Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - 10月27日至11月2日地方债披露发行2706.82亿元，其中新增债1719.10亿元，再融资债987.72亿元 [1][5] - 10月20日至10月26日地方债共发行2472.28亿元，其中新增债1136.52亿元，再融资债1335.76亿元 [1][6] - 截至10月26日，第五轮第二批特殊再融资债共披露19934.09亿元，第六轮特殊再融资债共披露544.89亿元，下周新增披露245.84亿元；2025年特殊新增专项债共披露12379.89亿元，2023年以来共披露24258.52亿元 [7] Summary by Related Catalogs Local Bond Actual Issuance and Forecast Issuance - 10月20日至10月26日地方债净供给1658亿元，10月27日至11月2日地方债预告净供给1780亿元 [15] - 展示9月和10月地方债计划与实际发行情况，以及地方债近月发行计划与实际发行、净融资情况 [16][23] Local Bond Net Supply - 截至10月26日，新增一般债发行进度83.69%，新增专项债发行进度87.11% [28] - 截至10月26日，再融资债减地方债到期当年累计规模情况展示 [29] Special Bond Issuance Details - 截至10月26日，特殊再融资债统计情况展示，包括各轮发行额及各地区情况 [34] - 截至10月26日，特殊新增专项债统计情况展示，包括2023 - 2025年各地区情况 [37][38] Local Bond Investment and Trading - 展示地方债一二级利差及分区域二级利差情况 [41][42] - 展示新增专项债投向情况，最新月份统计只考虑已发行的新增债 [43]

1. Report Industry Investment Rating No information regarding the industry investment rating is provided in the given content. 2. Core Viewpoints of the Report - From October 20 to October 24, 2025, the central bank had a net injection of funds through short - term reverse repurchase. On October 27, it conducted a 900 billion yuan MLF operation, with a net MLF injection of 200 billion yuan in October. The overall liquidity situation was loose [2][6]. - The liquidity remained loose, but there was some volatility pressure at the end of the month. The central bank showed a clear attitude of caring for liquidity, with a continuous net injection of medium - and long - term liquidity. However, at the end of October, due to the overlap of tax payments and cross - month disturbances, the cross - month liquidity was expected to be generally stable but with some volatility compared to the mid - month level [7]. - The net payment scale of government bonds increased. From October 20 to October 26, 2025, the net payment scale of government bonds was about 214.2 billion yuan, an increase of about 74 billion yuan compared to the period from October 13 to October 19. From October 27 to November 2, the net payment scale of government bonds was expected to be 133.72 billion yuan [8]. - Most of the maturity yields of inter - bank certificates of deposit (NCDs) declined, while the 1 - year yield increased. The net financing amount of NCDs increased. From October 20 to October 26, 2025, the net financing amount of NCDs was about 345.4 billion yuan. From October 27 to November 2, the maturity repayment amount of NCDs was expected to be 564.3 billion yuan [9]. - The average leverage ratio of the inter - bank bond market decreased slightly. Based on the calculation results, the duration of medium - and long - term pure bond funds decreased, while the duration of short - term pure bond funds increased [10]. 3. Summary by Relevant Catalogs 3.1 Funds - **Central Bank Operations**: From October 20 to October 24, 2025, the central bank's 7 - day reverse repurchase had a net injection of 7.81 billion yuan. On October 23, it conducted a 12 billion yuan treasury cash fixed - deposit operation. In October, the MLF matured at 700 billion yuan, and on October 27, the central bank conducted a 900 billion yuan MLF operation, with a net MLF injection of 200 billion yuan. The two medium - and long - term liquidity tools, namely, the repurchase and MLF, had a total net injection of 600 billion yuan in October [6]. - **Liquidity Situation**: From October 20 to October 24, 2025, the average values of DR001 and R001 were 1.32% and 1.37% respectively, up 0.2 and 1.3 basis points compared to the period from October 13 to October 17. The average values of DR007 and R007 were 1.43% and 1.47% respectively, up 0.4 and down 0.4 basis points compared to the previous period. The overall liquidity was still relatively loose, but there was a slight increase in the weighted average rate of DR001 on October 24 [7]. - **Government Bond Net Payment**: From October 20 to October 26, 2025, the net payment scale of government bonds was about 214.2 billion yuan, with the net financing amount of national bonds about 77.5 billion yuan and that of local government bonds about 136.7 billion yuan. From October 27 to November 2, the net payment scale of government bonds was expected to be 133.72 billion yuan, with the net financing of national bonds about - 53.94 billion yuan and that of local government bonds about 187.66 billion yuan [8]. 3.2 Inter - bank Certificates of Deposit - **Maturity Yields**: As of October 24, 2025, the 1 - month and 3 - month maturity yields of NCDs were 1.4950% and 1.5900% respectively, down 1.0 and 0.4 basis points compared to October 17. The 1 - year maturity yield was 1.6750%, up 0.9 basis points compared to October 17 [9]. - **Net Financing Amount**: From October 20 to October 26, 2025, the net financing amount of NCDs was about 345.4 billion yuan, higher than the 222.7 billion yuan in the period from October 13 to October 19. From October 27 to November 2, the maturity repayment amount of NCDs was expected to be 564.3 billion yuan [9]. 3.3 Institutional Behavior - **Inter - bank Bond Market Leverage Ratio**: From October 20 to October 24, 2025, the average calculated leverage ratio of the inter - bank bond market was 107.56%, slightly lower than the 107.69% in the period from October 13 to October 17 [10]. - **Duration of Pure Bond Funds**: On October 24, 2025, the median duration (MA5) of medium - and long - term interest - style pure bond funds was 4.79 years, down 0.53 years week - on - week, at the 79.1% quantile since the beginning of 2022. The median duration (MA5) of short - term interest - style pure bond funds was 2.53 years, up 0.26 years week - on - week, at the 83.9% quantile since the beginning of 2022 [10].

- The report highlights the "Dividend Enhanced Combination" strategy, which focuses on high-dividend stocks and aims to outperform the CSI Dividend Index. However, this strategy underperformed the CSI Dividend Total Return Index during the week[4][11][22] - The "Electronic Balanced Allocation Enhanced Combination" strategy is designed to achieve balanced exposure within the electronics sector. It outperformed the Electronics Total Return Index with a weekly excess return of approximately 0.27%, ranking in the 36th percentile among technology-themed fund products[4][25][31] - The "Electronic Sector Preferred Enhanced Combination" strategy targets mature sub-sector leaders within the electronics industry. This strategy is part of the industry enhancement series introduced by the research team[10][25]

Investment Rating - The industry investment rating is "Positive" and maintained [8] Core Viewpoints - Alibaba's first self-developed AI glasses, Quark AI glasses, have officially started pre-sale, marking the first smart glasses in China to integrate biometric payment [2][4] - Kangnate Optical, as the exclusive lens supplier for Quark AI glasses, leverages its strong industry background and innovative capabilities to establish a solid optical foundation for the product [2][4] - The Quark AI glasses utilize integrated custom lenses, which only support factory customization, giving lens manufacturers a significant advantage over smaller companies due to advanced technology [2][10] Summary by Sections Event Description - On October 24, Alibaba announced the pre-sale of its first self-developed AI glasses, Quark AI glasses, which are the first in China to feature integrated biometric payment [4] - Multiple smart glasses brands have recently made new moves, including Raybird Innovation's launch of the Air4 series, the world's first HDR-supported smart viewing glasses, and a strategic partnership between JD Technology and Rokid to launch a smart glasses shopping application [4] Product Features - The Quark AI glasses feature near-eye display capabilities, high-definition photography, and various audio functions, with a lightweight design of approximately 51g [6] - The glasses support multiple battery modes and innovative battery replacement design, enhancing user convenience [6] - The product is priced at 4,699 yuan for the non-prescription version, with various custom prescription lens options available at different price points [5] Market Outlook - The global smart glasses market is accelerating its iteration, with the potential to become the next big consumer electronics product, benefiting all segments of the supply chain, including optical lenses [10] - Kangnate Optical ranks second globally and first in China in resin lens sales volume for 2024, indicating strong growth potential for leading lens manufacturers [10]

Investment Rating - The investment rating for the steel industry is Neutral, maintained [8] Core Insights - The report discusses the revisions made to the "Steel Industry Capacity Replacement Implementation Measures" by the Ministry of Industry and Information Technology, comparing the 2021 version with the 2025 draft [2][4][5] - The demand for steel continues to improve, with a slight year-on-year decrease in apparent consumption of major steel products by 1.18% and a month-on-month increase of 2.57% [4] - The average daily pig iron output of sample steel enterprises has decreased slightly to 2.399 million tons, with a year-on-year decrease of 1.15% and a month-on-month increase of 1.29% in total steel production [4][5] - Total steel inventory has decreased by 1.75% week-on-week, while year-on-year it has increased by 22.16% [5] Summary by Sections Capacity Replacement Measures - The 2025 draft maintains the definition of "compliant capacity" as in 2021, but introduces stricter regulations on capacity replacement, particularly regarding "zombie capacity" [12] - New provisions allow for capacity replacement between different enterprises for two years after the implementation of the 2025 measures, after which such exchanges will be prohibited [12] - The replacement ratio for iron and steel capacity in 2025 is set at no less than 1.5:1 across provinces, expanding the scope compared to the 2021 measures [12] Market Dynamics - The report highlights the broad demand for underground pipeline networks, with an expected investment exceeding 5 trillion yuan, benefiting pipe-related companies [4] - The "anti-involution" policy is expected to boost market expectations, with increased construction intensity towards the end of the year likely to enhance demand for building materials [4] Investment Opportunities - The report identifies four main investment lines: 1. Companies benefiting from the release of new capacities in iron ore and coke, such as Nanjing Steel and Baosteel [29] 2. Companies with low market capitalization relative to their earnings, such as New Steel and Fangda Special Steel [29] 3. Mergers and acquisitions under the state-owned enterprise reform, which may enhance asset quality and valuation [31] 4. High-quality processing leaders and resource companies, particularly in the context of macroeconomic recovery expectations [31]

Investment Rating - The report maintains a "Positive" investment rating for the transportation industry [7] Core Insights - The passenger transport volume is recovering, with domestic passenger volume increasing by 3% year-on-year and international passenger volume rising by 17% [5][13] - Shipping rates for container shipping are showing strong support, while oil and bulk shipping rates have slightly adjusted downwards [6][39] - Logistics technology financing is accelerating, with express delivery volume increasing by 7.8% year-on-year [5][50] Summary by Sections Passenger Transport - Domestic passenger volume has shown a 3% year-on-year increase as of October 24, with international passenger volume up by 17% [5][13] - The average domestic seat occupancy rate has improved by 1.0 percentage points year-on-year, while international occupancy has increased by 5.1 percentage points [22] - Oil prices have decreased by 0.7% year-on-year, putting slight pressure on industry revenue [22] Shipping - The average VLCC-TCE rate has decreased by 8.4% to $79,000 per day [39] - The SCFI index for foreign trade container shipping has increased by 7.1% to 1,403 points, indicating strong pricing support from shipping companies [6][39] - The BDI index has decreased by 3.8% to 1,991 points, reflecting a softening demand for large vessel rentals [39] Logistics - The express delivery volume from October 13 to October 19 reached 3.944 billion pieces, a year-on-year increase of 7.8% [50] - The average price for bulk commodity road transport has increased by 4.8% year-on-year, reaching 0.33 yuan per ton [50] - The average daily transport volume at Ganqimaodu was 900 vehicles, with a short-distance average price of 90 yuan per ton, reflecting a 13 yuan increase [50]

Investment Rating - The investment rating for the banking industry is "Positive" and is maintained [10] Core Insights - The A-share risk appetite has temporarily rebounded, with the banking index lagging behind, while H-shares of major banks have outperformed. The proportion of southbound holdings has increased, indicating a sustained interest in H-shares due to their undervaluation and high dividend characteristics [2][9] - The central bank's report for Q3 2025 indicates a negative growth rate for real estate loans, with a year-on-year decline of 0.1%. This marks the first negative growth in real estate development loans since Q2 2022, primarily driven by weak sales [6][7][39] - The performance of banks that have disclosed their Q3 results shows an upward trend in profit growth, with interest income rebounding. Chongqing Bank reported a surprising growth of over 10% in the first three quarters [8][49] Summary by Sections Banking Index Performance - The banking index rose by 1.3% this week, underperforming compared to the CSI 300 and ChiNext indices, which saw excess returns of -1.9% and -6.7% respectively. Agricultural Bank of China H-shares led the gains with a 7.9% increase, while the A/H share growth for Agricultural Bank reached 56.4% and 43.6% respectively [2][9][18] Loan Trends - The central bank's Q3 report shows that the proportion of corporate loans has increased, while industrial medium- and long-term loan growth has declined to 9.7%, down 1.5 percentage points from the previous quarter. Real estate loans have turned negative, with development loans down 1.3% year-on-year, reflecting weak sales [6][38][39] - Personal housing loans also saw a year-on-year decline of 0.3%, with a net decrease of 292.1 billion yuan in Q3, indicating ongoing weakness in the housing market [7][39] Bank Earnings Reports - As of October 24, banks such as Huaxia Bank, Ping An Bank, and Chongqing Bank have reported their Q3 earnings. Chongqing Bank's performance exceeded expectations with over 10% growth, while Huaxia and Ping An faced challenges due to non-interest income declines [8][49][51] Market Dynamics - The market dynamics indicate a recovery in trading volumes and turnover rates for bank stocks, with a notable increase in the turnover rate for joint-stock banks. The overall trading environment for bank stocks is expected to improve as previous funding pressures ease [29][30]

Investment Rating - The report maintains a "Positive" investment rating for the military industry [2] Core Insights - The report emphasizes the timely achievement of the centenary goal of building a strong military, highlighting the modernization of national defense and military capabilities [13] - It identifies three dimensions—defense budget, military trade, and military-civilian integration—as key areas for growth in the military industry, indicating that the sector still has significant growth potential [20] - The report outlines a new "three-step" strategy for national defense and military modernization, aiming for substantial advancements by 2035 and a world-class military by the mid-21st century [17] Summary by Sections Section 1: National Defense and Military Goals - The Fourth Plenary Session of the 20th Central Committee emphasizes achieving the centenary goal of building a strong military and advancing military modernization [13] - The session outlines a strategic framework for military development, focusing on political, reform, technological, and talent-driven advancements [13] Section 2: Defense Budget and Military Trade - China's defense budget for 2025 is projected at 1.7847 trillion yuan, with a growth rate of 7.2%, which is higher than the GDP growth target [23] - The report notes that China's defense spending as a percentage of GDP has room to grow, with a current ratio lower than that of major Western countries [23][25] - China's military trade share in the global market is approximately 6%, with potential for significant growth if it reaches 10%-20% [28] Section 3: Military-Civilian Integration - The report highlights the commercial aviation sector's potential for growth, estimating that the domestic commercial aircraft market could be 2.5 times the current military aircraft market [33] - It discusses the expected growth in the commercial aerospace sector, driven by advancements in satellite technology and the establishment of large satellite constellations [39] Section 4: Space Industry Development - The Fourth Plenary Session calls for accelerated construction of a strong aerospace nation, with significant investments in commercial space initiatives [39] - The report details plans for multiple large-scale satellite constellations, with significant deployment milestones set for 2025, 2027, and 2030 [52][48] Section 5: Investment Strategy for the Military Industry - The report suggests a focus on companies that enhance product capabilities, market penetration, and customer pricing as key investment targets [71] - It emphasizes the importance of selecting stocks based on their potential for growth in the context of military modernization and technological advancements [71]

Investment Rating - The report maintains a "Positive" investment rating for the coal industry [9] Core Viewpoints - The coal price continues to rise, but the coal sector is experiencing increased volatility. Despite the nearing end of concentrated coal replenishment by power plants, extreme weather and tight supply conditions suggest that coal prices are likely to rise in Q4 2025 and may recover year-on-year by 2026. The report emphasizes the importance of focusing on the coal sector, which has shown signs of bottom reversal, supported by strong short-term fundamentals, a global interest rate cut cycle, and resilient long-term demand [2][7][9] Summary by Sections Weekly Tracking Summary - The coal index (Yangtze) increased by 1.49%, underperforming the CSI 300 index by 1.76 percentage points, ranking 22nd out of 32 industries. As of October 24, the market price for Qinhuangdao thermal coal was 770 CNY/ton, up 22 CNY/ton week-on-week. The report anticipates that coal prices will likely remain stable and fluctuate in the short term due to tight supply and seasonal demand [6][15][19] Supply and Demand Situation - As of October 23, the daily coal consumption in 25 provinces was 5.335 million tons, a week-on-week increase of 2.8%. The total coal inventory was 128.17 million tons, with a usable days count of 24.0 days, down 0.5 days from the previous week. The report indicates that coal supply remains tight due to production checks and seasonal demand [16][34][36] Investment Recommendations - The report recommends focusing on companies with strong defensive and offensive characteristics, such as Yanzhou Coal Mining Company (H+A), China Power Investment Corporation, and Xinji Energy. It also suggests considering companies with high elasticity and growth potential, such as Lu'an Environmental Energy and Jinkong Coal Industry, as well as stable leaders like China Shenhua Energy [7][27][30]

Investment Rating - The report maintains a "Positive" investment rating for the investment banking and brokerage industry [7] Core Insights - The industry is entering a period of concentrated third-quarter report disclosures, with the market remaining at high levels, indicating that brokerage firms are likely to continue their high growth trend, presenting investment opportunities [2][4] - In the insurance sector, profit growth for the top companies in the first three quarters has been significantly revised upward compared to previous expectations, with notable investment returns alleviating short-term concerns. This supports the logic of deposit migration, increased equity allocation, and improved new policy costs, enhancing the certainty of long-term ROE improvement and accelerating valuation recovery [2][4] - The overall cost-effectiveness of investment is gradually improving, aligning with the judgment of a long-term upward turning point [2][4] Summary by Sections Industry Performance - The non-bank financial index increased by 2.0% this week, with a year-to-date increase of 8.1%, although it ranks lower in relative performance against the CSI 300 index [5] - The market's trading activity has decreased, with an average daily turnover of 17,973.14 billion yuan, down 18.04% week-on-week [5] Insurance Sector - The cumulative premium income for the insurance industry in August 2025 reached 47,999 billion yuan, reflecting a year-on-year increase of 9.63%, with life insurance premiums growing by 11.43% [23][24] - The total assets of the insurance industry as of August 2025 were 40.11 trillion yuan, with a quarter-on-quarter increase of 1.32% [28][29] Brokerage Firms - The report recommends stable profit growth and dividend rates for companies such as Jiangsu Jinzu, China Ping An, and China Pacific Insurance, highlighting their strong market positions [4] - Additional recommendations include New China Life, China Life, Hong Kong Exchanges and Clearing, CITIC Securities, Dongfang Caifu, Tonghuashun, and Jiufang Zhitu Holdings based on their performance elasticity and valuation levels [4] Market Trends - The report notes a recovery in the equity market, with the CSI 300 index rising by 3.24% and the ChiNext index by 8.05% [42][47] - The financing scale for equity and bond markets showed a rebound in September, with equity financing reaching 416.34 billion yuan, up 86.6% month-on-month [54]