- The report introduces the **Cinda-VIX volatility index**, which reflects investors' expectations of future volatility in the options market. The index is structured to capture different time horizons, providing insights into short-term and long-term volatility expectations. As of November 7, 2025, the 30-day Cinda-VIX values for major indices are: 18.55 for SSE 50, 19.17 for CSI 300, 26.21 for CSI 500, and 23.84 for CSI 1000[64][66][67] - The **Cinda-SKEW index** measures the skewness of implied volatility across different strike prices in the options market. It captures market sentiment regarding tail risks, with higher values indicating increased concern about potential market downturns. As of November 7, 2025, the SKEW values for major indices are: 103.82 for SSE 50, 108.08 for CSI 300, 101.38 for CSI 500, and 106.80 for CSI 1000[73][76][78] - The report evaluates **index futures basis adjustment**, where the annualized basis is calculated as: $ Annualized Basis = (Actual Basis + Expected Dividend Points) / Index Price × 360 / Remaining Days of Contract $ This adjustment accounts for the impact of dividends on futures prices during the contract's lifespan[20][21][28] - The **IC futures contract** (CSI 500) shows a downward trend in annualized basis, with a current basis of -9.74% as of November 7, 2025, lower than the median since 2022. The contract's trading volume and open interest have decreased compared to the previous week[21][22][27] - The **IF futures contract** (CSI 300) exhibits a current annualized basis of -2.96%, also below the median since 2022. Trading volume and open interest for IF contracts have similarly declined week-over-week[28][29][32] - The **IH futures contract** (SSE 50) has a current annualized basis of -0.24%, reflecting a decrease from the previous week. Open interest and trading volume for IH contracts have also reduced[33][34][37] - The **IM futures contract** (CSI 1000) shows a current annualized basis of -12.49%, marking a decline from the prior week. Open interest and trading volume for IM contracts have decreased as well[39][41][44] - The report evaluates **hedging strategies** for index futures, including continuous hedging and minimum basis strategies. Continuous hedging involves rolling over contracts near expiration, while minimum basis strategies select contracts with the smallest basis. Both strategies are tested across IC, IF, IH, and IM futures contracts[46][47][48] - **IC hedging strategy results**: - Annualized returns: -3.20% (monthly), -2.20% (quarterly), -1.69% (minimum basis) - Volatility: 3.84% (monthly), 4.76% (quarterly), 4.56% (minimum basis) - Maximum drawdown: -10.25% (monthly), -8.34% (quarterly), -7.97% (minimum basis) - Net value: 0.8990 (monthly), 0.9297 (quarterly), 0.9459 (minimum basis)[49][50][52] - **IF hedging strategy results**: - Annualized returns: 0.43% (monthly), 0.72% (quarterly), 1.18% (minimum basis) - Volatility: 2.93% (monthly), 3.28% (quarterly), 3.05% (minimum basis) - Maximum drawdown: -3.95% (monthly), -4.03% (quarterly), -4.06% (minimum basis) - Net value: 1.0141 (monthly), 1.0237 (quarterly), 1.0391 (minimum basis)[51][55][54] - **IH hedging strategy results**: - Annualized returns: 1.09% (monthly), 1.99% (quarterly), 1.72% (minimum basis) - Volatility: 3.01% (monthly), 3.41% (quarterly), 3.02% (minimum basis) - Maximum drawdown: -4.22% (monthly), -3.75% (quarterly), -3.91% (minimum basis) - Net value: 1.0361 (monthly), 1.0668 (quarterly), 1.0574 (minimum basis)[56][59][58] - **IM hedging strategy results**: - Annualized returns: -6.26% (monthly), -4.58% (quarterly), -4.20% (minimum basis) - Volatility: 4.75% (monthly), 5.78% (quarterly), 5.54% (minimum basis) - Maximum drawdown: -14.00% (monthly), -12.63% (quarterly), -11.11% (minimum basis) - Net value: 0.8282 (monthly), 0.8437 (quarterly), 0.8620 (minimum basis)[60][61][62]

Investment Rating - The investment rating for the utility sector is "Positive" [2] Core Views - The report highlights that the domestic power sector is expected to see profit improvement and value reassessment following multiple rounds of supply-demand tensions. The ongoing market reforms are likely to lead to a gradual increase in electricity prices, with the promotion of spot and ancillary service markets [5] - The report also notes that the highest gasification service fee for LNG has been set at 0.20 yuan per cubic meter, effective from November 1, 2025 [5] Summary by Sections Market Performance - As of November 7, the utility sector rose by 2.4%, outperforming the broader market, with the electricity sector increasing by 2.54% and the gas sector by 1.23% [4][12] - Key sub-sectors within electricity showed varied performance, with thermal power up by 2.09% and hydropower by 2.00% [14] Electricity Industry Data Tracking - The price of thermal coal at Qinhuangdao Port (Q5500) increased by 40 yuan to 808 yuan per ton as of November 7 [4][21] - Coal inventory at Qinhuangdao Port was 5.77 million tons, up by 20,000 tons week-on-week [28] - Daily coal consumption in inland provinces was 3.241 million tons, down by 94,000 tons from the previous week [30] Natural Gas Industry Data Tracking - The LNG ex-factory price index in Shanghai was 4,383 yuan per ton as of November 6, a 0.21% increase week-on-week [56] - The EU's natural gas supply for week 44 was 6.5 billion cubic meters, a year-on-year increase of 14.4% [64] - Domestic natural gas consumption in September was 33.19 billion cubic meters, a 2.0% decrease year-on-year [5] Key Industry News - The State Grid has achieved comprehensive coverage of the provincial electricity spot market, with several provinces entering trial operations ahead of schedule [5] - The report emphasizes the potential for significant performance improvement for power operators due to controlled costs and ongoing reforms [5] Investment Recommendations - The report suggests focusing on leading coal-fired power companies such as Guodian Power, Huaneng International, and Huadian International, as well as regional leaders in tight supply areas [5] - For natural gas, companies with low-cost long-term gas sources and receiving station assets are expected to benefit from market conditions [5]

Group 1: Export Growth Trends - In October, export growth fell to a negative increase of -1.1%, significantly below the market expectation of 3%[5] - The decline in export growth is attributed to short-term fluctuations and seasonal patterns, with a month-on-month decrease of approximately -7.1%[5][6] - The high base effect from last year's performance is impacting this year's figures, suggesting that without this drag, October's export growth might not have been negative[6] Group 2: Regional Performance - The most significant declines in exports were observed in the EU and Africa, while the US and ASEAN markets performed relatively well[11][12] - The Eurozone's manufacturing PMI improved to 50% in October, indicating stable manufacturing demand despite the weak export performance[11] - In emerging markets, the significant drop in exports to Africa is viewed as a temporary fluctuation, with South Africa's manufacturing PMI above 53% suggesting ongoing demand support[12] Group 3: Future Outlook - The negative export growth is expected to be temporary, with projections indicating that the decline may not persist into November and December[21] - The shift in China's export growth logic is moving from traditional markets (EU and US) to ASEAN and emerging markets, which are showing better performance[21] - Despite the challenges, the central tendency of export growth is likely to decline in the fourth quarter, necessitating increased policy efforts to stabilize foreign trade[22] Group 4: Risk Factors - Key risks include insufficient policy support for growth, lower-than-expected global economic conditions, and unexpected trade frictions[25]

Group 1: Liquidity and Financial Indicators - The excess reserve ratio increased by 0.3 percentage points to 1.4% in September, remaining stable compared to June[6] - The general fiscal deficit reached a record high of 2.11 trillion yuan in September, significantly exceeding expectations by approximately 360 billion yuan[6] - Government deposits decreased by 780.4 billion yuan in September, marking the largest decline for the same period in recent years[6] Group 2: October Projections and Market Conditions - In October, government deposits are expected to rise by approximately 380 billion yuan, which is significantly lower than the same period in previous years, reducing negative liquidity impacts[15] - The average interest rates for DR001 and DR007 reached new lows for the year in October, indicating a continued state of liquidity easing[28] - The anticipated excess reserve ratio for November is around 1.3%, remaining stable compared to October and slightly higher than the same period in the past two years[3] Group 3: Monetary Policy and Future Outlook - The central bank's recent actions suggest a maintained easing stance, with expectations for potential interest rate cuts in the future to support economic stability[3] - The central bank's balance sheet showed an increase in claims on other deposit-taking institutions by 897.4 billion yuan in September, aligning with high-frequency data[14] - Risks include potential underperformance in fiscal spending and monetary policy not meeting expectations, which could impact liquidity and market stability[3]

Investment Rating - The report maintains a "Positive" investment rating for the heating industry, consistent with previous assessments [2]. Core Insights - The heating industry is undergoing continuous reform, with a focus on market-oriented pricing and improved cost control, leading to enhanced profitability for well-managed companies [3][4]. - The report highlights significant disparities in profitability among residential heating companies, influenced by pricing policies and cost management strategies [3][4]. - The cash flow situation for heating companies is generally strong due to pre-collection of heating fees, which contributes to positive free cash flow [3][4]. Summary by Sections 1. Residential Heating: A Typical Public Utility Industry - The area of centralized heating in China has steadily increased, with a compound annual growth rate (CAGR) of 7.8% from 2010 to 2023, where residential heating accounts for 76% of the total area [3][4]. - Coal remains the dominant source of heating, constituting over 70% of the supply, primarily through coal-fired combined heat and power (CHP) systems [3][4]. - The government has been actively reforming heating pricing mechanisms, with recent policies aimed at enhancing market-driven pricing and accelerating metering reforms [3][4]. 2. Profitability Disparities Among Residential Heating Companies - Profitability varies significantly among heating companies, with factors such as pricing and cost control playing crucial roles [3][4]. - The report notes that fuel costs account for approximately 60% of total heating costs, making effective fuel cost management essential for profitability [3][4]. - Companies like Lianmei Holdings have demonstrated strong cost control, achieving a gross margin of 24% in 2024, while others like Huitian Thermal Power have faced losses [3][4]. 3. Related Investment Targets - Lianmei Holdings is highlighted for its high level of management efficiency and consistent gross margins above 20%, with a significant portion of its assets in cash [3][4]. - Jingneng Thermal Power benefits from its backing by the Beijing State-owned Assets Supervision and Administration Commission, with a gross margin between 15% and 20% [3][4]. - Jin Fang Energy, operating in Beijing, maintains stable profitability in its core heating business, while Hatou Holdings is expected to improve profitability alongside pricing reforms [3][4].

Investment Rating - The investment rating for the pharmaceutical and biotechnology industry is "Positive" [2] Core Viewpoints - The report highlights that the pharmaceutical equipment sector is expected to benefit from the rising overseas demand cycle [6][15] - The analysis of Q3 performance indicates a relatively high prosperity in sectors such as innovative drugs, CXO, and medical consumables, with a noted improvement trend in the medical device sector since Q3 [15][14] - The report suggests focusing on the flu-related sector in Q4, including vaccines, diagnostics, and drug terminals [15] Summary by Sections 1. Industry Overview - The pharmaceutical and biotechnology sector's weekly return was 1.31%, outperforming the CSI 300 by 1.74%, ranking 9th among 31 first-level sub-indices [13] - The chemical pharmaceutical sector had the highest weekly return at 3.07%, while the medical device sector ranked sixth with a decline of 1.15% [13] 2. Q3 Performance Analysis - Among the companies that disclosed Q3 results, 35% reported both revenue and net profit growth [14] - Approximately 48% of companies experienced revenue declines in Q3, with 20% showing growth between 0-10% [14] - The report identifies a significant number of companies with revenue growth exceeding 20% in various sub-sectors, particularly in chemical preparations and other biological products [14][15] 3. Sector Recommendations - For pharmaceutical equipment, companies like SenSong International, Dongfu Long, and Chutian Technology are recommended due to their expected benefits from overseas demand [15] - In the flu sector, companies such as Hualan Biological Engineering for vaccines and Dongyangguang Pharmaceutical for flu medications are highlighted [15] - Key players in the CXO and life sciences upstream chain include WuXi AppTec and Tigermed, among others [15] - The report also emphasizes high-end medical devices, suggesting companies like United Imaging Healthcare and Mindray Medical for their growth potential [15] 4. Market Performance and Valuation - The current PE (TTM) for the pharmaceutical and biotechnology industry is 30.62, slightly above the 5-year average of 29.08 [22][23] - The industry has shown a 20.89% increase over the last six months, indicating a positive trend despite recent fluctuations [18][21] 5. Recent Developments - The report notes significant policy updates and industry news, including the establishment of a new payment model by the National Medical Insurance Administration [49] - Recent company announcements include drug approvals and clinical trial advancements, reflecting ongoing innovation in the sector [52]

Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company reported a revenue of 4.075 billion yuan for the first three quarters of 2025, representing a year-on-year growth of 3.75%, and a net profit attributable to the parent company of 1.583 billion yuan, which is a year-on-year increase of 23.70% [1] - The "Legend Box" product line showed significant growth, achieving approximately 570 million yuan in revenue in Q3 2025, driven by brand zone entry services [4] - The company has a rich pipeline of new products and is diversifying into AI applications, which are expected to drive future revenue growth [5] Financial Performance Summary - For Q3 2025, the company achieved a revenue of 1.497 billion yuan, a year-on-year increase of 9.08% and a quarter-on-quarter increase of 22.19% [3] - The net profit attributable to the parent company for Q3 2025 was 633 million yuan, reflecting a year-on-year growth of 34.51% and a quarter-on-quarter growth of 46.66% [3] - The company’s gross profit margin for 2025 is projected to be around 82.0% [7] - The expected net profit attributable to the parent company for 2025 is 2.207 billion yuan, with a year-on-year growth of 35.5% [6][7] Product and Market Development - The company has launched several new games in Q3 2025, including "Hot Blood Jianghu: Return" and "Ragnarok: The Promised Adventure," with more titles in the pipeline [5] - The "Legend Box" platform integrates various entertainment forms, enhancing user engagement and monetization opportunities [4] - The company is actively investing in AI technologies, including a 3D AI companion application and an AI development platform tailored for the gaming industry [5]

Investment Rating - The report does not specify an investment rating for the company [1] Core Insights - The company's operating cash flow has significantly improved, with a net cash flow of 348 million yuan in the first three quarters of 2025, a notable increase compared to the same period in 2024 [4] - The company experienced a decline in revenue and net profit due to delayed delivery of boiler equipment and a significant drop in net profit from the previous year [4] - The company is actively expanding into overseas markets and the nuclear power sector, which presents growth opportunities [4] Financial Performance Summary - For the first three quarters of 2025, the company reported total revenue of 4.333 billion yuan, a year-on-year decrease of 11.2%, and a net profit attributable to shareholders of 177 million yuan, down 58.31% [1][4] - The company’s total revenue for 2025 is projected to be 7.067 billion yuan, with a growth rate of 9.8% [6] - The net profit attributable to shareholders is expected to be 459 million yuan in 2025, reflecting a growth rate of 4.3% [6] Order and Market Expansion Summary - The company has a sufficient backlog of orders, with total orders on hand amounting to 5.884 billion yuan, although this represents a year-on-year decrease of 8.26% [4] - New orders in Q3 2025 totaled 1.27 billion yuan, a slight increase of 0.85% year-on-year [4] - The company is focusing on expanding its presence in the renewable energy and storage markets, as well as the nuclear power sector, by enhancing its manufacturing capabilities [4]

1. Report Industry Investment Rating - The investment rating for the shipping and port industry is "Favorable", the same as the previous rating [2] 2. Core View of the Report - The overall throughput performance is stable, so the "Favorable" rating for the shipping and port sector is maintained [8] 3. Summary by Relevant Catalogs 3.1 Overview: National Import - Export Volume and Cargo Throughput - **Import - Export Volume**: From January to September 2025, the national import - export volume reached 33.61 trillion yuan, a year - on - year increase of 4%. The national import volume was 13.66 trillion yuan, a year - on - year decrease of 0.2%, and the national export volume was 19.94 trillion yuan, a year - on - year increase of 7.1% [2][16] - **Cargo Throughput**: From January to September 2025, the cargo throughput of major coastal ports in China reached 86.57 billion tons, a year - on - year increase of 3.5%, and the foreign - trade cargo throughput of major coastal ports reached 37.54 billion tons, a year - on - year increase of 3.1% [3] 3.2 Container: Container Shipping Freight Rates and Container Throughput - **Container Shipping Freight Rates**: On October 31, 2025, CCFI closed at 1021.39 points, a year - on - year decrease of 25.25% and a month - on - month increase of 2.89%. SCFI closed at 1550.7 points, a year - on - year decrease of 29.04% and a month - on - month increase of 10.49% [4] - **Container Throughput**: From January to September 2025, the container throughput of major coastal ports in China reached 232.68 million TEUs, a year - on - year increase of 6.5%. The year - on - year growth rates of Qingdao, Shanghai, Ningbo - Zhoushan, and Shenzhen were 7.3%, 6.2%, 10%, and 5.4% respectively [4] 3.3 Liquid Bulk: Oil Shipping Freight Rates and Crude Oil Throughput - **Oil Shipping Freight Rates**: On October 31, 2025, BDTI closed at 1436 points, a year - on - year increase of 50.05% and a month - on - month increase of 14.33%. On October 30, 2025, the TCE of TD3C, TD25, and TD22 routes were 123,800, 62,600, and 89,700 US dollars per day respectively, with year - on - year growth rates of 295.89%, 82.4%, and 139.58% [5][6] - **Crude Oil Throughput**: From January to September 2025, the crude oil throughput of major crude oil receiving port enterprises reached 297 million tons, a year - on - year decrease of 2.88% [6] 3.4 Dry Bulk: Bulk Shipping Freight Rates and Iron Ore, Coal Throughput - **Bulk Shipping Freight Rates**: On October 31, 2025, BDI closed at 1966 points, a year - on - year increase of 42.67% and a month - on - month decrease of 1.26% [7] - **Iron Ore Throughput**: From January to September 2025, the iron ore throughput of major iron ore receiving port enterprises reached 1.044 billion tons, a year - on - year increase of 3.25% [7] - **Coal Throughput**: From January to September 2025, the coal throughput of major northern coal shipping port enterprises reached 515 million tons, a year - on - year increase of 0.29% [7] 3.5 Key Port Listed Companies' Monthly Throughput - **Shanghai International Port Group**: In September 2025, the cargo throughput was 52 million tons, a year - on - year increase of 11.72%, and the container throughput was 4.833 million TEUs, a year - on - year increase of 13.61% [76] - **Ningbo Port Co., Ltd.**: In September 2025, the cargo throughput was 105 million tons, a year - on - year increase of 16.42%, and the container throughput was 4.64 million TEUs, a year - on - year increase of 13.45% [76] - **China Merchants Port Holdings Co., Ltd.**: In September 2025, the container throughput of Pearl River Delta ports was 1.292 million TEUs, a year - on - year decrease of 15.5%, and the container throughput of overseas ports was 3.308 million TEUs, a year - on - year increase of 12.17% [76] - **Beibu Gulf Port Co., Ltd.**: In September 2025, the cargo throughput was 30 million tons, a year - on - year increase of 9.00%, and the container throughput was 842,500 TEUs, a year - on - year increase of 12.06% [76] - **Guangzhou Port Co., Ltd.**: In September 2025, the cargo throughput was 50 million tons, a year - on - year increase of 2.01%, and the container throughput was 2.255 million TEUs, a year - on - year increase of 7.38% [76]

Group 1 - The total share of actively managed equity funds decreased to 25,406 billion units in Q3 2025, down by 2,656 billion units from Q2 2025, indicating increased net redemption pressure on existing funds [3][6] - The median net redemption rate for existing actively managed equity funds rose significantly from 3.57% in Q2 2025 to 10.34% in Q3 2025, an increase of 6.77 percentage points [11][12] - New fund establishment increased to 2,093 billion units in Q3 2025, up by 634 billion units from Q2 2025, suggesting a potential influx of new capital [11][12] Group 2 - Actively managed equity funds increased their stock positions, with median holding ratios for ordinary stock funds, mixed equity funds, and flexible allocation funds rising to 92.06%, 91.51%, and 88.51% respectively in Q3 2025 [18][22] - The number of high-position public funds increased compared to Q2 2025, with 57.75% of all sample equity funds holding over 90% in stocks [22][33] Group 3 - In Q3 2025, actively managed equity funds focused on large-cap stocks, with the allocation to stocks with a market capitalization of 500 billion to 2 trillion yuan increasing by 3.54 percentage points [3][56] - The allocation to stocks with a market capitalization of over 2 trillion yuan also rose by 5.23 percentage points, indicating a shift towards larger market cap stocks [56][62] Group 4 - The TMT (Technology, Media, and Telecommunications) sector saw a significant increase in allocation, reaching nearly 40% in Q3 2025, marking a historical high [3][5] - The electronics and communication sectors, particularly semiconductors and consumer electronics, received the most substantial increases in allocation among the TMT sectors [3][5] Group 5 - Actively managed equity funds reduced their exposure to consumer and defensive sectors, with the largest decreases in allocation seen in banking, food and beverage, home appliances, and automotive sectors [3][5] - The overall concentration of holdings in specific industries and stocks increased, with the combined share of the top three, five, and ten industries rising significantly [3][5]