2. Individual Stock Performance - Major stocks such as Midea Group and Gree Electric have seen significant increases in holdings. In the white goods sector, Haier Smart Home, Midea Group, and Gree Electric continued to receive notable increases, while Haier and Hisense Home Appliances faced reductions. In the black goods sector, Hisense Vision was continuously reduced, while TCL Electronics and Zhaochi shares also saw reductions. In the kitchen and bathroom appliance sector, major stocks in bathroom appliances were generally increased, while kitchen appliance stocks like Boss and Vatti experienced reductions [20][26]. 3. Stock Changes in the Northbound Trading - The report indicates that the Northbound trading saw more reductions than increases, with some kitchen and bathroom appliance stocks experiencing increases. The core white goods stocks generally faced reductions, while some black goods stocks like Sichuan Changhong saw increases [25][26].

Core Viewpoints - The A-share market showed a rebound with the Shanghai Composite Index rising by 0.67% to 3,346.01 points, the Shenzhen Component Index increasing by 1.9%, and the ChiNext Index up by 3% on Tuesday [1][7] - The total trading volume in the A-share market reached 1.56 trillion RMB, with nearly 4,500 stocks rising [1][7] - In the Shenwan industry sector, non-ferrous metals and electronics led the gains, while construction decoration and coal industries faced declines [1][7] - The Hong Kong Hang Seng Index rose by 0.44%, and the Hang Seng Technology Index increased by 1.23% [1][7] - In the overseas markets, the Dow Jones fell by 0.28%, while the S&P 500 rose by 0.40% and the Nasdaq increased by 1.04% [1][7] Important News - The Chairman of the China Securities Regulatory Commission, Wu Qing, emphasized the need for reforms to promote development and stability in the capital market, aiming to enhance the coordination of investment and financing [2][8] - The focus will be on creating a multi-tiered market system to support technological innovation and long-term investments, while also strengthening regulatory measures and investor protection [2][8] Economic Data Insights - In October, the total retail sales of consumer goods in China reached 453.96 billion RMB, showing a year-on-year growth of 4.8%, which is an increase of 1.6 percentage points compared to September [3][13] - The industrial production maintained resilience, with the manufacturing sector showing signs of improvement, although real estate remains under pressure [9][12] - The investment in infrastructure and manufacturing is expected to drive economic growth, with a target growth rate of 5% for the year [9][12] Consumer Market Trends - The "Double 11" shopping festival saw a strong performance, with total sales reaching 1,441.8 billion RMB, a year-on-year increase of 26.6% [17][20] - The beauty and personal care sector experienced significant growth, with skincare sales reaching 71.5 billion RMB, up 22.85% year-on-year [17][20] - Domestic brands like Proya and Han Shu performed well during the sales event, indicating a positive trend in consumer preferences for local products [17][20] Investment Recommendations - Focus on sectors such as food and beverage, social services, and cosmetics, which are expected to benefit from recent government policies aimed at boosting consumer spending [16][25] - The food and beverage sector is highlighted for its resilience, with recommendations to pay attention to leading brands in snacks, liquor, and dairy products [16][25] - The beauty industry is also recommended for investment, particularly companies that demonstrate strong product development and marketing capabilities [16][25]

Economic Performance - In October, the industrial added value year-on-year growth rate fell by 0.1 percentage points to 5.3%, while month-on-month it increased by 0.41%[12] - Fixed asset investment cumulative year-on-year growth remained at 3.4%, with real estate investment down by 10.3% and infrastructure investment up by 9.35%[28] - Social retail sales increased from 3.2% to 4.8% year-on-year, exceeding market expectations[47] Real Estate Sector - Real estate investment growth fell by 0.2 percentage points to -10.3%, with new housing starts down by 22.6% year-on-year[29] - Property sales showed signs of recovery, with sales area down by 15.8% year-on-year, and sales value down by 20.9%[30] - The decline in funding sources for real estate companies continued to narrow, with a decrease of 19.2%[35] Manufacturing and Infrastructure - Manufacturing investment cumulative year-on-year growth rose by 0.1 percentage points to 9.3%, supported by export growth and equipment upgrades[42] - Infrastructure investment cumulative year-on-year growth increased by 0.09 percentage points to 9.35%, aided by the issuance of long-term special bonds[37] - The manufacturing sector showed a mixed performance, with automotive manufacturing up by 6.2% year-on-year, while other sectors faced declines[19] Consumer Confidence and Spending - Consumer confidence remains low despite a significant increase in retail sales, with online retail showing a rebound due to promotional events[47] - The Double Eleven shopping festival and trade-in policies significantly boosted consumer spending, particularly in home appliances and furniture[50] - Essential consumption categories like food and beverages saw a decline, while discretionary spending categories like cosmetics experienced substantial growth[53]

Investment Rating - The industry investment rating is "Outperform the Market" (maintained) [2][4]. Core Insights - The overall GMV for the "Double 11" shopping festival in 2024 reached 1,441.8 billion yuan, a year-on-year increase of 26.6%. This is a significant acceleration compared to the 2.08% growth in 2023 [2]. - The beauty and personal care sector saw rapid sales growth, with skincare sales reaching 71.5 billion yuan, up 22.85% year-on-year, and cosmetics sales at 23.7 billion yuan, up 16.18% year-on-year [2]. - Domestic beauty brands performed well, with Proya ranking first in Tmall's beauty brand sales during "Double 11," showing growth rates of over 10% on Tmall, 60% on Douyin, and 30% on JD [2]. Summary by Sections Overall Market Performance - The total sales for the "Double 11" event in 2024 was 1,441.8 billion yuan, with a breakdown showing e-commerce sales at 1,109.3 billion yuan (up 20.1%), live-streaming sales at 33.25 billion yuan (up 54.6%), and instant retail sales at 28.1 billion yuan (up 19.1%) [2]. - The sales growth was attributed to factors such as the "old-for-new" subsidy policy, an extended shopping period, and increased consumer behavior of "grouping" purchases due to platform incentives [2]. Beauty Industry Insights - The online GMV for beauty products is expected to exceed 120 billion yuan, with Tmall, Douyin, and JD accounting for 50.1%, 26.7%, and 11.7% of the sales, respectively [2]. - Proya and other domestic brands are gaining significant market share, with Proya leading in multiple sales rankings across platforms [2]. Investment Recommendations - The report suggests a positive outlook for the cosmetics demand recovery, with "Double 11" sales data exceeding expectations. It recommends focusing on leading cosmetic companies with strong product capabilities and multi-channel strategies [2].

Investment Rating - The industry investment rating is "Outperform" [2][36]. Core Insights - The report highlights a recovery in India's diamond export data, with both cultivated and natural diamond exports showing positive year-on-year growth in October 2024 [2][32]. - The report indicates that the penetration rate for cultivated diamonds in India has decreased on the export side but increased on the import side [22]. - The natural diamond price index has continued to decline, reflecting insufficient recovery in market demand [29]. Summary by Sections 1. Cultivated Diamond Data Tracking - In October 2024, India's cultivated diamond rough imports amounted to $0.64 billion, a year-on-year decline of 27.79%, which is a further increase in the decline compared to September [20]. - The cultivated diamond export value reached $1.38 billion, showing a year-on-year increase of 1.27%, marking a shift from negative to positive [20]. - The penetration rate for cultivated diamond exports was 8.96%, down by 0.80 percentage points year-on-year, while the import penetration rate was 8.82%, up by 0.77 percentage points year-on-year [22]. 2. Natural Diamond Data Tracking - India's natural diamond rough imports in October 2024 were $6.66 billion, reflecting a year-on-year decline of 35.35%, which is a further increase in the decline compared to September [27]. - The natural diamond export value was $14.04 billion, with a year-on-year increase of 11.32%, indicating a recovery from negative growth [27]. - The international polished diamond price index fell to 96.01 points by the end of October, down 1.00 percentage point from September [29]. 3. Investment Recommendations - The report suggests that India's rough diamond import and polished diamond export data are crucial indicators for assessing downstream market conditions [32]. - Short-term trends show that both cultivated and natural diamond exports have turned positive year-on-year, indicating improved demand conditions in October [32]. - In the medium to long term, the report anticipates a gradual recovery in diamond consumption demand, driven by macroeconomic recovery and changing consumer preferences [32].