Core Viewpoint - The Chinese real estate market is experiencing a significant turnaround after four years of decline, with high-end residential prices in first-tier cities increasing by 15% overnight, contrasting sharply with previous years of price drops [2] Market Overview - The real estate market has faced a prolonged downturn since late 2021, with a cumulative inventory of over 700 million square meters of unsold properties, requiring an estimated seven years to digest at the current pace [2] - The second-hand housing market has seen a dramatic increase in listings, with cities like Chongqing and Wuhan exceeding 200,000 listings, and a conservative estimate of 120 million vacant homes nationwide [2] Contributing Factors - The slowdown in urbanization has led to a significant reduction in the annual increase of urban population from 20 million to 10 million, and a notable decrease of 60 million in the key home-buying age group (25-44 years) since 2015 [3] - Social trends indicate a "low desire" environment, with marriage registrations expected to fall below 5 million and a birth rate of 1.09, lower than Japan [3] Policy Impact - A series of unprecedented "rescue" policies aimed at revitalizing the market were introduced in September 2025, including the relaxation of purchase restrictions in first-tier cities and increased loan limits [3] - First-tier cities have adopted a more nuanced approach to policy adjustments, implementing differentiated strategies based on geographic zones [3] Market Reactions - Initial effects of policy stimulus are evident, with new home purchases in policy-initiated areas like Beijing's Tongzhou and Shanghai's outer ring increasing by over 50%, and some properties selling out on the first day of listing [4] - However, long-term challenges remain, particularly in third and fourth-tier cities facing high inventory and population outflows, which may delay market recovery despite policy relaxations [4] Future Outlook - A cautious optimism is suggested for the future of the real estate market, with a clear "policy bottom" emerging and a gradual formation of a "market bottom" [8] - The market is expected to exhibit significant differentiation, with core urban areas likely to recover faster than non-core regions lacking industrial support and population inflow [8] - For genuine homebuyers, current conditions may present a favorable entry point due to substantial policy incentives and lower loan rates, while investors should exercise caution as speculative opportunities have diminished [8]

Group 1: Economic Indicators - China's August CPI decreased by 0.4% year-on-year, while core CPI rose by 0.9%. PPI's year-on-year decline narrowed to 2.9% [1] - In the U.S., August PPI fell by 0.1% month-on-month, marking the first decline in four months, with a year-on-year growth rate of 2.6%, which was below expectations [1] Group 2: Market Overview - The U.S. stock indices showed mixed results, with the communication sector leading gains and the electric equipment sector lagging. The market turnover was 2 trillion yuan [2] - As of September 9, the financing balance increased by 5.952 billion yuan to 2.303495 trillion yuan. The domestic liquidity is expected to remain loose, with potential incremental policies to boost the real economy in the fourth quarter [2][9] Group 3: Commodity Insights - In the dual焦 (coke and coal) market, the main contracts showed strong performance, with a slight decrease in coking coal positions. The overall demand remains weak, but policy expectations may provide support [3][20] - The palm oil market is under pressure, with Malaysia's August palm oil production at 1.85 million tons, a month-on-month increase of 2.35%, while exports decreased by 0.29% [22] Group 4: Industry News - The Ministry of Industry and Information Technology, along with five other departments, launched a special campaign to address online chaos in the automotive industry, focusing on self-inspection by companies and reporting channels [6] - The automotive industry is under scrutiny for online misconduct, with measures to correct violations and expose problematic accounts [6] Group 5: International Relations - Wang Yi, China's Foreign Minister, spoke with U.S. Secretary of State Rubio, emphasizing the need for stable U.S.-China relations and cooperation on global challenges [4]

Market Overview - The three major A-share indices experienced a "V-shaped" rebound, with the Shanghai Composite Index rising by 1.14% to 3843.6 points, the Shenzhen Component Index increasing by 2.25%, and the ChiNext Index climbing by 3.82%. The STAR 50 surged by 7.23%. The total market turnover was 3 trillion yuan, down from 3.2 trillion yuan the previous day [1] - In the first half of 2025, mergers and acquisitions (M&A) in the A-share market continued to heat up, becoming a "strong engine" for listed companies to drive performance growth and a core path for optimizing strategic layout and achieving industrial upgrades. There were 1113 domestic M&A transactions this year, with a total transaction amount of 509.214 billion yuan, representing a 62.75% increase compared to the same period last year. The most popular sectors for completed M&A transactions were traditional industries, intelligent manufacturing, and energy and electricity [1] Financial Market Insights - The U.S. stock indices rose, with significant gains in the communication and electronics sectors, while the coal sector declined. The market turnover was 3 trillion yuan. As of August 26, the financing balance increased by 20.194 billion yuan to 22,123.54 billion yuan. It is anticipated that domestic liquidity will remain loose, and more incremental policies may be introduced in the second half of the year to boost the real economy. The probability of a rate cut by the Federal Reserve in September has increased, enhancing the attractiveness of RMB assets. The market is currently in a "policy bottom + liquidity bottom + valuation bottom" resonance period, with a high probability of continued market performance, although sector rotation and structural differentiation need to be adapted to [2][8] Commodity Market Analysis - Soybean meal showed weak fluctuations in the night session, while rapeseed meal saw a slight increase. The optimistic outlook for U.S. soybean production has strengthened market expectations for high yields in the new season. Ongoing trade talks between China and the U.S. have boosted confidence in U.S. soybean exports. In the domestic market, the announcement of the auction of 164,000 tons of imported soybeans by the China Grain Reserves Corporation has strengthened expectations for improved domestic raw material supply, leading to a bearish outlook for soybean meal in the short term [3][24] - Precious metals, particularly gold and silver, continued to strengthen. Concerns arose from Trump's attempts to challenge the independence of the Federal Reserve. The dovish stance indicated by Powell at the Jackson Hole meeting has increased expectations for a rate cut in September, benefiting precious metals. However, rising inflation data and geopolitical risks have limited the upward potential for gold. The long-term drivers for gold remain supportive, with the overall trend for gold and silver expected to be strong as the rate cut approaches [3][16] Industry News - The National Bureau of Statistics announced plans to accelerate the construction of data industry clusters and introduce several industrial policies this year, predicting that the added value of the digital economy will reach approximately 49 trillion yuan by the end of the year, accounting for about 35% of GDP [6] - The Ministry of Finance reported that in July, the issuance of new local government bonds reached 703.2 billion yuan, including 86.3 billion yuan in general bonds and 616.9 billion yuan in special bonds [5]

Core Viewpoint - The Politburo meeting on July 30, 2025, emphasized enhancing the attractiveness and inclusiveness of the domestic capital market to stabilize and boost investor confidence after fluctuations in the A-share market [2][5] Policy Driving Factors and Market Response - Market stability demand is evident as the Shanghai Composite Index rose by 5.54% and the Shenzhen Component Index by 6.34% in July, with daily trading volume reaching 1.64 trillion yuan [4] - The margin trading balance exceeded 2 trillion yuan, indicating increased leverage and heightened investor risk appetite [4] - New A-share accounts surged to 1.9636 million in July, a year-on-year increase of 70.54%, reflecting significant market attractiveness [4] Specific Policy Measures and Implementation Path - Long-term capital attraction is prioritized through optimizing tax policies for equity incentives and encouraging insurance and pension funds to increase equity investments [4] - Public fund development includes relaxing registration conditions for index funds and promoting fee reforms to enhance market structure [4] - Enhancements in the quality of listed companies involve promoting mid-term dividends and revising share buyback regulations [4] Expert Interpretation and Long-term Impact - The policy is characterized as a long-term national strategy aimed at reshaping capital market logic and enhancing valuation benchmarks [4] - Structural differentiation is noted, with strong regulatory industries facing significant policy impacts while supported sectors like renewable energy benefit from valuation support [4] - Initial market reactions may be excessive, necessitating observation of subsequent execution strength and stabilization of leading company profits [4] Future Trends and Challenges - Continuous policy efforts are anticipated, with potential new measures if economic improvement weakens in the second half of the year [4] - Market structure optimization is expected, with the stock ETF scale projected to grow significantly over the next five years [4] - Attention is required on external risks such as US-China relations and global inflation, alongside internal balancing of growth and risk prevention [4]

Core Viewpoint - The article highlights the resilience of the Chinese economy, evidenced by record electricity consumption and trading volumes in the stock market, indicating a positive economic outlook and effective policy measures [1]. Group 1: Economic Indicators - The A-share market indices have shown strong performance, with the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index rising by 12.51%, 14.45%, and 21.19% respectively year-to-date [1]. - In July, China's total electricity consumption reached 10,226 billion kilowatt-hours, marking an 8.6% year-on-year increase and doubling compared to ten years ago [1][7]. - China's foreign trade maintained a steady growth trajectory, with total import and export value reaching 25.7 trillion yuan in the first seven months of the year, reflecting a 3.5% year-on-year increase [1]. Group 2: Policy Developments - The State Administration of Foreign Exchange has initiated pilot green foreign debt projects in 16 provinces and cities, encouraging non-financial enterprises to use cross-border financing for green or low-carbon transformation projects [1]. - The government is expected to introduce more incremental policies in the second half of the year to boost the real economy, as the domestic liquidity remains accommodative [2]. Group 3: Market Dynamics - The stock market is currently in a phase characterized by a "policy bottom + liquidity bottom + valuation bottom," suggesting a high probability of continued market performance, albeit with accelerated sector rotation and structural differentiation [2][10]. - The agricultural, forestry, animal husbandry, and fishery sectors have led the market gains, while the machinery and equipment sector has lagged [2]. Group 4: Energy Sector Insights - The significant increase in electricity consumption is paralleled by a strong performance in the energy sector, with renewable energy sources like wind and solar power rapidly increasing their share, accounting for nearly a quarter of total consumption [1][7]. - The article notes the impact of external factors, such as the U.S. Federal Reserve's interest rate decisions and trade negotiations, on market dynamics and investor sentiment [3][4].

Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - Policy combination punches from the frontier to industries, from banks to the stock market, are gradually advancing, aiming to stabilize growth, promote transformation, and boost confidence, adding certainty to the full - year economic recovery [1]. - The current domestic market is in a resonance period of "policy bottom + capital bottom + valuation bottom", and the probability of the market trend continuing is high, but it is necessary to adapt to the accelerating sector rotation and structural differentiation [2][11]. - The overall situation of gold and silver may show a volatile trend as the expectation of interest rate cuts rises [3][19]. Summary by Directory 1. Chief Comment - Regional cooperation is further strengthened, and the financial toolbox is expanding. The capital market sentiment is warming up, and the policy combination is promoting economic recovery [1]. 2. Key Varieties Index Futures - The US three major indices mainly declined. The domestic market had a late - afternoon rally, with the beauty care sector leading the rise and the pharmaceutical and biological sector falling. The market turnover was 2.45 trillion yuan. The financing balance increased. In 2025, domestic liquidity will remain loose, and more incremental policies may be introduced in the second half of the year. External risks are gradually easing, and the probability of the Fed cutting interest rates in September is increasing. The CSI 500 and CSI 1000 indices are more offensive, while the SSE 50 and SHS 300 are more defensive [2][11]. Precious Metals - Last week's unexpected US inflation data pressured gold and silver. Positive signals from US - Russia negotiations reduced geopolitical risks. The employment market's weakness supported precious metal prices. The Fed's internal views are divided, and the long - term drivers of gold still provide support. Gold and silver may fluctuate as the interest - rate cut expectation rises [3][19]. Crude Oil - SC night trading rose 0.95%. There was a multi - party meeting on the Ukraine issue. India's state - owned refiner continued to buy Russian crude oil. US commercial crude oil inventories decreased, while gasoline and distillate inventories increased. Future OPEC production increases should be monitored [4][5][13]. 3. Main News on the Day International News - The Fed's July meeting minutes showed that almost all policymakers supported not cutting interest rates, with only two opposing. There were differences among Fed officials regarding inflation, employment risks, and the impact of tariffs on inflation, but most thought the risk of rising inflation was higher than that of falling employment [6]. Domestic News - China's new LPR remained unchanged for three consecutive months. The 1 - year LPR was 3.0%, and the 5 - year and above was 3.5%. This was in line with expectations as the 7 - day reverse repurchase rate, the basis for LPR pricing, did not change [7]. Industry News - The State Council General Office forwarded a Ministry of Finance document, stating that existing PPP projects should be promoted in a classified and hierarchical manner, with priority given to projects with certain returns [8]. 4. Daily Returns of Overseas Markets - The report provides the daily return data of various overseas market varieties on August 19 and 20, including the S&P 500, European STOXX 50, and others, showing their price changes and percentage changes [9]. 5. Morning Comments on Major Varieties Financial - **Index Futures**: Similar to the key varieties section, the market is in a favorable position, and different indices have different characteristics [11]. - **Treasury Bonds**: Treasury bonds generally fell. The central bank's open - market operations, LPR stability, and US economic data all had an impact. The bond market may continue to be weak due to factors such as the stock - bond seesaw effect and tax policies [12]. Energy and Chemicals - **Crude Oil**: Similar to the key varieties section, pay attention to international events and inventory changes, as well as future OPEC production [13]. - **Methanol**: Methanol night trading rose. The domestic methanol device's operating load decreased slightly, and the coastal inventory increased. It is expected to be bullish in the short term [14][15]. - **Rubber**: The price is mainly supported by the supply side. The demand side is weak, and the short - term trend may continue to decline [16]. - **Polyolefins**: Polyolefin futures closed up. The market is mainly driven by supply and demand, with inventory slowly being digested. Pay attention to the autumn stocking market [17]. - **Glass and Soda Ash**: Glass and soda ash futures mainly fell. The supply is shrinking, but inventory is rising. Focus on the fundamental repair process [18]. Metals - **Precious Metals**: Similar to the key varieties section, gold and silver may fluctuate as the interest - rate cut expectation rises [19]. - **Copper**: Copper prices rose at night. The concentrate processing fee is low, and downstream demand is mixed. Copper prices may fluctuate within a range [21]. - **Zinc**: Zinc prices rose at night. The concentrate processing fee is rising, and supply may recover. Zinc prices may fluctuate widely [22]. - **Lithium Carbonate**: The short - term trend is volatile. Supply is increasing, demand is also growing, and inventory changes are complex. There is a risk of correction, but there may be room for price increases if inventory decreases [23]. Black Metals - **Iron Ore**: Iron ore demand is supported by strong steel production. Global iron ore shipments have decreased recently, and the mid - term supply - demand imbalance is a concern. The market is expected to be volatile and bullish [24]. - **Steel**: Steel supply pressure is emerging, but inventory is decreasing. Exports are facing challenges, and the market is expected to be volatile and bullish [25]. - **Coking Coal and Coke**: The night - trading of coking coal and coke was volatile. The steel demand is in the off - season, and the coking coal market is in a multi - empty game with a wide - range volatile trend [26][27]. Agricultural Products - **Protein Meal**: Bean and rapeseed meal prices fell at night. The good growth of US soybeans weakened the US soybean futures price, but the import cost supports the domestic market [28]. - **Oils and Fats**: Bean and palm oil rose at night, while rapeseed oil was weak. The increase in Malaysian palm oil exports and concerns about Indonesia's production support palm oil prices, but there is a risk of decline due to US biodiesel news [29]. - **Sugar**: International sugar is entering the inventory - accumulation stage, and the domestic market is supported by high sales rates and low inventories but may be dragged down by processed sugar. Both are expected to be volatile [30]. - **Cotton**: ICE US cotton fell. The domestic cotton supply is tight, and demand is in the off - season. Zhengzhou cotton is expected to be volatile and bullish with limited upside [31]. Shipping Index - **Container Shipping to Europe**: The EC contract fell. The shipping rate is decreasing, and the market is expected to be volatile, with the shipping rate expected to slow down in early September [32][33].

Group 1 - The article emphasizes the coordinated efforts by the Chinese government to promote high-quality development, particularly in Tibet, with a focus on building a modern socialist society [1] - Financial tools are expanding, with new policies allowing for longer-term merger loans and support for equity acquisitions, aimed at reducing corporate leverage costs and stimulating industrial integration [1] - The capital market is showing signs of recovery, with a significant increase in new A-share accounts and a rise in trading volume, indicating a shift from short-term speculation to long-term investment strategies [1] Group 2 - In the U.S. stock market, major indices experienced declines, but there was a notable increase in financing balances, suggesting a potential for continued liquidity and policy support in the domestic market [2][10] - The article highlights the expectation of further easing monetary policies in the second half of the year to boost the real economy, alongside a reduction in external risks such as extended tariff pauses [2] - The market is currently in a phase characterized by a convergence of policy, liquidity, and valuation bottoms, indicating a higher probability of sustained market performance despite potential sector rotations [2][10] Group 3 - Recent U.S. inflation data has put pressure on gold and silver prices, while geopolitical tensions have eased, leading to a focus on upcoming economic signals from key meetings [3][18] - The article notes that the U.S. Federal Reserve's stance remains cautious, with internal divisions on interest rate decisions, impacting market expectations for future monetary policy [3][5] - China's central bank continues to increase its gold reserves, providing long-term support for gold prices, although current levels may limit upward movement [3][18] Group 4 - The article discusses the recent increase in crude oil prices amid geopolitical discussions involving key leaders, while U.S. oil inventories have shown a decrease, indicating a tightening supply [4][13] - The Indian state-owned oil company continues to purchase Russian oil despite sanctions, reflecting ongoing global supply chain dynamics [4][13] - Attention is drawn to OPEC's production decisions, which will be crucial for future oil price movements [4][13]

Group 1: Report Industry Investment Rating - No relevant content found Group 2: Core Viewpoints of the Report - In 2025, domestic liquidity is expected to remain loose, and it is in a policy window period. More incremental policies may be introduced in the second half of the year to boost the real economy. External risks are gradually easing, with the suspension of Sino - US tariffs extended for another 90 days and an increasing probability of the Fed cutting interest rates in September, which further enhances the attractiveness of RMB assets. The current market is in a resonance period of "policy bottom + capital bottom + valuation bottom", and the upward trend is likely to continue, but investors need to adapt to the accelerating sector rotation and structural differentiation. The CSI 500 and CSI 1000 indices, which are rich in technology - growth components, are more offensive with larger fluctuations but may bring higher returns. The SSE 50 and CSI 300 indices, which are rich in dividend - blue - chip components, are more defensive with smaller fluctuations but relatively weaker price elasticity [2] Group 3: Summary by Related Catalogs 1. Stock Index Futures Market - **IF Contracts**: The previous day's closing prices of IF contracts showed an increase, with the highest increase of 1.16% in the IF far - quarter contract. The trading volume of the IF current - month contract was 99,705, and the open interest was 168,841, with an increase of 168,841 in open interest. The spread between the IF next - month and current - month contracts decreased from 4.40 to - 2.40 [1] - **IH Contracts**: The previous day's closing prices of IH contracts also rose slightly, with the highest increase of 0.31% in the IH current - month contract. The trading volume of the IH current - month contract was 52,884, and the open interest was 74,907, with an increase of 74,907 in open interest. The spread between the IH next - month and current - month contracts decreased from 6.80 to 1.20 [1] - **IC Contracts**: The previous day's closing prices of IC contracts increased significantly, with the highest increase of 1.54% in the IC next - quarter contract. The trading volume of the IC current - month contract was 83,689, and the open interest was 129,184, with an increase of 129,184 in open interest. The spread between the IC next - month and current - month contracts decreased from - 29.80 to - 31.60 [1] - **IM Contracts**: The previous day's closing prices of IM contracts had a large increase, with the highest increase of 2.02% in the IM far - quarter contract. The trading volume of the IM current - month contract was 187,694, and the open interest was 220,587, with an increase of 220,587 in open interest. The spread between the IM next - month and current - month contracts decreased from - 18.20 to - 46.40 [1] 2. Stock Index Spot Market - **Major Indexes**: The CSI 300 index increased by 0.88%, the SSE 50 index increased by 0.21%, the CSI 500 index increased by 1.52%, and the CSI 1000 index increased by 1.69%. Among industries, the telecommunications business had the highest increase of 4.78%, while the raw materials industry decreased by 0.02% [1] - **Trading Volume and Turnover**: The total trading volume and turnover of major indexes generally increased compared to the previous two days [1] 3. Futures - Spot Basis - The basis of IF contracts against the CSI 300 index generally decreased compared to the previous two days [1] - The basis of IH contracts against the SSE 50 index generally increased compared to the previous two days [1] - The basis of IC contracts against the CSI 500 index generally decreased compared to the previous two days [1] - The basis of IM contracts against the CSI 1000 index generally decreased compared to the previous two days [1] 4. Other Domestic and Overseas Indexes - **Domestic Indexes**: The Shanghai Composite Index increased by 0.85%, the Shenzhen Component Index increased by 1.73%, the Small and Medium - sized Board Index increased by 1.44%, and the ChiNext Index increased by 2.84% [1] - **Overseas Indexes**: The Hang Seng Index decreased by 0.37%, the Nikkei 225 increased by 0.77%, the S&P 500 decreased by 0.01%, and the DAX index decreased by 0.18% [1] 5. Macro Information - The Chinese government aims to enhance macro - policy implementation efficiency, stimulate consumption, expand effective investment, and stabilize the real estate market [2] - The US and Ukraine have potential military and economic cooperation, with Ukraine planning to purchase $100 billion worth of weapons from the US and sign a $50 billion drone cooperation production agreement [2] - China's central bank plans to improve the legal system for movable property financing [2] - China has extended the anti - subsidy investigation on EU dairy products until February 21, 2026 [2] 6. Industry Information - The radio and television administration plans to increase the supply of high - quality audio - visual content [2] - The second - hand housing market in 100 cities is in a state of "trading at lower prices", with the average price in July decreasing by 0.77% month - on - month and 7.32% year - on - year [2] - The new - car business of automobile dealers suffered serious losses in the first half of the year, and the growth expectation for 2025 is less optimistic than at the end of last year [2] - 49 models of 13 automobile manufacturers, including Li Auto, Xiaomi, and XPeng, meet the requirements for automobile data security [2] 7. Stock Index Views - The US stock market had small fluctuations, and the previous trading day's domestic stock index rose, with the communication sector leading the gain and the real estate sector leading the decline. The market turnover was 2.81 trillion yuan. On August 15, the margin trading balance increased by 7.542 billion yuan to 2.048599 trillion yuan [2]

Group 1 - The A-share market experienced a strong performance on August 18, with the ChiNext Index rising by 3.63% and surpassing the 2600-point mark, breaking through last year's high of 924 [1] - The ChiNext 50 Index (399673.SZ) increased by 4.0%, with notable stocks such as Zhinan Compass and Mango Super Media hitting the daily limit, Tonghuashun rising over 15%, and Zhongji Xuchuang increasing by over 10% [1] Group 2 - The Chuangye 50 ETF (159682) rose by 3.83% with a trading volume of 164 million yuan, tracking the ChiNext 50 Index, which includes sectors like manufacturing, finance, and information technology [2] - East Wu Securities anticipates that the market will maintain relative strength in the short term due to liquidity, although it may experience volatility and consolidation as it attempts to break previous highs [2] - The mid-term outlook remains positive with factors such as policy support, asset scarcity, and the potential for a US dollar interest rate cut contributing to an upward market trend [2]

Core Viewpoint - The stock market's surge has put significant pressure on the bond market, with the A-share market reaching historical highs while government bonds experience notable declines [1][2]. Group 1: Stock Market Performance - The Shanghai Composite Index rose over 1% to reach 3740 points, marking the highest level since August 21, 2015, and a nearly ten-year high [1][2]. - The total market capitalization of A-shares surpassed 100 trillion yuan for the first time in history [2]. - The ChiNext Index increased by 3%, crossing the 2600-point mark, with a year-to-date gain exceeding 20% [1]. Group 2: Bond Market Reaction - The bond market saw significant declines, with the 30-year government bond futures dropping over 1%, reaching a four-month low [2]. - The yield on the 30-year government bond rose by 3.35 basis points to 2.0275% [1]. - The Ministry of Finance announced measures to support government bond market making and improve liquidity in the secondary market [1][2]. Group 3: Investor Behavior - Active trading and inflows from leveraged funds and private equity have been driving the recent stock market rally, despite a high ratio of household deposits to A-share market capitalization [3]. - There is a noted increase in retail investor discussions about stocks and a gradual rise in fund subscriptions, indicating a potential uptick in retail participation [3]. - Foreign capital has shifted from net selling to net buying, with expectations of continued inflows into the stock market [3]. Group 4: Bond Market Outlook - The bond market's recent pullback is attributed to systematic reductions in duration by bond funds and brokerages, rather than economic fundamentals [5]. - The largest allocation force in the bond market, bank proprietary trading, cannot invest in stocks, which may lead to a shift in investment strategies [5]. - The bond market's performance will ultimately depend on economic fundamentals, with a gradual decoupling from stock market trends expected [5].