J P M O R G A N Asia Pacific Equity Research 10 February 2025 This material is neither intended to be distributed to Mainland China investors nor to provide securities investment consultancy services within the territory of Mainland China. This material or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P. Morgan. China Renewables NDRC's push on 100% RE power market sales drives mixed implications: Negative for ESS; Neutral for off- shore wind; Positive for RE ...

January 28, 2025 01:38 PM GMT Embodied AI | North America Humanoid Disruptors: Unitree - Humanoids Starting at $16K China continues to make impressive progress in humanoid robotics where startups are benefitting from established supply chains, local adoption opportunities, and strong degrees of national government support. We profile Unitree, an emerging developer of cost-effective AI robots. We continue to believe that new players capable of developing cost-effective humanoid/AI robotics solutions will pla ...

Investment Rating - The report does not explicitly provide an investment rating for the industry or specific trades discussed Core Insights - The report identifies five consensus Trump trades that have shown reversal patterns similar to those during his first presidency, indicating potential market shifts [4] - It highlights that the macroeconomic backdrop is affecting equity markets differently, with a focus on the implications of a potential trade war [4][22] - The report discusses the impact of the DeepSeek effect on tech stocks, suggesting that markets may be past peak valuations and emphasizing the need for revenue generation [4][65] - It notes the significance of European elections and their potential impact on markets, particularly in light of Trump-related uncertainties [4][83] - The report addresses inflation, indicating that recent yield increases are more related to term premiums rather than inflation expectations, which may have an indirect impact on markets [4][110] Summary by Sections Five Consensus Trump Trades - The report outlines five key trades influenced by Trump, noting that these trades have reversed during his presidency [4][8] - It emphasizes the macro backdrop's varying effects on different markets, questioning whether a trade war could alter this dynamic [4][22] - The report discusses the DeepSeek effect, indicating that tech stocks may be experiencing a shift in valuation dynamics [4][50] Macro Backdrop - The report states that US sensitivity to local macro-driven assets is at its lowest since 2007, suggesting a potential shift in market behavior [24] - It highlights that European and Canadian markets may be more vulnerable to trade shocks due to lower profit margins compared to the US [36] Tech Stocks and the DeepSeek Effect - The report notes that the DeepSeek narrative has created significant market reactions, particularly affecting utilities and semiconductor stocks [52][55] - It discusses the resilience of tech stocks outside of AI, while also highlighting the unequal value distribution across the tech industry [61] European Elections and Markets - The report indicates that German elections may layer additional uncertainty on European markets, but suggests that risk assets are not overly priced [83][85] - It mentions that European stocks have outperformed the S&P 500 recently, driven by specific sector dynamics and low domestic exposure [83][84] Inflation – The Indirect Impact - The report discusses how inflation expectations are above targets but manageable, with recent yield increases attributed to recovering term premiums rather than inflation fears [102][110] - It highlights that the correlation between stock and bond markets has shifted, with positive correlations observed in Europe [112]

Summary of Conference Call Records Industry Overview - The records primarily discuss the polyester industry, focusing on production capacity, demand, and market dynamics for the years 2024 and 2025. Key Points and Arguments Production Capacity and Growth - In 2014, the total production capacity for polyester was approximately 12.76 million tons, with a growth rate of about 2.5% [1] - The expected production capacity for 2025 is projected to be around 17.8 million tons, with a growth rate of 3.3% [2] - New production facilities are expected to come online in 2025, including a 250,000-ton facility and a 300,000-ton facility, with commissioning dates in early to mid-2025 [1][2] Production and Utilization Rates - Despite limited capacity growth, the utilization rates for polyester production are expected to remain high, with 2014 showing an 8.6% increase in production volume, reaching 44.1 million tons [3] - The average operating rate for polyester production in 2024 is projected to be around 84% [3] - The overall utilization rate for polyester production is expected to improve, potentially reaching 86% or higher [4] Inventory and Demand Dynamics - The inventory levels for polyester are expected to fluctuate, with a higher average inventory in 2024 compared to 2023, indicating a potential impact on actual demand [5][6] - The average inventory days for polyester in 2024 is projected to be around 12.4 days, which is an increase from 2023 [6] - The domestic consumption growth rate for polyester is estimated at 7.9%, which is higher than the GDP growth rate [7] Market Competition and External Factors - The competition in the polyester market is expected to intensify, particularly in the downstream sectors such as textiles and manufacturing [10][19] - Trade barriers and external economic conditions, particularly in the U.S., are anticipated to impact polyester exports and overall market dynamics [22][25] - The export volume of polyester is projected to decline in 2024, with a significant drop in exports to the U.S. [15][24] Future Projections - The overall growth rate for polyester demand in 2025 is estimated to be around 5%, reflecting a slowdown compared to previous years [29] - The profitability of polyester production is expected to improve in 2024, with better margins anticipated due to stable pricing and lower production costs [30][31] - The social inventory levels for polyester are expected to remain manageable, providing a buffer against market fluctuations [32][33] Risks and Challenges - The primary risks for the polyester industry in 2025 include potential trade disputes, particularly with the U.S., and the impact of domestic competition on pricing and margins [22][47] - The overall economic recovery and consumer demand in key markets will be critical in determining the industry's performance in the coming years [19][28] Additional Important Content - The records highlight the importance of downstream industries, such as textiles and manufacturing, in driving polyester demand [8] - The investment trends in domestic manufacturing and equipment upgrades are noted as significant factors influencing future growth [8][9] - The records also discuss the impact of global economic conditions on polyester exports, particularly in relation to emerging markets [14][26] This summary encapsulates the key insights and projections regarding the polyester industry as discussed in the conference call records, providing a comprehensive overview of the current state and future outlook.

高盛闭门电话会：关税、汇率、通胀、AI，高盛把脉中国经济四大命门！ 摘要 Q&A 高盛对中国关税的基本假设是什么？ 高盛认为特朗普政府对中国的关税将进一步上调，预计在现有 10%的基础上再 增加 10%，使得总体有效税率上升 20 个百分点。高盛还预测，取消中国的永久 正常贸易关系（PNTR）地位的可能性为 35%，这将进一步提高关税。此外，高 盛还考虑了其他国家和地区的关税风险，例如对欧盟汽车征收 60 亿美元级别的 关税，以及对全球战略性重要产品征收 6,000 亿美元级别的关税。 高盛如何量化这些关税变化对美国经济的影响？ 高盛通过计算有效税率来量化这些变化。根据最新假设，美国有效税率将增加 4.7 个百分点，相比 11 月份预测时更为严重。这一增长主要是由于最近贸易战 升级所致。高盛因此上调了美国通胀预测，预计核心 PCE 会受到一定压力。在 不同情景下，美国有效税率可能进一步提高，但目前基本假设是 2025 年红色板 • 高盛预测美国有效税率因贸易战升级将增加 4.7 个百分点，上调美国通胀 预期，关注对欧盟汽车及全球战略产品征收关税的风险。 • 中国一月 CPI 受春节因素推动上升至 0.5%，P ...

摘要 问答 最近的关税新闻对经济前景和预测有何影响？ 最近的关税消息极大地影响了我们的经济前景。特朗普总统宣布对所有钢铁和 铝进口征收 25% 的关税，立即生效，并对中国出口商品征收额外 10% 的关税。 中国对美国约 200 亿美元的出口产品征收关税，而美国征收关税的中国进口商 品价值为 4450 亿美元。我们预计这些关税和进一步征收关税的威胁将成为贸 易讨论中反复出现的话题。特朗普总统的行政命令名为"美国优先贸易政策"， 要求联邦机构审查贸易逆差，特别是针对加拿大、墨西哥和中国，报告应于 4 月 1 日前提交。这符合我们对新关税将从 2024 年第三季度到 2026 年第二季 度实施的预期。鉴于这些发展，我们将新关税纳入了我们的预测中。我们假设， 随着时间的推移，美国将对从中国进口的 75% 的商品征收额外的 60% 关税， 类似于 2018-2019 年期间根据《贸易法》第 301 条实施的程序。因此，我们 调整了通胀预测：将 2025 年通胀率上调十分之一，将 2026 年通胀率下调相 同幅度。此外，由于这些影响，我们下调了 GDP 增长预测，但将预期的首次降 息时间提前至今年 6 月，预计今年总共降 ...

摘要 Q&A 【辜朝明最新分享】中国经济，投资和宏观经济（日期：202502） What is your current assessment of the global economy and financial markets in 2025? The global economy and financial markets are currently navigating the aftermath of extensive quantitative easing measures implemented by numerous countries, especially following the 2008 financial crisis. Despite significant liquidity injections, central banks failed to meet their inflation targets, contradicting traditional economic theories about money supply and price levels. This ...

摘要 • US hyperscalers initially provide conservative capex guidance, often revised upwards based on supplier data. In August 2024, Asian tech analysts projected higher capex estimates compared to their US counterparts, highlighting a divergence in initial projections that eventually converge. • Major hyperscalers' upward revision of capex forecasts positively impacts the supply chain, exceeding initial expectations for 2024. This positive outlook extends to GPU demand and broader data center infrastructure i ...

Summary of Key Points from Conference Call Industry Overview - The conference call covered multiple industries including finance, real estate, aviation, and renewable energy, with a focus on the current trends and future outlooks in these sectors [1] Key Insights and Arguments Financial Sector - Chinese residents' savings rate increased significantly in 2024, reaching nearly 11%, despite slowing income growth. This trend is attributed to the low interest rate environment, which encourages savings to lock in higher yields [2][4] - The financial sector is expected to see a decline in risk premiums as the credit cycle bottoms out, with potential rebounds in valuations for banks and insurance companies. Stable interest rates will enhance market confidence, particularly in the insurance sector [6] Monetary Policy - The monetary policy in China has shifted to a moderately accommodative stance in 2024, but actual operational changes have been minimal. Interest rate cuts are seen as limited in addressing deflation issues, and excessive easing could slow down capacity clearance [3][4] Real Estate Market - Since 2018, China has effectively controlled financial risks in the real estate sector through strict regulation of shadow banking and addressing property bubbles. Over 75% of real estate risks have been digested, and local fiscal pressures have eased [5][8] - The real estate market is expected to face downward pressure in 2024, with transaction prices projected to decline by 0.5% to 0.6% monthly due to a lack of policy support and seasonal factors [14][15] Aviation Industry - The aviation sector underperformed during the Spring Festival, with passenger growth slowing and ticket prices falling below expectations. The decline in business travelers has particularly impacted high-priced ticket sales [9][10] - Despite a pessimistic outlook for the off-peak season, supply constraints, including aircraft delivery and maintenance issues, may limit capacity growth, suggesting a more stable demand environment [11] Manufacturing and Export - China's manufacturing sector has shown significant upgrades since 2021, with a continuous increase in global export market share. Measures like deleveraging and transitioning from virtual to real economy have supported hardware and software innovations [7] Wind Power Industry - The wind power sector's installation forecasts have been raised, with expectations of 116 GW by 2025 and over 130 GW by 2026. The trend towards larger wind turbines is evident, with over 80% of land-based and 35% of offshore bids exceeding 8 MW [20][21][25] - New policies mandating all renewable energy projects to participate in market trading are expected to enhance market stability and investment attractiveness [24][27] Steel Industry - The steel industry is undergoing a supply-side reform, with new regulations aimed at achieving ultra-low emissions by 2026. This reform is expected to impact production capacity and may lead to market exits for non-compliant firms [32][33] - The government is expected to implement more detailed policies to regulate production and control emissions, ensuring the industry moves towards a more sustainable model [34][36] Additional Important Insights - Local government fiscal conditions are improving, which could boost consumer spending and overall economic recovery. If the savings rate stabilizes, it may further enhance market investment confidence [8] - The aviation cargo market faces downward risks due to customs bottlenecks and potential new tariffs on small packages, indicating a cautious outlook for this segment [12] - The overall sentiment towards the aviation sector remains cautiously optimistic, with expectations of macroeconomic improvements supporting stock performance [13] This summary encapsulates the critical insights and trends discussed during the conference call, providing a comprehensive overview of the current state and future outlook of the relevant industries.

Investment Rating - The report indicates a positive outlook for the industry, with expectations of GDP growth around 3% for 2025, influenced by various economic factors and Federal Reserve actions [3][5][8]. Core Insights - The Federal Reserve's actions have been pivotal in achieving a soft landing in 2024, with GDP growth at approximately 3% and inflation trends around 4% [3][4]. - Increased productivity and labor supply have significantly contributed to maintaining growth while reducing inflation, alleviating concerns about restrictive interest rates [3][4][6]. - Anticipated tariff increases and a slowdown in labor supply are expected to shape economic expectations for 2025, with a slight slowdown in growth anticipated [5][8]. - The market is currently pricing in risks associated with continued US exceptionalism, but high valuations in certain sectors could lead to risk aversion [9][12]. - Fiscal policy uncertainty remains high, with potential extreme cases leading to stagflation, which could affect growth and inflation [12][24]. Summary by Sections Economic Performance - The US achieved a soft landing in 2024, largely due to the Federal Reserve's actions, with GDP growth around 3% and inflation trending towards 4% [3][4]. - Increased productivity and labor supply have played crucial roles in sustaining economic performance, allowing for robust growth alongside reduced inflationary pressures [6][20]. Market Expectations - For 2025, expectations are shaped by anticipated tariff increases and a cooling labor supply, with GDP growth expected to be around 3% [5][8]. - Key factors being monitored include supply-side elements, fiscal policy, trade policy, labor supply, and Federal Reserve actions [8][9]. Federal Reserve Actions - The Federal Reserve is confident in achieving price stability at roughly 2% inflation and believes the Fed funds rate is within the appropriate range [16][17]. - The likelihood of a rate hike in 2025 is low, with market pricing suggesting only about a 25% chance of an increase [72]. Investment Strategies - The report emphasizes the importance of fixed income investments, particularly in the short-to-middle part of the yield curve, as attractive opportunities exist due to favorable nominal and real yields [30][31]. - Active management in credit allocation is highlighted, focusing on security selection to generate alpha while maintaining a balanced approach to risk [43][50]. Global Economic Outlook - The economic outlook varies significantly across global markets, with China facing severe debt challenges, Germany showing low economic prospects, and the UK performing relatively better [56][57]. - Divergent economic paths influence monetary policies and investment opportunities, suggesting that international bonds could provide diversification benefits [58][59].