Group 1: Macroeconomic Insights - The core inflation trend continues to rise in July, influenced by the "old-for-new" policy driving up appliance prices and price wars in the automotive sector, but overall readings remain weak due to last year's high base and current excess supply of live pigs [2] - The Producer Price Index (PPI) shows a narrowing decline month-on-month, linked to rising international commodity prices and the effects of "anti-involution" policies, indicating a need for patience in addressing industrial product deflation amid weak demand [2] Group 2: Market Strategy - The current market may have entered a phase of oscillating upward movement, with strong performance observed, but a potential formation of a phase high point is noted, requiring attention to whether the market can break through this point [3] - Domestic markets are expected to maintain strong performance due to the accumulation of favorable internal and external factors, including a weak U.S. labor market and proactive domestic policies supporting asset prices [4] Group 3: Bond Market Observations - The secondary market for public REITs showed a trend of initial decline followed by an increase, with the weighted REITs index closing at 142.49 and a weekly return of -0.44% [5] - As of July 31, 2025, the total number of public REITs in China reached 70, with a total issuance scale of 182.06 billion yuan, indicating a fluctuating price trend in the secondary market [6] Group 4: Industry Research - In the coal mining sector, recent policies such as "anti-involution" and "checking overproduction" have positively impacted coal price expectations, suggesting significant upside potential for coal stocks [16] - The rare earth industry is expected to benefit from favorable pricing trends, with supply tightening and demand maintaining growth, particularly for companies focused on rare earth production [17] - The copper industry is experiencing inventory increases, but tight supply conditions are expected to support price increases in the future, with recommendations for specific companies in the sector [18] Group 5: Company Research - Changshu Bank reported a 10.1% year-on-year increase in revenue for the first half of 2025, with net profit rising by 13.5%, indicating strong performance and effective cost control [24] - Jerry Corporation achieved a 39.2% year-on-year increase in revenue for H1 2025, with significant order growth and an upward revision of profit forecasts for the coming years [25] - Rongbai Technology's revenue decreased by 9.28% in H1 2025 due to impairments and new business investments, leading to a downward revision of profit forecasts, but the company is positioned for future growth in solid-state battery technology [26]

Investment Rating - The report maintains an "Overweight" rating for the petrochemical industry [6] Core Viewpoints - OPEC+ has significantly increased production, with a planned increase of 547,000 barrels per day in September, canceling a previously announced reduction of 2.2 million barrels per day [1][2] - Oil prices have declined due to OPEC+ production increases and easing geopolitical tensions, with Brent and WTI crude oil prices reported at $66.32 and $63.35 per barrel, down 4.6% and 5.8% respectively [1][2] - The geopolitical landscape remains uncertain, particularly regarding the upcoming meeting between the US and Russian presidents, which may influence the Russia-Ukraine conflict and oil prices [3][20] - The demand peak for oil is nearing its end, with potential oversupply risks in Q3 and Q4, as global oil demand growth is projected to be the lowest since 2009, with an increase of only 700,000 barrels per day expected in 2025 [4][21] Summary by Sections OPEC+ Production and Market Dynamics - OPEC+ has fully canceled its voluntary production cuts, with a cumulative increase of 2.464 million barrels per day in 2025 [2][13] - The market is closely monitoring OPEC+'s stance on its remaining production cuts, particularly the 1.65 million barrels per day reduction [2][13] Geopolitical Factors - The upcoming US-Russia presidential meeting is anticipated to address key issues, including the Russia-Ukraine conflict and tariffs on Indian oil imports, which may affect oil supply dynamics [3][20] Supply and Demand Outlook - The IEA forecasts a seasonal peak in refinery output of 85.4 million barrels per day from May to August 2025, but overall oil demand remains under pressure, with growth expectations downgraded [4][21] - The report highlights the risk of inventory build-up in the latter half of the year due to supply exceeding demand [4][21] Investment Recommendations - The report suggests a positive long-term outlook for major oil companies and oil service sectors, recommending specific companies such as China National Petroleum, Sinopec, and CNOOC [5]

Investment Rating - The report maintains a "Buy" rating for Huahong Semiconductor (1347.HK) [5][7] Core Views - The company reported a positive outlook for 3Q25, with revenue guidance of $620 million to $640 million, representing a year-over-year increase of 19.7% and a quarter-over-quarter increase of 11.3%, exceeding market expectations [4] - The gross margin for 2Q25 was 10.9%, higher than the company's guidance of 7% to 9% and above the market expectation of 8.3%, driven by increased capacity utilization and cost reduction [2][4] - The company is entering a price increase cycle, with a low single-digit price adjustment implemented in 2Q25, primarily focused on IC and 12-inch platforms, expected to reflect in 3Q25 and 4Q25 [3][4] Summary by Sections Financial Performance - In 2Q25, the company achieved revenue of $566 million, a year-over-year increase of 18.3% and a quarter-over-quarter increase of 4.6%, driven by increased wafer shipments [2] - The net profit attributable to the parent company for 2Q25 was $7.95 million, below the market expectation of $12.77 million, mainly due to rising R&D expenses and depreciation [2] Market Demand and Strategy - The company anticipates a gradual revenue contribution from its "Local for Local" strategy, with collaborations with overseas IDM manufacturers already yielding results [3] - The consumer electronics sector saw a year-over-year revenue increase of 19.8% in 2Q25, while the industrial and automotive sectors grew by 16.7% [3] Capacity and Investment - The company reported a capacity utilization rate of 108.3% in 2Q25, a year-over-year increase of 10.4 percentage points, indicating strong demand recovery [3] - Capital expenditures for 2Q25 were $408 million, with $376 million allocated to Fab 9, which is expected to complete over 80% of its capacity installation by the end of 2025 [3][4] Profit Forecast and Valuation - The net profit forecasts for 2025 to 2027 have been adjusted downwards to $70 million, $140 million, and $180 million respectively, reflecting a year-over-year growth of 26%, 99%, and 24% [5][6] - The current stock price corresponds to a price-to-book ratio of 1.5x for 2025 and 2026, with expectations of market share growth supported by localized trends and capacity expansion [5]

Investment Rating - The report maintains an "Overweight" rating for the copper industry [6]. Core Viewpoints - The copper price is expected to continue rising in 2025 due to tightening supply and improving demand [4]. - The report highlights that the LME and COMEX copper inventories are facing upward pressure, while domestic cable production rates have increased but remain significantly lower than the previous year [1][2]. - The report suggests that the demand for copper will rebound in Q4 2025, driven by the recovery in electric grid and air conditioning needs [1]. Summary by Sections Inventory - Domestic copper social inventory increased by 10.6% week-on-week, while LME copper inventory rose by 11.5% [2]. - As of August 8, 2025, domestic port copper concentrate inventory stood at 620,000 tons, up 18.8% from the previous week [2]. - Global electrolytic copper inventory totaled 472,000 tons as of August 4, 2025, reflecting a 5.0% increase [2]. Supply - The TC spot price increased by $4 per ton week-on-week, currently at -$37.98 per ton, remaining at historically low levels [3][63]. - In July 2025, China's electrolytic copper production reached 1.1743 million tons, up 3.5% month-on-month and 14.2% year-on-year [3][66]. - The report notes a decrease in the price difference between refined copper and scrap copper, indicating potential tightening in scrap supply [2][56]. Demand - The cable industry's operating rate increased by 2.6 percentage points week-on-week, with the current rate at 69.89% [3][75]. - Air conditioning production is projected to decline year-on-year, with expected reductions of 2.8%, 12.7%, and 12.1% for August, September, and October respectively [3][94]. - The report emphasizes that the demand for copper in the power sector remains strong, supported by ongoing investments in power infrastructure [75][82]. Futures - SHFE copper active contract positions decreased by 4% week-on-week, while COMEX non-commercial net long positions fell by 45% [4][32]. - As of August 8, 2025, SHFE copper active contract positions were at 157,000 lots, reflecting a 4.1% decrease from the previous week [4][32]. Investment Recommendations - The report recommends stocks such as Jincheng Mining, Zijin Mining, Luoyang Molybdenum, and Western Mining, while suggesting to pay attention to Tongling Nonferrous Metals [4].

Investment Rating - The report maintains a "Buy" rating for the agriculture, forestry, animal husbandry, and fishery sector [4] Core Views - The pig farming sector is expected to enter a phase of supply and demand balance in August, with a positive outlook for pig prices as the industry approaches a long-term profitability uptrend [3] - The report highlights the seasonal decrease in pig output, with a total of 15.27 million pigs slaughtered by 13 listed companies in July, reflecting a 6.15% decrease month-on-month but a 25.12% increase year-on-year [2][13] - The average price of live pigs has shown a downward trend, with the national average price on August 8 being 13.71 yuan/kg, a 4.33% decrease week-on-week [1][29] Summary by Sections Pig Farming Sector - The total number of pigs slaughtered in July was approximately 15.27 million, with a month-on-month decrease of 6.15% and a year-on-year increase of 25.12% [2][13] - The average price of live pigs in July was 14-15 yuan/kg, with a slight increase in the overall monthly average price [2][14] - The average weight of pigs at slaughter has continued to decline, with an average of 124.16 kg in July, down 0.9 kg from the previous month [17][29] Price Trends - The average price of piglets was 30.4 yuan/kg, down 1.65% week-on-week, while the average price of pork was 20.46 yuan/kg, reflecting a year-on-year decrease of 26% [28][29] - The report notes that the price of white feather broiler chickens has increased to 7.14 yuan/kg, with a week-on-week rise of 4.54% [38] Investment Recommendations - The report recommends focusing on leading companies in the pig farming sector, such as Muyuan Foods, Wens Foodstuff Group, and New Hope Liuhe, as they are expected to benefit from the anticipated recovery in pig prices [3] - It also suggests monitoring companies in the feed and animal health sectors, such as Haida Group and Reap Bio, due to the expected increase in demand driven by rising pig stocks [3]

- The report discusses the "Volume Timing Signal" model, which indicates a cautious outlook for all major indices as of August 8, 2025[22][23] - The "HS300 Upward Stock Proportion Sentiment Indicator" is introduced, calculated as the proportion of HS300 constituent stocks with positive returns over the past N days. This indicator is currently above 80%, signaling high market sentiment[23][25] - The "Momentum Sentiment Indicator" is explained, using two smoothed lines (fast and slow) with different windows (N1=50, N2=35). When the fast line exceeds the slow line, it signals a bullish market view. As of August 8, 2025, the fast line is above the slow line, maintaining a positive outlook[26][28] - The "Moving Average Sentiment Indicator" is based on the number of HS300 closing prices above eight moving averages (parameters: 8, 13, 21, 34, 55, 89, 144, 233). If the count exceeds 5, it indicates a bullish view. As of August 8, 2025, the HS300 index is in a positive sentiment zone[32][36] - Cross-sectional volatility analysis shows a week-on-week decline in HS300, CSI500, and CSI1000 indices, indicating a weaker short-term alpha environment. Over the past quarter, cross-sectional volatility for these indices is at mid-to-lower levels compared to the past six months[37][40] - Time-series volatility analysis also shows a week-on-week decline for HS300, CSI500, and CSI1000 indices, with the past quarter's volatility at mid-to-lower levels compared to the past six months, suggesting a weaker alpha environment[40][42]

Group 1 - The A-share market has shown strong performance this week, with major indices such as the Shanghai Composite Index and the Wind All A Index recording significant gains, while the ChiNext Index and the Sci-Tech 50 Index lagged behind [1][14][16] - The market style this week favored small-cap growth and small-cap value stocks, while large-cap growth and mid-cap growth stocks underperformed [1][16] - Most sectors in the Shenwan first-level industry classification saw gains, with defense, non-ferrous metals, and machinery equipment leading the way, while pharmaceuticals, computers, and retail sectors experienced declines [1][16] Group 2 - The overall domestic market is performing well, supported by accumulating internal and external favorable factors, with expectations for continued strong performance in the future [2][22] - The weak U.S. labor market, highlighted by July's non-farm payrolls adding only 73,000 jobs and an increase in the unemployment rate to 4.2%, has raised concerns about the U.S. economy and increased expectations for a Federal Reserve rate cut in September [2][22][23] - Domestic policies are actively supporting the market, with July exports growing by 7.2% year-on-year, indicating resilience in foreign trade despite a complex international environment [4][48] Group 3 - The market is expected to reach new highs in the second half of the year, driven by short-term expectations and liquidity improvements, with a shift from policy-driven to fundamentals and liquidity-driven market dynamics [5][62] - Short-term focus should be on previously lagging sectors and those likely to benefit from improved overseas liquidity, while long-term attention should be on consumption, technological self-reliance, and dividend stocks [5][63][67][68][69] - Specific sectors to watch include machinery equipment and power equipment for short-term gains, and pharmaceuticals, home appliances, and food and beverage sectors for long-term benefits from overseas liquidity improvements [5][63][68]

Investment Rating - The report maintains a "Buy" rating for Changshu Bank (601128.SH) with a current price of 7.80 CNY [1]. Core Insights - Changshu Bank reported a revenue of 6.1 billion CNY for the first half of 2025, representing a year-on-year growth of 10.1%, and a net profit attributable to shareholders of 2 billion CNY, up 13.5% year-on-year [4][5]. - The bank's return on average equity (ROAE) stands at 13.34%, reflecting a slight increase of 0.06 percentage points year-on-year [4]. - The bank's non-interest income grew significantly by 57.3% year-on-year, contributing to the overall revenue growth [5][9]. Summary by Sections Financial Performance - In the first half of 2025, the bank's revenue, pre-provision profit, and net profit attributable to shareholders grew by 10.1%, 12.1%, and 13.5% respectively, with slight changes compared to the first quarter [5]. - The bank's net interest income and non-interest income growth rates were 0.8% and 57.3% year-on-year, indicating a strong performance in non-interest income [5]. Asset and Loan Growth - As of the end of the second quarter of 2025, the bank's interest-earning assets and loans grew by 11.4% and 5.2% year-on-year, respectively [6]. - The bank's loan growth was supported by financial investments and interbank assets, with a total loan addition of 106 billion CNY in the first half of 2025 [6]. Deposit and Funding - The bank's interest-bearing liabilities and deposits grew by 9.4% and 9.9% year-on-year, with a total deposit addition of 242 billion CNY in the first half of 2025 [8]. - The bank has been actively managing its liabilities by adjusting deposit rates to mitigate the trend of increasing fixed-term deposits [8]. Capital Adequacy and Dividends - As of the end of the second quarter of 2025, the bank's core tier 1 capital adequacy ratio was 10.7%, with a proposed cash dividend of 497 million CNY, representing a payout ratio of 25.3% [11]. - The bank has 6 billion CNY of convertible bonds pending conversion, which is expected to support future capital needs [11]. Earnings Forecast and Valuation - The bank's earnings per share (EPS) forecasts for 2025, 2026, and 2027 are 1.28 CNY, 1.42 CNY, and 1.50 CNY, respectively, with corresponding price-to-earnings (P/E) ratios of 6.09, 5.50, and 5.19 [12][13].

1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core Viewpoints of the Report From August 4 to August 8, 2025, the secondary - market prices of China's listed public REITs showed a trend of first decline and then rise. The overall performance was average compared with other mainstream asset classes. The prices of both property - right and franchise - based REITs declined, with property - right REITs having a larger decline. Ecological and environmental protection REITs had the largest increase. There were also changes in trading volume, turnover rate, and capital flow, and two new REITs were listed in the primary market [1][11]. 3. Summary According to the Directory 3.1 Secondary Market 3.1.1 Price Trends - **At the large - scale asset level**: The secondary - market prices of China's listed public REITs showed a trend of first decline and then rise. The returns of China's public REITs were - 0.44%, ranking behind stocks, convertible bonds, A - shares, gold, and pure bonds, but ahead of crude oil [1][11]. - **At the underlying asset level**: Both property - right and franchise - based REITs' secondary - market prices declined, with property - right REITs having a larger decline. Among different underlying asset types, ecological and environmental protection REITs had the largest increase, followed by energy and warehousing and logistics REITs [17][19]. - **At the single - REIT level**: Excluding the newly listed REITs, 21 REITs rose, 1 remained flat, and 49 declined. The top three in terms of increase were Huatai Baowan Logistics REIT, ICBC Mengneng Clean Energy REIT, and Huaxia Nanjing Traffic Expressway REIT. The top three in terms of decline were Huaxia Shouchuang Outlet Mall REIT, ICBC Hebei Expressway REIT, and CICC Hubei Ketou Optics Valley REIT [23]. 3.1.2 Trading Volume and Turnover Rate - **At the underlying asset level**: The trading volume of public REITs this week was 3.67 billion yuan. New - type infrastructure REITs led in terms of average daily turnover rate. The top three in terms of trading volume were new - type infrastructure, transportation infrastructure, and park infrastructure REITs. The top three in terms of average daily turnover rate were new - type infrastructure, energy infrastructure, and municipal facilities REITs [27]. - **At the single - REIT level**: The trading volume and turnover rate of single REITs continued to show differentiation. The top three in terms of trading volume were Southern Runze Technology Data Center REIT, Southern Wanguo Data Center REIT, and Huaxia Huadian Clean Energy REIT. The same three were also the top three in terms of trading amount. In terms of turnover rate, Huaxia Huadian Clean Energy REIT, Southern Runze Technology Data Center REIT, and Southern Wanguo Data Center REIT led [28]. 3.1.3 Main Force Net Inflow and Block Trading - **Main force net inflow situation**: The total net inflow of the main force this week was 242.81 million yuan, indicating an increase in market trading enthusiasm. In terms of different underlying asset REITs, the top three in terms of net inflow were new - type infrastructure, energy infrastructure, and water conservancy facilities REITs. In terms of single REITs, the top three were Southern Runze Technology Data Center REIT, Southern Wanguo Data Center REIT, and Huaxia Huadian Clean Energy REIT [32]. - **Block trading situation**: The total block trading amount this week reached 336.25 million yuan, an increase compared with last week. There were block trading transactions on 5 trading days this week, with the highest single - day trading amount on August 6, 2025. The top three in terms of block trading amount were Southern Shunfeng Logistics REIT, CITIC Construction Investment Mingyang Smart New Energy REIT, and Chuangjin Hexin Shounong REIT [33]. 3.2 Primary Market - **Listed projects**: As of August 8, 2025, there were 73 public REITs in China, with a total issuance scale of 190.852 billion yuan. This week, Southern Runze Technology Data Center REIT and Southern Wanguo Data Center REIT were listed, both belonging to new - type infrastructure, with issuance scales of 4.5 billion yuan and 2.4 billion yuan respectively [36]. - **Pending - listing projects**: There were 17 REITs in the pending - listing state, including 11 first - issuance REITs and 6 REITs pending expansion. This week, the expansion project of "AVIC Jingneng Photovoltaic Closed - end Infrastructure Securities Investment Fund" and the first - issuance project of "CICC Vipshop Outlet Mall Closed - end Infrastructure Securities Investment Fund" were updated to "Passed" [40].

Group 1: Report Industry Investment Rating - Not provided in the content Group 2: Core View of the Report - The current convertible bond valuations are close to or exceed historical highs, but the equity market is on the rise, so one can still be optimistic about convertible bonds [1][4] Group 3: Summary by Relevant Catalogs Market Conditions - From August 4 to August 8, 2025, the CSI Convertible Bond Index rose by +2.3% (last week's change was -1.4%), and the CSI All-Share Index changed by +1.9% (last week's change was -1.1%). Since the beginning of 2025, the CSI Convertible Bond Index has risen by +12.8%, and the CSI All-Share Index has risen by +10.7%, with the convertible bond market outperforming the equity market [1][4] - By rating, high-rated bonds (AA+ and above), medium-rated bonds (AA), and low-rated bonds (AA- and below) rose by +2.14%, +2.26%, and +3.01% respectively this week, with low-rated bonds having the highest increase. By convertible bond size, large-scale convertible bonds (bond balance > 5 billion yuan), medium-scale convertible bonds (balance between 500 million and 5 billion yuan), and small-scale convertible bonds (balance < 500 million yuan) rose by +1.49%, +2.38%, and +3.23% respectively, with small-scale convertible bonds having the highest increase. By parity, ultra-high parity bonds (conversion value > 130 yuan), high parity bonds (conversion value between 110 and 130 yuan), medium parity bonds (conversion value between 90 and 110 yuan), low parity bonds (conversion value between 70 and 90 yuan), and ultra-low parity bonds (conversion value < 70 yuan) rose by +4.08%, +2.85%, +2.30%, +1.96%, and +1.86% respectively, with ultra-high parity bonds having the highest increase [2] - The top 30 convertible bonds in terms of increase are mainly from the machinery and equipment (7) and chemical (6) industries; the top 30 convertible bonds in terms of decline are mainly from the pharmaceutical and biological (7) and chemical (4) industries [2] Convertible Bond Price, Parity, and Conversion Premium Rate - As of August 8, 2025, there were 461 outstanding convertible bonds (463 at the end of last week), with a balance of 631.809 billion yuan (636.614 billion yuan at the end of last week). The average convertible bond price was 130.4 yuan (127.7 yuan last week), with a percentile of 99.5%; the average convertible bond parity was 103.18 yuan (100.65 yuan last week), with a percentile of 93.5%; the average convertible bond conversion premium rate was 28.1% (27.4% last week), with a percentile of 56.7%. Among them, the conversion premium rate of medium-parity convertible bonds (conversion value between 90 and 110 yuan) was 29.6% (27.6% last week), higher than the median conversion premium rate of medium-parity convertible bonds since 2018 (20.1%) [3] Convertible Bond Performance and Allocation Direction - The CSI Convertible Bond Index rose by +2.3% this week, continuing to rise after a slight adjustment last week; the CSI All-Share Index changed by +1.9%. Since the beginning of 2025, the CSI Convertible Bond Index has risen by +12.8%, and the CSI All-Share Index has risen by +10.7%, with the convertible bond market outperforming the equity market. Although the current convertible bond valuations are high, one can still be optimistic about convertible bonds due to the promising equity market [4] Convertible Bond Increase Situation - The top 15 convertible bonds in terms of increase this week include Jiejian Convertible Bond, Julong Convertible Bond, and Gaoce Convertible Bond, with increases of 23.15%, 21.65%, and 16.82% respectively [22]