Investment Rating - The industry investment rating is "Outperform the Market," indicating a projected increase of over 10% in the industry index relative to the broader market within the next six months [9]. Core Insights - The report highlights that the issuance of game licenses remains high, with 127 domestic games and 7 imported games approved in July 2025. This reflects a robust supply side and a stable trend towards normalization in license issuance [2][7]. - Key titles that received approval include "Kingshot" by Diandian Interactive, which is expected to leverage its success in overseas markets to become a significant product in the domestic SLG (Simulation and Strategy Game) sector [2][3]. - Tencent's "The Finals," a PC-based FPS game, is also noted for its potential to become a dark horse in the FPS market, given its unique gameplay and adaptation for domestic players [3]. - The report emphasizes the strong performance of established IPs like "Diablo IV" and "Marvel's Secret Wars," which are anticipated to perform well in the domestic market due to their established fan bases and innovative gameplay mechanics [4][7]. Summary by Sections Industry Events - In July 2025, the National Press and Publication Administration announced the approval of 127 domestic games and 7 imported games, maintaining a high issuance rate [1][2]. Investment Highlights - The report indicates that 884 domestic games have been approved year-to-date, with July's approvals slightly down from June but still at a high level. Notable titles include "Kingshot," "The Finals," and "Diablo IV" [2][4]. - The report suggests that the gaming industry is on a recovery path, with a consistent release of licenses and a focus on diverse product offerings from leading companies [7]. Company-Specific Insights - Diandian Interactive's "Kingshot" is highlighted for its innovative gameplay that combines tower defense and simulation elements, aiming to cater to domestic players' preferences [2]. - Tencent's adaptation of "The Finals" is expected to enhance player experience through new modes and anti-cheat systems, positioning it well in the competitive FPS market [3]. - "Marvel's Secret Wars" is noted for its unique blend of strategy card and chess elements, leveraging its strong IP to attract players [4][7].

Market Overview - The A-share market opened lower but closed higher, with the Shanghai Composite Index rising by 0.65% to 3605.73 points, the Shenzhen Component Index increasing by 1.21%, and the ChiNext Index up by 1.5% [1][6] - The total trading volume in the Shanghai and Shenzhen markets reached 1.84 trillion yuan [1][6] - In terms of industry performance, sectors such as beauty care, non-ferrous metals, and steel led the gains, while banking, telecommunications, and public utilities lagged [1][6] - Concept sectors like Hainan Free Trade Zone, horse racing, and duty-free shops saw increases, whereas sectors like civil explosives, F5G, and CPO experienced declines [1][6] International Market Performance - The Hang Seng Index closed up by 0.51% at 25667.18 points, marking five consecutive days of gains, while the Hang Seng Technology Index fell by 0.05% [1][6] - In the overseas markets, the three major U.S. stock indices had mixed results, with the Dow Jones down by 0.7%, the S&P 500 up by 0.07%, and the Nasdaq rising by 0.18% [1][6] - European major indices also showed mixed performance, and major Asia-Pacific indices closed with varied results [1][6]

Core Viewpoints - The A-share market experienced fluctuations, with the Shanghai Composite Index closing at 3582.3 points, up 0.01%, while the Shenzhen Component Index fell by 0.37% and the ChiNext Index remained unchanged [1][6] - The trading volume in the Shanghai and Shenzhen markets reached 1.86 trillion yuan, with sectors such as non-bank financials, beauty care, and home appliances leading the gains, while construction materials, military industry, and machinery equipment lagged [1][6] - The Hang Seng Index in Hong Kong rose by 1.62% to close at 25,538.07 points, and major overseas indices also saw gains, indicating a generally positive market sentiment [1][6] Important News - The Hainan Free Trade Port will officially start its full island closure operation on December 18, 2025, with a series of policy measures to be implemented, including an increase in the proportion of "zero tariff" goods from 21% to 74% [2][7] - The upcoming economic talks between China and the U.S. will be held in Sweden from July 27 to 30, focusing on mutual economic concerns and cooperation [7] Investment Highlights - The confirmed closure date for Hainan and updated policy measures indicate a significant shift towards more open trade practices, with "zero tariff" goods coverage expanding from 1,900 to approximately 6,600 items, representing a 53 percentage point increase [9][11] - The scope of beneficiaries for the "zero tariff" policy has broadened, now including various enterprises and institutions with actual import needs, enhancing the competitive landscape [11] - The tourism sector in Hainan is expected to benefit significantly from the new policies, with projections of 97.2 million visitors in 2024, reflecting an 8% year-on-year growth, and a notable increase in inbound tourism [12][13] - The impact of the full closure on duty-free businesses is twofold, potentially increasing customer flow while also intensifying competition due to lower prices of imported goods [13]

Investment Rating - The industry investment rating is "stronger than the market," indicating an expected increase of over 10% in the industry index relative to the broader market within the next six months [9]. Core Insights - The Hainan Free Trade Port is set to officially start its customs closure on December 18, 2025, implementing a more liberalized and convenient policy framework characterized by "one line open, one line controlled, and free movement within the island" [2]. - The updated customs policies will significantly enhance the scope of "zero tariff" goods, increasing the number of applicable tariff items from 1,900 to approximately 6,600, which represents about 74% of all tariff items, a rise of nearly 53 percentage points compared to before the closure [3]. - The tourism sector in Hainan is expected to benefit greatly from the new policies, with projections indicating that the province will receive 97.2 million domestic and international tourists in 2024, a year-on-year increase of 8%, with inbound tourists growing by over 100% [4]. Summary by Sections Investment Highlights - The customs closure will introduce more favorable "zero tariff" policies, with the proportion of zero tariff goods increasing significantly [2][3]. - The scope of beneficiaries for the zero tariff policy will expand to include various enterprises and institutions with actual import needs across the island [3]. - The new policies will facilitate the free flow of zero tariff goods among beneficiaries, enhancing the competitiveness of local industries and fostering industrial clusters [3]. Tourism Impact - Hainan's tourism appeal is expected to rise sharply, benefiting from both domestic and inbound tourism growth due to the new customs policies [4][7]. - The demand for professional tour services and one-stop solutions for international tourists is anticipated to increase, benefiting travel agencies involved in cross-border tourism [7]. Investment Recommendations - The report suggests focusing on travel agencies that will benefit from the recovery of tourist flows and the expansion of inbound tourism, as well as duty-free retailers that will enjoy dual drivers from policy and demand [8].

Core Insights - The A-share market showed a strong performance with the Shanghai Composite Index rising by 0.62% to 3581.86 points, and the Shenzhen Component Index increasing by 0.84% [2][7] - The total trading volume in the Shanghai and Shenzhen markets reached 1.89 trillion yuan, indicating robust market activity [2][7] - Among the sectors, coal, building materials, and construction decoration led the gains, while banking, computer, and communication sectors lagged [2][7] - In the Hong Kong market, the Hang Seng Index closed up 0.54% at 25,130.03 points, reflecting positive sentiment [2][7] Market Performance - As of July 15, 2025, 1517 A-share companies disclosed their mid-year performance forecasts, with a disclosure rate of 27.99% [9] - Of these, 660 companies, or 43.51%, reported positive performance forecasts, with 412 companies expecting profit increases [9][10] - The growth sectors showed a pre-forecast positive rate of 46.59%, while the consumer and stable sectors followed closely [10] Industry Analysis - Nine primary industries reported a positive forecast rate exceeding 50%, with non-bank financials, non-ferrous metals, and agriculture showing the highest rates [10] - The agriculture sector projected a remarkable net profit growth of 1448.38%, while sectors like real estate and textiles faced significant profit pressures [10] - Overall, the A-share market is expected to perform well in the first half of 2025, with a general positive outlook across various industries [11]

Market Overview - The A-share market continued its upward trend, with the Shanghai Composite Index reaching a new high for the year, closing up 0.72% at 3559.79 points, while the Shenzhen Component Index rose 0.86% and the ChiNext Index increased by 0.87% [2][7] - The total trading volume in the Shanghai and Shenzhen markets was 1.70 trillion yuan, with sectors such as building materials, construction decoration, and steel leading the gains, while banking, computers, and home appliances lagged [2][7] - In the Hong Kong market, the Hang Seng Index closed up 0.68% at 24994.14 points, marking the highest level since February 2022 [2][7] Important News - The President of the European Council, Costa, and the President of the European Commission, von der Leyen, are scheduled to visit China on July 24, 2025, where they will meet with President Xi Jinping and Premier Li Qiang for the 25th China-EU Leaders' Meeting [3][7] - The "Housing Rental Regulations" have been announced and will take effect on September 15, 2025, aimed at standardizing housing rental activities and promoting high-quality development in the rental market [8]

Core Viewpoints - The A-share market experienced a rise last Friday, with the Shanghai Composite Index increasing by 0.5% to close at 3534.48 points, marking a new high for the year. The ChiNext Index rose by 0.34%, and the Shenzhen Component Index increased by 0.37%. The total trading volume in the Shanghai and Shenzhen markets reached 1.57 trillion yuan [5][6] - In terms of industry performance, sectors such as non-ferrous metals, basic chemicals, and steel led the gains, while media, electronics, and light industry lagged behind. Concept sectors like lithium extraction from salt lakes, rare earth permanent magnets, and acrylic acid saw increases, whereas animal vaccines, avian influenza, and low-radiation glass experienced declines [5][6] - The Hong Kong market also saw positive movement, with the Hang Seng Index closing up 1.33% at 24825.66 points, and the Hang Seng Technology Index rising by 1.65% [5][6] Industry Insights - The social service sector is expected to support stable economic growth, with a focus on boosting consumption and expanding domestic demand. The potential of lower-tier markets continues to be released, while overseas expansion opens up new growth opportunities. Service consumption is approaching a 50% share, likely accelerating its role as the main component of household consumption [7][8] - The restaurant industry is witnessing accelerated chain development, with the chain rate expected to rise from 12% in 2018 to 22% by 2024. As competition intensifies, chain leaders with scale and brand advantages are anticipated to have more growth potential [9] - The tourism market is experiencing a rise in both volume and price, with natural scenic spots outperforming artificial ones and hotels. The average spending per customer has surpassed 1000 yuan, exceeding pre-pandemic levels. The potential of ice and snow tourism is being realized, supported by favorable policies [9][10] - The travel agency sector is undergoing market consolidation, with inbound tourism presenting growth opportunities. The post-2023 period is expected to see rapid industry expansion, with structural growth opportunities arising from the recovery of inbound tourism [9]

Core Insights - The A-share market saw collective gains on Thursday, with the Shanghai Composite Index rising by 0.37%, the Shenzhen Component Index increasing by 1.43%, and the ChiNext Index up by 1.75%. The total trading volume in the Shanghai and Shenzhen markets reached 15,391.16 billion yuan [2][6] - In terms of industry performance, sectors such as defense, telecommunications, and electronics led the gains, while banking, transportation, and environmental protection lagged behind. Notable concept sectors included military equipment restructuring and optical packaging, which performed well, while housing inspection and gold concepts faced declines [2][6] - The Hang Seng Index in Hong Kong fell by 0.08%, while the Hang Seng Technology Index rose by 0.56%. Internationally, all three major U.S. indices closed higher, with the Dow Jones up by 0.52%, the S&P 500 up by 0.54%, and the Nasdaq up by 0.75% [2][6] Important News - The Ministry of Finance and the State Administration of Taxation announced a change in the consumption tax policy for ultra-luxury cars, lowering the tax threshold to 900,000 yuan starting July 20, 2025. New energy vehicles will also be included in this tax category [3][7] - The U.S. House of Representatives passed significant legislation regarding cryptocurrency regulation, including the "Guidance and Establishment of a National Stablecoin Innovation Act" and the broader "Clarity Act," aimed at creating a favorable regulatory framework for digital assets [3][7] Industry Analysis - In June 2025, six key mobile games were launched, with "Silver and Crimson" and "Dragon Soul Traveler" standing out in performance. The overall retail sales of consumer goods in June increased by 4.8% year-on-year, with a notable decline in the growth rate compared to the previous month [8][12] - The gaming industry is expected to maintain a stable issuance of game licenses in 2025, with a continuous release of product reserves and a stable market environment, suggesting promising performance for new games [11][12] - The retail sales data indicates a mixed performance across different categories, with home appliances, cultural office supplies, and furniture showing significant growth, while categories like beverages and cosmetics faced declines [13][15]

Investment Rating - The industry is rated as "Outperforming the Market" with an expected increase of over 10% relative to the market index in the next six months [4][26]. Core Insights - In June 2025, six key mobile games were launched, with "Silver and Crimson" and "Dragon Soul Traveler" standing out in performance [1][10]. - "Silver and Crimson" achieved significant success due to its unique art style, user-friendly design, and global release strategy, reaching a peak download of 112,575 on June 28 and generating total revenue of $1,689,405 by July 15 [2][17]. - "Dragon Soul Traveler" features a Japanese light comedy style and has shown strong performance with a total revenue of $2,792,902 by July 15, despite being launched later than "Silver and Crimson" [3][20]. Summary by Sections New Game Releases - Six new mobile games were launched in June 2025, including titles from various publishers such as "Bubble Bubble" by Eagle Horn Network and "Final Fantasy 14: Crystal World" by Tencent [1][10]. Game Performance - "Silver and Crimson" has a unique dark gothic aesthetic and a strategy card RPG format, achieving a high user retention rate and ranking first in the App Store free charts in multiple regions [2][13]. - "Dragon Soul Traveler" employs a fragmented narrative and innovative gameplay, achieving a peak download of 113,674 on June 7 [3][22]. Investment Recommendations - The report suggests that the gaming license issuance will remain stable, and the market environment is expected to stabilize, making new game performances promising. It recommends focusing on quality game developers with innovative capabilities [24].

Investment Rating - The industry is rated as outperforming the market, with an expected relative increase of over 10% in the next six months [46]. Core Insights - In June 2025, China's total retail sales of consumer goods reached 42,287 billion yuan, showing a year-on-year growth of 4.8%, which is an increase of 2.8 percentage points compared to the same period last year, although it represents a month-on-month decline of 1.6 percentage points [2][14]. - The growth rate of retail sales in urban and rural areas has both declined, with urban growth at 4.8% and rural growth at 4.5% [16][21]. - Online retail sales from January to June 2025 totaled 74,295 billion yuan, reflecting a year-on-year increase of 8.5%, accounting for 30.27% of total retail sales [4][38]. Summary by Sections Overall Performance - The total retail sales in June 2025 were 42,287 billion yuan, with a year-on-year increase of 4.8% and a month-on-month decline of 1.6% [2][14]. - The Consumer Price Index (CPI) rose by 0.1% year-on-year in June, compared to a decrease of 0.1% in May [14][15]. Segment Analysis - Among 16 categories of goods, five categories (Chinese and Western medicines, beverages, tobacco and alcohol, cosmetics, and petroleum products) experienced negative growth, while others showed positive growth, particularly home appliances and audio-visual equipment, cultural office supplies, and furniture, all exceeding 20% growth [3][20]. - Essential goods like grain and oil (+8.7%) and daily necessities (+7.8%) saw a decline in growth rates, while furniture (+28.7%) and automobiles (+4.6%) showed increased growth [20][24]. Online Retail - Online retail sales for the first half of 2025 reached 74,295 billion yuan, with a year-on-year growth of 8.5% [4][38]. - The cumulative online retail sales of physical goods amounted to 61,191 billion yuan, with a growth of 6.0% [41]. Investment Recommendations - The report suggests focusing on sectors such as food and beverages, social services, and retail, highlighting opportunities in the gold and jewelry market due to its appeal as a safe-haven asset, and the cosmetics sector, which is seeing increased acceptance of domestic brands [9][42][44]. - The report emphasizes the potential for growth in home appliances and furniture due to ongoing government subsidies and policies aimed at boosting consumption [8][42].