1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - Since Q3 this year, the bond market has adjusted significantly, but the decline in the duration of public - offering bond funds is not obvious. It is expected that public - offering bond funds will maintain a moderately high duration level, with the 10 - year Treasury yield oscillating in the range of 1.7% - 1.8%. As the correlation between stocks and bonds weakens and fundamental pressure rises, the bond market environment in the fourth quarter is expected to be better than that in the third quarter [2][8] 3. Summary According to the Directory 3.1 Third - quarter Bond Market Adjustment with No Obvious Decline in Bond Fund Duration - In the third - quarter bond market adjustment, the decline in the duration of bond funds was not obvious. For example, in Q1, the 10 - year Treasury yield rose from about 1.6% in early February to nearly 1.9% in mid - March, and the median duration of the whole - market bond funds dropped from a high of 3 years to about 2.1 years. However, as of September 17, the median duration of public - offering bond funds remained at about 2.5 years, and the median duration of medium - and long - term interest - rate bond funds remained at about 3.1 years [5][14] 3.2 Four Reasons Why Bond Fund Duration is Difficult to Decrease - **Mild Adjustment and Multiple Repairs**: Compared with the Q1 adjustment, the Q3 bond market adjustment was relatively mild, with multiple repairs during the period and did not reach the short - term stop - loss lines of some funds. The adjustment range of the 10 - year Treasury active bond yield since Q3 was less than 20bps, and the adjustment lasted nearly a quarter. In contrast, in Q1, the 10 - year Treasury yield rose about 30bps in more than a month [8][17] - **Performance Assessment and Market Expectations**: The bond market has been volatile this year, especially the performance of bond funds focusing on the duration strategy was significantly weaker than last year. As the fourth quarter is a traditional window for bond market pre -emption and repair, from the perspective of achieving the annual performance assessment, bond funds may not significantly reduce their duration. As of September 14, the median yield of the whole - market bond funds this year was 1.21%, significantly lower than last year's 3.78% [8][26] - **Limited Strategy Options in a Low - interest - rate Environment**: The current bond market is in a low - interest - rate environment, with limited market strategy capacity and options. Public - offering funds have to extend the duration to obtain coupons. Institutions such as wealth management and bank self - operation also have a demand for long - duration bond allocations. As of August this year, the net financing proportion of long - term credit bonds rose to about 33%, a record high [8][33] - **Lack of Massive Redemption Pressure**: Institutions usually conduct continuous and large - scale redemptions of long - term bonds only when the bond market shows obvious "negative feedback" characteristics. A normal market adjustment of general amplitude may not trigger large - scale redemptions and re - allocation of redeemed assets. The current bond market is slowly oscillating and correcting, without triggering widespread market panic [8][34]

Investment Rating - The report suggests a positive outlook for the industry, indicating that the performance of related stocks is expected to outperform the benchmark index over the next 12 months [17]. Core Insights - Huawei's roadmap for AI chips, supernodes, and computing clusters is anticipated to lead a new paradigm in China's AI infrastructure, with supernodes becoming the new norm in AI infrastructure construction [5][11]. - The domestic computing power is constrained by manufacturing processes, but the development of "supernode + cluster" computing solutions is expected to continuously meet computing power demands [5][11]. - The introduction of supernodes is expected to enhance demand and value across multiple computing segments, including increased interconnectivity, liquid cooling value, and the transition from traditional product manufacturers to system solution providers [5][11]. Summary by Sections Event Description - On September 18, 2025, during the Huawei Connect 2025 conference, Huawei announced its AI chip roadmap, including the launch of the Ascend 950PR chip in Q1 2026, the Ascend 950DT chip in Q4 2026, the Ascend 960 chip in Q4 2027, and the Ascend 970 chip in Q4 2028 [8]. Event Commentary - Huawei's recent announcements include the launch of the Atlas 950 SuperPoD and Atlas 960 SuperPoD, supporting 8192 and 15488 Ascend cards respectively, and the introduction of new supernode clusters, Atlas 950 SuperCluster and Atlas 960 SuperCluster, with computing power exceeding 500,000 and reaching one million cards [11]. - The report emphasizes that supernodes are rapidly becoming a new standard in AI infrastructure, with Huawei leveraging its communication capabilities to overcome key bottlenecks and support large model training and inference [11]. - The domestic semiconductor industry is accelerating the iteration of domestic technologies, with improvements in advanced manufacturing processes and increasing localization of supporting equipment and materials [11]. Investment Opportunities - The report suggests focusing on investment opportunities in the following areas: leading domestic AI chip companies like Cambricon, high-end CPU and DCU leaders, supernode server manufacturers such as FiberHome and Digital China, supernode-related partners of Huawei, and suppliers in the advanced semiconductor manufacturing chain [11].

Core Insights - The A-share market experienced a decline today, with all three major indices falling, while the Sci-Tech 50 index rose against the trend, indicating a mixed market sentiment [2][4] - The electronic, telecommunications, and social services sectors led the gains, while the metal materials, mining, comprehensive finance, insurance, and agricultural products sectors saw corrections [2][4] Market Performance - The Shanghai Composite Index fell by 1.15%, the Shenzhen Component Index by 1.06%, the ChiNext Index by 1.64%, the SSE 50 by 1.35%, and the CSI 300 by 1.16%. In contrast, the Sci-Tech 50 rose by 0.72%, and the CSI 1000 dropped by 1.04%. The total market turnover was approximately 3.17 trillion yuan [2][7][12] - Among the Longjiang primary industries, electronics (+0.93%), telecommunications (+0.31%), and social services (+0.29%) were the top performers, while metal materials and mining (-3.16%), comprehensive finance (-3.00%), and insurance (-2.22%) lagged [7][12] Market Drivers - The decline in the A-share market was accompanied by increased trading volume, returning to high levels. AI computing hardware stocks led the gains, while sectors such as trading software, rare metals, and industrial metals experienced corrections [7][12] - The market outlook remains optimistic, with expectations of a "slow bull" trend in the A-share market, driven by ample liquidity and the potential for long-term capital inflows [12][13] Investment Strategy - Short-term focus should be on sectors with recent revenue growth and improving gross margins, including fiberglass, cement, fine chemicals, and other materials. Additionally, technology growth sectors such as AI computing and robotics should be monitored [12][13] - Long-term perspectives favor sectors benefiting from "de-involution" trends, including metals, transportation, chemicals, and lithium batteries, as well as high-end manufacturing technologies like AI and robotics [12][13]

Market Overview - On September 18, 2025, the Hong Kong stock market recorded a total trading volume of HKD 413.31 billion, with net inflows from southbound funds amounting to HKD 6.288 billion [2][7] - The Hang Seng Index closed down 1.35% at 26,544.85, while the Hang Seng Technology Index fell 0.99% to 6,271.22 [5][7] Industry Insights - The recent announcement by Huawei regarding the evolution and goals of its Ascend chips over the next three years has positively impacted the semiconductor sector, leading to a significant rise in the Wind Hong Kong Semiconductor Index [2][7] - The performance of leading toy companies in Hong Kong has driven the Wind Hong Kong Durable Consumer Goods Index upward, attributed to the strengthening of their IP matrix, expectations of a consumption peak season, and a technical rebound from previous declines [2][7] Sector Performance - Among the major sectors, basic chemicals (+2.10%), pharmaceuticals (+0.31%), and defense industry (+0.10%) led the gains, while the comprehensive sector (-6.98%), coal (-2.47%), and media (-2.42%) faced declines [5][7] - Concept indices such as online education (+11.61%), financial IC (+8.49%), and Foxconn (+6.14%) showed strong performance, while local brokerage (-5.65%), liquor (-3.16%), and Wanda shares (-2.96%) lagged [5][7] Future Outlook - The report suggests three potential directions for the Hong Kong stock market to reach new highs: 1) AI technology and new consumption are expected to drive market growth, 2) continued inflows from southbound funds will enhance pricing power, and 3) improvements in global liquidity due to potential further rate cuts by the US could support market growth [2][7]

Investment Rating - The report maintains a "Positive" investment rating for the industry [6]. Core Insights - On August 29, 2025, xAI launched the intelligent programming model Grok Code Fast 1, which supports 256K context with input pricing at $0.2/M tokens and output pricing at $1.5/M tokens. The model is designed to address developers' real-world tasks with high cost-effectiveness and response efficiency, showing potential for large-scale deployment in the coding field [2][4]. - The model has received positive feedback on platforms like OpenRouter, and there is a focus on continuous updates and iterations of Grok Code Fast 1. The investment logic around agents is being strengthened, with accelerated iterations of models both domestically and internationally, leading to improved capabilities and reduced costs [2][9]. Summary by Sections Event Description - xAI released Grok Code Fast 1 on August 29, 2025, featuring 256K context support, with a promotional first week of free usage. The pricing structure is set at $0.2/M tokens for input and $1.5/M tokens for output, applicable across various programming platforms and IDEs [4]. Performance and Competitive Advantage - Grok Code Fast 1 is designed for real-world developer tasks, emphasizing high performance and cost-effectiveness. It achieved a SWE-Bench-Verified score of 70.8%, close to the Claude 4 series. The model boasts a response time of a few seconds and a token output efficiency of 196 TPS, significantly outperforming competitors like Gemini-2.5 Pro and GPT-5 [9]. - The model's pricing is highly attractive for coding scenarios, with output costs significantly lower than competitors, which may lead to increased market share and rapid deployment [9]. Model Development and Feedback - The model utilizes a new architecture and is fine-tuned with high-quality datasets from real-world coding tasks. Continuous feedback from users on various platforms is enhancing the model's capabilities, making it a preferred choice for complex automation tasks [9]. Future Outlook - The low-latency and high real-time capabilities of Grok Code Fast 1 are expected to accelerate the deployment of professional workflow agents. The focus on high-speed and cost-effective solutions is likely to transform the software development paradigm [9]. - The report suggests monitoring AI agent-related companies, the Chinese inference computing industry chain, and CSP manufacturers driven by inference demand [9].

Investment Rating - The industry investment rating is "Positive" and maintained [8] Core Insights - On September 15, 2025, xAI launched Grok-4 Fast, which is the fastest AI model in its lineup, achieving a generation speed of 75 tokens per second, ten times faster than the standard version. User feedback indicates a response speed that can be up to ten times that of the standard version. The early access version is currently being pushed to paid users, limited to Super Grok and X Premium+ subscribers. This speed-oriented design is expected to enhance user experience and efficiency, making it suitable for scenarios that require immediate results, and is likely to be integrated into development tools and mobile platforms, thereby shortening the commercialization cycle of AI applications [2][5][11]. Summary by Sections Event Description - The launch of Grok-4 Fast on September 15, 2025, is highlighted, with user feedback indicating a response speed that can reach up to ten times that of the standard version. The early access version is currently available to paid users only [5]. Event Commentary - The Fast version is positioned as a high-speed reasoning AI assistant, aiming to simplify complex task processes and address response delays in real-time interaction scenarios. This update makes the model more suitable for real-time applications such as rapid code generation and instant query processing. The introduction of a "background thinking function" is also noted, which may allow users to continue chatting while the assistant processes information. This could lead to significant improvements in the practicality of AI assistants [11]. Competitive Landscape - The focus on reasoning efficiency may become a new competitive factor, as other leading model manufacturers are also launching low-latency, high-speed models. The competition may shift from "extreme performance" to "reasoning efficiency first," with interaction paradigms evolving from "single-turn dialogue" to "real-time interaction and multi-turn agents" [11]. Future Outlook - Continuous attention is recommended for the subsequent releases of large models both domestically and internationally. The core logic of investment in agents is being reinforced, with expectations for a pivotal moment in Q4 for domestic models and applications. The capabilities of models are anticipated to improve while costs decrease, potentially accelerating the commercialization of agents in vertical scenarios like coding [11]. Investment Recommendations - Suggested areas for investment include: 1. AI Infrastructure, with a focus on domestic core players like Alibaba 2. AI Agent-related companies 3. The reasoning computing power industry chain in China 4. Cloud service providers benefiting from increased reasoning demand 5. IDC, particularly those collaborating with major firms like Tencent, Alibaba, and ByteDance [11].

Investment Rating - The report maintains a "Positive" investment rating for the industry [12] Core Insights - The report analyzes the growth trajectory and core competitive factors of the classic running shoe brand ASICS, highlighting its successful expansion in the global market despite past challenges [4][10] - It emphasizes the importance of addressing consumer pain points and the effectiveness of a focused single-brand strategy in the current multi-brand strategy environment [10] Summary by Sections Runner Demand Orientation - ASICS emerged as a leading running shoe brand in Japan by addressing the specific needs of runners, leveraging the country's strong marathon culture and continuous innovation [7][20] Strong Product Power & Localization - ASICS successfully expanded into overseas markets, particularly in Europe and North America, by localizing products and targeting professional runners through community marketing [8][83] Focus on Product and Service Ecosystem - After facing declining revenues and profits since 2016, ASICS refocused on high-margin running shoes and enhanced its service ecosystem for runners, leading to a significant recovery in performance [9][10] Challenges in the Chinese Market - ASICS entered the Chinese market in 2006 but faced challenges due to a lack of marathon events and a mismatch between its professional product offerings and the local demand for casual and fashionable sportswear [10][87]

Investment Rating - The investment rating for the company is "Buy" and it is maintained [7]. Core Views - The company reported a net profit attributable to shareholders of -175 million yuan in Q2 2025, which is a 51% increase quarter-on-quarter; however, the non-recurring net profit attributable to shareholders was -671 million yuan, reflecting a 177% decrease quarter-on-quarter [2][4]. - The company is expected to see an increase in self-supply rates and improvements in production costs as it enters a phase of accelerated resource release [9]. - The lithium price has been declining, which has pressured the company's profitability, with a gross margin of 9.65% in Q2 2025, down 3.3 percentage points quarter-on-quarter [9]. Summary by Sections Financial Performance - In H1 2025, the company's lithium salt business gross margin was 8.36%, down 3.39 percentage points year-on-year, while the lithium battery business gross margin was 14.17%, up 4.29 percentage points year-on-year [9]. - The company recorded a non-recurring income of 382 million yuan in H1 2025, primarily from the disposal of non-current assets and government subsidies [9]. - In Q2 2025, the average price of battery-grade lithium carbonate was 65,300 yuan/ton, down 14% quarter-on-quarter, and the average price of battery-grade lithium hydroxide was 64,800 yuan/ton, down 8% quarter-on-quarter [9]. Production and Cost Outlook - The company plans to produce 30,000-35,000 tons of lithium carbonate equivalent (LCE) in 2025, with a long-term operating cost expected to reach 65,430 USD/ton LCE (approximately 47,000 yuan/ton LCE) [9]. - The Goulamina lithium concentrate project is expected to commence production in December 2024, with promising profitability due to its resource scale and quality advantages [9]. - The Mariana salt lake project has already commenced production, with expectations for stable supply of lithium chloride products in H2 2025 [9]. Market Position and Future Prospects - The company is positioned as a leading resource player with a faster increase in self-supply rates and continuous cost optimization, which is expected to gradually improve profitability [9]. - The company is also increasing its focus on battery business, with the largest global capacity for lithium metal, indicating significant growth potential in the future [9].

Group 1: Federal Reserve Actions - The Federal Reserve lowered the federal funds rate by 25 basis points (BP) to a target range of 4.00%-4.25% during the September 2025 meeting[2] - The dot plot indicates an increase in the expected cumulative rate cuts for the year from 50 BP to 75 BP[8] - The voting outcome was 11-1, with only one member supporting a 50 BP cut, indicating limited influence from the "MAGA" faction within the Fed[8] Group 2: Economic Outlook - The Fed raised its GDP growth forecasts for 2025-2027, adjusting them to 1.6%, 1.8%, and 1.9% respectively[8] - The unemployment rate forecasts for 2026 and 2027 were lowered by 0.1 percentage points (pct) to 4.4% and 4.3% respectively[8] - The inflation expectations for 2026 were increased by 0.2 pct for both PCE and core PCE to 2.6%[8] Group 3: Future Projections - The Fed is likely to implement another rate cut in October 2025, with a potential for 1-2 additional cuts by the end of the year[8] - The focus of monetary policy decisions has shifted from inflation to employment, reflecting the rising risks in the job market[8] - The impact of tariffs on inflation is expected to be mild and largely one-time[8]

Fiscal Performance - Cumulative broad fiscal expenditure from January to August decreased year-on-year to 8.9%, with August showing a decline to 6%[3] - National general public budget revenue reached 14.8 trillion yuan, growing by 0.3% year-on-year, while expenditure was 17.9 trillion yuan, increasing by 3.1%[7] Revenue Trends - Tax revenue in August continued to show positive growth for five consecutive months, with a year-on-year increase of 3.7%, while non-tax revenue fell by 3.8%[10] - The structure of tax revenue in August revealed significant contributions from securities transaction stamp duty, which surged by 226% year-on-year, contributing 1.4 percentage points to overall tax revenue growth[10] Expenditure Insights - August's broad fiscal expenditure fell by 5.8% year-on-year, with public fiscal expenditure down by 0.6% and government fund expenditure declining by 19.9%[10] - Key areas such as social security and education maintained high growth rates, with expenditures increasing by 10.9% and 4.0% respectively[10] Land Sales and Debt - Revenue from land sales turned negative again in August, decreasing by 5.4% year-on-year, although overall land transaction values showed a 2% increase compared to last year[10] - The issuance of special bonds and treasury bonds supported fund expenditures, with actual issuance from January to August reaching 4.8 trillion yuan, up by 1.6 trillion yuan year-on-year[10] Debt Management - The government debt showed negative growth in August, indicating potential downward pressure on fiscal expenditure growth due to last year's high base[10] - The net financing of government debt from January to August was 4.3 trillion yuan, with expectations of a decline of 1.4 trillion yuan from September to December[10]