Key Insights - The report highlights the strong growth potential of Wanyi Technology (688600.SH), a leading domestic helium mass spectrometer manufacturer, which is expanding into analytical and medical instruments to create a second growth curve [11][12][13] - The company has established a solid foundation in industrial detection and online monitoring, with a market share exceeding 40% in helium mass spectrometers, primarily serving sectors such as new energy and automotive components [11][12] - Wanyi Technology's laboratory analysis instruments and medical devices are emerging as new growth engines, with successful product selections in provincial procurement and ongoing development of dialysis machines [12][13] Industry and Company Analysis - The report emphasizes the investment strategy for the metal industry in 2026, focusing on the resonance between supply-demand dynamics and interest rate cuts, anticipating a recovery in profitability and valuation [4] - The electric equipment and new energy sector is highlighted for its lithium battery materials, which are expected to see comprehensive price increases, alongside a sustained demand for domestic energy storage systems [4] - The media industry is advised to focus on trends in prosperity and policy shifts, particularly in AI applications [4] - The food and beverage sector is analyzed through macroeconomic indicators, particularly in relation to the liquor industry [4] - The petrochemical industry is projected to recover in terms of profitability, while the organic silicon sector is expected to enter a price uptrend due to coordinated production cuts [4]

Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - The economic growth continued to slow down in October, inflation slightly rebounded, and the growth rate of financial data declined comprehensively. The overall economy still faced pressure. The bond market first rose and then fell, with ultra - long bonds slightly increasing [1][4][10][43]. - The probability of a bond market rebound is higher. The economic stabilization since the fourth quarter of last year mainly came from the central government's leverage increase. Considering the low probability of additional treasury bond issuance in the fourth quarter of this year, the government bond financing growth rate is expected to continue to decline, and the domestic economy will still be under pressure. On the other hand, the central bank resumed treasury bond trading, and investors rushed to get a head - start at the end of the year, with positive investor sentiment [2][3][11][12]. - For the 30 - year treasury bond, the 30 - 10 spread is expected to compress periodically with the bond market rebound. For the 20 - year China Development Bank bond, the variety spread is expected to continue to compress in the short term [2][3][11][12]. Summary by Directory Weekly Review - **Ultra - long Bond Review**: The bond market first rose and then fell last week, with ultra - long bonds slightly increasing. The trading activity of ultra - long bonds slightly decreased but remained very active. The term spread of ultra - long bonds remained flat, and the variety spread widened [1][4][10]. - **Ultra - long Bond Investment Outlook** - **30 - year Treasury Bond**: As of November 16, the spread between the 30 - year and 10 - year treasury bonds was 34BP, at a historically low level. The 30 - 10 spread is expected to compress periodically with the bond market rebound [2][11]. - **20 - year China Development Bank Bond**: As of November 16, the spread between the 20 - year China Development Bank bond and the 20 - year treasury bond was 7BP, at a historically low position. The variety spread of the 20 - year China Development Bank bond is expected to continue to compress in the short term [3][12]. Ultra - long Bond Basic Overview - The balance of outstanding ultra - long bonds was 23.9 trillion. As of October 31, ultra - long bonds with a remaining maturity of over 14 years totaled 239,836 billion (excluding asset - backed securities and project revenue notes), accounting for 15.0% of the total bond balance. Local government bonds and treasury bonds were the main varieties [13]. - By variety, treasury bonds accounted for 27.0%, local government bonds 67.5%, policy - based financial bonds 1.9%, government agency bonds 1.7%, commercial bank sub - debt 0.4%, corporate bonds 0.4%, enterprise bonds 0.1%, medium - term notes 1.0%, private bonds 0.0%, and directional instruments 0.0% [13]. - By remaining maturity, bonds with a maturity of 14 - 18 years accounted for 25.2%, 18 - 25 years 29.1%, 25 - 35 years 39.8%, and over 35 years 5.9% [13]. Primary Market - **Weekly Issuance**: The issuance volume of ultra - long bonds was large last week (November 10 - 16, 2025), totaling 1,330 billion yuan, a significant increase compared to the week before last. By variety, treasury bonds were 270 billion, local government bonds 1,042 billion, and medium - term notes 18 billion. By term, 15 - year bonds were 293 billion, 20 - year bonds 197 billion, and 30 - year bonds 840 billion [19]. - **This Week's Planned Issuance**: The announced ultra - long bond issuance plan for this week totals 891 billion, including 811 billion in ultra - long local government bonds and 80 billion in ultra - long commercial bank sub - debt [25]. Secondary Market - **Trading Volume**: Ultra - long bonds were actively traded last week, with a trading volume of 8,782 billion, accounting for 10.1% of the total bond trading volume. The trading activity of ultra - long bonds slightly decreased. Compared with the week before last, the trading volume decreased by 2,169 billion, and the proportion decreased by 1.9% [28]. - **Yield**: The bond market first rose and then fell last week, with ultra - long bonds slightly increasing. The yields of different types of ultra - long bonds changed. For example, the yields of 15 - year, 20 - year, 30 - year, and 50 - year treasury bonds changed by - 1BP, - 1BP, - 1BP, and 5BP respectively [43]. - **Spread Analysis** - **Term Spread**: The term spread of ultra - long bonds remained flat last week, with an absolute level on the low side. The 30 - 10 spread of benchmark treasury bonds was 34BP, unchanged from the week before last, at the 14% percentile since 2010 [51]. - **Variety Spread**: The variety spread of ultra - long bonds widened last week, with an absolute level on the low side. The spreads between the 20 - year China Development Bank bond and treasury bond, and between the 20 - year railway bond and treasury bond were 15BP and 20BP respectively, with changes of 0BP and 3BP compared to the week before last, at the 12% and 14% percentiles since 2010 [51]. 30 - year Treasury Bond Futures - Last week, the main contract of the 30 - year treasury bond futures, TL2512, closed at 116.16 yuan, an increase of 0.18%. The total trading volume was 525,600 lots (- 48,236 lots), and the open interest was 179,300 lots (- 1,250 lots). The trading volume slightly decreased, and the open interest slightly decreased compared to the week before last [56].

Investment Rating - The investment rating for Tencent Music (TME.N) is "Outperform the Market" [5][27]. Core Views - Tencent Music's online music business is experiencing steady growth, with a revenue increase of 20.6% year-on-year in Q3 2025, reaching 8.46 billion yuan. The adjusted profit margin also improved by 1.6 percentage points year-on-year [1][9]. - The company is expanding into the broader music sector, which is expected to drive future growth. The focus for 2026 will be on investments in this area, including the acquisition of Himalaya, which is anticipated to enhance ARPPU and contribute to profit growth [3][25]. - The subscription business is showing strong performance, with a 17.2% year-on-year revenue growth in Q3 2025, and the monthly ARPPU increased by 10.2% year-on-year to 11.9 yuan [2][17]. Summary by Sections Financial Performance - In Q3 2025, Tencent Music achieved total revenue of 8.46 billion yuan, a year-on-year increase of 20.6% and a quarter-on-quarter increase of 0.2%. Online music revenue accounted for 82% of total revenue [1][9]. - The gross margin for Q3 2025 was 43.5%, up 0.9 percentage points year-on-year but down 0.9 percentage points quarter-on-quarter, primarily due to the development of offline events [1][9]. - Adjusted net profit for Q3 2025 was 2.48 billion yuan, reflecting a year-on-year increase of 27.7% [1][9]. Subscription Business - The subscription revenue reached 4.5 billion yuan in Q3 2025, growing 17.2% year-on-year, with a net increase of 1.3 million paying users, resulting in a payment rate of 22.8% [2][17]. - The number of online music paying users was 126 million, an increase of 5.6% year-on-year [2][17]. Other Online Music Revenue - Other online music services, including advertising and digital albums, generated 2.47 billion yuan in revenue, a significant year-on-year increase of 50.5% [2][21]. - The advertising business is expanding its product offerings, and offline events, such as concerts, are contributing to revenue growth [2][21]. Social Entertainment Business - Revenue from social entertainment and other services was 1.49 billion yuan in Q3 2025, showing a decline of 2.7% year-on-year, but the decline is narrowing [2][24]. Financial Forecasts - The adjusted net profit forecasts for 2025-2027 are 9.6 billion, 10.9 billion, and 12.2 billion yuan, respectively, with a slight downward adjustment of 1-4% [3][25]. - The company is expected to maintain a strong market position with significant growth potential in the broader music sector [3][25].

核心观点 金融工程周报 ETF 业绩表现 证券研究报告 | 2025年11月16日 ETF 周报 上周科技 ETF 跌幅中位数超 4%，酒 ETF 逆势上涨 上周（2025 年 11 月 10 日至 2025 年 11 月 14 日，下同）股票型 ETF 周度 收益率中位数为-1.09%。宽基 ETF 中，上证 50ETF 涨跌幅中位数为 0.02%， 收益最高。按板块划分，消费 ETF 涨跌幅中位数为 2.10%，收益最高。按 主题进行分类，酒 ETF 涨跌幅中位数为 3.67%，收益最高。 ETF 规模变动及净申赎 上周股票型 ETF 净申购 114.02 亿元，总体规模减少 378.87 亿元。在宽基 ETF 中，上周科创板 ETF 净申购最多，为 29.79 亿元；按板块来看，科技 ETF 净申购最多，为 97.70 亿元；按热点主题来看，AIETF 净申购最多，为 49.38 亿元。 ETF 基准指数估值情况 在宽基 ETF 中，创业板类 ETF 的估值分位数相对较低；按板块来看，消费、 大金融 ETF 的估值分位数相对温和；按照细分主题来看，酒、光伏 ETF 的 估值分位数相对较低。 ETF 融资 ...

Report Summary 1. Investment Rating of the Reported Industry The document does not mention the industry investment rating. 2. Core Views of the Report - This week, the REITs index rose slightly, outperforming major equity - linked indices. The top - performing sectors were affordable housing, transportation, and consumption. The average weekly price changes of equity - type REITs and franchise - type REITs were +0.7% and +1.0% respectively. From the comparison of weekly price changes of major indices, CSI REITs > CSI Convertible Bonds > CSI Aggregate Bonds > SSE 50 Index. As of November 14, 2025, the dividend yield of equity REITs was 6BP lower than the average dividend yield of CSI Dividend stocks, and the spread between the average internal rate of return of franchise - type REITs and the 10 - year Treasury yield was 253BP [1]. - The CSI REITs index had a weekly price change of +0.8% and a year - to - date price change of +3.6%. As of November 14, 2025, its closing price was 818.17 points. The REITs' total market capitalization increased to 222.5 billion yuan on November 14, up 1.9 billion yuan from the previous week, and the average daily turnover rate for the week was 0.56%, down 0.03 percentage points from the previous week [2]. - Most REITs sectors closed up, with affordable housing, transportation, and consumption leading the gains. In terms of trading activity, water conservancy facilities REITs had the highest trading activity, and park infrastructure REITs had the highest proportion of trading volume this week. The State Council's new measures support the issuance of more REITs by private investment projects [3]. 3. Summary by Relevant Catalogs Secondary Market Trends - **Index Performance**: The CSI REITs index had a weekly price change of +0.8%, outperforming the CSI Convertible Bonds index (+0.5%), the CSI Aggregate Bonds index (+0.1%), and the SSE 50 index (-1.1%). Year - to - date, the order of price changes of major indices was: CSI Convertible Bonds (+18.6%) > SSE 50 (+17.6%) > CSI REITs (+3.6%) > CSI Aggregate Bonds (+0.9%). The one - year return of the CSI REITs index was 5.9%, with a volatility of 7.5%. The return was lower than that of the SSE 50 index and the CSI Convertible Bonds index but higher than that of the CSI Aggregate Bonds index; the volatility was lower than that of the SSE 50 index and the CSI Convertible Bonds index but higher than that of the CSI Aggregate Bonds index [2]. - **Sector and Individual Performance**: Most REITs sectors closed up. The top three weekly gainers were CICC Liandong Science and Technology Innovation REIT (+6.24%), CICC Shandong Expressway REIT (+5.18%), and China Merchants Shekou Rental Housing REIT (+4.10%). Water conservancy facilities REITs had the highest average daily turnover rate of 1.3%, and park infrastructure REITs had the highest trading volume proportion, accounting for 22.8% of the total REITs trading volume. The top three REITs in terms of net inflow of main funds were Yin Hua Shaoxing Raw Water Water Conservancy REIT (12.91 million yuan), China Merchants Shekou Rental Housing REIT (12.72 million yuan), and Huaxia Zhonghai Commercial REIT (11.16 million yuan) [3]. Primary Market Issuance - As of November 14, 2025, there was 1 REITs product in the "accepted" stage, 2 in the "inquired" stage, 5 in the "feedback" stage, 6 in the "passed and awaiting listing" stage, and 14 first - issued products that had passed and been listed on the exchange [23]. Valuation Tracking - REITs have both bond and equity characteristics. The average annualized cash distribution rate of public REITs was 6.22% as of November 14. For equity - type REITs, the focus is on the dividend yield, and for franchise - type REITs, the focus is on the internal rate of return. As of November 14, 2025, the dividend yield of equity REITs was 6BP lower than the average dividend yield of CSI Dividend stocks, and the spread between the average internal rate of return of franchise - type REITs and the 10 - year Treasury yield was 253BP [25][26]. Industry News - The State Council issued measures to promote private investment and actively support the issuance of REITs by private investment projects. The National Development and Reform Commission has recommended 105 REITs projects to the CSRC, with 83 projects issued and listed, raising approximately 207 billion yuan. Fourteen private investment projects have been listed, raising nearly 30 billion yuan. The public subscription multiple of "Huaxia Anbo Warehouse REIT" was only about 17.1 times, indicating that public investors' subscription sentiment is shifting from irrational speculation to rational judgment based on fundamentals [3][4][33].

Group 1 - The innovative drug sector is expected to perform well in 2025, driven by overseas expansion expectations and rapid sales growth. The sector has shown significant excess returns in the first three quarters of 2025, primarily due to continuous business development (BD) overseas, excellent clinical data, and policy support. The sector is in a rapid sales growth phase, with several major products approved and included in medical insurance, leading to a surge in domestic sales and overseas revenue growth [5][6][56] - Chinese innovative drugs are demonstrating global competitiveness, with a significant increase in the number and value of outbound licensing deals. The proportion of Chinese assets in multinational corporation (MNC) drug transactions rose from approximately 5% in 2020-2021 to over 15% in the first three quarters of 2025. The total transaction amount for Chinese assets reached $47.6 billion, accounting for about 25% of MNC transactions [5][6][64] - After BD, attention should be focused on global clinical advancements and key data readouts. Since 2023, more Chinese assets have entered global registration clinical phases, with several expected to report phase III clinical data starting in 2026, potentially giving them a competitive edge through superior clinical data [5][6][64] Group 2 - The innovative drug sector's revenue has rapidly increased, with a reported revenue of 48.83 billion yuan (+22.1%) and a net profit of -460 million yuan (+71.4%) in the first three quarters of 2025. The third quarter alone saw revenues of 19.21 billion yuan (+51.0%) and a net profit of 1.11 billion yuan (+147.1%) [5][56] - The rapid growth in commercial sales of innovative drug products is attributed to the continued release of major products, medical insurance coverage, and the expansion of new indications. Additionally, overseas sales have become a key driver of revenue growth, alongside milestone payments from licensing agreements [5][56] - The investment recommendation highlights companies with differentiated innovation capabilities, suggesting a focus on Keren Biotechnology, Kangfang Biologics, Sanofi Pharmaceutical, Yingen Biotech, and Zai Lab [5][6]

Global Market Overview - The overseas markets experienced more gains than losses in the week of November 10-14, 2025, with moderate valuation changes. The Eurozone saw mixed performance, with France leading at +2.77%, Germany at +1.3%, and the UK slightly up by +0.16%. The Asian markets generally rose, except for the Hang Seng Tech Index, which fell by 0.42%. The US indices showed mixed results with slight adjustments. The valuation changes were mild, with only the Korean Composite Index (+1.8x) and the German DAX (-1.01x) showing significant PE changes exceeding 1x, indicating an upward revision in profit expectations [2][7]. A-share Market Analysis - In the same week, the A-share core broad indices all declined, with a slight contraction in valuations. Specifically, the CSI 500 led the decline at -1.26%, while the SSE 50 remained flat at +0.00%. The value style continued to outperform, with large-cap growth stocks leading the decline at -1.64%, while large-cap value stocks rose by +1.44%. The CSI 2000, representing small-cap stocks, also performed well with a +0.89% increase. Most valuations contracted slightly alongside stock prices, with only the CSI 2000 showing a PE change exceeding 1x at +1.38x [2][27]. Industry Performance - The week saw mixed performance across primary industries, with the comprehensive sector leading gains at +6.99%. The TMT sector collectively retreated, with electronics and communications leading the decline at -4.77%. Downstream consumption and large financial sectors all rose, with retail and textile sectors increasing by over 4%. Valuations adjusted with stock prices, where electronics, computers, and communications saw PE contractions exceeding 2x, while the comprehensive sector's PE expanded significantly by 3.35x. Downstream consumption sectors like retail, social services, beauty care, textiles, and pharmaceuticals all experienced PE expansions exceeding 1x [2][51]. Valuation Comparisons - The downstream consumption sector shows superior valuation attractiveness. Analyzing PE, PB, PS, and PCF percentiles, the TMT sector's valuations have declined with stock price adjustments. The upstream resource sectors, represented by basic chemicals and oil & gas, are at high valuation levels, with rolling 1-year valuation percentiles averaging above 99% and 3-year averages above 96%. The valuation percentiles for non-ferrous metals and coal also exceed 94% for both 1-year and 3-year periods. In contrast, the downstream consumption sectors, including home appliances, beauty care, and food & beverage, maintain high valuation attractiveness, with all three industries' valuation percentiles averaging below 75% [2][53].

Investment Rating - The report maintains an "Outperform" rating for Tesla and its industry chain [1][4][6]. Core Insights - The approval of Elon Musk's compensation plan and the upcoming launch of the next-generation humanoid robot, Optimus Gen3, are significant developments for Tesla [1][12]. - Tesla's Q3 2025 financial results show a revenue of $28.1 billion, with a quarter-over-quarter increase of 11.6% and a year-over-year increase of 24.9% [2][13]. - The report highlights three main focus areas: the iteration and mass production of the humanoid robot Optimus, innovations in smart driving technology and profit models, and global expansion with new models like Cybertruck [3][15]. Summary by Sections Shareholder Meeting Insights - Musk's compensation plan was approved with over 75% support, linked to achieving specific operational and market value targets [12]. - The Optimus production line is set to produce 1 million units annually by the end of 2026, with ongoing design updates [12][14]. Financial Performance - Q3 2025 net profit was $1.373 billion, reflecting a quarter-over-quarter increase of 17.2% but a year-over-year decrease of 36.8% [2][13]. - Free cash flow for Q3 2025 reached $3.99 billion, indicating strong cash generation capabilities [2][17]. Product and Market Developments - The report anticipates the mass production of new models, including the Semi and Cybercab, starting in 2026 [1][14]. - The Robotaxi service is expected to expand in Austin, with plans for broader coverage [1][14]. Growth Outlook - Tesla aims to enhance its global competitiveness through the continuous rollout of new models and advancements in smart driving technology [3][15]. - The company is expected to leverage its AI capabilities and software services to create new profit models, focusing on hardware cost reduction and software enhancements [16][63]. Key Company Forecasts - The report provides investment ratings for key companies in Tesla's supply chain, all rated as "Outperform" [5]. - The focus is on companies like Top Group, Sanhua Intelligent Control, and Xinquan Co., which are expected to benefit from Tesla's growth trajectory [4][63].

Report's Investment Rating - No information provided on the industry investment rating in the report Core Views - Last week, the major broad-based indices in the A-share market all declined, with the Shanghai Composite Index, CSI 1000, and CSI 300 having relatively better returns of -0.18%, -0.52%, and -1.08% respectively, while the STAR 50, ChiNext Index, and Small and Medium-sized Board Index had relatively poorer returns of -3.85%, -3.01%, and -1.71% respectively [1] - In terms of trading volume, except for the Shenzhen Component Index and CSI 1000, the trading volumes of the major broad-based indices decreased last week [1] - In the industry aspect, consumer services, textile and apparel, and pharmaceuticals had the top returns last week, at 4.81%, 4.43%, and 3.29% respectively, while communication, electronics, and computers had the bottom returns, at -4.90%, -4.44%, and -3.72% respectively [1] - As of last Friday, the central bank had a net reverse repurchase injection of 626.2 billion yuan, with 495.8 billion yuan of reverse repurchases maturing, and a net open market injection of 1.122 trillion yuan. Except for the 1-year term, the treasury bond yields of different terms declined, and the yield spread narrowed by 0.61 BP [1] - Last week, a total of 56 funds were reported, an increase compared to the previous week. The reported products included 1 QDII, such as Tianhong CSI Artificial Intelligence Theme ETF, Huabao CSI All-Share Electric Power and Utilities ETF, etc. [1] - On November 13, China Europe Fund announced that its China Europe Xinyue Return One-Year Holding Hybrid reached the 1.5 billion yuan fundraising cap on the first day of issuance, ending the fundraising early and initiating proportional allocation [2] - On November 10, 6 ETFs listed in Hong Kong were officially included in the list of Hong Kong Stock Connect ETFs under the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect. After this expansion, the total number of "Southbound Connect ETF" products increased from 17 to 23, and for the first time, ETFs containing US stock assets were included [2] - Last week, the median excess return of index-enhanced funds was 0.09%, and the median return of quantitative hedging funds was -0.04%. So far this year, the median excess return of index-enhanced funds has been 4.13%, and the median return of quantitative hedging funds has been 1.16% [2] - As of the end of last week, there were 258 ordinary FOF funds, 118 target-date funds, and 153 target-risk funds among open-ended public funds. So far this year, the target-date funds have had the best median performance, with a cumulative return of 16.98% [2] - Last week, 25 new funds were established, with a total issuance scale of 14.173 billion yuan, a decrease compared to the previous week. In addition, 41 funds entered the issuance stage for the first time last week, and 33 funds will start issuing this week [3] Summary by Directory 1. Last Week's Market Review 1.1 Related Hotspots Review - **Fund Declaration and Issuance Dynamics**: Last week, 56 funds were reported, an increase from the previous week. The reported products included various types such as QDII, index funds, and bond funds [9][13] - **Appearance of a "Sunlight Fund"**: On November 13, China Europe Xinyue Return One-Year Holding Hybrid reached the 1.5 billion yuan fundraising cap on the first day of issuance, ending the fundraising early and initiating proportional allocation [10] - **Expansion of "Southbound Connect ETF"**: On November 10, 6 Hong Kong-listed ETFs were included in the Hong Kong Stock Connect ETF list, increasing the total number of "Southbound Connect ETF" products from 17 to 23, and for the first time, ETFs containing US stock assets were included [11] - **Premium Risk Warnings for Multiple Cross-Border ETFs**: From November 11 to 16, multiple public funds issued announcements warning investors about the premium risks of their US and Japanese stock-related ETFs [12] - **Rare Centralized Dividends of Growth-Style Funds**: Since the fourth quarter of this year, multiple growth-style active equity products have announced dividends, which is rare. For example, E Fund's Kexun, Pingwen Growth, and Kexiang announced dividends in October and November, with many of them having their first dividends since 2021 [14] 1.2 Stock Market - **Index Returns**: Last week, the major broad-based indices in the A-share market all declined. The Shanghai Composite Index, CSI 1000, and CSI 300 had relatively better returns, while the STAR 50, ChiNext Index, and Small and Medium-sized Board Index had relatively poorer returns. In the past month, the ChiNext Index had the highest return, and the STAR 50 Index had the lowest return. So far this year, the ChiNext Index has had the highest cumulative return [16] - **Trading Volume**: Except for the Shenzhen Component Index and CSI 1000, the trading volumes of the major broad-based indices decreased last week. On a monthly basis, the average daily trading volumes of the major broad-based indices also decreased in the past month [19][20] - **Industry Returns**: Last week, consumer services, textile and apparel, and pharmaceuticals had the top returns, while communication, electronics, and computers had the bottom returns. In the past month, the basic chemicals industry had the highest cumulative return, and the automotive industry had the lowest return. So far this year, non-ferrous metals, communication, and power equipment and new energy have had relatively high cumulative returns [23] 1.3 Bond Market - **Central Bank Operations**: As of last Friday, the central bank had a net reverse repurchase injection of 626.2 billion yuan, with 495.8 billion yuan of reverse repurchases maturing, and a net open market injection of 1.122 trillion yuan [26] - **Interest Rates**: Except for the 1-year term, the treasury bond yields of different terms declined, and the yield spread narrowed by 0.61 BP. The interest rates of AA+ and AA-rated credit bonds of different terms also declined, and the credit spreads of AA+ and AA-rated credit bonds of different terms decreased [27][30] 1.4 Convertible Bond Market - Last week, the CSI Convertible Bond Index rose 0.47%, with a cumulative trading volume of 342.6 billion yuan, an increase of 31.9 billion yuan compared to the previous week. As of last Friday, the median conversion premium rate of the convertible bond market was 26.71%, a decrease of 0.50% compared to the previous week, and the median pure bond premium rate was 26.34%, an increase of 0.94% compared to the previous week [31] 2. Performance of Open-Ended Public Funds 2.1 Ordinary Public Funds - Last week, the returns of active equity, flexible allocation, and balanced hybrid funds were -0.52%, -0.41%, and 0.03% respectively. So far this year, alternative funds have had the best performance, with a median return of 32.08%, followed by active equity, flexible allocation, and balanced hybrid funds with median returns of 28.48%, 21.69%, and 15.07% respectively [34][35] 2.2 Quantitative Public Funds - Last week, the median excess return of index-enhanced funds was 0.09%, and the median return of quantitative hedging funds was -0.04%. So far this year, the median excess return of index-enhanced funds has been 4.13%, and the median return of quantitative hedging funds has been 1.16% [36] 2.3 FOF Funds - As of the end of last week, there were 258 ordinary FOF funds, 118 target-date funds, and 153 target-risk funds. Last week, 4 new FOF funds were established. Generally, target-date funds have a higher equity position, with most target-risk funds having an equity position below 50%, and ordinary FOF funds having their equity positions mainly distributed below 25% and between 65% - 100%. Last week, the median returns of ordinary FOF, target-date, and target-risk funds were 0.19%, -0.03%, and 0.18% respectively. So far this year, the target-date funds have had the best median performance, with a cumulative return of 16.98% [39] 3. Changes in Fund Managers - Last week, the fund manager situations of 104 fund products of 41 fund companies changed, including 13 products of China Merchants Fund, 5 products of Orient Securities Asset Management, and 4 products of Tianhong Fund [43] 4. Fund Product Issuance Situation 4.1 Newly Established Funds Last Week - Last week, 25 new funds were established, with a total issuance scale of 14.173 billion yuan, a decrease compared to the previous week. Among them, equity funds issued 9.033 billion yuan, hybrid funds issued 4.838 billion yuan, and bond funds issued 303 million yuan. There were no new issuances of alternative funds and money market funds. The types with a relatively large number of new funds were passive index funds (10) and partial equity hybrid funds (4), with issuance scales of 3.475 billion yuan and 2.443 billion yuan respectively [46][47] 4.2 Funds Starting Issuance Last Week - Last week, 41 funds entered the issuance stage for the first time [50] 4.3 Funds to Be Issued This Week - This week, 33 funds will enter the issuance stage, including 9 partial equity hybrid funds, 6 index-enhanced funds, and 4 passive index bond funds [52]

Investment Rating - The report maintains an "Outperform" rating for the industry [1] Core Insights - The capital expenditure (CAPEX) of major overseas cloud providers has significantly increased, exceeding 60% of their operating cash flow, leading to financial pressure and power shortages [2][13] - There is a persistent gap between unfulfilled orders and supply, indicating that the current CAPEX is not excessive [2][41] - The demand structure for computing power is shifting, with internal needs for model training and inference growing, alongside rapid increases in external leasing and API calls [2][34] - High-demand areas identified include advertising and SaaS, which are expected to support ongoing CAPEX investments [2][34] Summary by Sections Supply Side: Financial Pressure and Power Shortages from High CAPEX Growth - Major cloud providers are experiencing financial pressure due to CAPEX growth, which has surpassed 60% of operating cash flow [2][13] - The projected data center capacity in North America is expected to grow by 100% in 2026 and 50% in 2027, leading to significant power shortages [2][32] Demand vs Supply: Unfulfilled Orders Exceed Supply - The cumulative increase in CAPEX since the end of 2022 is still below the current unfulfilled order scale, indicating a supply-demand imbalance [2][41] - The report highlights that the three major cloud providers are still in a state of supply shortage [2][41] Computing Power Demand Structure: Internal Support for Model Training and Rapid Growth in External Leasing and API Calls - The internal demand for computing power is primarily for AI model training and inference, while external demand is growing rapidly through GPU leasing and API calls [2][34] - The average share of GPU leasing is around 70%, with significant growth in API calls from smaller companies [2][34] High Demand Directions: Advertising and SaaS - The report identifies advertising and SaaS as high-demand areas that will support ongoing CAPEX investments [2][34] - The overall CAPEX still requires sustained support from downstream demand, particularly from breakthroughs in AI applications [2][34]