“反内卷”升级，构建受益组合！

Core Insights - The report emphasizes the need for joint efforts from enterprises and local governments to combat "involution" in the market, highlighting the evolution of policies since July 2024 aimed at regulating competition and promoting orderly exit of backward production capacity [3] - A unified national market is deemed essential to address the root causes of involution, with specific reforms suggested in land pricing, labor cost standardization, and financial system adjustments to ensure efficient resource allocation [3] - The report anticipates that the effects of these policies will take time to materialize, but believes that the targeted approach will ultimately yield positive results for the market [3] - The recovery of corporate profits is expected to drive a bull market, with the potential for significant revaluation in Hong Kong stocks, particularly in sectors like photovoltaic equipment [3] - A list of companies benefiting from the "anti-involution" policies is provided, indicating a focus on sectors such as electric equipment, steel, and basic chemicals [3][4] Summary by Sections Policy Evolution - The "anti-involution" policy was initiated in July 2024 and has evolved to include stricter regulations on local government and enterprise behaviors, indicating a comprehensive understanding of the causes of involution [3] - The latest meeting in July 2025 highlighted the need for orderly exit of backward production capacity and regulation of government procurement practices [3] Market Dynamics - As of May 2025, the Producer Price Index (PPI) has experienced 32 consecutive months of negative growth, reflecting the urgency of addressing involution [3] - The report suggests that reforms will lead to a gradual increase in corporate costs, which will help restore supply-demand balance and moderate inflation [3] Investment Opportunities - The report identifies specific companies that are likely to benefit from the "anti-involution" policies, with a focus on their market capitalization and projected price-to-earnings ratios [4] - The analysis indicates that sectors such as electric equipment and steel are poised for growth, with a particular emphasis on companies with strong fundamentals [4]