Market Overview - The housing construction sector increased by 0.45% on August 5, with high-tech development leading the gains [1] - The Shanghai Composite Index closed at 3617.6, up 0.96%, while the Shenzhen Component Index closed at 11106.96, up 0.59% [1] Stock Performance - Key stocks in the housing construction sector showed varied performance, with the following notable movements: - High-tech Development (000628) closed at 44.46, up 0.98% with a trading volume of 59,700 shares and a transaction value of 265 million [1] - China State Construction (601668) closed at 5.67, up 0.53% with a trading volume of 1,234,300 shares and a transaction value of 266.69 million [1] - Zhejiang Construction Investment (002761) closed at 9.58, up 0.42% with a trading volume of 168,500 shares and a transaction value of 161 million [1] - Shaanxi Construction (600248) closed at 3.91, up 0.26% with a trading volume of 112,500 shares and a transaction value of 43.96 million [1] - Shanghai Construction (600170) closed at 2.43, unchanged with a trading volume of 1,220,300 shares and a transaction value of 297 million [1] Capital Flow - The housing construction sector experienced a net inflow of 18.23 million from main funds, while retail funds saw a net outflow of 1.69 million and 132,850 from individual investors [1] - Detailed capital flow for key stocks includes: - China State Construction had a net inflow of 51.69 million from main funds but a net outflow of 26.23 million from retail funds [2] - High-tech Development saw a net inflow of 7.69 million from main funds and a net outflow of 9.12 million from retail funds [2] - Shaanxi Construction had a net inflow of 3.15 million from main funds and a net outflow of 1.87 million from retail funds [2] - Zhejiang Construction Investment had minimal net inflow from main funds and a slight outflow from retail funds [2] - Chongqing Construction experienced significant net outflows from both main and retail funds [2]

Core Insights - The Guoqi Gongying ETF (159719) has shown a 0.58% increase as of August 5, 2025, with a recent price of 1.57 yuan, and a cumulative increase of 5.42% over the past three months [1] - The ETF has a net asset value increase of 56.65% over the past three years, ranking 85 out of 1836 index equity funds, placing it in the top 4.63% [2] - The ETF has a historical annual return of 100% since its inception, with a maximum monthly return of 14.61% and an average monthly return of 4.14% [1][2] Performance Metrics - The ETF's maximum drawdown over the past six months is 8.26%, with a relative benchmark drawdown of 0.29%, and it has the fastest recovery time of 60 days among comparable funds [2] - The management fee for the ETF is 0.25%, and the custody fee is 0.05%, which are the lowest among comparable funds [2] - The tracking error for the ETF over the past two months is 0.115%, indicating the highest tracking precision among comparable funds [2] Index Composition - The 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 companies listed in Hong Kong [2] Top Holdings - The top holdings in the ETF include: - China Petroleum (601857) with a weight of 15.94% and a price increase of 1.42% - China Petrochemical (600028) with a weight of 11.93% and a price increase of 0.89% - China State Construction (601668) with a weight of 9.59% and a price increase of 0.71% [4]

Group 1 - The establishment of Beijing Zhongjian Zhicheng Urban Operation Management Co., Ltd. has been announced, with a registered capital of 90 million yuan [1] - The company is wholly owned by China State Construction Engineering Corporation (CSCEC) through indirect holdings [1] - The business scope includes municipal facility management, heat production and supply, cooling services, professional design services, solar power technology services, and energy storage technology services [1]

Core Viewpoint - China State Construction International Holdings Limited (00830.HK) announced that it will hold a board meeting on August 19, 2025, to approve the unaudited interim results for the six months ending June 30, 2025, and to consider the distribution of an interim dividend, if any [1] Summary by Relevant Categories - **Company Announcement** - The company will hold a board meeting on August 19, 2025 [1] - The meeting will focus on approving the unaudited interim results for the six months ending June 30, 2025 [1] - The board will also consider the distribution of an interim dividend [1]

Group 1 - The Shanghai Urban Infrastructure Index (H50034) experienced a slight decline of 0.01%, closing at 1237.17 points with a trading volume of 16.678 billion yuan [1] - Over the past month, the Shanghai Urban Infrastructure Index has increased by 6.04%, and by 6.76% over the last three months, while it has decreased by 1.59% year-to-date [1] - The index reflects the performance of listed companies influenced by changes in economic and consumption structures, focusing on themes such as intensive, intelligent, and green low-carbon development [1] Group 2 - The top ten weighted stocks in the Shanghai Urban Infrastructure Index include China State Construction (9.44%), China Railway (6.99%), and Poly Development (6.9%) among others [1] - The index is composed entirely of stocks listed on the Shanghai Stock Exchange, with the industrial sector accounting for 57.78%, real estate for 31.31%, and materials for 10.91% [2] - The index samples are adjusted biannually, with changes implemented on the next trading day following the second Friday of June and December [2]

Group 1 - The core point of the article indicates that in May 2025, China's export volume of ceramic tiles for construction reached 1.27 million tons, representing a year-on-year decrease of 0.9%, while the export value amounted to 545 million USD, reflecting a year-on-year increase of 17.8% [1] Group 2 - The data source for the export statistics is identified as China Customs, with the analysis organized by Zhiyan Consulting [3]

Market Overview - The housing construction sector experienced a slight decline of 0.08% on August 4, with Chongqing Construction leading the drop [1] - The Shanghai Composite Index closed at 3583.31, up 0.66%, while the Shenzhen Component Index closed at 11041.56, up 0.46% [1] Stock Performance - Notable stock performances in the housing construction sector included: - Ningbo Construction: Closed at 5.40, up 0.56% with a trading volume of 160,200 shares and a turnover of 86.03 million [1] - Shaanxi Construction: Closed at 3.90, up 0.26% with a trading volume of 128,300 shares and a turnover of 49.88 million [1] - Zhejiang Construction Investment: Closed at 9.54, up 0.10% with a trading volume of 166,200 shares and a turnover of 159 million [1] - Chongqing Construction: Closed at 3.64, down 3.45% with a trading volume of 304,700 shares and a turnover of 111 million [1] Capital Flow - The housing construction sector saw a net outflow of 24.65 million from institutional investors and 25.23 million from speculative funds, while retail investors contributed a net inflow of 49.88 million [1] - Detailed capital flow for key stocks included: - China State Construction: Net inflow of 8.68 million from institutional investors, with a net outflow of 26.31 million from speculative funds [2] - Ningbo Construction: Net inflow of 7.32 million from institutional investors, with a net outflow of 5.42 million from speculative funds [2] - Chongqing Construction: Net outflow of 21.52 million from institutional investors, with a net inflow of 21.74 million from retail investors [2]

Core Points - The FTSE China A50 Index saw strong performance in banking and insurance sectors, while the oil industry experienced declines [1] Banking Sector - Everbright Bank has a market capitalization of 239.89 billion with a trading volume of 537 million, closing at 4.06, up by 0.01 (0.25%) [4] - Major banks like China Life and Ping An also showed slight increases in their stock prices [4] Insurance Sector - China Life has a market capitalization of 436.19 billion, with a trading volume of 890 million, closing at 58.21, up by 0.02 (0.05%) [4] - Ping An and China Pacific Insurance also reported minor gains in their stock prices [4] Alcohol Industry - Kweichow Moutai leads with a market capitalization of 1,782.55 billion, trading at 1,419.00, down by 0.71 (-0.40%) [4] - Other notable companies like Shanxi Fenjiu and Wuliangye showed mixed performance [4] Oil Industry - Sinopec has a market capitalization of 685.04 billion, closing at 8.47, down by 0.04 (-0.70%) [4] - China National Petroleum Corporation also experienced a decline in stock price [4] Automotive Sector - BYD has a market capitalization of 956.21 billion, closing at 104.88, down by 0.92 (-0.87%) [5] - The sector is facing challenges despite its significant market presence [5] Technology Sector - Major tech companies like CATL and Industrial Fulian reported strong trading volumes, with CATL closing at 266.48, up by 0.08 (0.40%) [5] - The semiconductor industry is also showing growth potential [5] Consumer Electronics - Companies like Luxshare Precision and Industrial Fulian are experiencing fluctuations in stock prices, with Luxshare closing at 36.24, down by 0.40 (-1.09%) [5] - The sector remains competitive with ongoing innovations [5] Pharmaceutical Sector - Hengrui Medicine has a market capitalization of 235.11 billion, closing at 45.91, up by 0.69 (1.13%) [5] - The pharmaceutical industry continues to attract investment due to its growth prospects [5]

Investment Rating - The report maintains a positive outlook on industry leaders with low valuations, particularly China Chemical [1][3]. Core Viewpoints - The construction and building materials industry is currently at the bottom of its economic cycle, with expectations for stabilization and recovery due to supportive government policies [1][2]. - Recent government meetings emphasized the need for high-quality investment and the activation of private investment, which could enhance the industry's outlook [1]. - The report highlights the recent approval of two coal-to-natural gas projects in Xinjiang, marking a significant step towards low-carbon and clean development in the coal chemical industry [1]. Market Overview - As of August 1, 2025, the newly issued local government special bonds amounted to 183.204 billion yuan, a week-on-week decrease of 10.82% [2]. - In July, the total new local government special bonds issued reached 616.936 billion yuan, a month-on-month increase of 17.04% and a year-on-year increase of 119.18% [2]. - The construction index fell by 2.51% and the building materials index fell by 3.32% during the week of July 28 to August 1, 2025 [10]. Cement Market Analysis - National cement prices continued to decline, with a week-on-week drop of 0.3% as of August 1, 2025 [41]. - The average national cement price was 339.7 yuan per ton, with significant regional variations [46]. - The report anticipates a stabilization in cement prices in the short term, despite current demand not showing significant improvement [41]. Company Performance and Valuation - The report strongly recommends focusing on major construction blue-chip stocks such as China Communications Construction, China Railway Construction, and China State Construction [3]. - The construction sector's overall valuation is at a historical low, with the current price-to-earnings (P/E) ratios for the construction and building materials sectors at 8.72 and 19.67, respectively [18]. - Key companies in the construction sector are experiencing varying growth rates in new orders, with China Railway Construction showing a decline in order growth in recent quarters [63].

Investment Rating - Industry Rating: Outperform the market (maintained rating) [5] Core Viewpoints - The "anti-involution" trend is driving quality upgrades in the industry, emphasizing investment opportunities in specialized engineering companies. This trend is expected to improve corporate profitability and increase capital expenditures in green and low-carbon transformations, benefiting specialized engineering firms [1][19][32] - The government is focusing on innovation-driven and green transformation, which is broader than the supply-side structural reforms of 2015. This includes enhancing industry self-discipline and optimizing supply structures through technological upgrades [2][13] Summary by Sections Industry Performance - The construction index fell by 2.5% in the week of July 28 to August 1, underperforming the broader market by 1.3 percentage points. Only the architectural design and services sub-sector maintained an upward trend, with notable individual stock gains [4][26] Investment Recommendations - Key investment opportunities include: 1. Cement Engineering: China National Materials (high dividend cement engineering leader, expected dividend yield over 5% in 2025) [19] 2. Metallurgical Engineering: China Steel International (low-carbon metallurgical engineering leader, expected dividend yield of 5.5% in 2025) [19] 3. Steel Structure Manufacturing: Honglu Steel Structure, Jinggong Steel Structure [19] 4. Chemical Engineering: China Chemical, Sanwei Chemical, Donghua Technology, benefiting from rising chemical product prices [19] Key Indicators - As of August 1, 2025, the cement shipment rate was 30%, down 13 percentage points from the previous week, while the asphalt plant operating rate was 33.1%, up 4.3 percentage points [3][20] Structural Changes and Opportunities - The report highlights the importance of focusing on infrastructure investments in regions with high demand, such as Sichuan, Zhejiang, Anhui, and Jiangsu, and recommends local state-owned enterprises and central enterprises involved in major infrastructure projects [32][35] Emerging Trends - The report suggests that the nuclear power sector remains highly attractive, with ongoing investments, and highlights the potential of AI and digital technologies in transforming traditional industries [34][36] Specialized Engineering Investment Targets - The report lists specific companies in specialized engineering fields, including: - China National Materials (Cement) - China Steel International (Metallurgy) - Honglu Steel Structure (Steel Structure) - China Chemical (Chemicals) [20] Conclusion - The overall sentiment is positive towards the construction and specialized engineering sectors, driven by government policies aimed at enhancing industry quality and profitability through technological and structural upgrades [1][19][32]