Report Industry Investment Rating No relevant content provided. Core View of the Report - Currently in the observation period after the escalation of tariff games, there is a risk of further escalation externally, while domestically, it is in the stage of waiting for macro - policy hedging. The risk of extreme tariff pressure from the outside has been gradually digested, but the risk of the performance reports of listed companies in late April has not been fully digested. The short - term market may still experience a shock and pullback. Although the "national team" unexpectedly supported the market on Tuesday, its intention needs to be observed. The domestic demand and technology sectors are still the key areas to focus on. An arbitrage strategy of going long on CSI 300 and short on CSI 1000 is recommended, and short positions on CSI 1000 can be gradually closed according to market conditions during market pullbacks, while retaining long positions on CSI 300 according to one's own position [3][11] Summary by Directory 1. Market Views 1.1 Overseas Overnight - The US New York Fed Manufacturing Index in April was - 8.1%, higher than the expected - 14.5 and the previous value of - 20, indicating that the decline of the US manufacturing industry has slowed down. There has been no progress in the US - EU trade negotiations, and the EU expects the US to maintain its tariff policy. White House Press Secretary Levitt emphasized that Trump is willing to reach an agreement with China. Although the tariff negotiation is at a stalemate, there is a risk of escalation. Overnight, the US dollar index rebounded slightly, US Treasury yields declined, gold prices rose, the three major US stock indexes fell, the Nasdaq Golden Dragon China Index dropped, and the offshore RMB exchange rate depreciated. Continued monitoring of tariff news is needed as it will increase asset volatility [1][5] 1.2 Domestic Market Review - On Tuesday, the broader market opened lower, fluctuated, and then rose 0.15%, the Shenzhen Component Index fell 0.27%, and the ChiNext Index dropped 0.13%. The market showed a narrow - range index fluctuation and a differentiated stock performance. The banking sector led the gains, indicating an attempt to stabilize the index, but market risk appetite did not significantly recover. The "national team" intervened to support the market during the intraday index pullback, mainly focusing on the CSI 300, while the CSI 2000 showed no action, indicating a clear intention to stabilize the index. The beauty care, banking, household appliances, textile and apparel, and media sectors led the gains, while the military, commerce and retail, electronics, and steel sectors led the losses. There were 2,417 rising stocks and 2,811 falling stocks in the entire market [2][6] 1.3 Important News - Trump stated that the suspension of tariffs is for a transition period and for flexibility, and will accelerate the issuance of all necessary licenses to NVIDIA, which faces a cost of $5.5 billion due to US export restrictions, and its stock price fell 6% after - hours [7] - The US launched an investigation into the national security risks posed by key minerals and their derivatives that rely on imported processing [7] - US Vice - President Vance said that the US and the UK are likely to reach a "great trade agreement" [8] - Canada will suspend tariffs on some US goods for six months and conditionally exempt some counter - measures against imported US cars. Mexico strengthened inspections, and fuel imports from the US Texas border came to a halt. The EU expects the US to maintain its tariffs due to little progress in negotiations [8][9] - Premier Li Qiang emphasized during a research trip in Beijing that greater efforts should be made to promote consumption, expand domestic demand, and strengthen the domestic economic cycle. The Chinese real estate market still has significant development potential in the current and future periods [9] - China and Vietnam issued a joint statement on deepening their comprehensive strategic partnership and accelerating the construction of a China - Vietnam community with a shared future of strategic significance [9] - The China Photovoltaic Industry Association held a symposium on preventing "involution - style" vicious competition in photovoltaic inverters and energy storage, and initially reviewed an initiative for the healthy development of the inverter and energy storage industries [9] - A new national standard for electric vehicle batteries was announced, requiring no fire or explosion in thermal diffusion tests [10] 1.4 Today's Strategy - As mentioned in the core view, focus on domestic demand and technology sectors, and adopt the arbitrage strategy of going long on CSI 300 and short on CSI 1000 [3][11] 2. Futures Market Tracking - The report provides detailed data on the performance, trading volume, and positions of various futures contracts such as Shanghai 50, CSI 300, CSI 500, and CSI 1000, including closing prices, settlement prices, price changes, price change rates, basis, trading volume, and position changes [13][14] 3. Spot Market Tracking - It presents the performance of various spot market indexes such as the Wind All - A Index, Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index, including current points, daily, weekly, monthly, and annual price changes, trading volumes, and changes in trading volumes. It also analyzes the impact of different market styles (cycle, consumption, growth, finance, stability) on indexes like the Shanghai 50, CSI 300, CSI 500, and CSI 1000, and provides data on index valuations, trading volumes, and turnover rates [32][33][35] 4. Liquidity Tracking - It shows the central bank's open - market operations (money injection, money withdrawal, and net money injection) and the SHIBOR interest rate levels [51]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - A-shares withstood extreme pressure from the US tariff hikes. The market showed a trend of first falling and then rising, with the Shanghai Composite Index up 1.31%, the Shenzhen Component Index up 1.22%, and the ChiNext Index up 0.98%. The market's pessimistic expectations were eased by the injection of liquidity into individual stocks by the national team [2][5]. - The US made concessions due to the sharp decline in US Treasury bonds. The game between Trump and the Federal Reserve showed that the Federal Reserve was more patient. The subsequent trade and technology wars should not be overly pessimistic. With most tariff - related cards already played, the market is waiting for the government's economic - stabilizing measures [2][9]. - It is recommended to pay attention to the re - export trade sector that has fallen significantly in the early stage. Considering the national team's approach, the index will face short - term divergence. It is suggested to hold the arbitrage of going long on the CSI 300 or SSE 50 and shorting the CSI 1000 for observation [2][9]. 3. Summary by Relevant Catalogs 3.1 Market Views 3.1.1 Overseas Overnight - The EU voted to impose a 25% tariff on $232 billion worth of US imported products. After China's counter - measures, the EU also took counter - actions. Dollar - related assets such as the US dollar, US Treasury bonds, and US stocks experienced panic selling. Then Trump announced a 90 - day tariff suspension for countries that do not take retaliatory actions and increased tariffs on China to 125%. Overnight, the overseas market rose sharply, with the US dollar index falling first and then rising, the US Treasury bond yield falling, gold rising, and the three major US stock index futures soaring. The Dow Jones Industrial Average rose 7.87%, the S&P 500 rose 9.52%, the Nasdaq Composite rose 12.16%, and the Nasdaq Golden Dragon China Index rose 4.5%. The offshore RMB exchange rate returned to 7.35. The Federal Reserve's March meeting minutes showed that policymakers believed the US economy faced risks of both rising inflation and slowing growth, and it was appropriate to keep interest rates unchanged [1][4]. 3.1.2 Domestic Market Review - After the US continued to impose a 50% tariff on China, A - shares withstood the pressure on Wednesday. The national team's support expanded from the CSI 300 to the CSI 1000, injecting liquidity into individual stocks. Military industry, commerce and retail, real estate, computer, and social services sectors led the gains, while only the banking and petroleum and petrochemical sectors declined. A total of 4,526 stocks rose and 777 stocks fell in the whole market [2][5]. 3.1.3 Important Information - Trump announced a 90 - day suspension of the reciprocal tariff policy for most economies for negotiation. During the negotiation period, a 10% global tariff would still be imposed, and tariffs on industries such as automobiles, steel, and aluminum were not included in the suspension [6][7]. - The EU voted to impose a 25% tariff on 210 billion euros worth of US goods, including soybeans, to counter US steel and aluminum tariffs. US officials believed that the EU would postpone the planned retaliatory measures [7]. - The Federal Reserve's March meeting minutes showed that policymakers generally believed the economy faced risks of rising inflation and slowing growth. Morgan Stanley predicted that the next Federal Reserve interest rate cut would be in September, and Goldman Sachs lowered the probability of a US recession to 45% [7]. - China firmly countered with a "combination punch", raising the tariff rate on all imported goods from the US from 34% to 84%. The white paper "China's Position on Certain Issues in China - US Economic and Trade Relations" was released. The State Council Premier Li Qiang emphasized the need to introduce new incremental policies according to the situation. The Ministry of Commerce included 6 US companies in the unreliable entity list and 12 US entities in export control [7][8]. 3.1.4 Today's Strategy - The US made concessions due to the US Treasury bond slump. A - shares withstood the pressure with the help of the national team, and the liquidity problem of individual stocks was alleviated. It is recommended to pay attention to the re - export trade sector. The index will face short - term divergence, and it is advisable to hold the arbitrage of going long on the CSI 300 or SSE 50 and shorting the CSI 1000 for observation [2][9]. 3.2 Futures Market Tracking - The report presents the performance, trading volume, and open interest of various futures contracts including SSE 50, CSI 300, CSI 500, and CSI 1000, as well as relevant indicators such as basis, spread, and trading volume and open interest changes [11][12]. 3.3 Spot Market Tracking - The report shows the performance of various spot market indices and sectors, including the current points, daily, weekly, monthly, and annual changes, trading volume, and valuation levels of important indices such as the Shanghai Composite Index, Shenzhen Component Index, and sector indices [30]. - It also analyzes the impact of market styles on the SSE 50, CSI 300, CSI 500, and CSI 1000 indices, and presents the valuation levels of important indices and Shenwan sectors [31][32][34]. 3.4 Liquidity Tracking - The report provides charts on the central bank's open - market operations and Shibor interest rate levels, reflecting the market's liquidity situation [49].

1. Report Industry Investment Rating No relevant information provided. 2. Core View of the Report - After the US announced the global reciprocal tariff plan, the overseas market followed a recession logic. It is necessary to observe the trade game among countries in the next 6 days. Only after the game reaches a balance will the market have new opportunities. Attention should be paid to the impact of the tariff increase on exports, possible production capacity backflow, and potential domestic policy support. In the short - term, the A - share index will test the lower support around 3300 points, and the trend is expected to bottom out and rebound. In terms of structure, the role of dividend - weighted stocks in stabilizing the market should be emphasized [1][2][9] 3. Summary According to the Directory 3.1 Market Viewpoint 3.1.1 Overseas Overnight - Trump announced a global reciprocal tariff plan with a higher - than - expected tariff. A 10% universal benchmark tariff on all imported goods will take effect on April 5, and the reciprocal tariffs for different countries will take effect on April 9. For China, the tariff increase this year will reach 54%. After the plan was announced, the financial market clearly followed a recession logic, with US stock index futures dropping significantly, the yield of 10 - year US Treasury bonds falling, the US dollar index fluctuating, and gold prices rising [1][4] 3.1.2 Domestic Market Review - On Wednesday, the broader market opened lower, fluctuated slightly, and closed up 0.05%. The Shenzhen Component Index rose 0.09%, and the ChiNext Index rose 0.13%. The market showed a narrow - range oscillation. Due to the shrinking trading volume, there was no sector effect. The previously rising pharmaceutical sector was weak at the opening. The market turnover fell below one trillion, reaching the lowest level since January 13. Funds were waiting for the US tariff decision, showing obvious caution. In terms of sectors, textile and apparel, beauty care, communication, and banking led the gains, while military industry, non - ferrous metals, public utilities, and steel led the losses. There were 2755 rising stocks and 2425 falling stocks in the whole market [2][5] 3.1.3 Important News - **US Trade Policy**: Trump signed an executive order to set a 10% "minimum benchmark tariff" on all countries and impose reciprocal tariffs. The reciprocal tariff for the EU is 20%, Japan 24%, Vietnam 46%, and South Korea 25%. Goods under the US - Mexico - Canada Agreement will continue to be tariff - exempt, and those not meeting the criteria will maintain a 25% tariff. The US Treasury Secretary called on countries not to retaliate. The benchmark tariff will take effect on April 5, and the reciprocal tariff on April 9. Additionally, a 25% automobile tariff will take effect on April 3, and the tariff on auto parts will take effect on May 3. Gold bars, copper, pharmaceuticals, semiconductors, and wood products are not subject to the "reciprocal tariff" [6] - **Countermeasures**: Many countries have stated that they will take countermeasures against US tariffs [7] - **Domestic Policies**: The General Office of the CPC Central Committee and the General Office of the State Council issued the "Opinions on Improving the Price Governance Mechanism", promoting the construction of important commodity spot and futures markets, optimizing rules for futures variety listing, trading, and supervision, and laying a foundation for market - determined prices. The trading markets for oil, gas, coal, etc. will be developed in an orderly manner [7] - **Stock Market New Accounts**: In the first quarter of this year, 7.47 million new A - share accounts were opened, a year - on - year increase of 31.74% [8] - **Military Exercises**: The Eastern Theater Command successfully completed joint military exercises around the Taiwan Island. The spokesperson of the Ministry of National Defense stated that they will resolutely crush all "Taiwan independence" separatist acts and firmly promote the process of national reunification [8] - **Anti - Dumping Investigation**: The Ministry of Commerce extended the anti - dumping investigation on imported related brandy from the EU until July 5, 2025 [8] - **Pilot Projects**: Nine cities including Shanghai were included in the first - batch pilot scope for large - scale vehicle - grid interaction applications [8] 3.1.4 Today's Strategy - After the US reciprocal tariff plan was announced, the overseas market followed a recession logic. It is necessary to observe the trade game among countries in the next 6 days. Only after the game reaches a balance will the market have new opportunities. Attention should be paid to the impact of the tariff increase on exports, possible production capacity backflow, and potential domestic policy support. In the short - term, the A - share index will test the lower support around 3300 points, and the trend is expected to bottom out and rebound. Investors should maintain a calm attitude and pay attention to the stabilizing role of dividend - weighted stocks [9] 3.2 Futures Market Tracking - The report provides detailed data on the performance, trading volume, and positions of the Shanghai 50 Index, CSI 300 Index, CSI 500 Index, and CSI 1000 Index futures contracts, including closing prices, settlement prices, price changes, trading volume changes, position changes, etc. It also presents multiple charts related to the basis and inter - period spreads of these index futures [11][12] 3.3 Spot Market Tracking - **Market Performance**: The data shows the current points, daily, weekly, and monthly price changes, trading volumes, and valuations of various major A - share indexes and sectors, including the Wind All - A Index, Shanghai Composite Index, Shenzhen Component Index, etc. [30] - **Market Style Impact**: Analyzes the impact of different market styles (cyclical, consumer, growth, financial, and stable) on the Shanghai 50 Index, CSI 300 Index, CSI 500 Index, and CSI 1000 Index in terms of daily, weekly, monthly, and annual contributions [31][32][33] - **Valuation Charts**: Presents charts on the valuations of important indexes and Shenwan sectors, as well as data and charts on market trading volume, turnover rate, the number of rising and falling stocks, index trading volume changes, northbound funds, Hong Kong Stock Connect, margin trading balances, etc. [34][37][40] 3.4 Liquidity Tracking - The report provides charts on the central bank's open - market operations and Shibor interest rates, reflecting the liquidity situation in the market [51]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - Since mid - March, due to the marginal improvement of the central bank's monetary policy attitude, long - term bonds have significantly recovered. The central bank's monetary policy orientation currently has the greatest influence on bond pricing. Although the exchange - rate pressure has been alleviated, there are still many constraints on short - term policy - level interest rate cuts, but the probability of structural reserve requirement ratio cuts and interest rate cuts is relatively high [1][112]. - The most pessimistic point of the bond market has passed, and it is moving towards positive carry repair. In the short term, the bond market will experience a volatile market, while in the medium - to - long term, there is still room for interest rates to decline [2][113]. 3. Summary by Relevant Catalogs 3.1 Market Review - Since 2025, the bond market has been continuously adjusting. In the first quarter, the short - end adjusted more significantly under the tight balance of funds. The yield curve showed a bear - steepening characteristic at the beginning and then a bear - flattening characteristic. As of March 27, the 1 - year Treasury yield rose by more than 40bp to 1.53%, and the 10 - year Treasury yield rose by more than 12bp to 1.8% [5]. - The bond market trend from December 2024 to now can be divided into four stages: from early to late December 2024, the curve was bull - steepening; from late December 2024 to mid - February 2025, the curve was bear - flattening; from mid - February to mid - March 2025, the curve moved upward as a whole; from mid - March 2025 to now, long - term bonds have recovered [10][12]. 3.2 Monetary Policy Orientation - Since mid - February, the monetary policy has shifted to a tight balance. Since mid - March, the central bank's attitude has marginally loosened but remains cautious. This is reflected in the early convening of the first - quarter monetary policy meeting, the central bank's net investment after the tax period, and the change of MLF to "American tender" [16]. - The central bank's demand for bond - market risk prevention and exchange - rate stability remains unchanged. The change in the statement of the bond market reflects the intention to reduce yield fluctuations, and the exchange - rate stability goal is still clear [17]. - The demand for reducing financing costs has increased, expanding from "enterprises and residents" to "the whole society", which may imply a decline in bond - market yields [25]. 3.3 MLF Adjustment - In terms of operation form, the advance announcement of MLF operation news and the change to "American tender" show the central bank's signal of maintaining stability. In terms of scale, the MLF was over - renewed by 630 billion yuan in March, which is the first over - renewal since August 2024. In terms of price, it is expected to relieve the bank's interest - margin pressure [30]. - The adjustment of MLF is a marginal easing signal, but it may also mean a reduced probability of short - term reserve requirement ratio cuts [31]. 3.4 Funds - The funds have maintained a tight balance. Since early March, the funds rate has become more stable, with DR007 stabilizing at 1.8%, and the cross - quarter funds price seasonally rising to around 2.3%. The inter - bank certificate of deposit rate has dropped below 1.9% [43]. - The issuance of government bonds is expected to accelerate, and a moderately loose funds environment is needed to avoid high issuance costs [48]. 3.5 Bank Liability - Side Pressure - Since the beginning of the year, the lack of bank liabilities has pushed up the funds rate. Large state - owned banks have a long - term problem of deposit shortage, but as of the end of February, the deposit gap has narrowed [59][66]. - Since mid - March, the inter - bank certificate of deposit yield has declined across the board. As of March 27, the 1 - year inter - bank certificate of deposit yield of national and joint - stock banks has dropped to 1.9%, about 15bp lower than the mid - March high [67]. 3.6 Fundamental Aspects - The economic data shows strong supply and weak demand. In terms of production, the growth rate of industrial added value may slow down; in terms of consumption, the growth rate of some consumer goods is high, but the overall consumption recovery is limited; in terms of investment, the growth rate of fixed - asset investment is slightly lower than that of the same period last year; in the real - estate sector, new construction starts remain at a low growth rate [77][78][79]. - Financial and inflation data are weak. The social financing data from January to February shows that the overall volume is acceptable, but the structure needs to be optimized. The government bond financing is an important support, while the real - economy financing demand is declining [86].

Report Industry Investment Rating No relevant content provided. Core Viewpoints - In March, the glass market showed signs of a peak season, with improved production and sales leading to a rebound in the futures market, but it failed to drive up prices in low - price regions. The market gave a premium and then fell back. Attention should be paid to the demand performance. - Demand has arrived, but its persistence needs to be monitored. The cumulative year - to - date on - the - spot demand is - 7.4%, and the overall downward trend of demand has not changed. - For the 05 contract, unless demand in the next few weeks is unexpectedly strong, leading to price increases in Hubei and rapid destocking of intermediate inventories, Hubei may face discount delivery. - In April, if demand does not strengthen unexpectedly, caution should be exercised regarding delivery [1][5][18]. Summary by Directory 1. Market Review and Outlook - In March, the futures price fluctuated between 1133 and 1269. It first declined, bottomed out on March 13th, and then rebounded, but fell back again two days after a significant rebound on March 24th. - The rebound was due to improved production and sales and seasonal demand. After the Spring Festival, the worst demand period ended, and the market shifted from a high - valuation, high - inventory, and no - demand - driven pattern in February to a low - valuation, high - inventory, and demand - driven pattern in March. - Regionally, Shahe's production and sales improved at the beginning of March and remained high. Hubei's production and sales were affected by rain in the early stage and strengthened in the middle of the month. South China and East China were weaker in the first half and stronger in the second half. - The improvement in production and sales was seasonal. Although the overall demand was weak, there was some explosive power. The cumulative year - to - date on - the - spot demand was - 7.4%, and the total demand was still declining. - In the past two weeks, there was destocking because the supply was - 10.4% year - to - date, and the weekly supply was about 1.108 million tons, while the on - the - spot demand was higher than this for two consecutive weeks. - Looking ahead, demand is likely to fluctuate around the current level. If there is no significant improvement in demand in the first half of the year, inventory will remain at the current level, and the industry will continue to compress profits. Otherwise, there is room for demand recovery [7][8][11]. 2. Glass Supply and Demand Situation 2.1 Price: Regional Differentiation - There are significant price differences among different regions of glass. East China's prices are leading the country, while South China is in the off - season with low prices and high inventory pressure. Northeast China's prices are falling due to increased supply, and Hubei's prices are relatively stable with a discount to the futures market [12][16]. 2.2 Domestic Glass Supply - In the short term, the daily melting volume is expected to remain around 158,000 - 161,000 tons per day. The current supply is 158,000 tons per day, with a year - to - date cumulative decline of 10.4%. Assuming an annual supply of 160,000 tons per day, the annual total supply will be about 58.4 million tons, a year - on - year decrease of 5.28%. - Structurally, the production of white glass is gradually resuming, reaching about 120,000 tons, close to the capacity in October last year. There are many potential ignition and cold - repair production lines, and their implementation needs further tracking [34][35]. 2.3 Domestic Glass Inventory - With the recovery of demand, inventory is starting to decline. Seasonally, April may see the highest demand and lowest inventory in the first half of the year. The current supply is - 10.4% year - to - date, and the demand is - 7.4% year - to - date. Attention should be paid to demand performance [46]. 2.4 Cost and Profit - The cost is relatively stable overall. The futures market profit has tightened from a profitable state to near the cost level [58][61]. 2.5 Downstream Real Estate - The real estate market is in a destocking cycle. The Politburo meeting emphasized promoting the stabilization of the real estate market, controlling new construction, optimizing existing inventory, and improving quality. - This year, the arrival of funds has been slow, and the resumption of work has been delayed. Continued attention is needed [72][73]. 2.6 Deep - processing - In March, the performance of the deep - processing industry was still weak, and its real situation needs attention [76]. 2.7 Completion Reference Indicators - After the seasonal decline during the Spring Festival, there has been an overall recovery, but the recovery of glass is relatively weak [79][81].

Group 1: Interest Rate Changes - In late July, China experienced a wave of interest rate cuts, with the MLF unexpectedly lowered by 20 basis points (bp) on July 25[1] - The yields on 10-year and 30-year government bonds fell to historical lows of approximately 2.10% and 2.30%, respectively, marking the lowest levels since 2003 and 2005[1] - As of August 7, the 10-year government bond yield was around 2.13%, while the 30-year bond yield was approximately 2.30%[1] Group 2: Economic Conditions - The GDP growth rate declined in Q2, and inflation remained low, indicating significant pressure to stabilize growth[1] - The issuance of local government bonds is expected to peak, but the impact may be limited compared to last year's concentrated refinancing bonds[1] - The overall funding environment is expected to remain loose, with potential for further interest rate cuts[1] Group 3: Central Bank Actions - The central bank's management of long-term bonds has not relaxed, with a focus on guiding major banks to sell bonds to stabilize yields[1] - The central bank indicated that the downward adjustment of policy rates does not imply an opening of space for long-term bond yields to decline further[1] - The central bank aims to maintain a normal upward-sloping yield curve and is prepared to intervene if necessary[1] Group 4: Market Dynamics - The market is currently in a phase of volatility, with short-term fluctuations expected to amplify due to the ongoing adjustments in long-term bond yields[1] - There is a cautionary note regarding potential profit-taking by institutions as yields approach the central bank's acceptable levels of 2.1% for 10-year bonds and 2.3% for 30-year bonds[1] - The overall sentiment suggests a long-term bullish outlook on bonds, with opportunities to buy on potential yield corrections[1]

Group 1: Economic Trends - From 1993 to 1996, China experienced an investment boom with fixed asset investment growth rates of 50% and 69%[9] - In 1998, GDP growth fell to 7.8%, prompting a shift to a more accommodative monetary policy[71] - Between 1998 and 2002, the cumulative issuance of long-term construction bonds reached 660 billion yuan, accounting for 1.2%-1.5% of GDP[73] Group 2: Inflation and Deflation - CPI recorded significant inflation rates of 14.7%, 24.1%, and 17.1% from 1993 to 1995, with a peak near 30% in October 1994[15] - The period from 1998 to 2002 saw deflation, with CPI values of -0.8%, -1.4%, and 0.4%[41] - Since April 2023, inflation levels have remained near zero, similar to the deflationary period of 1998-2002[20] Group 3: Policy Responses - Monetary policy was loosened with a reduction in the reserve requirement ratio by 700 basis points and a cumulative interest rate cut of 675 basis points from 1998 to 2002[71] - Fiscal policy focused on infrastructure investment through the issuance of long-term bonds, aimed at stabilizing economic growth[73] - The government faced challenges in effectively transmitting monetary policy to the real economy, leading to limited credit expansion despite a loose monetary stance[92] Group 4: External Factors - The Asian financial crisis in 1997 led to a 20.5 percentage point decline in China's export growth rate in 1998, resulting in a mere 0.5% growth[65] - The entry into the WTO in 2001 helped boost external demand, contributing to economic recovery post-deflation[46] - The external environment remains critical in shaping domestic economic conditions, particularly in times of low inflation and weak internal demand[99]

- The report mentions the release of the "Procedural Trading Management Implementation Rules (Draft for Comments)" by the Shanghai and Shenzhen Stock Exchanges, which outlines the management of algorithmic trading, including high-frequency trading definitions and differentiated management requirements[11] - High-frequency trading is defined as scenarios where a single account submits or cancels orders exceeding 300 times per second or 20,000 times per day, with additional reporting and higher transaction fees proposed for such cases[11] - For accounts not involved in high-frequency trading, general management requirements for algorithmic trading will apply, with specific differentiated fee standards to be announced later[11]