Report Industry Investment Rating - The report is generally bullish on the four major stock index futures (IH, IF, IM, IC), with a bias towards long positions [1]. Core Viewpoints - The performance of A-share listed companies in 2024 was generally resilient, with three - quarters of companies profitable and half of them seeing profit growth. The market is expected to attract foreign capital inflows in the next few quarters. The reduction of the 1 - year deposit rate is expected to drive the transfer of savings and insurance funds to the stock market. The market style is expected to shift to the cyclical value style represented by the Shanghai 50 Index. The four major stock indices are bullish in the long - term, and short - term fluctuations can be ignored [1][2]. Summary by Directory Market Review - On Thursday, the major indices of the two markets showed a differentiated trend. Value - cycle indices were strong, while growth indices were weak. The bank ETF was close to a new high. The trading volume of the two markets was 1.10 trillion yuan, with a slight decline. The Shanghai 50 Index rose 0.19%, the CSI 300 Index fell 0.06%, the CSI 500 Index fell 0.95%, and the CSI 1000 Index fell 1.08%. Among industry and theme ETFs, game ETFs, bank ETFs, etc. led the gains, while battery ETFs, etc. led the losses. Among the sector indices of the two markets, game, small and medium - sized banks, etc. led the gains, while medical beauty, etc. led the losses. The CSI 1000, CSI 500, and Shanghai 50 Index stock index futures saw net inflows of 590 million, 160 million, and 10 million yuan respectively [1]. Important Information - The group of dynamic listed companies is rewriting the global asset allocation logic. A - share listed companies' performance in 2024 was generally resilient. UBS is optimistic about the Chinese stock market, and foreign capital inflows will be the main trading logic in the next few quarters. ETF - FOF is in a new development opportunity period. The coal industry is expected to rise. China's gold imports in April reached a new high in 11 months. OPEC+ is competing with US shale oil producers for market share. The demand for Japanese government bond auctions hit a new low, and yields soared. Amazon is not affected by consumer tightening. US retail trading volume and net buying reached new highs. US long - term government bond auctions were dismal, and yields rose. Hedge funds increased their investment in Chinese companies listed in the US in Q1 2025 [1][2]. Market Logic - The performance of A - share listed companies in 2024 was generally resilient. The reduction of the 1 - year deposit rate is beneficial to the market. Foreign capital inflows will be the main trading logic in the next few quarters [1][2]. Future Outlook - The value - based indices of the two markets continued to strengthen on Thursday. The reduction of the 1 - year deposit rate is beneficial to the market. The performance of A - share listed companies in 2024 was generally resilient. The price of Shanghai - US West Line 40 - foot containers has increased significantly. Foreign capital inflows will be the main trading logic in the next few quarters. The reduction of the 1 - year deposit rate is expected to drive the transfer of savings and insurance funds to the stock market. Free cash flow - based ETFs and dividend - based ETFs are expected to benefit the most. Overseas institutional funds will flow into the A - share market on a large scale. The market style is expected to shift to the cyclical value style represented by the Shanghai 50 Index. The four major stock indices are bullish in the long - term, and short - term fluctuations can be ignored [2]. Trading Strategies - Stock index futures directional trading: The reduction of the 1 - year deposit rate is expected to drive the transfer of savings and insurance funds to the stock market. The market style is expected to shift to the cyclical value style represented by the Shanghai 50 Index. The four major stock indices are bullish in the long - term, and short - term fluctuations can be ignored. Stock index option trading: The market is in a consolidation period to repair technical indicators. It is recommended to suspend long - term deep - out - of - the - money call options [2].

Group 1: Market Outlook - Morgan Stanley is optimistic about the Chinese stock market, with a baseline expectation for the MSCI China Index at 80 and a target for the CSI 300 Index at 4150 points [1] - UBS sees foreign capital inflow as a significant trading logic for the Chinese stock market in the coming quarters, with Hong Kong stocks expected to outperform A-shares [1] - Deutsche Bank analysts express concerns about fiscal balance in countries outside the US, highlighting Japan's low demand for 20-year bonds as a sign of fiscal stress [1] Group 2: Economic Indicators - Barclays analysts predict a potential further decline in the US dollar, but strong economic data may limit the extent of the drop [2] - ANZ analysts note that the downgrade of the US credit rating by Moody's has reignited interest in gold due to concerns over economic slowdown and rising inflation [3] - CBA forecasts gold prices to reach $3750 per ounce in Q4, driven by safe-haven demand and a weakening dollar [4] Group 3: Industry Insights - CICC reports that the domestic nutrition and health food industry has significant long-term growth potential, with a market size exceeding $35 billion [5] - CITIC Securities indicates that the pesticide industry in China is accelerating consolidation, with leading companies enhancing competitiveness through mergers and acquisitions [6] - CITIC Securities also highlights that the domestic wind turbine industry is expected to enter a phase of simultaneous growth in volume and price due to improved supply-demand dynamics [7]

Group 1 - Shanghai issued the "Special Action Plan for Boosting Consumption," promoting automobile consumption and introducing new subsidies for digital products such as mobile phones, tablets, and smartwatches, while also supporting green home appliances and home decoration consumption [1] - Eight departments released measures to support financing for small and micro enterprises, allowing eligible small and micro enterprises to list on the New Third Board and standardizing their transition to the Beijing Stock Exchange [1] - The China-ASEAN Economic and Trade Ministers' Special Meeting held online on May 20 announced the completion of negotiations for the China-ASEAN Free Trade Area 3.0 [1] Group 2 - UBS expressed optimism about the Chinese stock market, indicating that foreign capital inflow will be a significant trading logic in the coming quarters, with Hong Kong stocks slightly outperforming A-shares [1] - *ST Jinguang experienced significant stock price fluctuations and faces multiple delisting risks, while Leshan Electric Power has a price-to-earnings ratio significantly higher than the industry average [1] - Vanke A pledged not more than 6 billion yuan worth of Wanwu Cloud shares as collateral for a loan agreement with Shenzhen Metro Group [1] - Wangsha Co. saw a major shareholder sell 972,200 shares on May 21, while Liren Liyang reported that products containing "Mecarboxyl" account for less than 1% of total sales revenue [1] - Nanjing Port has seen a continuous rise in stock price over seven days, but its subsidiary's foreign trade container direct line does not have a direct route to the United States [1]

Group 1 - The core viewpoint is that the Chinese stock market is expected to perform well, with foreign capital inflow being a significant trading logic in the coming quarters, and Hong Kong stocks are slightly favored over A-shares [1] - Recent IPO performance in Hong Kong reflects overseas investors' recognition and interest in China's core assets, indicating that more long-term capital is likely to flow back into the Chinese stock market [1]