CCSC(SH:601375) Zhongyuan Securities·2025-07-07 12:31Macro Environment - The report highlights the Chinese government's initiatives to enhance financial support for the Greater Bay Area's high-quality development, including measures to promote financial integration with technology industries [6][11][12] - The manufacturing PMI for June increased to 49.7%, indicating a slight improvement in manufacturing activity, with production and new orders showing positive trends [13][14] - Social financing in June reached 2.29 trillion yuan, a year-on-year increase of 11%, with significant growth in government bond issuance [26][28] Market and Industry Performance - In June, the equity market favored growth stocks, with the small-cap growth index rising by 5.52%, while value indices lagged behind [44] - The bond market showed upward trends, supported by liquidity measures from the central bank, although uncertainty regarding economic recovery persists [50] - The top-performing sectors in June included telecommunications (14.09%), defense (10.89%), and non-ferrous metals (9.26%), while transportation and coal sectors experienced declines [55][56] July Allocation Recommendations - The report recommends focusing on the consumer sector due to evident policy support and recovering demand, with an emphasis on domestic circulation [62] - The technology growth sector is noted for its long-term potential, but short-term valuation and economic conditions should be monitored [62] - Investment opportunities are also suggested in the petrochemical and electric power sectors [62]