Data Asset Development Background - Data is recognized as a high-quality production factor in the digital economy, enhancing enterprise competitiveness and driving industrial upgrades[1] - China's digital economy grew from 16.2 trillion yuan in 2014 to 53.9 trillion yuan in 2023, a 3.33x increase, accounting for 42.8% of GDP[4] - The digital economy contributed 66.45% to GDP growth in 2023, with a nominal growth rate of 7.39%[4] Data Assetization Process - The marketization path of data assets includes four stages: data resourceization, data productization, data assetization, and data capitalization[8] - Key steps in data assetization include data inventory, rights confirmation, valuation, and accounting entry[27] Policy Environment - The "Data Twenty Articles" introduced in 2022 established a data property rights system with "three rights separation" (ownership, usage rights, and operation rights)[15] - The "Accounting Treatment Interim Provisions" effective from January 1, 2024, formalized data asset accounting, marking the operational phase of data asset entry[6] Data Asset Accounting - Data assets can be classified as intangible assets or inventory based on their purpose and business model[35] - The accounting treatment for data assets includes initial measurement, subsequent measurement, and disposal, with specific rules for cost allocation and depreciation[36] Data Asset Valuation - Data asset valuation methods include cost, income, and market approaches, with adjustments for data-specific characteristics[38] - The income approach is preferred for data assets with clear rights, application scenarios, and predictable future income[39] Local Government and Market Impact - Data assetization can improve financial structures and enhance financing capabilities for enterprises, especially local state-owned enterprises[25] - Local governments can leverage data assets to improve service quality, efficiency, and fiscal transformation[26]

Group 1 - The ABS market in 2024 saw a slight increase in issuance scale, with a total issuance amount of 20,429.91 billion, reflecting a year-on-year increase. The issuance of ABN significantly contributed to this growth, with a 62.82% increase in issuance amount [7][9][40] - The overall stock scale of the ABS market continued to decline, with a net outflow of 564.27 billion in 2024, although the decline was significantly narrowed compared to previous years [9][10] - The issuance of consumer loan ABS increased by 16.37% in 2024, driven by a recovery in consumer sentiment and demand for consumer finance [26][79] Group 2 - The issuance of enterprise ABS (including exchange ABS and ABN) showed a slight increase of 0.14%, with the total issuance amount reaching 11,837.56 billion [14][7] - The issuance of supply chain ABS continued to decline, with a 16.42% decrease in 2024, largely due to the downturn in the real estate sector and regulatory adjustments [37][40] - The issuance of class REITs saw significant growth, with a 116.91% increase in issuance amount, reaching 1,436.64 billion, as they became a favored tool for debt reduction and tax optimization [34][40] Group 3 - The issuance of credit ABS decreased by 22.65% in 2024, totaling 2,703.79 billion, primarily due to reduced bank credit supply [65][67] - The personal auto loan ABS remained the largest segment within credit ABS, despite a 27.95% decline in issuance [67][68] - The issuance of non-performing loan ABS continued to grow, reaching 508.67 billion, indicating a strong demand for tools to manage bad debts [73][65] Group 4 - The overall ABS issuance rates showed a downward trend, with most credit ABS rates concentrated between 1.80% and 2.30%, reflecting a continuous cost reduction [84][85] - The issuance rates for enterprise ABS were more dispersed, but followed a similar downward trend as credit ABS [85][86] - The issuance of financing lease ABS saw rates ranging from 2.00% to 5.00%, with significant differentiation among issuers [86][87]

Investment Rating - The mechanical industry is rated as stable for 2024 and 2025 [1][4]. Core Insights - The mechanical industry is influenced by fixed asset investment, with a decline in real estate development investment but growth in infrastructure and high-tech manufacturing investments supporting overall stability [1][12]. - The industry faces challenges such as declining profitability due to weak demand in certain segments and intensified competition leading to price reductions [1][20]. - Government policies are promoting high-quality development in the mechanical industry, particularly in high-end industrial machinery and robotics, which are expected to drive market demand [2][4]. Summary by Sections General Machinery - General machinery, particularly in intelligent equipment and core components, is supported by national policies and shows good growth in areas like CNC machine tools and industrial robots [1][45]. - Traditional sectors like valves and compressors maintain demand due to ongoing large-scale projects in petrochemicals and power generation, while high-end product demand is increasing [1][48]. Specialized Machinery - The specialized machinery sector, including new energy equipment and construction machinery, has shown varied performance due to specific downstream demand conditions [2][4]. - The engineering machinery sector is expected to recover due to infrastructure investment, while new energy equipment faces challenges from excess capacity [2][4]. Transportation Equipment - The transportation equipment sector, including rail transit and shipbuilding, is dominated by state-owned enterprises and is experiencing growth due to a recovering shipping market and stable railway investment [2][5]. Financial Performance - The mechanical industry saw a revenue increase to 29.8 trillion yuan in 2023, with a profit total of 1.8 trillion yuan, although competition has led to a decline in profit margins [20][24]. - The industry is experiencing rising operational pressures, with increased capital expenditures and a growing debt scale concentrated in key sectors [3][20]. Market Trends - The mechanical industry is benefiting from a significant increase in fixed asset investment, with infrastructure investment growing by 4.3% in 2024 [14][12]. - The demand for high-tech products and strategic emerging industries continues to drive growth, with a notable increase in the production of robots and internal combustion engines [31][33]. Policy Support - Recent government initiatives aim to accelerate equipment updates and promote the replacement of outdated machinery, which is expected to boost market demand [24][27]. - The focus on technological innovation and the development of high-end manufacturing capabilities is expected to enhance the industry's competitive edge [37][56].

Investment Rating - The report does not explicitly state an investment rating for the banking industry in 2024 and 2025 Core Insights - The overall economic situation in China is stable with a focus on high-quality development, supported by a proactive monetary policy from the central bank [2][6] - The growth rate of social financing and RMB loans has decreased year-on-year, while the total assets of commercial banks have shown a slight recovery by the end of Q3 2024, although still lower than the previous year [2][6] - Commercial banks are increasing their support for government bonds and corporate financing, while the proportion of loans to households continues to decline due to weak demand [2][12] - The net interest margin of commercial banks is expected to narrow slightly, and profitability remains a challenge despite improvements in credit quality [5][6] Summary by Sections 1. Overall Industry Performance - The total assets of commercial banks grew at a slower pace compared to the previous year, with state-owned banks showing a stronger performance in bond investments, particularly in government bonds [3][19] - The loan growth rate for commercial banks has slowed down, with a notable decline in short-term consumer loans and housing mortgage loans [3][27] - The asset quality of various commercial banks is diverging, with rural commercial banks showing weaker performance compared to foreign and private banks [3][19] 2. Monetary Policy and Economic Environment - The central bank has implemented supportive monetary policies, including interest rate cuts and reserve requirement ratio reductions, to enhance liquidity in the banking system [8][9] - The macro leverage ratio is expected to rise, with interest rates remaining on a downward trend, although potentially constrained by exchange rate factors [5][6] 3. Credit Allocation and Loan Growth - The report highlights a significant decline in short-term consumer loans, with a slight recovery in medium- to long-term consumer loans supported by government policies [27][29] - The growth of operating loans has decreased, particularly in the real estate and infrastructure sectors, reflecting ongoing economic pressures [29][36] - The proportion of inclusive finance loans continues to rise, with state-owned banks contributing significantly to this growth [40]

Investment Rating - The automotive finance industry is rated as AAA for all bond issuers in 2024, with one issuer upgraded to AAA during the period [12][13]. Core Insights - The automotive finance industry is experiencing a contraction in asset scale due to declining traditional fuel vehicle market conditions and increased competition among financial institutions. Retail loans are the primary business structure, with a growing proportion, while dealer loans are decreasing [2][5]. - The industry has seen a rise in non-performing loans, but overall asset quality remains stable due to flexible loan write-off policies. The financing structure primarily relies on asset-backed securities and financial bonds [5][11]. - The rapid growth of new energy vehicle (NEV) sales is expected to continue, but challenges remain in valuing and disposing of NEVs. The overall asset scale of automotive finance companies is projected to shrink as traditional fuel vehicle ownership declines [2][27]. Summary by Sections Automotive Finance Industry Review - In 2023, China's automotive production and sales reached 30.16 million and 30.09 million units, respectively, marking a year-on-year increase of 11.6% and 12.0% [3][4]. - The automotive finance companies issued retail loans for 6.3685 million vehicles, amounting to over 541.706 billion yuan in 2023, with new car loans accounting for 18.04% of national sales [6][8]. Business Structure and Performance - As of the end of 2023, the total asset scale of 25 automotive finance companies was 964.818 billion yuan, a decrease of 2.46% year-on-year. Retail loans accounted for 85.38% of total loans [6][8]. - The non-performing loan balance for automotive finance companies was 50.64 billion yuan at the end of 2023, with a non-performing loan rate of 0.58% [11][13]. Financing and Capital Adequacy - The capital adequacy ratio for automotive finance companies was 24.57% at the end of 2023, indicating sufficient capital to meet business development needs [10][21]. - In 2024, six automotive finance companies issued 12 financial bonds totaling 17.8 billion yuan, with an average spread of 56.72 basis points for AAA-rated bonds [14][16]. Regulatory Environment - The introduction of the "Automotive Finance Company Regulatory Rating Method" aims to enhance regulatory efficiency and risk management within the industry [22][23]. - The regulatory rating will assess governance, capital management, risk management, service capability, consumer rights protection, and information technology management [22][24]. Future Outlook - The growth of NEV sales is expected to continue, but the industry faces challenges in asset quality management as traditional fuel vehicle ownership declines [27][28]. - The competitive landscape among NEV manufacturers is intensifying, with ongoing challenges in residual value assessment and market standards [27][28].

Investment Rating - The energy industry is rated as stable for 2024 and 2025 [1] Core Insights - China's energy consumption structure is steadily moving towards cleanliness and low carbon, with significant increases in renewable energy consumption and electrification levels [2][9] - The energy sector is experiencing a robust investment increase, particularly in energy efficiency, renewable energy, and storage technologies, with expected strong spending in 2025 [2][25] - The coal market is expected to remain loose in 2024, with coal prices fluctuating downwards due to high inventory levels and increased renewable energy output [3][36] - The oil and gas market is facing a supply-demand imbalance, with global economic recovery and energy transition pressures affecting oil demand growth [4][6] Summary by Sections Energy Consumption and Production - In 2023, China's total energy consumption reached 5.72 billion tons of standard coal, a 5.7% increase year-on-year, with coal consumption accounting for 55.3% of the total [9] - The production of coal, oil, and natural gas has continued to grow, with coal production expected to reach approximately 4.8 billion tons in 2025 [6][30] - The energy supply system is diversifying, with a significant increase in non-fossil energy generation capacity, surpassing thermal power for the first time [20] Financial Performance - Sample energy extraction companies have seen a decline in revenue and profitability due to high energy prices falling from previous peaks [5] - The overall credit quality of the energy sector remains stable, with most bond issuers rated AAA or AA+ [5][6] Investment Trends - Energy investment in 2023 was approximately 2.8 trillion yuan, with a notable increase in renewable energy investments [25] - The investment in energy projects is expected to continue growing, with a focus on equipment upgrades and technological transformations in key energy sectors [25][26] Coal Market Analysis - The coal supply is expected to remain ample in 2024, with high inventory levels and a shift towards renewable energy sources impacting coal prices [3][36] - Coal imports have increased significantly, with a total of 490 million tons imported in 2024, a year-on-year increase of 14.8% [31] - The demand for coal from the power generation sector remains significant, but is being challenged by the growth of clean energy sources [32] Oil and Gas Market Analysis - The oil market is anticipated to face excess supply pressure in 2025, with OPEC+ production cuts providing only temporary support for oil prices [6][7] - Natural gas demand is expected to grow, particularly in transportation and power generation, with LNG supply becoming more abundant [6][7] Renewable Energy and Storage - The development of new energy storage technologies is crucial for the large-scale application of renewable energy, with significant growth expected in the sector [21] - By the end of 2023, China's new energy storage projects had a cumulative installed capacity of 31.4 GW, with a growth rate exceeding 260% year-on-year [21]

Investment Rating - The chemical industry is rated as "Weak" and "Stable" for 2024 [1] Core Insights - The chemical industry is expected to remain in a low prosperity phase in 2024, with most chemical raw materials and product prices declining compared to the previous year. Cost pressures have eased slightly due to a small drop in oil, gas, and coal prices. However, overall profitability remains under pressure due to overcapacity and homogeneous competition [1][6][26] - The demand side shows slow recovery in both domestic and international economies, with weak demand persisting. The real estate sector continues to see a decline in investment, while the home appliance sector benefits from replacement policies. The automotive sector shows slight growth, and the textile industry is gradually recovering, but agricultural chemical product demand is suppressed by falling grain prices [1][26][27] Summary by Sections Industry Overview - The chemical industry is cyclical and can be divided into basic chemicals and fine chemicals. Basic chemicals include inorganic acids, alkalis, and plastics, while fine chemicals encompass pesticides, coatings, and specialty chemicals [5] Financial Performance - In the first three quarters of 2024, revenue and gross margins for basic chemical raw material companies slightly declined, while the profitability of fiber companies improved significantly. Fine chemical companies experienced a decline in both revenue and gross margins, particularly in the pesticide sector due to weakened demand [2][3] Supply and Demand Dynamics - Supply growth for major chemical raw materials is slowing, but production remains high due to the release of previously added capacity. The overall production of major chemical products continues to grow rapidly, facing overcapacity and competition [1][24] - The chemical industry is expected to see a slight improvement in demand in 2025, with the fine chemical sector potentially experiencing a recovery in market conditions, particularly in the domestic substitution of new materials [4][26] Investment and Financing - The financing environment for the chemical industry is relatively stable, with a concentration of bond issuance among leading companies. However, credit quality has declined in some sub-sectors, with instances of bond defaults and downgrades [3][4] Price Trends - The average price index for chemical products (CCPI) is expected to decline in 2024, with significant price fluctuations observed in various chemical raw materials. For instance, sulfuric acid prices increased by 71.79%, while prices for light soda ash decreased by 46.62% [8][14] Future Outlook - The chemical industry is anticipated to face ongoing challenges from overcapacity and homogeneous competition in the short term. However, leading companies with competitive advantages are expected to strengthen their positions, while smaller firms in niche markets may also benefit from supportive policies [4][26][31]

Investment Rating - The report does not explicitly state an investment rating for the securities industry Core Insights - The A-share market experienced increased volatility in 2024, with a rebound in the second half of the year due to positive policy changes, leading to a significant increase in trading volume in Q4 [1][4][9] - The securities companies' revenue and profit declined in the first three quarters of 2024 compared to the previous year, but Q4 showed a substantial increase in trading volume, supporting overall annual performance [1][4][10] - The report highlights the ongoing capital market reforms and regulatory improvements, which are expected to enhance the industry's competitiveness and concentration [2][5][12] Summary by Sections 1. Credit Review of the Securities Industry - The A-share market showed a mixed performance in 2024, with trading activity increasing year-on-year, but overall trading volume in the first three quarters was lower than in 2023 [1][4] - The bond issuance slightly increased, and the secondary market remained active, contributing to the performance of securities companies [4][8] 2. Market Outlook for 2025 - Economic conditions are expected to improve, with real estate policies likely to show marginal improvement, although export challenges remain [3][7] - The report anticipates a more active equity market in 2025, supported by fiscal stimulus and a moderately loose monetary policy [3][7] 3. Performance of Securities Companies - In 2024, securities companies' revenue and profit were affected by market conditions, with a notable decline in brokerage business and investment banking due to tightened IPO policies [10][11] - The self-operated business performed well, benefiting from a strong bond market and structured equity market conditions [10][11] 4. Asset and Liability Management - Securities companies' asset management showed growth, with an increase in self-operated and trading business scales, while liabilities also rose to meet business growth and liquidity needs [5][33] - The report indicates a trend of increasing debt levels among securities companies, driven by the need for capital to support business expansion [5][33] 5. Regulatory Environment and Industry Dynamics - The regulatory framework has been evolving, focusing on strengthening enforcement and establishing a more standardized legal environment, which is expected to enhance the industry's overall quality [2][12][13] - The competition within the industry is anticipated to intensify as firms position themselves in niche markets, driven by ongoing reforms and external pressures [2][5][14]

Investment Rating - The report does not explicitly state an investment rating for the local asset management industry (AMC) Core Insights - Local AMCs play a crucial role in mitigating regional financial risks and ensuring financial stability through various flexible means, especially in the context of rising local debt risks [2] - The financial performance of local AMCs shows a trend of increasing reliance on external financing, with significant regional differences in their financing capabilities impacting their risk appetite and profitability [2] - The market for financial non-performing assets is expanding, driven by regulatory changes that broaden the scope of assets that AMCs can manage, thus increasing their operational space [27] Summary by Sections 1. Composition of Local AMCs - As of the end of 2024, there are 59 local AMCs in mainland China, with a slight decrease from the previous year [4] - The distribution of AMCs is concentrated in regions such as Fujian and Guangdong, each with four AMCs, while other provinces have fewer [4] 2. Bond Issuance by Local AMCs - Local AMCs have increasingly turned to the bond market for financing, with bond issuances rising from 989.27 billion in 2022 to 1365.32 billion in 2024 [9][10] - The types of bonds issued include corporate bonds, medium-term notes, and asset-backed securities, with corporate bonds being the primary issuance type [11] 3. Credit Review of the Local AMC Industry - The operational capacity of local AMCs is significantly influenced by regional attributes, including economic stability and the presence of private capital [21] - The majority of local AMCs are state-owned enterprises, which facilitates their access to resources and support from local governments [24] - The average net asset scale of 30 sample AMCs has shown consistent growth, indicating a healthy expansion of the industry [30] 4. Business Structure - The proportion of financial non-performing asset management has been increasing, reflecting a shift back to core business operations amid economic pressures [41] - The average proportion of financial non-performing assets in total assets has remained above 30% from 2021 to 2023, indicating a growing focus on this area [41] 5. Leverage Levels - The leverage levels of local AMCs are generally high, with only a few entities maintaining an asset-liability ratio below 50% [43] - The average asset-liability ratio for the sample AMCs has shown a slight decline from 65.75% in 2021 to 64.29% in 2023, driven by larger entities reducing their leverage [45]

Investment Rating - The electrical equipment manufacturing industry is rated as stable for 2024 [1] Core Insights - The downstream demand for the electrical equipment industry is closely related to the construction and maintenance of power supply and distribution networks, as well as investments in power systems by enterprises, influenced by macroeconomic conditions and electricity demand [2][9] - The industry maintains a high level of prosperity due to significant investment growth in power infrastructure and the development of the renewable energy sector, despite a slowdown in macroeconomic growth [2][10] - Continuous government policies supporting renewable energy construction and the development of new energy storage systems are expected to drive demand for wind and solar equipment [2][4] - The industry faces challenges such as fierce competition among photovoltaic equipment manufacturers and inventory management issues in energy storage due to declining lithium prices [3][24] Summary by Sections Industry Overview - The electrical equipment manufacturing industry includes various sectors such as motor manufacturing, power distribution and control equipment, cables, batteries, and other electrical machinery [7][8] - The industry is characterized by a large number of small and medium-sized enterprises, intense competition, and weak bargaining power with upstream suppliers [7][30] Economic Performance - In 2023, the electrical equipment manufacturing industry achieved a revenue of CNY 110,059.90 billion, a year-on-year increase of 9.60%, while profit totaled CNY 6,334.50 billion, up 7.08% [24] - For the first three quarters of 2024, the industry saw a revenue decline of 1.90% to CNY 77,318.90 billion and a profit drop of 7.31% to CNY 4,153.10 billion, attributed to oversupply in the photovoltaic sector and slowing growth in new energy vehicles [24][10] Investment Trends - Power construction investment in 2023 reached CNY 967.5 billion, a year-on-year increase of 30.10%, with non-fossil energy investment accounting for 85.60% of total power investment in 2024 [15][20] - The electrical equipment industry is expected to benefit from ongoing investments in grid upgrades, rural electrification, and smart grid construction, with significant planned investments from major grid companies [20][22] Market Dynamics - The wind power sector is experiencing a recovery with significant policy support, leading to a 27.5% increase in investment in 2023 and a 102% rise in new wind power installations [44][46] - The competition in the wind power equipment market is intensifying, with leading manufacturers capturing a significant market share [48][49] Material Costs - The industry is heavily impacted by fluctuations in the prices of raw materials such as copper, aluminum, and steel, which constitute a large portion of production costs [30][31] - The decline in lithium prices has provided some relief to battery manufacturers, but also poses challenges in inventory and cost management [41][42]