Market Performance - Southeast Asia ETFs rose by 3.38% during the period from June 21 to July 4, 2025, indicating a regional market recovery[5] - The Southeast Asia Technology ETF outperformed the broader Southeast Asia ETF by 0.77 percentage points, gaining 4.15%[35] Country-Specific Performance - iShares MSCI Indonesia ETF increased by 1.69%, underperforming by 1.69 percentage points due to weak market conditions and lack of policy support[39] - iShares MSCI Singapore ETF rose by 3.11%, underperforming by 0.27 percentage points, with market sentiment stabilizing after a short-term pullback[39] - iShares MSCI Thailand ETF surged by 7.36%, outperforming by 3.98 percentage points, driven by political stability amid market volatility[39] - iShares MSCI Malaysia ETF gained 4.27%, outperforming by 0.89 percentage points, showing signs of recovery while still in a correction phase[39] - Global X MSCI Vietnam ETF rose by 5.33%, outperforming by 1.96 percentage points, reaching its highest level since April 2022 due to a U.S.-Vietnam tariff agreement[39] Trading Volume and Liquidity - The trading volume for Global X FTSE Southeast Asia ETF was 121,000 shares, up 8.4% from the previous period[14] - iShares MSCI Singapore ETF saw a significant increase in trading volume by 60.7%, while iShares MSCI Indonesia ETF experienced a decline of 31.5%[14] Risk Factors - The report highlights macroeconomic downturn risks and geopolitical tensions as potential threats to market stability[34]

Group 1: Diplomatic Context - Wang Yi's week-long visit to Europe aims to shape bilateral relations amid the 50th anniversary of China-EU diplomatic ties and the upcoming China-EU leaders' meeting[1] - The visit is intended to preemptively address concerns that EU leaders might convey "self-serving" messages, potentially leading to misunderstandings between China and European nations[5] Group 2: EU Leaders' Responses - EU's High Representative Josep Borrell's demands included lifting China's restrictions on rare earth exports, halting military supplies to Russia, and proposing a plan to reshape China-EU trade relations[2] - Borrell's statements were criticized for being one-sided, ignoring the impact of US tariffs on European industries and the EU's military support to Ukraine exceeding €50 billion[2] Group 3: Diverging Attitudes Among EU Countries - Belgian Foreign Minister Sophie Wilmès expressed that China is a key trade partner for Belgium, indicating a willingness to maintain friendly relations regardless of the broader geopolitical climate[3] - The contrasting attitudes between EU leaders and individual countries highlight a lack of unified stance within the EU regarding relations with China[3] Group 4: Strategic Implications - The report suggests that China should focus not only on official EU statements but also on the individual attitudes of member states, which may influence future diplomatic engagements[3] - The ongoing geopolitical tensions, particularly the US-China trade war, necessitate a nuanced approach from China in its dealings with Europe[3]

Investment Rating - The report does not explicitly provide an investment rating for the industry or specific companies within it [4]. Core Insights - The offline retail sales performance of sportswear brands in Southwest China was under pressure in 2Q25, primarily due to weak consumer spending, with major brands experiencing negative sales growth [2][6]. - NIKE's sales in Southwest China saw a significant year-on-year decline, while ADIDAS performed slightly better with a high single-digit to low double-digit decline [2][6]. - Outdoor brands like Columbia and The North Face showed better performance due to strong demand for outdoor activities, camping, and tourism [2][6]. - The summer sports shoe market is facing sluggish consumption in traditional categories, but there is a rising trend in outdoor and fashion footwear [2][6]. Summary by Sections Offline Retail Performance - In 2Q25, offline retail data for sports brands in Southwest China weakened compared to 1Q25, with all major brands reporting negative sales growth [2][6]. - Store traffic remained stable, but transaction rates and average customer spending declined due to weak consumer purchasing willingness [2][6]. Brand Performance - NIKE's focus on footwear has led to a decline in its apparel market share, while ADIDAS maintained stable discount levels and focused on apparel sales, contributing to its relatively better performance [4]. - FILA's sales decline has narrowed, and the brand is shifting towards professional sports categories, enhancing its market position [4]. - LI-NING has become a partner of the Chinese Olympic Committee, while Anta is expanding into the outdoor cycling market [4]. Inventory and Discounts - Inventory levels are slightly elevated, leading to increased discounting across brands, with LI-NING and Anta offering the highest discount rates [3][4]. - The discount intensity for outdoor brands varies, with PELLIOT offering the highest discounts [3][4]. Future Outlook - The report anticipates that outdoor brands will perform better in the second half of the year, driven by increased sales in outdoor activities [4].

Investment Rating - The report suggests a focus on companies involved in nuclear power, energy infrastructure, and industrial robotics, indicating a positive investment outlook for these sectors. Core Insights - AI is increasingly recognized as a strategic asset in global political and technological competition, highlighting its importance in data centers and energy construction [16][18]. - The U.S. energy market is experiencing a shift, with significant demand for flexible resources due to extreme weather conditions, and the need for infrastructure investment remains strong [18][19]. - The European energy market is adapting to new regulations aimed at improving the integration of renewable energy sources [20]. Summary by Sections Global Infrastructure and Construction Equipment - AI's strategic position is emphasized, particularly in data centers, with significant investments planned in the U.S. [16]. - The PJM load reached 161 GW, exceeding expectations by nearly 5%, indicating strong energy demand [18]. - Texas has granted grid operators the authority to disconnect non-critical large loads during crises, reflecting the need for grid reliability [18]. Global Electrical and Intelligent Equipment - The gas turbine price index increased by 5.3% year-on-year, indicating a tightening supply-demand relationship [22]. - The U.S. transformer export value reached 46.82 billion yuan, growing by 29% year-on-year, showcasing strong demand in Asia and Europe [45][49]. Global Energy Industry - The average retail price of electricity in the U.S. was $0.13/kWh, a decrease of 1.1% month-on-month, reflecting market adjustments [3]. - The WTI crude oil futures price was $66.30 per barrel, up 1.3% from the previous week, indicating fluctuating energy prices [3]. Global New Materials - The global uranium market price was $52.17 per pound, showing a slight increase of 0.7% month-on-month, while rare earth prices experienced minor adjustments [3]. Global Defense and Aerospace - The price index for aircraft engine manufacturing remained stable, with a year-on-year increase of 1.7%, reflecting steady demand in the defense sector [4]. Investment Recommendations - The report recommends focusing on companies like Entergy, Talen Energy, and Constellation Energy in the nuclear power sector, as well as GE Vernova and Siemens Energy in energy infrastructure [5][6]. - The industrial robotics sector is expected to see increased demand due to U.S. industrial resurgence, with ABB highlighted as a key player [5].

Market Overview - The gold stablecoin market is currently dominated by two major players: Tether's XAUT and Paxos' PAXG, each holding nearly half of the market share[8][9]. - As of June 2025, the market capitalization of gold stablecoins is projected to reach $1.6 billion, accounting for approximately 0.67% of the total stablecoin market[8][9]. Advantages of Gold Stablecoins - Gold stablecoins enhance the convenience of gold trading by operating on blockchain technology, allowing for global transactions at any time[11]. - They lower investment barriers by enabling fractional ownership of gold, with the ability to split ownership down to six decimal places (approximately $0.02)[11]. - Transaction costs are significantly reduced, with PAXG charging only 0.02% in fees compared to higher fees associated with gold ETFs and futures[11]. Challenges Facing Gold Stablecoins - There is a fundamental conflict between the monetary functions of gold and stablecoins, as stablecoins focus on payment and settlement while gold serves primarily as a store of value[17]. - Gold stablecoins have not fully realized their value stability, with a low number of holders (less than 50,000 wallets) leading to low trading turnover and shallow market depth[17][19]. - Regulatory uncertainty remains a significant issue, as existing frameworks primarily cover fiat-backed stablecoins, leaving gold stablecoins in a precarious position regarding compliance[17]. Risk Considerations - There is a risk of significant deviation from the current gold price, which poses legal and compliance risks for both investors and issuers[28].

Investment Rating - The report assigns a rating of "Outperform" for Bosideng International Holdings, indicating an expected total return over the next 12-18 months that exceeds the relevant market benchmark [20]. Core Insights - Bosideng Group reported FY25 results with revenue reaching RMB 25.90 billion, an increase of 11.6% year-on-year, and a net profit attributable to the parent company of RMB 3.51 billion, up 14.3% year-on-year, with a net profit margin of 13.6%, reflecting a 0.3 percentage point increase [1][11]. - The company experienced steady growth in its non-women's wear categories, with revenue changes of +11.0% for down jackets and +26.4% for ODM, while women's wear saw a decline of -20.6% [2][12]. - The overall gross profit margin decreased by 2.3 percentage points to 57.3%, primarily due to structural adjustments and increased competition in the women's wear segment [2][12]. - The brand's down jacket business saw a revenue growth of approximately 10%, but the gross profit margins for its brands, including Bosideng and Xuezhongfei, declined [3]. - The company improved its operational efficiency, with a stable inventory turnover period of 118 days, and a reduction in expense ratios leading to an increase in operating profit margin to 19.2% [5]. Summary by Sections Financial Performance - FY25 revenue was RMB 25.90 billion, with a net profit of RMB 3.51 billion, marking increases of 11.6% and 14.3% respectively [1][11]. - FY25H2 revenue reached RMB 17.10 billion, up 8.6%, and net profit was RMB 2.38 billion, up 10.6% [1]. Business Segments - Revenue changes for FY25 included +11.0% for down jackets, +26.4% for ODM, -20.6% for women's wear, and +2.8% for diversified apparel [2][12]. - The gross profit margins for these segments were 63.4% for down jackets, 19.1% for ODM, 63.2% for women's wear, and 21.7% for diversified apparel [2][12]. Operational Efficiency - The company added 253 retail outlets, bringing the total to 3,470, with a focus on enhancing the quality of its retail network [4]. - Online revenue reached RMB 7.58 billion, reflecting a 9.3% year-on-year increase [4]. Strategic Initiatives - The strategic investment in Moose Knuckles, acquiring a 31.6% stake, aims to diversify the brand matrix and expand into international markets [7]. - Future plans include enhancing the brand's presence in both online and offline channels, with a focus on quality and operational efficiency [8].

Investment Rating - The report does not explicitly state an investment rating for the industry or specific companies involved. Core Insights - OpenAI has signed a significant compute infrastructure agreement with Oracle, leasing up to 4.5 GW of data center capacity, with an annual contract value potentially exceeding $30 billion, effective from FY2028. This partnership is crucial for OpenAI's model training and inference needs and indicates Oracle's growing share in the AI infrastructure market [1][7]. - OpenAI is transitioning towards a multi-cloud strategy, reducing its dependency on Azure and partnering with Oracle, Google, and others. This shift reflects OpenAI's increasing need for diversified compute supply due to the exponential growth in training cycles and parameter scales since the GPT-4 architecture [2][8]. - The agreement marks a pivotal moment for Oracle, enhancing its position in the AI infrastructure sector. Historically a leader in databases, Oracle has lagged in public cloud IaaS competition but is now poised to achieve scale advantages similar to AWS, Azure, and Google Cloud through this partnership [3][9]. Summary by Sections OpenAI's Strategy - OpenAI is no longer reliant solely on Azure for its infrastructure needs, adopting a multi-cloud approach and forming partnerships with Oracle, Google, and CoreWeave [5][11]. - The collaboration with Oracle allows for large-scale deployment capabilities that support OpenAI's commercial-scale inference workloads [5][11]. - OpenAI is expected to take a more active role in infrastructure-level strategic planning, evolving into a dual-role entity that combines model development with platform operations [5][11]. Oracle's Positioning - The deal with OpenAI is a critical turning point in Oracle's decade-long cloud transformation strategy, enabling it to catch up in the IaaS market [3][9]. - The agreement is projected to significantly enhance Oracle's IaaS revenue structure and profitability profile, with an estimated annual revenue of up to $30 billion starting in FY2028 [5][11]. - Oracle is accelerating capital expenditures for hyperscale data center projects, with a projected compound annual growth rate (CAGR) of over 30% from 2H24 to 2027E [5][11]. - As a key customer of NVIDIA, Oracle is well-positioned to secure GPU resources, which will be monetized through high-margin infrastructure leasing [5][11]. - Oracle's focus on AI-first infrastructure and dedicated tenancy aligns well with OpenAI's heterogeneous deployment needs, marking a strategic win against competitors like AWS and Azure [5][11].

Investment Rating - The report maintains an "Outperform" rating for A-Shares including Jiangsu Heng Rui Medicine, Sichuan Kelun Pharmaceutical, Huadong Medicine, WuXi AppTec, Asymchem Laboratories, Hangzhou Tigermed Consulting, and APT Medical [6][32] - The report also maintains an "Outperform" rating for H-Shares including PATEO, Hansoh Pharmaceutical Group, Innovent Biologics, WuXi XDC Cayman, Luye Pharma Group, and BeiGene [6][32] Core Insights - The commercial insurance innovative drug list is expected to be released soon, which is anticipated to improve the domestic market significantly [33] - The National Healthcare Security Administration and National Health Commission have released measures to support the high-quality development of innovative drugs, focusing on high-innovation drugs with significant clinical value [33] - The pharmaceutical sector underperformed the market in June 2025, with the Shanghai Composite Index rising by 2.9% while the SW Pharma Bio index rose by only 0.7% [34] - The Hang Seng Healthcare sector outperformed the market with an increase of 8.4% in June 2025, while the U.S. S&P Healthcare Select Sector underperformed with a rise of only 1.9% [35] Summary by Sections - **Investment Highlights**: Continuous positive outlook for innovative drugs and industry chain, with specific A-Shares and H-Shares recommended for investment [32][6] - **Market Performance**: In June 2025, the pharmaceutical sector's performance was weak compared to the overall market, ranking 19th among Shenwan primary industries [34] - **Sub-sector Analysis**: The best-performing sub-sectors included medical services (+4.8%), chemical preparations (+0.8%), and chemical raw materials (+0.5%) [34][20] - **Stock Performance**: Top gainers in the pharmaceutical sector included Zhejiang Anglikang Pharmaceutical (+146.4%) and Hubei Huaqiang High-Tech Co., Ltd. (+67.4%), while top losers included Kexing Biopharm Co., Ltd. (-28.7%) [34][23]

Manufacturing Sector - The manufacturing PMI for June 2025 is 49.7%, an increase of 0.2 percentage points from the previous month[4] - In June, 11 out of 21 surveyed industries are in the expansion zone, an increase of 4 industries compared to last month[6] - Large enterprises' PMI is 51.2%, up 0.5 percentage points, while small enterprises' PMI is 47.3%, down 2.0 percentage points[11] Supply and Demand - The production index and new orders index are at 51.0% and 50.2%, respectively, both showing increases of 0.3 and 0.4 percentage points[15] - The supply and demand index has rebounded, aligning with seasonal trends, with certain industries like food and beverage showing expansion[15] - Non-metal mineral products and black metal smelting industries continue to contract due to insufficient end demand from the real estate sector[15] Price Index and Procurement - The main raw material purchase price index and factory price index are at 48.4% and 46.2%, both rising by 1.5 percentage points[20] - The procurement index has increased to 50.2%, up 2.6 percentage points, indicating a rise in enterprise procurement activity[21] Non-Manufacturing Sector - The service sector's business activity index is at 50.1%, a slight decrease of 0.1 percentage points, indicating stability[24] - The construction sector's business activity index is 52.8%, up 1.8 percentage points, showing a seasonal rebound but with notable sub-sector differentiation[26] Risks - External disturbances and changes in real estate demand pose risks to the overall economic outlook[30]

Investment Rating - The report does not explicitly provide an investment rating for the industry or specific companies within it [27]. Core Insights - The NEV sector in China is experiencing intense competition, with performance among major manufacturers becoming increasingly divergent. The focus is expected to shift from price wars to quality and service upgrades as regulatory scrutiny tightens [8][16]. - BYD's June sales reached 383,000 units, a 12% year-on-year increase, while Geely sold 236,000 units, up 42% year-on-year. Both companies are adjusting their annual targets upwards due to strong first-half performance [9][10]. - Leapmotor achieved record sales of 48,000 units in June, marking a 139% year-on-year increase, while Li Auto and Xiaomi saw month-on-month declines in sales [11][14]. - NIO's wholesale sales were 25,000 units in June, reflecting an 18% year-on-year increase, but the company faces challenges from competitors in the same price segment [15][16]. Summary by Sections Sales Performance - BYD's first-half sales totaled 2.146 million units, achieving 39% of its annual target, while Geely's first-half sales reached 1.409 million units, with 47% of its revised target already met [9][10]. - Leapmotor's cumulative deliveries for the first half were 222,000 units, and it is expected to maintain strong sales momentum with new product launches [11]. - Li Auto's June deliveries were 36,000 units, down 24% year-on-year, while XPeng delivered 35,000 units, marking a 224% year-on-year increase [13][14]. Market Dynamics - The report highlights a shift in competition dynamics, with companies focusing on service upgrades and technological advancements rather than aggressive pricing strategies due to regulatory pressures [8][16]. - The performance of various brands indicates a competitive landscape where established players like BYD and Geely are facing challenges from emerging brands like Leapmotor and NIO [15][16]. Future Outlook - The second half of the year is expected to see continued volatility in sales as new models are launched and companies adapt to stricter regulations. Brands that can offer better value and brand equity are likely to outperform [16].