Market Performance - On September 19, 2025, the three major indices experienced fluctuations, with the Shanghai Composite Index down by 0.30%, the Shenzhen Component Index down by 0.04%, and the ChiNext Index down by 0.16%[3] - The total market turnover was 23,494.05 billion yuan, a decrease of 8,172.23 billion yuan from the previous trading day[3] - A total of 1,910 stocks rose while 3,405 stocks fell across the market[3] Sector and Style Analysis - Among the 30 CITIC first-level industries, the top performers were Consumer Services (up 2.28%), Coal (up 1.95%), and Nonferrous Metals (up 1.22%)[22] - The worst performers included Comprehensive Finance (down 2.30%), Automotive (down 1.70%), and Pharmaceuticals (down 1.35%)[22] - In terms of investment style, the ranking of indices by performance was: 0 > Cyclical > Stable > Financial > Growth > Consumption[22] Capital Flow - On September 19, 2025, the net outflow of main funds was 587.33 billion yuan, with large orders seeing a net outflow of 230.40 billion yuan and small orders experiencing a net inflow of 643.08 billion yuan[26] - The trading volume of major ETFs such as the Huaxia SSE 50 ETF and the Huatai-PB CSI 300 ETF decreased significantly, with changes of -20.00 billion yuan and -21.19 billion yuan respectively[30] Global Market Trends - On September 19, 2025, major Asia-Pacific indices showed mixed results, with the Hang Seng Index unchanged at 26,545.10 points and the Nikkei 225 Index down by 0.57% to 45,045.81 points[5][33] - European indices generally rose on September 18, 2025, with the DAX Index up 1.35% and the CAC40 Index up 0.87%[6][34]

Market Performance - On September 18, 2025, the market experienced a high and then a pullback, with a total trading volume exceeding 31,666.28 billion CNY, an increase of 7,637.13 billion CNY from the previous trading day[3] - The Shanghai Composite Index fell by 1.15%, the Shenzhen Component Index decreased by 1.06%, and the ChiNext Index dropped by 1.64%[3] - A total of 1,027 stocks rose while 4,350 stocks declined across the market[3] Sector and Style Analysis - Among the 30 major sectors, the electronics sector led with a gain of 0.82%, followed by consumer services at 0.68% and communications at 0.24%[3] - The worst-performing sectors included non-ferrous metals at -3.62%, comprehensive finance at -3.54%, and non-bank finance at -2.79%[3] - Fund-heavy stocks outperformed the CSI All Share Index, indicating a preference for growth and consumer sectors over financials and cyclical stocks[3] Capital Flow - On September 18, 2025, there was a net outflow of 1,084.07 billion CNY in major funds, with large orders contributing to a net outflow of 599.01 billion CNY and 485.06 billion CNY respectively[4] - Small orders saw a continuous net inflow of 1,136.31 billion CNY, indicating retail investor interest despite the overall outflow[4] ETF Trading Activity - Major ETFs such as the Huaxia SSE 50 ETF and the Huatai-PB CSI 300 ETF saw significant increases in trading volume, with changes of +22.12 billion CNY and +21.73 billion CNY respectively[4] - The total trading volume for these ETFs indicates a growing interest in index-based investments amidst market volatility[4] Global Market Overview - On September 18, 2025, major Asian indices showed mixed results, with the Hang Seng Index down 1.35% and the Nikkei 225 up 1.15%[5] - European indices also displayed varied performance, with the DAX up 0.13% and the CAC40 down 0.40%[6] - In the U.S., the Dow Jones Industrial Average rose by 0.57%, while the S&P 500 and Nasdaq Composite saw slight declines of 0.10% and 0.33% respectively[6]

Market Performance - On September 17, 2025, the market opened low and closed high, with the ChiNext Index reaching a new high for the period. The Shanghai Composite Index rose by 0.37%, the Shenzhen Component Index increased by 1.16%, and the ChiNext Index gained 1.95%[3] - The total market turnover was 24,029.16 billion CNY, an increase of 358.68 billion CNY compared to the previous trading day[3] Sector and Style Analysis - Among the 30 CITIC first-level industries, most sectors saw gains, with the top performers being Comprehensive Finance (3.93%), Electric Equipment and New Energy (2.90%), and Automotive (2.13%). The laggards included Consumer Services (-1.07%), Agriculture, Forestry, Animal Husbandry, and Fishery (-0.98%), and Retail (-0.95%)[21] - In terms of investment style, growth stocks outperformed value stocks, with large-cap growth leading small-cap value, and fund-heavy stocks performing better than the CSI All Share Index[21] Capital Flow - On September 17, 2025, the net outflow of main funds was 383.06 billion CNY, with large orders contributing to the outflow of 212.53 billion CNY and super large orders accounting for 170.53 billion CNY. Small orders saw a continuous net inflow of 473.14 billion CNY[26] - Southbound funds recorded a net inflow of 94.41 billion HKD, with the Shanghai-Hong Kong Stock Connect contributing 21.56 billion HKD and the Shenzhen-Hong Kong Stock Connect contributing 72.85 billion HKD[5] Global Market Overview - On September 17, 2025, major Asia-Pacific indices showed mixed results, with the Hang Seng Index rising by 1.78% to 26,388.16 points and the Nikkei 225 Index declining by 0.25% to 44,790.38 points[33] - European indices generally fell on September 16, 2025, with the DAX Index down 1.77% and the FTSE 100 Index down 0.88%[34]

Investment Rating - The report maintains a "Recommended" investment rating for the pharmaceutical and biotechnology industry [6] Core Viewpoints - The pharmaceutical sector has outperformed the CSI 300 index, with the Shenwan Pharmaceutical Biotechnology Index rising by 2.46% from September 1 to September 14, 2025, and by 26.80% year-to-date, surpassing the CSI 300 index by 1.16 percentage points and 11.88 percentage points respectively [1][13] - The current valuation of the pharmaceutical sector stands at 31.58 times (TTM overall method, excluding negative values), with a premium of 148.92% compared to the CSI 300 index [16] - The National Medical Products Administration (NMPA) has announced measures to optimize the review and approval process for innovative drug clinical trials, aiming to complete reviews within 30 working days for eligible applications [20] - The ongoing reforms in drug review and approval systems are expected to enhance the efficiency of clinical trials and accelerate the development of innovative drugs, benefiting companies in this sector [21] Summary by Sections 1. Biweekly Market Review - The pharmaceutical sector's performance from September 1 to September 14, 2025, shows a 2.46% increase, ranking 8th among 31 Shenwan first-level industry indices [11] - Year-to-date, the pharmaceutical sector has increased by 26.80%, also ranking 8th among the indices [13] - The top ten stocks by increase include Zhendemedical (+46.67%), Haooubo (+34.22%), and Kangwei Century (+30.28%), while the top ten stocks by decrease include Shutaishen (-24.15%) and Shanghai Yizhong (-15.39%) [17][18] 2. Important Events - On September 12, 2025, the NMPA released an announcement to support innovative drug development by optimizing the clinical trial review process [20] 3. Industry Insights - The report emphasizes the acceleration of innovative drug development in China, with significant results emerging and ongoing policy optimizations expected to further support this trend [21] - The second half of 2025 is expected to see continued focus on innovative drugs, international expansion, and the clearing of procurement processes, with specific attention to insulin and orthopedic sectors [21]

Investment Rating - The report maintains an "Overweight" rating for the industry, with a focus on new consumption sectors such as beauty care, IP derivatives, and gold jewelry [5][28]. Core Insights - The report highlights significant market movements, with the retail trade, social services, and beauty care sectors showing varied performance, ranking 19th, 27th, and 25th respectively among 31 primary industries during the week of September 8-12, 2025 [14][16]. - Key events include Huaxi Biological's strategic investment in Saint Pharma, which focuses on small nucleic acid drugs, and Jinbo Biological's approval for a new injectable collagen product [3][23]. - The report notes a substantial increase in domestic and international flight searches ahead of the Mid-Autumn Festival and National Day holidays, indicating a recovery in travel demand [4][24]. Summary by Sections 1. Weekly Market Review - The retail trade sector increased by 0.85%, while social services and beauty care sectors decreased by 0.28% and 0.23% respectively, compared to the Shanghai Composite Index's increase of 1.52% [14][16]. 2. Key Industry Data and News - The Chinese government allocated 100 billion yuan for childcare subsidies and plans to gradually implement free preschool education [3][23]. - Huaxi Biological invested approximately 138 million HKD in Saint Pharma, acquiring a 9.44% stake, while Jinbo Biological's new collagen product is the first of its kind to enter the pharmaceutical excipient market [23][24]. 3. Key Company Announcements - Jinbo Biological announced management changes, with founder Yang Xia appointed as CEO, and plans for a cash acquisition by Langzi Co. for a controlling stake in a cosmetic surgery hospital [27][28]. 4. Investment Recommendations - The report recommends focusing on companies such as Shangmei Co., Juzi Biological, and Marumi Biological, among others, as potential investment opportunities in the beauty care and new consumption sectors [5][28].

Market Performance - On September 16, 2025, the market rebounded with the Shanghai Composite Index rising by 0.04%, the Shenzhen Component Index by 0.45%, and the ChiNext Index by 0.68%[3] - The total market turnover reached 23,670.47 billion yuan, an increase of 639.02 billion yuan from the previous trading day[3] - A total of 3,629 stocks rose while 1,689 stocks fell across the market[3] Sector and Style Analysis - The top-performing sectors included textiles and apparel (1.99%), computers (1.96%), and comprehensive finance (1.81%)[3] - Conversely, the worst-performing sectors were agriculture, forestry, animal husbandry, and fishery (-1.28%), banking (-1.04%), and non-ferrous metals (-0.93%)[3] - In terms of investment style, growth stocks outperformed value stocks, particularly in small-cap categories[3] Capital Flow - On September 16, 2025, the net outflow of main funds was 374.26 billion yuan, with large orders contributing to a significant portion of this outflow[4] - Small orders, however, saw a continuous net inflow of 475.01 billion yuan, indicating retail investor interest[4] ETF Performance - Major ETFs such as the Huaxia SSE 50 ETF and the Huatai-PB CSI 300 ETF saw mixed turnover changes, with some experiencing increases while others faced declines[4] - The net outflow from the CSI 500 ETF was particularly notable, amounting to 22.96 billion yuan on September 15[4] Global Market Overview - On September 16, 2025, major Asia-Pacific indices showed mixed results, with the Hang Seng Index down 0.03% and the Nikkei 225 up 0.30%[5] - European indices also displayed varied performance, with the DAX Index up 0.21% and the FTSE 100 down 0.07%[6] - In the U.S., major indices generally rose, with the Dow Jones Industrial Average increasing by 0.11%[6]

1. Report Industry Investment Rating - The report is optimistic about the short - and medium - to long - term trends of the Hong Kong stock market, and continues to be bullish on the current structural market of Hong Kong stocks this year [9]. 2. Core Viewpoints - The Hong Kong stock market showed a strong structural bull market last week, with the Hang Seng Index rising 3.82% and trading volume remaining high. The external environment was stable, and there was strong capital support for market value. With the Fed likely to cut interest rates in September, the capital situation of Hong Kong stocks may improve further, and the mainland may introduce relevant loose and favorable policies, which will support the valuation of Hong Kong stocks in the medium - to long - term [5][8][9]. 3. Summary by Directory 3.1 Investment View 3.1.1 Market Summary - The Hong Kong stock market rose rapidly last week, with the Hang Seng Index up 3.82% and trading volume at a high level. Leveraged short - selling ETF funds flowed in rapidly, and southbound mainland funds accelerated their net inflow into Hong Kong stocks, nearly doubling from the previous week [5]. 3.1.2 Market Environment - The external environment of the Hong Kong stock market was relatively stable, showing a strong structural bull market. Overseas markets, especially the US market, had positive sentiment due to inflation data increasing the expectation of a September interest - rate cut. In China, the CPI in August decreased by 0.4% year - on - year, and the PPI decreased by 2.9% year - on - year, with the decline narrowing. Southbound funds have continued to flow into Hong Kong stocks this year, and overseas funds have also increased their holdings. The liquidity supports the valuation, and the structural market driven by loose liquidity will continue in the fourth quarter [6][7][8]. 3.1.3 Outlook - Based on the market environment, the report is optimistic about the short - and medium - to long - term trends of Hong Kong stocks. The Hang Seng Index is in an upward channel, and the inflow of funds may increase after the Fed cuts interest rates. If there are stimulus measures and new performance growth points, the long - term market of Hong Kong stocks can be expected [9]. 3.1.4 Sector Allocation - In the near term, investors can focus on leading stocks in the Internet sector, domestic substitution concepts, the innovative drug industry, and sectors benefiting from the "anti - involution" policy. Long - term investors can allocate dividend sectors such as energy, communication, and public utilities. In derivatives trading, investors can sell option combinations to reduce holding costs [2][10]. 3.2 Market Review 3.2.1 Futures Market Performance - Hong Kong stock index futures prices rose rapidly last week, with the September 2025 Hang Seng Index futures up 3.89% and the technology index futures up 5.18%. US stock index futures prices fluctuated, with the Dow Jones futures up 0.87%, the S&P 500 futures up 1.52%, and the Nasdaq 100 futures up 1.81%. The premium level of stock index futures continued to decline, indicating a drop in investor sentiment [1][11]. 3.2.2 Market Performance - The Hong Kong stock market rose last week, with the Hang Seng Index up 3.82%, the Hang Seng China Enterprises Index up 2.86%, and the Hang Seng Technology Index up 5.31%. Most sectors rose, led by raw materials and technology, while the energy and medical sectors declined. Southbound funds through the Hong Kong Stock Connect had a net inflow of HK$60.82 billion, nearly doubling from the previous week. The US stock market also rose, and the risk appetite of the market increased significantly [13]. 3.3 Market External Environment Tracking 3.3.1 Domestic Main City Housing Sales Tracking - In the latest week, the sales of new and second - hand houses in first - tier cities increased year - on - year. The total sales volume of 30 cities decreased compared with the 12 - week average, with different trends in first, second, and third - tier cities [25][26]. 3.3.2 Central Bank's Latest Movements - The European Central Bank kept interest rates unchanged for the second consecutive meeting, and traders reduced their bets on its easing policy. US President Trump and Treasury Secretary Bessent called on the Fed to cut interest rates [27]. 3.3.3 Some Domestic and Overseas Important News - China's M2 and M1 growth rates were announced in August, with the M1 - M2 gap narrowing. China's CPI in August decreased by 0.4% year - on - year, and the PPI decline narrowed. In the US, the CPI in August was in line with expectations, and the PPI unexpectedly declined. The US non - farm employment was revised downwards [28]. 3.3.4 This Week's Focus - China will announce a series of August economic data, the US will release August retail sales data, and central banks such as the Fed, the Bank of England, and the Bank of Japan will announce interest rate decisions [29].

Investment Rating - The report maintains a "Recommended" investment rating for the mechanical industry, indicating that the industry index is expected to outperform the benchmark index by more than 10% [6]. Core Insights - The low-altitude economy is showing steady growth, with significant policy support from various government departments, which is expected to create substantial market opportunities [3][4]. - The mechanical equipment sector is anticipated to maintain a steady growth trajectory, bolstered by strong competitive advantages of domestic leading enterprises in both supply and demand [3][4]. Weekly Market Review - From September 7 to September 12, 2025, the Shanghai Composite Index rose by 1.52%, while the ShenZhen Component Index and the ChiNext Index increased by 2.65% and 2.10%, respectively. The Shenwan Mechanical Equipment Index outperformed with a rise of 3.52%, ranking 7th among 31 Shenwan first-level industries [2][11]. - Sub-sectors such as general equipment, specialized equipment, and automation equipment saw increases of 2.90%, 3.13%, and 7.09%, respectively [2][11]. Key Sector Tracking - The low-altitude economy sector is being propelled by new policies aimed at integrating low-altitude transportation with AI and energy sectors, indicating a significant potential for industrial upgrades and market expansion [3]. - The mechanical equipment sector is witnessing domestic companies like Zoomlion actively expanding into overseas markets, exemplified by the successful delivery of a crane to Slovakia [3]. Investment Recommendations - For the low-altitude economy, recommended companies include ShenChengJiao, SuJiaoKe, and WanFengAoWei among others [4]. - In the mechanical equipment sector, recommended companies include Sany Heavy Industry, XCMG, and Anhui Heli [4]. Economic Data Tracking - The manufacturing PMI for August 2025 was reported at 49.4%, indicating a slight increase, while the non-manufacturing business activity index rose to 50.3%, suggesting a stable economic outlook [21][23]. - The industrial producer price index showed a year-on-year decline of 2.9% in August, with a narrowing of the decline compared to previous months [23]. Key Industry Data Tracking - The machine tool industry reported a total revenue of 578.9 billion yuan for the first seven months of 2025, reflecting a year-on-year decrease of 1.0%, while metal cutting machine tools saw a growth of 13.3% [26]. - The export value of machine tools reached 131.8 billion USD, marking an increase of 8.1% year-on-year [26].

Investment Rating - The report maintains a "Buy" rating for several companies in the media sector, including Giant Network, Kaiying Network, and others [4][9][6]. Core Insights - The media industry has shown strong performance with a weekly increase of 4.27%, ranking 4th among industries, while the Shanghai Composite Index rose by 1.52% [12][20]. - The gaming market remains robust, with significant revenue growth from major players like Tencent and Point Interactive, and the upcoming National Day film releases are anticipated to boost box office performance [3][4][41]. Market Performance - The media industry (Shenwan) increased by 4.27% from September 6 to September 12, 2025, outperforming the Shanghai Composite Index, which rose by 1.52% [12]. - The gaming II sector saw a rise of 6.61%, while the film industry also experienced a notable increase of 6.58% during the same period [15][12]. Key Data and Dynamics AI Applications - In August, the top five AI products by web traffic included ChatGPT and New Bing, with Deepseek leading domestic traffic at 316 million visits, despite a month-over-month decline of 8.52% [24][25]. - The domestic AI search engine Nano AI ranked second with 307 million visits, also showing a decline of 7.52% [24][25]. Gaming Data - In August, Tencent, Point Interactive, and NetEase were the top three mobile game publishers globally, with total revenues of $2.04 billion, accounting for 35.1% of the top 100 publishers' income [29][30]. - Giant Network's revenue surged by 72% due to the success of "Supernatural Action Group," which entered the top ten for global mobile game revenue [29][30]. Film Data - The total box office for the week of September 6-12 was 358 million yuan, with "Chasing the Wind" leading at 120 million yuan [41]. - Nine films have been scheduled for release during the National Day holiday, indicating a strong upcoming box office potential [41][42]. Investment Recommendations - The report highlights a positive outlook on themes such as AI applications and cultural exports, with a focus on sub-sectors like gaming, IP, short dramas, and publishing [4]. - Specific companies recommended for investment include Giant Network, Kaiying Network, and Perfect World, among others [4][9].

Investment Rating - The report maintains a "Recommended" rating for the telecommunications industry, reflecting the sustained high prosperity of the sector driven by AI, 5.5G, and satellite communications [1][5]. Core Insights - The overall market performance for the week (September 8-14, 2025) saw the Shanghai Composite Index rise by 1.52%, the Shenzhen Component Index by 2.65%, and the ChiNext Index by 2.10%. The telecommunications sector, represented by the Shenwan Communications Index, increased by 3.00% during the same period [1][11]. - Within the telecommunications sector, the highest increase was observed in the communication engineering and services sub-sector, which rose by 6.21%, while the communication network equipment and devices sub-sector had the lowest increase at 2.70% [1][14]. - Notable individual stock performances included Cambridge Technology, which surged by 25.61%, followed by Yuandao Communication at 22.86% and Sanwei Communication at 22.44% [1][16]. Summary by Sections Market Overview - The telecommunications sector index increased by 3.00% during the week, outperforming the broader market indices [1][11]. - The sub-sector performance showed a general upward trend, with communication engineering and services leading the gains [1][14]. Company News - Oracle reported its Q1 FY2026 earnings with adjusted revenue of $14.93 billion, a year-on-year increase of 12%, slightly below expectations. However, its remaining performance obligations (RPO) surged by 359% to $455 billion, indicating strong future revenue potential [2][24]. - The global optical transmission market rebounded, driven by demand from cloud and AI sectors, with a 9% year-on-year growth in Q2 2025, reaching $3.8 billion [18][19]. - The Ministry of Industry and Information Technology announced that China has built the world's largest 5G network with 4.598 million base stations [22]. Future Outlook - The report suggests focusing on the computing power industry chain and low-orbit satellite internet as key areas for investment [2][3]. - The AI cloud market in China is projected to grow significantly, with a compound annual growth rate (CAGR) of 26.8% from 2025 to 2030, driven by advancements in AI technologies and services [22][23].