1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - This week, the China Securities REITs Index closed up, with the performance of property - type REITs stronger than that of concession - type REITs. The average weekly price changes of property - type REITs and concession - type REITs were +2.4% and +1.2% respectively. All types of REITs in the market closed up, with consumer, municipal facilities, and water conservancy facilities leading the gains [1]. - As of August 1, 2025, the annualized cash distribution rate of public - offering REITs averaged 5.9%, significantly higher than the current static yields of mainstream fixed - income assets. The dividend yield of property REITs was 147BP lower than the average dividend yield of CSI dividend stocks, and the spread between the average internal rate of return of concession - type REITs and the ten - year Treasury yield was 216BP [1][32]. 3. Summary by Related Catalogs Secondary Market Trends - As of August 1, 2025, the closing price of the China Securities REITs (closing) Index was 870.82 points, with a weekly change of +1.25%, outperforming the CSI Convertible Bond Index (-1.37%), the CSI 300 Index (-1.75%), and the CSI All - Bond Index (+0.19%). Year - to - date, the China Securities Convertible Bond Index (+10.3%) was equal to the China Securities REITs Index (+10.3%), both outperforming the CSI 300 Index (+3.1%) and the CSI All - Bond Index (+1.0%) [2][7]. - In the past year, the return rate of the China Securities REITs Index was 9.8%, with a volatility of 7.2%. The return rate was lower than that of the CSI 300 Index and the CSI Convertible Bond Index but higher than that of the CSI All - Bond Index. The volatility was lower than that of the CSI 300 Index and the CSI Convertible Bond Index but higher than that of the CSI All - Bond Index. The total market value of REITs rose to 213.1 billion yuan on August 1, an increase of 8.3 billion yuan from the previous week. The average daily turnover rate for the whole week was 0.77%, up 0.04 percentage points from the previous week [2][13]. - All types of REITs closed up. From the perspective of different project attributes, the average weekly price changes of property - type REITs and concession - type REITs were +2.4% and +1.2% respectively. From the perspective of different project types, the three project types with the largest average price increases were consumer (+4.0%), municipal facilities (+3.9%), and water conservancy facilities (+3.7%). The top three REITs in terms of weekly price increase were Huaxia Capital First - Outlets REIT (+6.86%), ICBC Mongolia Energy Clean Energy REIT (+6.75%), and Huaxia Capital China Resources Commercial REIT (+5.77%) [1][3][18]. - In terms of different project types, the warehousing and logistics sector had the highest daily turnover rate during the period, and the industrial park sector had the highest proportion of trading volume this week. The average daily turnover rate of the warehousing and logistics sector was 1.4%, and the trading volume of the industrial park sector accounted for 21.8% of the total REITs trading volume [3][25]. - In terms of the capital flow of different REIT products this week, the top three in terms of net inflow of main funds were Huaxia Capital Huadian Clean Energy REIT (72.57 million yuan), BOC Sinotrans Warehousing and Logistics REIT (51.89 million yuan), and Penghua Shenzhen Energy REIT (6.7 million yuan) [3][25]. Primary Market Issuance - As of August 1, 2025, there was 1 REIT product in the "accepted" stage, 2 in the "inquired" stage, 6 in the "feedback" stage, 5 in the "approved and pending listing" stage, and 8 first - issue products that had been approved and listed on the exchanges [27]. Valuation Tracking - From the perspective of bond characteristics, the annualized cash distribution rate of public - offering REITs averaged 5.9% as of August 1, significantly higher than the current static yields of mainstream fixed - income assets. From the perspective of equity characteristics, the valuation of REITs was judged through relative net - value premium rate, IRR, and P/FFO [29]. - As of August 1, 2025, the relative net - value premium rates, P/FFO, IRR, and annualized dividend rates varied among different project types of REITs. For example, the relative net - value premium rate of affordable rental housing was 59.9%, with a P/FFO of 39.6, an IRR of 3.1%, and an annualized dividend rate of 2.8% [30]. - The dividend yield of property REITs was compared with the CSI dividend stock dividend yield, and the internal rate of return of concession - type REITs was compared with the ten - year Treasury yield. As of August 1, 2025, the dividend yield of property REITs was 147BP lower than the average dividend yield of CSI dividend stocks, and the spread between the average internal rate of return of concession - type REITs and the ten - year Treasury yield was 216BP [32]. Industry News - On August 1, the first central - state - owned enterprise gas REIT, Huaxia Capital Huadian Clean Energy REIT, was listed on the Shanghai Stock Exchange. The underlying asset is the Hangzhou Huadian Jiangdong Natural Gas Cogeneration Project. The planned fundraising scale is 1.895 billion yuan, and the expected distribution rates for 2025 and 2026 are 5.66% and 5.37% respectively. It is the 71st infrastructure public - offering REIT in China, setting a benchmark for central enterprises to revitalize high - quality clean energy assets and for green finance innovation in investment and financing models [4][34].

Investment Rating - The report maintains an "Outperform" rating for the communication industry, indicating expected performance above the market benchmark [4][57]. Core Insights - The North American technology companies continue to validate the high prosperity of AI, with significant revenue growth reported by major CSPs such as Microsoft, Meta, and Amazon, with revenues of $764 billion, $475 billion, and $1,677 billion respectively, reflecting year-on-year growth of 18%, 22%, and 17% [1][12]. - The "Artificial Intelligence+" initiative approved by the State Council is expected to support the continuous development of domestic AI, with a focus on investment opportunities in IDC, networks, and liquid cooling technologies [2][38]. - The report highlights the sustained high demand for computing infrastructure, driven by AI investments, and recommends focusing on domestic computing companies such as Huagong Technology, Guangxun Technology, and ZTE [3][53]. Summary by Sections Industry News Tracking - North American CSPs are increasing their capital expenditures significantly, with Microsoft expected to raise its capital expenditure to over $30 billion in FY26Q1, and Amazon's total capital expenditure projected to reach $118.5 billion for the year [1][27]. - Companies like Celestica, Corning, and Vertiv reported strong revenue growth, with Celestica's revenue increasing by 21% to $2.89 billion, Corning's by 12% to $4.05 billion, and Vertiv's by 35% to $2.64 billion [29][31][34]. Market Performance - The communication index rose by 2.54% this week, outperforming the Shanghai Composite Index, which fell by 1.75%, resulting in a relative return of +4.29% [2][45]. - Within the sector, optical modules, optical components, and satellite internet showed strong performance, with respective increases of 8.22%, 5.43%, and 2.78% [45][47]. Investment Recommendations - The report suggests a long-term investment in the three major telecom operators due to their stable operations and increasing dividend payouts, recommending stocks such as China Mobile, ZTE, and Huagong Technology for the upcoming week [3][53].

Report Industry Investment Rating No relevant content provided. Core Viewpoints - Last week, the bond market fluctuated significantly and rebounded slightly. The Politburo meeting mentioned "promoting capacity governance in key industries", the July PMI was only 49.3, and the announcement of a 6% VAT on the interest of newly issued government bonds starting from August 8th triggered a wave of bond buying [1][4][12][39]. - As of August 1, the spread between the 30 - year government bond and the 10 - year government bond was 24BP, at a historically low level. The 6 - month domestic GDP growth rate was about 5.2%, but the growth rates of social consumption and investment sub - items declined significantly, and there was still a risk of deflation. The short - term market panic has passed, but the term spread protection is limited [2][13]. - As of August 1, the spread between the 20 - year CDB bond and the 20 - year government bond was 4BP, at a historically extremely low level. Similar to the 30 - year government bond situation, the short - term market panic has passed, but the spread protection is limited [3][14]. Summary by Directory Weekly Review Ultra - long Bond Review - The bond market fluctuated significantly and rebounded slightly last week. The Politburo meeting's statement was more restrained, the July PMI was low, and the VAT announcement on bond interest triggered a bond - buying wave. The trading activity of ultra - long bonds increased slightly, the term spread remained flat, and the variety spread widened [1][4][12]. Ultra - long Bond Investment Outlook - **30 - year Government Bond**: The spread between the 30 - year government bond and the 10 - year government bond was at a low level. The domestic economy still faced downward pressure, and the short - term market panic has passed, but the term spread protection was limited [2][13]. - **20 - year CDB Bond**: The spread between the 20 - year CDB bond and the 20 - year government bond was at an extremely low level. Similar to the 30 - year government bond, the short - term market panic has passed, but the variety spread protection was limited [3][14]. Ultra - long Bond Basic Overview - The balance of outstanding ultra - long bonds exceeded 22.8 trillion. As of July 31, the total amount of ultra - long bonds with a remaining term of more than 14 years was 228,873 billion, accounting for 14.7% of the total bond balance. Local government bonds and government bonds were the main varieties, and the 30 - year variety had the highest proportion [15]. Primary Market Weekly Issuance - Last week, the issuance volume of ultra - long bonds decreased significantly. A total of 1,722 billion yuan of ultra - long bonds were issued. By variety, government bonds were 350 billion, local government bonds were 1,262 billion, etc. By term, 15 - year bonds were 263 billion, 20 - year bonds were 264 billion, etc. [20]. This Week's Pending Issuance - The announced issuance plan for ultra - long bonds this week is 1,380 billion, including 820 billion for ultra - long government bonds and 560 billion for ultra - long local government bonds [26]. Secondary Market Trading Volume - Last week, the trading of ultra - long bonds was quite active. The trading volume was 14,817 billion, accounting for 16.0% of the total bond trading volume. The trading activity increased slightly compared with the previous week [28]. Yield - The bond market fluctuated significantly and rebounded slightly last week. Yields of government bonds, CDB bonds, local bonds, and railway bonds of different terms changed to varying degrees. For example, the 30 - year government bond yield changed by - 2BP to 1.95% [39]. Spread Analysis - **Term Spread**: The term spread of ultra - long bonds remained flat last week, and the absolute level was low. The spread between the 30 - year and 10 - year government bonds was 24BP, unchanged from the previous week [48]. - **Variety Spread**: The variety spread of ultra - long bonds widened last week, and the absolute level was low. The spreads between the 20 - year CDB bond and the government bond, and between the 20 - year railway bond and the government bond changed by 2BP and 6BP respectively [53]. 30 - year Government Bond Futures - Last week, the main 30 - year government bond futures contract TL2509 closed at 119.04 yuan, an increase of 0.92%. The trading volume was 78.30 million lots, and the open interest was 16.06 million lots, both increasing slightly compared with the previous week [55].

Report Industry Investment Rating No relevant content provided. Core Views of the Report - Last week (from July 28, 2025, to August 1, 2025), the median weekly return of equity ETFs was -1.59%. Among broad-based ETFs, the Science and Technology Innovation Board ETF had the highest return, with a median change of 0.51%. Among sector ETFs, the consumer ETF had the smallest decline, with a median change of -0.42%. Among thematic ETFs, the pharmaceutical ETF had the highest return, with a median change of 1.78% [1][13][16]. - Last week, equity ETFs had a net redemption of 38.49 billion yuan, and the total scale decreased by 83.749 billion yuan. Among broad-based ETFs, the Shanghai 50 ETF had the highest net subscription, at 0.46 billion yuan. Among sector ETFs, the cyclical ETF had the highest net subscription, at 7.96 billion yuan. Among thematic ETFs, the dividend ETF had the highest net subscription, at 14.76 billion yuan [2][28][31]. - As of last Friday, China Asset Management, E Fund, and Huatai-PineBridge Fund ranked in the top three in terms of the total scale of listed non-monetary ETFs. This week, five ETFs, including China Merchants GEM Comprehensive Enhanced Strategy ETF, Huabao GEM Comprehensive Enhanced Strategy ETF, Bosera GEM Comprehensive ETF, China Asset Management SSE 580 ETF, and Tianhong CSI Hong Kong Stock Connect Central State-owned Enterprise Dividend ETF, will be issued [5][57][60]. Summary by Relevant Catalogs ETF Performance - Last week, the median weekly return of equity ETFs was -1.59%. Among broad-based ETFs, the Science and Technology Innovation Board ETF had the highest return, with a median change of 0.51%. Among sector ETFs, the consumer ETF had the smallest decline, with a median change of -0.42%. Among thematic ETFs, the pharmaceutical ETF had the highest return, with a median change of 1.78% [1][13][16]. ETF Scale Change and Net Subscription/Redeemption - As of last Friday, the scales of equity, cross-border, and bond ETFs were 3.0654 trillion yuan, 672.4 billion yuan, and 518 billion yuan, respectively. The scales of money market and commodity ETFs were relatively small, at 156.8 billion yuan and 156.3 billion yuan, respectively. Among broad-based ETFs, the CSI 300 ETF and the Science and Technology Innovation Board ETF had relatively large scales, at 1.0605 trillion yuan and 213.7 billion yuan, respectively [18][21][25]. - Last week, equity ETFs had a net redemption of 38.49 billion yuan, and the total scale decreased by 83.749 billion yuan. Among broad-based ETFs, the Shanghai 50 ETF had the highest net subscription, at 0.46 billion yuan, and its scale decreased by 2.506 billion yuan. The CSI 300 ETF had the highest net redemption, at 9.321 billion yuan, and its scale decreased by 27.614 billion yuan. Among sector ETFs, the cyclical ETF had the highest net subscription, at 7.96 billion yuan, and its scale decreased by 2.783 billion yuan. The technology ETF had the highest net redemption, at 8.04 billion yuan, and its scale decreased by 10.608 billion yuan. Among thematic ETFs, the dividend ETF had the highest net subscription, at 14.76 billion yuan, and its scale increased by 336 million yuan. The chip ETF had the highest net redemption, at 4.099 billion yuan, and its scale decreased by 6.462 billion yuan [28][31][35]. ETF Benchmark Index Valuation - As of last Friday, among broad-based ETFs, the GEM - related ETFs had relatively low valuation quantiles. Among sector ETFs, the consumer ETFs had relatively moderate valuation quantiles. Among thematic ETFs, the wine, photovoltaic, and new energy vehicle ETFs had relatively low valuation quantiles. Compared with the previous week, the valuation quantiles of the CSI 300, new energy vehicle, A500, and cyclical ETFs decreased significantly [3][36][45]. ETF Margin Trading - As of last Thursday, the margin trading balance of equity ETFs decreased from 40.536 billion yuan in the previous week to 39.181 billion yuan, and the short - selling volume increased from 2.181 billion shares in the previous week to 2.276 billion shares. Among the top 10 ETFs with the highest average daily margin purchases and short - selling volumes, the Science and Technology Innovation Board ETFs and pharmaceutical ETFs had relatively high average daily margin purchases, while the CSI 1000 ETFs and CSI 500 ETFs had relatively high average daily short - selling volumes [4][47][56]. ETF Managers - As of last Friday, China Asset Management, E Fund, and Huatai - PineBridge Fund ranked in the top three in terms of the total scale of listed non - monetary ETFs. China Asset Management had a relatively high management scale in multiple sub - fields such as scale index ETFs, industry index ETFs, and thematic, style, and strategy index ETFs. E Fund had a relatively high management scale in scale index ETFs and cross - border ETFs. Huatai - PineBridge Fund had a relatively high management scale in scale index ETFs and thematic, style, and strategy index ETFs [57]. - Last week, 8 new ETFs were established, and this week, 5 ETFs will be issued [60].

- The report does not contain any specific quantitative models or factors related to quantitative investment strategies[4][36][38] - The content primarily focuses on fund performance, issuance, and market dynamics, without detailing any quantitative model construction or factor analysis[4][36][38] - No quantitative models or factors are explicitly mentioned or analyzed in the provided documents[4][36][38]

Core Insights - The market experienced its smoothest main upward phase since the beginning of the year in July, with a 3.74% increase and a maximum drawdown of 1.18% [3][6] - The "anti-involution" policies and the emphasis on stabilizing growth in key industries contributed to market acceleration and improved profit-making effects [3][6] - Small-cap, growth, and loss-making stocks outperformed in July, with sectors like steel, pharmaceuticals, building materials, and communications leading the gains [3][10] Market Performance Summary - In July, the market saw a significant increase, with the main index rising 3.74% and achieving the highest monthly Sharpe and Calmar ratios of the year [6][8] - The average number of stocks hitting the daily limit dropped from over 70 to around 50 by the end of July, indicating a slight easing in profit-making effects [3][43] - The small-cap index outperformed the large-cap index, with small-cap stocks rising 5.54% compared to 3.48% for large-cap stocks [10] Industry Analysis - The report highlights the importance of identifying companies that only incur losses in profits but maintain positive cash flow, particularly in the cement and chemical sectors [3][98] - The "anti-involution" theme is expected to drive excess returns, with a projected initial pulse of around 20 percentage points, particularly benefiting small-cap stocks [3][91] - Industries experiencing supply contraction and rising demand include upstream coking coal, midstream engineering machinery, and downstream white goods and pharmaceuticals [3][115] Thematic Investment Focus - The report emphasizes the significance of the "14th Five-Year Plan" and the industries benefiting from childbirth subsidies, including maternal and infant products, children's healthcare, and early education services [3][118] - Key areas of focus include digital transformation in industries and consumption services, particularly in regions like the Beijing-Tianjin-Hebei area and the Yangtze River Delta [3][120]

Economic Growth Indicators - The Guosen High-Frequency Macro Diffusion Index A turned negative this week, while Index B showed seasonal decline, indicating a stable economic growth momentum[1] - Real estate sector performance improved, while investment and consumption sectors showed a decline, with the real estate sector performing relatively better[1] - The standardized Index B decreased by 0.14, remaining close to historical average levels, suggesting steady domestic economic growth[1] Asset Price Predictions - Current domestic interest rates are low, while the Shanghai Composite Index is high, indicating a potential downward adjustment in the index next week[1] - The predicted ten-year government bond yield for the week of August 8, 2025, is expected to rise, while the Shanghai Composite Index is anticipated to decline[1] - The predicted ten-year government bond yield is 2.34%, compared to the actual value of 1.72%, indicating a significant deviation[19] Price Tracking - Food prices increased by approximately 0.5% month-on-month in July, while non-food prices decreased by about 0.5%, leading to an overall CPI increase of around 0.5%[2] - The Producer Price Index (PPI) is expected to show a month-on-month increase of about 0.1% in July, with a year-on-year recovery to -3.3%[2]

Investment Rating - The report maintains a "Weaker than Market" rating for the U.S. stock market [1] Core Insights - The U.S. stock market experienced a sudden pullback influenced by non-farm employment data, with the S&P 500 declining by 2.4% and the Nasdaq by 2.2% [3] - Among sectors, large-cap value stocks outperformed large-cap growth and small-cap stocks, indicating a preference for stability in turbulent market conditions [3] - The report highlights that three sectors saw gains while 21 sectors faced declines, with utilities, food and staples retailing, and media and entertainment being the only sectors to rise [3] Summary by Sections Price Trends - The S&P 500 fell by 2.4% and the Nasdaq by 2.2% this week, with large-cap value stocks declining by 1.8% compared to a 3.1% drop in large-cap growth stocks [3] - Utilities (+1.6%), food and staples retailing (+0.9%), and media and entertainment (+0.2%) were the only sectors to increase, while transportation (-5.9%), materials (-5.1%), and retail (-4.8%) faced the largest declines [3] Fund Flows - The estimated fund flow for S&P 500 constituents was -$16.95 billion this week, a significant increase from the previous week's -$2.2 billion [4] - Media and entertainment (+$1.59 billion), utilities (+$0.27 billion), and food and staples retailing (+$0.042 billion) saw inflows, while healthcare equipment and services (-$3.47 billion) and financials (-$4.15 billion) experienced the largest outflows [4] Earnings Forecast - The report indicates a 0.6% upward adjustment in the 12-month EPS forecast for S&P 500 constituents, with 18 sectors seeing an increase and 5 sectors experiencing downgrades [5] - Retail (+3.3%), media and entertainment (+2.0%), and technology hardware (+1.5%) led the upward revisions, while healthcare equipment and services faced a significant downgrade of -3.6% [5]

Investment Rating - The report maintains an "Outperform" rating for the Hong Kong stock market [4] Core Viewpoints - The market has experienced a pullback, with the Hang Seng Index down by 3.5% and the Hang Seng Technology Index down by 4.9%. However, the innovative pharmaceutical sector continues to rise, gaining 2.6% [1] - Overall, there has been a significant outflow of funds from the market, with an average daily fund intensity of -9.9 million HKD, compared to +12.6 million HKD the previous week [2] - Earnings per share (EPS) expectations for the Hong Kong stock market have been slightly revised down by 0.1%, indicating a clear divergence among industries, with 11 industries seeing upward revisions and 18 experiencing downward adjustments [3] Summary by Sections Market Performance - The Hang Seng Index closed at 24,508, reflecting a 3.5% decline this week, while the Hang Seng Technology Index decreased by 4.9% [12] - The innovative pharmaceutical sector has shown resilience, with a 2.6% increase, contrasting with significant declines in other sectors such as automotive (-7.9%) and financials (-3.6%) [1][16] Fund Flow - There was a notable outflow of funds across the market, with 26 industries experiencing outflows, particularly in automotive (-2.3 million HKD/day) and non-bank financials (-2.0 million HKD/day) [2] - Only four industries saw inflows, with pharmaceuticals leading at +1.4 million HKD/day [2] Earnings Forecast - The overall EPS forecast for the Hong Kong stock market has been adjusted down by 0.1%, with significant upward revisions in the steel industry (+235.8%) and pharmaceuticals (+1.4%) [3] - Conversely, industries such as basic chemicals (-3.2%) and telecommunications (-0.9%) faced downward revisions [3]

Investment Rating - The investment rating for the company is "Outperform" [6][30]. Core Insights - The company's Q2 performance exceeded expectations, driven by strong retail growth, with revenue of $167.7 billion, a year-on-year increase of 13% [10]. - Advertising revenue grew by 22% year-on-year, primarily driven by sponsored products, contributing to improved profit margins [2][16]. - The cloud business (AWS) continued its growth momentum with revenue of $30.9 billion, a year-on-year increase of 17.5%, despite facing supply constraints [3][19]. Summary by Sections Overall Performance - Q2 revenue reached $167.7 billion, surpassing company guidance and Bloomberg consensus expectations of 9.6% growth, with operating profit of $19.2 billion, up 31% year-on-year [10]. - The company expects Q3 revenue to be between $174 billion and $179.5 billion, reflecting a year-on-year growth of 10%-11% [10]. Retail and Other Businesses - Retail and other business revenue was $136.8 billion, a year-on-year increase of 12%, with advertising revenue contributing significantly [2][16]. - The operating profit margin for retail and other businesses reached 6.6%, up 2.2 percentage points year-on-year, due to improved logistics efficiency [2][16]. Cloud Business - AWS revenue was $30.9 billion, a year-on-year increase of 17.5%, with an operating profit margin of 32.9% [3][19]. - The company is experiencing supply constraints due to chip shortages and delivery delays, which are expected to persist in the coming quarters [3][19]. Financial Forecasts - Revenue forecasts for 2025-2027 have been slightly adjusted to $706.3 billion, $776.9 billion, and $856.2 billion, respectively [30]. - Net profit forecasts for the same period have been slightly reduced to $70.9 billion, $82.6 billion, and $99.0 billion, respectively [30]. Key Financial Metrics - The company is projected to achieve an EPS of $6.70 in 2025, with a PE ratio of 32 [5][32]. - The operating margin is expected to improve to 11% by 2026, with a net profit growth rate of 20% in 2025 [5][32].