Investment Rating - The report maintains a "Strong Over Market" rating for the real estate industry [1]. Core Insights - The real estate market continues to show positive year-on-year growth in transaction volumes, with government policies aimed at stabilizing the market [1][3]. - New housing transaction area has shifted from positive to negative month-on-month, while year-on-year growth has expanded [3]. - The report highlights four key measures from the Ministry of Housing and Urban-Rural Development to stabilize the housing market, including policy adjustments and urban renewal initiatives [3]. Summary by Sections 1. Key City New Housing Market, Second-hand Housing Market, and Inventory Tracking - In the week of March 1 to March 7, 2025, new housing transaction area decreased month-on-month, while year-on-year growth increased [12]. - The transaction volume for new homes in 40 cities was 21,000 units, a month-on-month decrease of 27.2% but a year-on-year increase of 18.0% [13]. - The inventory of new homes in 12 cities was 8,882 million square meters, with a month-on-month decrease of 0.3% and a year-on-year decrease of 16.1% [40]. 2. Land Market Tracking - The total area of land transactions in 100 cities was 1,688.3 million square meters, a month-on-month increase of 17.1% and a year-on-year increase of 12.3% [9]. - The total price of land transactions was 47.42 billion yuan, with a month-on-month increase of 34.8% and a year-on-year increase of 30.1% [9]. 3. Industry Policy Review - The government work report emphasizes the need to stabilize the real estate market and implement measures to boost housing demand while preventing risks [3]. - The Ministry of Housing has proposed four initiatives to support the market, including urban renewal and the acquisition of existing housing stock [3]. 4. Sector Performance Review - The absolute return of the real estate sector was -0.9%, a decrease of 3.1 percentage points from the previous week [10]. - The sector's price-to-earnings ratio (PE) was 20.97X, a slight increase from the previous week [10]. 5. Company Announcements - The report includes a summary of key company announcements within the real estate sector for the week [10]. 6. Real Estate Company Bond Issuance - The total bond issuance in the real estate sector was 20.09 billion yuan, a month-on-month increase of 111.0% and a year-on-year increase of 40.8% [10].

Investment Rating - The industry investment rating is "Outperform the Market," indicating that the industry index is expected to perform better than the benchmark index over the next 6-12 months [29]. Core Insights - The report highlights that the DeepSeek application is experiencing rapid growth, with web traffic reaching 571.4 million in February 2025, a month-on-month increase of 122.73%, making it the top AI chatbot in China and third globally [6][8]. - The collaboration between DeepSeek and Huawei's Ascend chips is expected to enhance AI computing capabilities, with Ascend's 910C chip achieving a yield rate of 40%, doubling from the previous year, which indicates significant improvements in production processes [18][20]. - The report anticipates a surge in demand for AI computing power driven by advancements in AI applications, particularly with the introduction of the Manus product, which requires significantly more computational resources compared to previous models [10][11]. Summary by Sections Investment Recommendations - Recommended stocks to watch include: - CCL: Nanya Technology, Shengyi Technology - PCB: Founder Technology, Shenzhen South Circuit, Shengyi Electronics - High-speed backplane module: Huafeng Technology - Power supply: Taijia Co., Ltd. [3][23] AI Computing Supply Chain - The report emphasizes the importance of domestic AI supply chains, particularly in light of potential restrictions on AI chips from the U.S. This shift could favor domestic suppliers like Huawei's Ascend [11][12]. - The integration of DeepSeek with domestic GPU technologies is expected to enhance the self-sufficiency of the AI industry in China, reducing reliance on foreign hardware [12][13]. Market Trends - The report notes that Alibaba plans to invest over 380 billion yuan in cloud and AI hardware infrastructure over the next three years, indicating a robust growth trajectory for the domestic AI sector [11]. - The rising yield rates of advanced chips, such as the Ascend 910C, are expected to lead to increased shipments and benefits for the domestic AI supply chain [20][21].

Core Insights - The report highlights the potential growth in the AI computing supply chain, particularly with the collaboration between DeepSeek and Ascend, which is expected to accelerate the domestic supply chain's expansion [5][6][7] - DeepSeek's web traffic reached 571 million in February 2025, marking a 122.73% month-over-month increase, indicating strong demand for AI applications [5] - The report emphasizes the importance of domestic AI hardware infrastructure, with Alibaba planning to invest over 380 billion yuan in the next three years [6] Company Focus - The report lists a selection of stocks recommended for March, including Jitu Express (1519.HK), China Petroleum (601857.SH), and Anji Technology (688019.SH) [1] - The performance of the AI computing supply chain is closely tied to the advancements in the Ascend 910C chip, which has reportedly achieved a yield rate of 40%, doubling its previous performance [7] Industry Performance - The report provides an overview of market indices, with the Shanghai Composite Index closing at 3379.83, up 0.41%, and the Shenzhen Component Index at 10861.16, up 0.33% [3] - It also highlights the performance of various industry sectors, noting that the beauty care sector saw a 4.78% increase, while the electronics sector experienced a slight decline of 0.32% [4]

Investment Rating - The report rates the transportation industry as "Outperform the Market" [1] Core Views - The delivery of the world's largest specialized pulp transport ship by COSCO Shipping Special Transportation is a significant event, enhancing the company's capabilities in specialized cargo transport [2][14] - The Chinese government emphasizes the need for reforms in low-altitude traffic management and safety systems, which could open new opportunities in the low-altitude economy [2][17] - Jitu Express achieved profitability for the first time in 2024, with a total revenue of $10.26 billion and a package volume of 24.65 billion, indicating strong growth in the express logistics sector [2][22] Summary by Sections 1. Industry Hot Events - The world's largest specialized pulp transport ship, CSPC HORIZON, was delivered, enhancing the capacity for transporting various goods, including high-speed trains and renewable energy equipment [2][15] - The Chinese Spring Festival travel period saw Eastern Airlines transport 17.44 million passengers, a year-on-year increase of 8.9%, indicating a recovery in air travel demand [2][18] - Jitu Express reported a total package volume of 24.65 billion in 2024, with a revenue of $10.26 billion, marking a 15.9% year-on-year increase [2][23] 2. Industry High-Frequency Data Tracking - Air cargo flights in February 2025 showed a year-on-year increase of 17.34% for domestic routes and 41.04% for international routes, reflecting a robust recovery in air freight [25][29] - The shipping industry experienced a decline in container shipping rates, with the SCFI index dropping to 1436.30 points, a 27.43% year-on-year decrease [25][32] - The express delivery sector saw a 22.3% year-on-year increase in business volume in December 2024, with total revenue reaching 1378.90 billion yuan [43][44] 3. Investment Recommendations - The report suggests focusing on the equipment and manufacturing export chain, recommending companies like COSCO Shipping Special Transportation and China Merchants Energy [4] - It highlights investment opportunities in the low-altitude economy, suggesting companies like CITIC Offshore Helicopter [4] - The report recommends investing in express delivery companies such as SF Express and Jitu Express, indicating strong growth potential in the e-commerce logistics sector [4]

Core Insights - The report highlights the positive impact of the government's monetary policy on maintaining liquidity and active trading in the A-share market, which supports the continuous recovery of the industry fundamentals [5][6][7] - The focus on technological innovation and industrial upgrading presents new opportunities for investment banks, particularly in enterprise financing and mergers and acquisitions [6][7] - The report emphasizes the importance of optimizing stock issuance and merger restructuring systems to enhance the quality of listed companies and improve market resource allocation [6][7] Non-Banking Financial Sector - The report notes that the low valuation of the brokerage sector presents continued investment opportunities, particularly for firms with strong financial technology and wealth management capabilities [5][6] - The government work report encourages the entry of long-term funds into the market, which is expected to enhance market stability and provide growth opportunities for brokerage firms [7] Electronic Industry - The report indicates that the emphasis on boosting domestic demand and technological advancement, particularly through AI, is expected to drive upgrades in consumer electronics [9][10] - The government plans to implement measures to stimulate consumption, including a special bond issuance of 300 billion yuan to support the replacement of consumer goods [10] Transportation Sector - The report discusses the government's commitment to building a unified and open transportation market, which aims to reduce logistics costs and promote cross-border e-commerce [14][15] - The growth of cross-border e-commerce is highlighted, with the market size increasing from 1.3 billion yuan in 2010 to 15.7 trillion yuan in 2022, reflecting a compound annual growth rate of 23% [16] - The report emphasizes the role of AI and new technologies in transforming the transportation sector, including the development of smart connected vehicles and urban air mobility [17]

Inflation Data - In February 2025, the CPI decreased by 0.7% year-on-year and 0.2% month-on-month, marking the first year-on-year decline since February 2024[2] - The core CPI also fell by 0.1% year-on-year and 0.2% month-on-month, the first negative year-on-year change since February 2021[3] - The CPI's performance is weak, influenced by the Spring Festival, with a significant seasonal drop in food prices contributing to the decline[3] PPI Trends - The PPI decreased by 2.2% year-on-year and 0.1% month-on-month, with the decline narrowing by 0.1 percentage points compared to the previous month[7] - The PPI's decline is primarily due to slow recovery in domestic demand, despite a slight rebound in international commodity prices[10] - The expectation is that the PPI may turn positive year-on-year by the third quarter of 2025 if domestic demand recovers as anticipated[20] Economic Outlook - The government has set a 2025 inflation target of around 2%, down from 3%, reflecting a pragmatic assessment of the inflation situation[16] - The GDP deflator index has been negative for seven consecutive quarters, indicating ongoing deflationary pressures[21] - Continuous policy support, particularly in fiscal measures, is deemed necessary to achieve reasonable price recovery[16] Consumer Behavior - The recovery of core CPI is contingent on improved consumer demand, with a marginal increase in consumer spending observed[18] - The supply of pork is expected to gradually recover, which may suppress pork prices and impact overall CPI negatively if prices remain weak[18] - The PPI-CPI gap is narrowing, suggesting a slow recovery in corporate profitability, which is expected to continue into the latter part of 2025[23]

Investment Rating - The industry investment rating is "Outperform the Market," indicating that the industry index is expected to perform better than the benchmark index in the next 6-12 months [28]. Core Insights - The 2025 government work report highlights multiple aspects related to the pharmaceutical and biotechnology sector, including "Three Medical Collaborations," drug procurement, innovative drug catalog, and basic medical content [19][20]. - The Shenyuan Pharmaceutical Index increased by 1.06% from March 3 to March 7, 2025, ranking 19th among Shenyuan's primary industries, underperforming the CSI 300 Index by 0.32 percentage points [2][10]. - All sub-sectors within the pharmaceutical and biotechnology industry saw an increase, with the medical services sector outperforming the CSI 300 Index [11]. Summary by Sections Industry Performance - The Shenyuan Pharmaceutical Index's TTM price-to-earnings ratio is 26.36, showing a recovery compared to the low valuation in July-August 2024, but still below the high valuation in 2021 [14]. - The medical services index rose by 2.63%, outperforming the CSI 300 Index by 1.25% during the same period [11]. Government Policy Impact - The government aims to promote the coordinated development of medical services, medical insurance, and pharmaceuticals, emphasizing the importance of quality and safety in medical services [19]. - Drug procurement policies will be optimized, with the 11th batch of drug procurement scheduled for the first half of 2025 and the sixth batch of high-value medical consumables in the second half [20]. Investment Recommendations - Focus on clinical necessities and related sectors such as CXO and research services, which are gradually recovering. Suggested stocks include Sanyou Medical, Aikang Medical, and Yinos [4]. - Attention is also recommended for companies related to AI in healthcare, such as Ping An Good Doctor for online consultations and Meinian Health for health check-ups [4].

Stock Market Performance - The stock market quickly recovered from last week's losses, with the CSI 2000 rising by 4.0% and the CSI 1000 by 3.8%[1] - The Hang Seng Index increased by 5.6%, reaching a nearly three-year high, while the Hang Seng Tech Index surged by 8.4%[1] - Only 5 out of 31 primary industries experienced declines, with sectors like non-ferrous metals, military industry, computer, and media rising over 5%[1] Trading Volume and Valuation - Average daily trading volume decreased to CNY 1.7 trillion, a 15% drop from last week's CNY 1.99 trillion[1] - The price-to-earnings (P/E) ratio for the CSI 300 stood at 12.6, with a Z-Score of -0.1, while the CSI 1000 had a P/E of 39.6 and a Z-Score of -0.3[1] Bond Market Trends - The bond market showed weakness, with yields rising significantly due to various factors, including policy adjustments and market expectations[1] - The central bank's emphasis on flexible monetary policy led to a decline in market interest rate expectations, contributing to rising yields[1] Currency and Commodity Movements - The US dollar index fell by 3.4% to 103.9, while the euro appreciated by 4.3%, marking its largest weekly gain in nearly a decade[5] - Gold prices rose by 1.8% to USD 2909 per ounce, while Brent crude oil and WTI saw declines of 3.7% and 4.1%, respectively[5]

Investment Rating - The industry investment rating is "Outperform the Market," indicating that the industry index is expected to perform better than the benchmark index over the next 6-12 months [10]. Core Insights - The report highlights that the positive statements regarding monetary policy in the government work report are beneficial for maintaining liquidity and active trading in the A-share market, which supports the continuous recovery of the industry fundamentals [5][3]. - The report emphasizes the importance of reforming and optimizing the stock issuance and merger restructuring systems, which will enhance the quality of listed companies and improve market resource allocation, aiding in technological innovation and industrial upgrading [5]. - The report suggests that the current low valuation of the brokerage sector presents ongoing investment opportunities, particularly in firms with strong financial technology layouts and wealth management capabilities [3][5]. Summary by Sections Industry Investment Rating - The industry is rated as "Outperform the Market," with expectations of better performance compared to the benchmark index in the coming months [10]. Policy Impact - The government work report's commitment to a moderately loose monetary policy is expected to sustain market liquidity and trading activity, providing support for the industry's fundamental recovery [5]. - The focus on promoting long-term capital inflows into the market is anticipated to enhance market stability and create growth opportunities for brokerage firms and wealth management businesses [5]. Investment Recommendations - The report recommends focusing on brokerage firms that lead in financial technology and have significant advantages in wealth management, as they are more likely to achieve performance resilience in the current market environment [3]. - Specific firms to watch include Dongfang Caifu, CITIC Securities, and Huatai Securities, with an emphasis on mergers and acquisitions that align with long-term strategic goals and enhance resource integration [3].

Investment Rating - The industry investment rating is "Outperform the Market" [25] Core Insights - The report emphasizes the importance of boosting domestic demand and developing new productive forces, with AI+ expected to drive upgrades in edge devices and strengthen China's technological capabilities [1][6] - The report highlights significant government initiatives, including a special bond of 300 billion yuan to support consumption upgrades and the promotion of AI-enabled consumer electronics [6][7] - The transition to a green economy is expected to accelerate the penetration of new energy vehicles, with a projected increase in market share [8] - The report identifies "embodied intelligence" as a key area for future industrial development, with government support for humanoid robotics [9] - The optimization of computing power resources is crucial for AI technology, with significant investments anticipated in the domestic AI sector [12][13] Summary by Sections Investment Recommendations - Recommended companies in the cloud-side AI sector include Cambrian, Haiguang Information, and Shengke Communication - Recommended companies in the edge-side AI sector include Hengxuan Technology, Rockchip, and Allwinner Technology - Recommended companies in the storage sector include Zhaoyi Innovation and Demingli - Recommended companies in the consumer electronics sector include GoerTek and Lens Technology - Recommended companies in the intelligent driving sector include Horizon Robotics and Weir Shares - Recommended companies in the embodied intelligence sector include Zhaowei Electromechanical and Obike Technology - Recommended companies in the autonomous controllability sector include SMIC and North Huachuang [3][18]