Report Industry Investment Rating No information provided in the content. Core Viewpoints - Recent listing and expansion of Sci - tech Bond ETFs have catalyzed the rush to buy Sci - tech bonds, with the constituent bonds of Sci - tech Bond ETFs performing prominently. The report outlines new changes in the Sci - tech bond market and analyzes investment opportunities brought by the issuance of Sci - tech Bond ETFs [4]. - Sci - tech bonds refer to bonds issued by enterprises in the science and technology innovation field with funds mainly used for science and technology innovation, including Sci - tech Notes and Science and Technology Innovation Corporate Bonds. The core contents of the policy include expanding the issuer scope, introducing incremental funds, and optimizing issuance and trading systems [4]. - Since its launch, the issuance scale of Sci - tech bonds has been increasing, mainly issued by state - owned and central enterprises. As of July 23, the issuance amounts of industrial, financial, and urban investment Sci - tech bonds this year were 600.9 billion, 34.5 billion, and 53.6 billion respectively [4]. - The current outstanding balance of Sci - tech bonds exceeds 2 trillion yuan, accounting for 7% of all credit bonds. Outstanding Sci - tech bonds are mainly of medium - to - high grades and within 3 - year terms, and are mostly distributed in traditional industries. Thanks to the issuance of Sci - tech Bond ETFs, the yields of constituent bonds are significantly lower than those of green bonds and ordinary bonds of the same issuer [4]. Summary by Directory What is a Sci - tech Bond? - **Policy Changes**: Since 2017, relevant policies on Sci - tech bonds have been continuously optimized. In 2025, with the breakthrough of AI technology, the support for Sci - tech bonds in the bond market has been deepened. Policies such as the innovation of the "technology board" in the bond market and the introduction of risk - sharing tools are expected to promote the expansion of Sci - tech bonds [10]. - **"Five Articles" Policy Support**: In March - April this year, the "Five Articles" financial policy was improved, which has a large support for Sci - tech bonds. Measures include optimizing the statistical system, financial institution division of labor, product service system, and encouraging bond market financing [16]. - **Concept and Variety Analysis**: Sci - tech bonds mainly include Sci - tech Notes and Science and Technology Innovation Corporate Bonds. They have similar definitions but differences in issuer identification, use of funds, etc. [20]. - **Help for Private Enterprises**: The launch of Sci - tech bonds aims to guide funds to the science and technology innovation field, helping private and small - and - medium - sized science and technology enterprises to finance. Currently, 90% of Sci - tech bonds are issued by central and state - owned enterprises, while private enterprises account for less than 10%. Central and state - owned enterprises issuing Sci - tech bonds are mainly from traditional industries, while private enterprises are from technology - based industries [28]. Primary Market: Significant Increase in Sci - tech Bond Supply - **Continuous Expansion of Issuance Scale**: Since its launch, the issuance scale of Sci - tech bonds has been increasing. From 2022 - 2024, the issuance scales were 243.2 billion, 743.4 billion, and 1178.3 billion respectively, with an average annual compound growth rate of 120%. As of July 23, 2025, the cumulative issuance was 2858.3 billion yuan [31]. - **Recent Rush to Buy**: Since March this year, with strong policy support, the market's enthusiasm for subscription has increased. After March 6, the spread between the coupon rate and the lower limit of the bid rate of Sci - tech bonds has been significantly compressed by 54bp [35]. - **Issuer Perspective**: Sci - tech bonds are mainly issued by state - owned and central enterprises, accounting for 55% and 40% respectively. Industrial issuers account for 88% of the issuance scale, while urban investment issuers account for only 10% [38]. - **Industry Perspective**: The issuers of Sci - tech bonds are mostly from traditional industries, with the construction and decoration industry having the largest issuance scale. The issuance scale of technology - based industries such as communication, electronics, and computer needs to be improved. The urban investment platforms with high issuance amounts are industrial investment platforms [44]. Secondary Market: Seize Investment Opportunities from the Expansion of Sci - tech Bond ETFs - **Reasons for Institutional Buying**: Institutions' core motives for allocating Sci - tech bonds include capital gain advantages due to the decline in yields of constituent bonds with the expansion of Sci - tech Bond ETFs, the expectation of regulatory optimization of investment - end assessment, and the potentially lower default risk of Sci - tech bonds compared to ordinary corporate credit bonds [51]. - **Rapid Decline in Valuation**: In early July, the first batch of 10 Sci - tech Bond ETFs were quickly approved and listed, and the concentrated position - building of funds significantly compressed the yields of constituent bonds. For example, the valuation of the Sci - tech Bond ETF constituent bonds of China Power Investment Ronghe Leasing Co., Ltd. is about 10bp lower than that of other bonds of the same issuer [57]. - **Continuous Increase in Outstanding Balance**: As of July 23, 2025, the outstanding balance of Sci - tech bonds accounts for 6.87% of all credit bonds, an increase of 1.5% compared to the beginning of the year [64]. - **Characteristics of Outstanding Bonds**: There are currently 2011 outstanding Sci - tech bonds with an amount of 205.25 billion yuan. In terms of implicit ratings, medium - to - high - grade bonds account for 93%. In terms of remaining terms, bonds with a remaining term of less than 3 years account for 74% [68]. - **Valuation Distribution**: Industrial Sci - tech bonds are mainly distributed in industries such as construction and decoration, coal, and public utilities. High - valuation Sci - tech bonds are mainly in industries such as basic chemicals, power equipment, and pharmaceutical biology. Urban investment Sci - tech bonds are mainly concentrated in a few provinces, and the valuation in some economically weaker provinces is relatively high [74]. - **Bond Selection**: When selecting bonds, it is recommended to focus on issuers with relatively high Sci - tech bond valuations. A list of state - owned and central enterprise industrial issuers, urban investment platforms, and financial enterprises with an implicit rating of not less than AA and an outstanding Sci - tech bond balance of not less than 1 billion yuan is provided [76]. How to View Sci - tech Bond ETFs? - **Yield Comparison**: Since the issuance of Sci - tech Bond ETFs, their average yield is about 0.1%, slightly higher than the 0.08% of credit bond ETFs. The annualized yield range of Sci - tech bonds is approximately 2.8% - 5.5%, while that of credit bond ETFs is 2.4% - 4.2%. The yield of "Fuguo CSI AAA Science and Technology Innovation Corporate Bond ETF" is 3bp higher than the Sci - tech bond index [78]. - **Increased Trading Activity**: After the launch of Sci - tech Bond ETFs, the constituent bonds have been in high demand, and both liquidity and market performance have significantly improved. In July, the number of transactions of constituent bonds of Sci - tech Bond ETFs doubled compared to June. The valuation decline of constituent bonds of different terms is more than 3bp, significantly higher than that of non - constituent bonds [87][84]. - **Valuation Difference**: For most issuers, the valuation of constituent bonds of Sci - tech Bond ETFs is significantly lower than that of ordinary bonds. It is recommended to pay attention to issuers whose constituent bond valuations have not been significantly compressed, as there may be room for further compression in the future [88][89].

Core Viewpoint - China Railway has successfully launched the first high-end equipment shield machine, "Chuan Shan Jia No. 1," designed for extreme cold conditions, marking a significant advancement in domestic manufacturing capabilities for tunnel construction equipment [2][3] Group 1: Product Features - The "Chuan Shan Jia No. 1" shield machine has a diameter of 3.72 meters and a length of approximately 135 meters, specifically designed to operate in permafrost conditions at temperatures as low as -40 degrees Celsius [2] - The machine features a 15.5-inch rolling cutter and a design that prevents mud cake formation while ensuring efficient excavation [2] - It incorporates low-temperature resistant materials and components, along with specialized heating equipment to maintain stable operation in extreme cold [2] Group 2: Technological Advancements - The shield machine has achieved breakthroughs in key technology areas, establishing a fully domestic supply chain covering control systems, monitoring, and construction equipment [3] - The independently developed main bearing, considered the "heart" of the shield machine, has surpassed the performance of imported bearings and is priced at only 60% of the import cost, with a manufacturing lead time of just one-fourth [3] Group 3: Manufacturing and Economic Impact - The China Railway Intelligent Equipment Manufacturing Base aims to become the first intelligent assembly line for full-face tunnel boring machines in the Southwest region, targeting an annual production of 14 shield machines and 50 sets of tunnel construction equipment [3] - The expected annual output value of the base is projected to reach 1.8 billion yuan, creating over a thousand jobs [3]

Investment Rating - The report maintains an "Overweight" rating for the construction and engineering sector and a "Buy" rating for non-metallic building materials [1][11]. Core Insights - The Yajiang Hydropower Station has officially commenced construction with a total investment of approximately 1.2 trillion yuan, differing structurally from the Three Gorges Dam [3]. - The Yarlung Tsangpo River downstream hydropower project in Tibet will implement a run-of-river development approach, constructing five tiered power stations to enhance power generation efficiency through cascading water flow [3]. - The average cost of newly approved hydropower projects in 2023 is estimated at 20,344 yuan per kW, suggesting an expected installed capacity of 60 million kW for the Yarlung Tsangpo project [3]. Summary by Sections Project Overview - The Yajiang Hydropower Station project is expected to catalyze future developments, with the next phases likely involving "bidding" and "performance release" [4]. - The project structure is anticipated to differ significantly from traditional reservoir dams, such as the Three Gorges Dam [4]. Comparative Analysis - The Zangmu Hydropower Station, the first large-scale hydropower station on the Yarlung Tsangpo River, has a total installed capacity of 510,000 kW and a total investment of 9.6 billion yuan, with a construction period of nearly eight years [5]. - The Dadu River Hard Beam Package Hydropower Station, with an installed capacity of 1.116 million kW, showcases advanced construction techniques that may parallel those of the Yajiang project [6]. Supplier Insights - The report identifies potential suppliers for the Yajiang project based on bidding data from the Zangmu Hydropower Station, highlighting companies such as China Power Construction, China Energy Engineering, and Huaxin Cement as key players [7]. - The report notes significant stock price increases for several suppliers since July 21, with China Power Construction and Huaxin Cement both seeing a rise of 33% [7]. Investment Recommendations - The commencement of the Yajiang Hydropower Station is expected to generate new demand for construction and materials, prompting a focus on companies involved in hydropower engineering and infrastructure, such as China Power Construction and China Railway [8]. - Material suppliers like Huaxin Cement and equipment providers such as Tianqiao Hoisting are also recommended for investment consideration [8].

Group 1 - Morgan Stanley reports that the recently announced Yarlung Tsangpo River hydropower development plan in Tibet is directing funds towards engineering machinery stocks [1] - The complex terrain makes traditional machinery crucial in the early stages of the project, with Weichai Power (000338) identified as a leading enterprise in heavy-duty truck engines and construction machinery, placed on a positive catalyst watchlist with "overweight" rating and target prices of HKD 22 and RMB 24 for H-shares and A-shares respectively [1] - Sany Heavy Industry (600031) and XCMG (000425) are also recognized as leaders in large machinery, both receiving "overweight" ratings with target prices of RMB 25 and RMB 11.1 respectively [1] Group 2 - China Railway (601390) holds a 40% market share in tunnel machinery and is rated "overweight" with target prices of HKD 5 and RMB 8.2 for H-shares and A-shares respectively [1] - Traditional infrastructure stocks such as CRRC (601766) and Conch Cement (600585) have recently strengthened, indicating a market shift from risk control to support for new project launches, with CRRC receiving an "overweight" rating and target prices of HKD 6.8 and RMB 10.1 [1] - The Yarlung Tsangpo River hydropower development plan is expected to boost demand in upstream industries such as construction, machinery, cement, and steel, benefiting companies like XJ Electric (000400), Siyuan Electric (002028), and Huaming Equipment (002270) in the power equipment sector [2]

Market Overview - The Hong Kong stock market showed volatility, with the Hang Seng Index closing at 25,130.03 points, up 0.54% or 135.89 points, with a total turnover of HKD 266.07 billion [1] - The Hang Seng China Enterprises Index rose 0.39% to 9,075.6 points, while the Hang Seng Tech Index increased by 0.38% to 5,606.83 points [1] Blue Chip Performance - BYD (01211) saw a significant increase of 5.09%, closing at HKD 134.2, contributing 37.78 points to the Hang Seng Index [2] - In the first half of 2023, BYD's domestic sales exceeded 2.113 million units, a year-on-year increase of 31.5%, while overseas sales reached 472,000 units, up 128.5% [2] - Other notable blue chips included Xinyi Glass (00868) up 7.23%, Zhongsheng Holdings (00881) up 6.15%, while New Oriental (09901) and Bank of China Hong Kong (02388) saw declines of 4.92% and 3.5% respectively [2] Sector Highlights - Coal stocks surged, with Mongolian Coking Coal (00975) up 11.55% and Yancoal Australia (01171) up 9.53%, driven by rumors of capacity control measures in the coal industry [3][4] - Infrastructure stocks performed strongly, with China Communications Construction (01800) rising 7.57% and China Railway Construction (01186) up 6.03% [4] - The launch of the Yarlung Tsangpo River downstream hydropower project, with an investment of approximately CNY 1.2 trillion, is expected to boost infrastructure investment [5] Commodity and Material Stocks - Non-ferrous metal stocks continued to rise, with Ganfeng Lithium (01772) up 8.94% and Luoyang Molybdenum (03993) up 7.12%, supported by upcoming policies aimed at stabilizing growth in key industries [6] - The photovoltaic sector was active, with Kaisa New Energy (01108) rising 8% and GCL-Poly Energy (03800) up 6.67%, as supply-side reforms are anticipated to improve industry conditions [7] Notable Stock Movements - China Longgong (03339) surged 15.83% after announcing a significant profit increase forecast for the first half of 2025 [8] - Fufeng Group (00546) rose 10.8% on expectations of a substantial profit increase due to higher sales and lower raw material costs [9] - Lijun Pharmaceutical (01513) reached a new high, up 9.37%, following positive clinical trial results for a new drug [10] - Harbin Electric (01133) climbed 8.14% after announcing a profit forecast that exceeded expectations [11] - Meizhong Jiahe (02453) faced pressure, down 6%, due to a planned share placement at a discount [12]

早盘气氛转淡，午后大反转！ 今天早上，A50盘中突然直线杀跌，由涨转跌，恒指、恒生科技指数也是双双转跌。从结构上看，银行股继续 成了空头主力，银行板块早盘一度杀跌近2%，厦门银行跌近4%，青农商行、西安银行、渝农商行等多股跌逾 1%。银行股杀跌也带动了红利指数和大盘权重指数的下行。然而，临近午盘时，中字头突然发力。午后，中 国交建率先涨停，并带动权重指数走强。 然而，临近午盘时分，中字头突然发力。午后，中国交建直线封板，中铁装配飙升逾14%，中国中铁、中国建 筑等快速上扬。这些个股的突然表现，带动A50及A股指数大反攻。 红利指数下午的反弹，煤炭股的贡献度很大。午后，山西焦煤、潞安环能、山煤国际等集体涨停。与此同时， 市场上也流传着一份国家能源局综合司发布的《关于组织开展煤矿生产情况核查促进煤炭供应平稳有序的通 知》，这份通知的内容可能是刺激煤炭大反攻的主要原因。 那么，究竟发生了什么？从消息面上来看，仍有一些积极因素催化。比如欧洲理事会主席科斯塔、欧盟委员会 主席冯德莱恩将于7月24日来华，参加纪念建交50周年的中欧峰会。美国财长表示，会尽快与中国进行谈判 等。从盘面上看，市场的涨跌存在明显的结构性特征。 ...

Key Insights - The report emphasizes the shift towards high-quality, connotative urban development, with a focus on policies aimed at reducing "involution" in various sectors [2][5] - The launch of the Yarlung Zangbo River hydropower project is expected to significantly boost cement demand in Tibet and surrounding areas, benefiting regional cement companies [11][12][15] - The report highlights the importance of technology innovation and self-discipline in the construction industry, as 33 construction companies advocate for a transition towards high-end, intelligent, and green development [5][11] Policy Dynamics - The Central Urban Work Conference marks a strategic shift in urban development from expansion to high-quality, connotative growth, emphasizing human-centered approaches and efficient resource use [3] - The adjustment of long-term assessment mechanisms for state-owned insurance companies aims to enhance the stability of insurance funds as long-term capital [4] - The promotion of Shanghai's free trade zone experiences is set to enhance the business environment and foster fair competition across regions [4] Industry Developments - The embodied intelligence sector is witnessing active product iterations, with a focus on specific application scenarios such as industrial logistics and special environments [7][8] - The Yarlung Zangbo River hydropower project is projected to require over 40 million cubic meters of concrete, translating to approximately 16 million tons of cement, significantly impacting local supply chains [12][13] - The cement industry is undergoing a "de-involution" phase, with collaborative production strategies expected to stabilize supply and enhance pricing power [14] Investment Opportunities - The report recommends investing in state-owned enterprises responsible for the design and construction of hydropower projects, as well as regional cement and explosives companies that stand to benefit from increased demand [21][19] - The focus on high-quality development in urban planning and construction is expected to create long-term growth opportunities for companies that align with these strategic shifts [3][5]

Core Viewpoint - The Guoqi Gongying ETF (159719) has shown a positive performance with a recent increase of 0.19%, marking a three-day consecutive rise, and a weekly increase of 1.39% as of July 21, 2025 [1] Performance Summary - As of July 21, 2025, the Guoqi Gongying ETF has achieved a net value increase of 55.40% over the past three years, ranking 75 out of 1822 in the index stock fund category, placing it in the top 4.12% [1] - The ETF has recorded a maximum monthly return of 14.61% since its inception, with the longest consecutive monthly increase lasting 7 months and a maximum increase of 24.70% [1] - The average return for the months with increases is 4.17%, and the annual profit percentage stands at 100.00%, with a historical three-year holding profit probability of 100.00% [1] - Over the past three months, the ETF has outperformed its benchmark with an annualized return of 10.85% [1] Drawdown and Recovery - As of July 21, 2025, the maximum drawdown for the Guoqi Gongying ETF in the past six months is 8.26%, with a relative benchmark drawdown of 0.29% [2] - The recovery period after the drawdown is 60 days, which is the fastest among comparable funds [2] Fee Structure - The management fee for the Guoqi Gongying ETF is 0.25%, and the custody fee is 0.05%, making it one of the lowest in its category [2] Index Tracking - The Guoqi Gongying ETF closely tracks the FTSE China State-Owned Enterprises Open Win Index, which reflects the performance of Chinese state-owned enterprises listed in mainland China and Hong Kong, focusing on globalization and sustainable development [2] - The index consists of 100 constituent stocks, including 80 A-share companies and 20 Chinese companies listed in Hong Kong [2] Top Holdings - The top holdings in the Guoqi Gongying ETF include: - China Petroleum (601857) with a weight of 15.94% and no change in price - China Petrochemical (600028) with a weight of 11.93% and an increase of 0.34% - China State Construction (601668) with a weight of 9.59% and an increase of 0.17% [4]

Group 1: Project Overview - The Yarlung Tsangpo River downstream hydropower project has officially commenced, with a total investment of approximately 1.2 trillion yuan, aiming to construct five cascade power stations [1] - The project is expected to generate an annual electricity output of about 300 billion kilowatt-hours, which is three times that of the Three Gorges Project [2] Group 2: Industry Impact - The project is anticipated to significantly boost demand for engineering machinery due to its large scale and the challenging geographical conditions, benefiting leading companies in the industry [2] - Major suppliers of hydropower equipment in China include Dongfang Electric, Shanghai Electric, and Harbin Electric, with Dongfang Electric achieving a 100% localization rate for 1 million kilowatt generator sets [2] - Central state-owned enterprises involved in hydropower engineering design and construction, such as China Power Construction Corporation and China Energy Engineering Corporation, are expected to be the first beneficiaries of the project [2] Group 3: Related Sectors - The high-altitude and complex geological conditions of the project will drive the demand for high-performance engineering machinery, favoring industry leaders [2][3] - The cement sector is likely to experience a new wave of growth due to the project, with companies like Tibet Tianlu and Huaxin Cement dominating the local market [3] - The commencement of the project is expected to significantly increase the demand for explosives in Tibet, benefiting companies with production capacity and business layout in the region, such as Gaozheng Minbao and Yipuli [3]

数据统计显示，中证华夏AH经济蓝筹股票指数近一个月上涨4.22%，近三个月上涨5.08%，年至今上涨 7.55%。 据了解，中证华夏AH经济蓝筹股票指数从内地市场证券以及符合港股通资格的香港证券中分行业选取 一定数量财务基本面良好的蓝筹证券作为指数样本，行业权重根据各行业对国民经济的贡献度进行分 配，行业内样本根据财务基本面综合得分加权，以综合反映国民经济产业结构变迁及发展趋势。该指数 以2004年12月31日为基日，以1000.0点为基点。 金融界7月21日消息，上证指数高开高走，中证华夏AH经济蓝筹股票指数 (AH经济蓝筹，931134)上涨 1.34%，报6608.46点，成交额4256.15亿元。 从指数持仓来看，中证华夏AH经济蓝筹股票指数十大权重分别为：腾讯控股（11.45%）、阿里巴巴-W （9.79%）、建设银行（2.49%）、牧原股份（2.32%）、中国移动（2.23%）、温氏股份（2.03%）、中 国建筑（1.91%）、中国中铁（1.39%）、美团-W（1.39%）、中国平安（1.11%）。 从中证华夏AH经济蓝筹股票指数持仓的市场板块来看，上海证券交易所占比39.78%、香港证券交易所 ...