策略周报：宏观政策持续发力稳增长

Macro - The Loan Prime Rate (LPR) for 1-year is 3.1% and for over 5 years is 3.6%, both down by 25 basis points from the previous month, indicating a strong commitment from the central bank to stabilize growth [2][8][9] - The recent LPR reduction is the largest single drop, with a cumulative reduction of 60 basis points for the 5-year LPR in 2024, aligning with the goal of boosting market confidence and supporting economic growth [9][8] Bond Market - As of October 25, the 1-year AA-AAA credit spread is 28.12 basis points, narrowing by 1.00 basis points from the previous week, while the 3-year AA-AAA credit spread is 29.29 basis points, narrowing by 3.50 basis points [10] - The 10-year government bond to 1-year government bond spread is 73.70 basis points, widening by 4.90 basis points, suggesting a focus on longer-duration bonds with moderate credit ratings [10] Commodity Market - As of October 25, short-process steel mills' operating rate is 67.71%, up by 2.08 percentage points from last week, while long-process steel mills' operating rate remains at 55.00% [11] - The cement price index is at 159.34, higher than the previous week, with expectations for cement prices to stabilize and recover due to increased fixed asset investment driven by policy measures [11] - The average wholesale price of pork is 24.67 CNY/kg, down by 0.41 CNY from last week but up by 17.64% year-on-year, indicating ongoing support for pork prices due to previous reductions in pig production capacity [15] A-Share Market - As of October 25, the Shanghai Composite Index rose by 1.17%, the CSI 300 Index by 0.79%, and the Shenzhen Component Index by 2.53%, with notable gains in sectors such as electric equipment and light industry [16] - The current overall market valuation is reasonable, with the Shanghai Composite Index's P/E ratio at 14.48, within the historical 29.52% percentile, indicating potential for investment [16] - The average trading volume for the Shanghai Composite Index is 715.44 billion CNY, with a total of 18.63 trillion CNY traded across both markets, reflecting active market participation [18]