1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - Recently, the central government has allocated 500 billion yuan in remaining quota to local governments, and local bond issuance may continue to increase in the fourth quarter. Compared with last year, this arrangement has increased in intensity and expanded in scope. Based on policy statements, the 500 billion yuan may be issued through both new special bonds and special refinancing bonds, and local bond issuance may continue to rise in the fourth quarter [2]. - The issuance and net financing of local bonds in the current period decreased compared to the previous period, but are expected to increase significantly in the next period. The weighted issuance term of local bonds in the current period has lengthened. As of October 17, 2025, the cumulative issuance progress of new general bonds and new special bonds is slower than in 2023 and 2024. The planned issuance scale of local bonds from October to November 2025 is 923.4 billion yuan, with new special bonds accounting for 507.3 billion yuan. Special new special bonds and special refinancing bonds for replacing implicit debts were issued in the current period, and the issuance progress of special refinancing bonds has reached 99.6%. The spread between 10Y local bonds and treasury bonds narrowed, while the spread between 30Y local bonds and treasury bonds widened, and the weekly turnover rate increased [3]. 3. Summary According to the Table of Contents 3.1 This Period's Local Bond Issuance Volume Decreased, and the Weighted Issuance Term Lengthened - The total issuance/net financing of local bonds in the current period (October 13 - October 19, 2025) was 32.301 billion yuan / -19.781 billion yuan, compared with 82.528 billion yuan / 39.784 billion yuan in the previous period. The expected issuance/net financing in the next period (October 20 - October 26, 2025) is 247.228 billion yuan / 165.751 billion yuan. The weighted issuance term of local bonds in the current period was 16.21 years, longer than the 12.93 years in the previous period [3][10]. - As of October 17, 2025, the cumulative issuance of new general bonds/new special bonds accounted for 83.9% and 83.4% of the annual quota respectively, and is expected to be 84.1% and 86.0% considering the next - period's expected issuance. The cumulative issuance progress in 2024 was 85.1%/90.1% and 87.6%/94.6%, and in 2023 was 90.1%/87.9% and 90.1%/89.0% [3][20]. - As of October 17, 2025, 28 regions have disclosed a planned issuance scale of local bonds of 923.4 billion yuan from October to November 2025 (542.3 billion yuan in October and 381.1 billion yuan in November), with new special bonds accounting for 507.3 billion yuan (366.3 billion yuan in October and 141 billion yuan in November). The issuance in the same regions and the whole country in the same period last year was 1424.8 billion yuan and 267.5 billion yuan, and 1997.2 billion yuan and 382.8 billion yuan respectively [3][24]. - As of October 17, 2025, the cumulative issuance of special new special bonds was 1206 billion yuan (3.1 billion yuan issued in the current period); the cumulative issuance of special refinancing bonds for replacing implicit debts was 1992.4 billion yuan (6.2 billion yuan issued in the current period), with an issuance progress of 99.6%. 32 regions including Zhejiang have completed the issuance (Hubei was added in the current period) [3]. 3.2 This Period's Spread between Local Bonds and Treasury Bonds Narrowed for 10Y and Widened for 30Y, and the Weekly Turnover Rate Increased - As of October 17, 2025, the spreads between 10 - year and 30 - year local bonds and treasury bonds were 20.54BP and 17.98BP respectively, narrowing by 4.40BP and widening by 0.26BP compared to October 11, 2025. They were at the 58.80% and 70.20% historical quantiles since 2023 respectively [3]. - The weekly turnover rate of local bonds in the current period was 0.56%, an increase from 0.35% in the previous period. The yields and liquidity of 7 - 10Y local bonds in regions such as Dalian, Qinghai, and Ningxia were better than the national average [3].

Investment Rating - The report maintains an "Optimistic" rating for the chemical industry [3][4]. Core Insights - The report highlights the global expansion of major titanium dioxide manufacturers, emphasizing the opportunity for industry recovery from the bottom of the cycle. The acquisition of Venator UK's titanium dioxide assets and the establishment of subsidiaries in Malaysia and the UK are key developments [4][5]. - The macroeconomic outlook for the chemical sector indicates stable oil demand despite a slight slowdown due to tariffs, with global GDP growth projected at 2.8%. The report also notes that coal prices are stabilizing and natural gas export facilities in the U.S. are expected to accelerate [4][5]. - The report suggests investment strategies across various sectors, including textiles, agriculture, and chemicals, with a focus on companies benefiting from the "anti-involution" policies [4][5]. Summary by Sections Industry Dynamics - The report discusses the current macroeconomic conditions affecting the chemical industry, including oil supply and demand dynamics, with a forecast of increased production from non-OPEC sources and stable global oil demand [5][6]. - It notes that the PPI for industrial products decreased by 2.3% year-on-year in September, indicating a stabilization in prices due to improved supply-demand structures [6]. Investment Analysis - The report recommends a diversified investment approach focusing on sectors such as textiles, agriculture, and export-oriented chemicals, highlighting specific companies for potential investment [4][18]. - Key materials for growth are identified, including semiconductor materials and packaging materials, with specific companies mentioned for each category [4][18]. Price Movements - The report provides detailed price movements for various chemical products, including titanium dioxide, fertilizers, and pesticides, indicating a mixed outlook with some prices stabilizing while others show slight declines [11][14][20]. - It highlights the impact of external factors such as raw material costs and international trade dynamics on pricing trends within the chemical sector [11][14].

Investment Rating - The report maintains a "Buy" rating for the industry, highlighting potential growth opportunities in the textile and apparel sector [20][25]. Core Insights - The textile and apparel sector has shown resilience, with the SW textile and apparel index outperforming the SW All A index by 3.3 percentage points during the period from October 13 to October 17, 2025 [3]. - Domestic demand is gradually recovering, while external demand remains volatile, emphasizing the value of globalized production capacity [10][11]. - The report suggests that companies with mature overseas capabilities and the ability to allocate production globally will benefit from the ongoing shifts in the supply chain due to U.S. tariff policies [8][11]. Summary by Sections Industry Performance - The SW textile and apparel index decreased by 0.3%, while the SW apparel and home textiles index increased by 0.4%, outperforming the SW All A index by 4.0 percentage points [3]. - Retail sales in the clothing, shoes, and textiles category reached 940 billion yuan from January to August, reflecting a year-on-year growth of 2.9% [10]. Export Data - In September, China's textile and apparel exports amounted to $24.42 billion, a year-on-year decline of 1.0%. However, textile yarn, fabric, and products saw an increase of 6.4% [10][44]. - Vietnam's textile exports grew by 9.1% in the same period, indicating a shift in production orders and competitive advantages for overseas production [8][11]. Cotton and Wool Prices - As of October 17, the national cotton price B index was reported at 14,683 yuan per ton, down 0.6% from the previous week [46]. - The Australian wool index showed a significant year-on-year increase of 30.7%, indicating strong demand in the wool market [10]. Company Performance - 361 Degrees reported a 10% year-on-year increase in retail sales for its main brand and children's line, while e-commerce sales grew by approximately 20% [16]. - Xtep International's main brand saw a low single-digit growth in retail sales, with online sales outperforming offline [22]. - The report highlights the strong performance of companies like Bosideng, Anta, and Li Ning, suggesting they are well-positioned to capitalize on the upcoming winter season [9][14]. Investment Recommendations - The report recommends focusing on high-quality domestic brands that are beginning to reverse their challenges, particularly in the sports and outdoor segments [14]. - Specific companies highlighted for investment include Bosideng, Anta, and 361 Degrees, with a suggestion to monitor Xtep and other emerging brands [14].

Investment Rating - The industry investment rating is "Overweight" indicating a positive outlook for the sector compared to the overall market performance [10]. Core Insights - The report highlights the rising trend of "small happiness" self-consumption as a relative safe haven amid increasing risk aversion, with specific companies like Pop Mart and Damai Entertainment showing strong growth potential through innovative product offerings and expansion strategies [3][5]. - The gaming sector is experiencing significant adjustments, with major companies like Tencent and Century Huatong expected to maintain strong performance despite market volatility, while the AI video segment is emerging as a key area for growth [3][5]. Summary by Relevant Sections Consumer Sector - Pop Mart is ramping up production capacity and expanding product categories, with successful new IP launches and international expansion, achieving rapid sales growth during peak seasons [3]. - Damai Entertainment's core IP Chiikawa has seen high demand in mainland China, indicating strong market interest and potential for future growth [3]. Gaming Sector - Tencent Holdings is projected to have a market cap of 50,823 million RMB with a revenue growth of 13% year-on-year, while its PE ratio is expected to be 20 for 2025 [5]. - Century Huatong is also highlighted with a projected revenue increase of 21% year-on-year, indicating a positive outlook for its gaming products [5]. Cloud Computing and Entertainment - Alibaba's cloud computing segment is expected to grow at a rate of 11% year-on-year, with a market cap of 26,914 million RMB [5]. - Mango TV is anticipated to see a turnaround in its operations, benefiting from favorable policy changes in the long video sector [3]. AI and Technology - The report emphasizes the importance of AI in video production, with companies like Bilibili and Kuaishou positioned to leverage AI advancements for monetization [3]. - The technology sector has faced a 14% adjustment since October 2, but the report suggests that the fundamentals remain strong, driven by advancements in domestic models and chips [3].

Investment Rating - The report suggests a focus on companies with effective supply release capabilities, such as Geely, BYD, Great Wall, Li Auto, and NIO, while also recommending attention to "future industries" driven by technology [2][3]. Core Insights - The fourth quarter is expected to see a surge in market demand due to tightening subsidy limits, with a wave of new model launches anticipated to boost sales [2]. - The report emphasizes the importance of companies with strong performance support and relatively low valuations, particularly in sectors like robotics, AI, and low-altitude economy [2]. - The report highlights the ongoing reforms in state-owned enterprises, particularly in companies like SAIC and Dongfeng, which are expected to bring significant changes [2]. Market Situation Update - In the 40th week of 2025, retail sales of passenger cars totaled 469,000 units, a month-on-month decrease of 27.85% but a year-on-year increase of 16.64% [3]. - Traditional energy vehicle sales were 234,000 units, down 16.43% month-on-month but up 6.70% year-on-year, while new energy vehicle sales were 235,000 units, down 36.49% month-on-month but up 28.49% year-on-year, with a penetration rate of 50.11% [3]. - The automotive industry index fell by 5.99% during the week, underperforming compared to the Shanghai and Shenzhen 300 index, which dropped by 2.22% [14]. Company Performance - The report identifies key companies with strong growth potential, including Kobot, Xingyu, Jifeng, and Songyuan, as well as those with recovering performance and attractive valuations like Minshi and Ningbo Huaxiang [2]. - The report notes that 43 stocks in the automotive sector rose while 228 fell, with the largest gainers being Haima Automobile, Meichen Technology, and Fute Technology, which rose by 19.2%, 16.8%, and 13.0% respectively [19]. Industry Events - The 2025 World Intelligent Connected Vehicle Conference was held in Beijing, focusing on industry opportunities and future directions, highlighting China's advantages in policy support, infrastructure, and autonomous driving technology [11][12]. - The report mentions the launch of new models such as the Leapmotor D19 and the Gao Shan 7, which are positioned to capture market segments with advanced features and competitive pricing [4][8].

Group 1 - The report indicates a significant decline in market risk appetite, with the North Exchange 50 index dropping by 4.91%, which is less than the declines of the Sci-Tech 50 (-6.16%) and the Growth Enterprise Board (-5.71%) [9][15][20] - The report highlights that the proportion of strong stocks in the North Exchange has fallen below 10%, suggesting that while the index is still adjusting, the relative weakness has been fully reflected over the past quarter, indicating potential accumulation of rebound momentum [9][10] - The report suggests maintaining focus on core assets in the North Exchange and companies with marginal changes, especially with several significant events expected in late October, including the release of third-quarter economic data and company reports [9][10] Group 2 - The North Exchange saw a total trading volume of 39.58 billion shares and a trading value of 925.82 billion yuan, with an average daily trading value of 185.16 billion yuan, reflecting a slight decrease of 2.57% week-on-week [21][15] - The report notes that the North Exchange's PE (TTM) average is 77.79 times, with a median of 45.06 times, indicating a decrease in valuation metrics compared to previous weeks [23][24] - The report mentions that there was one new stock listed this week, Changjiang Nengke, which had a first-day price increase of 254.03% and a turnover rate of 67.65% [26][29] Group 3 - The report states that 34 stocks in the North Exchange rose while 244 fell, resulting in a rise-fall ratio of 0.14, with Lituo Technology and Wantong Hydraulic leading the gains [35][38] - The report lists the top five stocks by turnover rate, with Jinhua New Material having a turnover rate of 137.56% despite a slight decline in price [41] - The report provides updates on new three-board listings, with 10 new companies listed and 1 delisted, raising a planned financing amount of 453 million yuan and completing 166 million yuan in financing [44][45]

Investment Rating - The report maintains a positive outlook on the internet media industry, indicating an "Overweight" investment rating [2]. Core Insights - The report highlights the rising risk aversion and the relative benefits of self-indulgent consumption, particularly in the context of the internet media sector [2]. - Key companies such as Pop Mart, Damai Entertainment, and Mango TV are identified as having strong growth potential due to innovative product offerings and market expansion strategies [2]. - The gaming sector is experiencing significant adjustments, but the fundamentals remain strong, with major companies like Tencent and Century Huatong showing resilience [2]. - The report emphasizes the importance of AI in video content creation and identifies key players in this space, such as Bilibili and Kuaishou, as potential investment opportunities [2]. Summary by Sections Consumer Trends - The report notes that Pop Mart is ramping up production capacity and expanding its product categories, with the new IP "Starry People" expected to drive future growth [2]. - Damai Entertainment's core IP "Chiikawa" has seen high demand in mainland China, indicating strong market interest [2]. - Mango TV is positioned to benefit from favorable policy changes in the long video sector, with expectations for improved operational performance [2]. Gaming Sector - The gaming sector is undergoing significant adjustments, with concerns over short-term impacts from tariffs and market volatility [2]. - Despite these challenges, the report suggests that the fundamentals of major gaming companies remain intact, with Tencent's daily active users reaching 30 million [2]. - The report recommends several gaming stocks, including Tencent, Century Huatong, and Giant Network, highlighting their strong market positions [2]. AI and Technology - The launch of Sora 2 by OpenAI is noted as a significant development in AI video technology, with implications for monetization strategies [2]. - Companies like Bilibili and Meitu are highlighted for their potential in AI-driven content creation and advertising [2]. - The report suggests that advancements in domestic AI models and chips provide a strong foundation for future growth in the tech sector [2].

Investment Rating - The report maintains a positive outlook on the non-bank financial sector, indicating an "Overweight" rating for the industry [5][6]. Core Insights - The report highlights strong performance in the non-bank financial sector, with significant growth in both the brokerage and insurance segments, driven by favorable market conditions and policy expectations [5][6]. - It emphasizes the potential for policy announcements during the upcoming Financial Street Forum, which could further support market stability and growth [5][6]. - The report notes that the insurance sector is expected to outperform, with several companies already issuing profit increase announcements for the third quarter of 2025 [5][6]. Summary by Sections Market Review - The Shanghai Composite Index closed at 4,514.23, with a decline of 2.22% over the week, while the non-bank index fell by 1.34% [8]. - The brokerage sector index decreased by 3.13%, whereas the insurance sector index increased by 3.65% [8]. Non-Bank Financial Data - As of October 17, 2025, the 10-year government bond yield was 1.82%, reflecting a decrease of 1.37 basis points [12]. - The average daily trading volume for the stock market was reported at 21,931.34 billion yuan, a decrease of 15.76% week-on-week [14]. Key Company Announcements - New China Life Insurance reported a projected net profit increase of 45% to 65% for the first three quarters of 2025, with expected profits between 299.86 billion yuan and 341.22 billion yuan [33][34]. - China Pacific Insurance also announced a projected net profit increase of 40% to 60% for the same period, driven by favorable market conditions [35]. Investment Recommendations - The report recommends focusing on leading brokerage firms with strong competitive positions, such as GF Securities and CITIC Securities, as well as insurance companies with high growth potential like China Life and New China Life [5][6].

Investment Rating - The report indicates a cautious outlook on the metals and new materials industry, with specific recommendations for various segments based on current market conditions and price movements [3][4]. Core Insights - The overall performance of the metals sector has been mixed, with the Shanghai Composite Index down 1.47% and the Shenzhen Component Index down 4.99% week-on-week. The non-ferrous metals index fell by 3.07%, underperforming the CSI 300 Index by 0.85 percentage points [3][4]. - Precious metals have shown resilience, with gold prices increasing by 5.76% and silver by 6.55% due to expectations of interest rate cuts and geopolitical uncertainties [3][4]. - The report highlights a significant increase in demand for precious metals, particularly gold, driven by central bank purchases and a low gold reserve in China, suggesting a long-term upward trend in gold prices [3][4]. Summary by Sections Weekly Market Review - The report notes a decline in the overall market indices, with the non-ferrous metals index up 69.59% year-to-date, outperforming the CSI 300 Index by 54.87 percentage points [4][6]. - Specific segments such as precious metals saw a week-on-week increase of 3.19%, while aluminum and energy metals experienced declines of 1.19% and 5.24%, respectively [8][4]. Price Changes - Industrial metals prices showed varied movements, with copper prices up by 0.82% and aluminum by 1.07%, while lead and zinc prices fell by 2.50% and 2.27%, respectively [14][3]. - Lithium prices have also seen fluctuations, with battery-grade lithium carbonate increasing by 1.36% [14][3]. Key Company Valuations - The report provides a detailed valuation of key companies in the sector, highlighting their stock prices, earnings per share (EPS), and price-to-earnings (PE) ratios. For instance, Zijin Mining has a stock price of 30.17 CNY with a PE ratio of 38 [16][17]. - Other notable companies include Shandong Gold with a stock price of 40.51 CNY and a PE ratio of 25, and Luoyang Molybdenum with a stock price of 15.04 CNY and a PE ratio of 39 [16][17]. Supply and Demand Analysis - The report emphasizes the supply constraints in the copper market, with a significant incident at Freeport's Grasberg mine expected to reduce copper output by 35% in 2026 [3][25]. - Demand for copper remains robust, with operating rates for electrolytic copper rods and wire and cable showing increases week-on-week [25][3]. Investment Recommendations - The report suggests focusing on companies with stable supply-demand dynamics in the new energy manufacturing sector, recommending stocks such as Huafeng Aluminum and Baowu Magnesium [3][4].

Investment Rating - The report maintains a "Buy" rating for the textile and apparel industry, highlighting the resilience of the sportswear segment and the potential for growth in domestic demand [22][27]. Core Insights - The textile and apparel sector outperformed the market, with the SW textile and apparel index declining by 0.3%, outperforming the SW All A index by 3.3 percentage points from October 13 to October 17 [3]. - Recent industry data indicates a 2.9% year-on-year increase in retail sales for clothing, shoes, and textiles, totaling 940 billion yuan from January to August [10]. - The report emphasizes the significance of overseas production capacity and the upcoming third-quarter performance reports from various companies, suggesting that firms like Yanjiang and Nuobang may benefit from industry opportunities [8][10]. Summary by Sections Textile Sector - The textile export value for September was $12 billion, reflecting a year-on-year increase of 6.4%, while the overall textile and apparel export value for the first nine months was $221.69 billion, down 0.3% year-on-year [11][46]. - The report notes that the U.S. tariff policies are causing a divergence in production locations, favoring companies with established overseas capabilities [8][11]. Apparel Sector - The third-quarter operational data from Xtep and 361 Degrees shows resilience in the sportswear segment, with 361 Degrees reporting a 10% increase in offline sales for its main brand and children's line [9][24]. - The report recommends focusing on Bosideng due to favorable conditions for winter clothing sales, extended sales windows due to the delayed Spring Festival, and a high dividend yield [9][10]. Key Company Performance - 361 Degrees reported a 10% year-on-year increase in offline sales and a 20% increase in e-commerce sales for Q3 2025, demonstrating strong operational resilience [17][24]. - Xtep's main brand saw low single-digit growth in Q3, with online sales outperforming offline sales, particularly in children's and outdoor products [24][25]. Market Trends - The report highlights a mild recovery in domestic demand, with retail sales for clothing and textiles showing positive growth trends [10][39]. - The competitive landscape is shifting, with companies that can adapt to changing consumer preferences and optimize their supply chains expected to perform better [8][10].