Core Viewpoint - The Chinese government is actively promoting the development of the industrial mother machine sector, aiming to establish a high-quality standard system by 2026 and achieve world-leading standards by 2030 [1][2]. Industry Overview - The industrial mother machine is crucial for high-end manufacturing, influencing precision, efficiency, and safety in production [1]. - China has been the largest producer and consumer of machine tools globally for 15 consecutive years, with the market size expected to grow from 631.36 billion yuan in 2019 to 712.89 billion yuan in 2024, and to exceed 800 billion yuan by 2029 [1]. Policy Support - The Chinese government has implemented various policies to support the high-quality development of the industrial mother machine industry, including the "Industrial Mother Machine+" initiative and financial support for key manufacturing sectors [2]. - Recent activities have focused on promoting domestic substitution and upgrading the industry to meet the demands of emerging sectors such as new energy vehicles and humanoid robots [2]. Company Performance - In the first half of 2025, 21 industrial mother machine concept stocks reported profits exceeding 10 million yuan, with seven companies achieving profits over 100 million yuan [3]. - Notable performers include AVIC High-tech, which reported a revenue of 2.747 billion yuan, a year-on-year increase of 7.87%, and a net profit of 605 million yuan, up 0.24% [3]. - Companies like East China CNC and Qiaofeng Intelligent saw significant net profit growth, exceeding 30% year-on-year [3]. Market Reaction - Following positive news, the industrial mother machine sector saw a surge in stock prices, with companies like Qin Chuan Machine Tool and East China CNC hitting their daily limit up [2]. Institutional Attention - Companies such as AVIC High-tech, Haitan Precision, and Huari Precision are receiving significant institutional attention, indicating strong market interest [5]. - Haitan Precision specializes in CNC machine tool manufacturing and has developed advanced products to address the needs of the new energy vehicle industry [5].

Report Summary 1. Investment Rating of the Industry The document does not provide an investment rating for the industry. 2. Core Viewpoints On September 2, 2025, the broader market fluctuated and adjusted throughout the day, with the robot industry chain strongly rebounding in the afternoon. The Shanghai Composite Index dropped 0.45%, the Shenzhen Component Index fell 2.14%, and the ChiNext Index declined 2.85%. Market turnover increased by 13.4777 billion yuan compared to the previous trading day. There were 1,259 rising stocks and 4,056 falling stocks in the entire market [2]. 3. Summary by Directory 3.1 Market News - The Ministry of Finance and the State Taxation Administration announced tax exemptions and refunds for the investment income of entities using transferred state - owned equity and cash proceeds [13]. - Chinese President Xi Jinping held talks with Russian President Vladimir Putin in Beijing, emphasizing the development of China - Russia relations [13]. - A new poll showed that the proportion of Americans believing they can improve their living standards dropped to 25%, the lowest since 1987, and most were pessimistic about the "American Dream" [13]. - As of September 1, the margin trading balance in the A - share market reached 2.3 trillion yuan, hitting a new high [13]. - China made a series of institutional improvements in anti - monopoly and anti - unfair competition, and the China Computing Power Platform completed the access of 10 provincial sub - platforms [13]. 3.2 Overall Market Performance - On September 2, 2025, the broader market fluctuated and adjusted. The Shanghai Composite Index fell 0.45%, the Shenzhen Component Index declined 2.14%, and the ChiNext Index dropped 2.85%. Market turnover was 291.2424 billion yuan, an increase of 13.4777 billion yuan from the previous trading day. There were 1,259 rising stocks and 4,056 falling stocks [2][14]. 3.3 Market Style and Industry Performance - In terms of style, the order of index gains and losses was: consumption > cycle > growth > 0 > finance > stability; large - cap value > mid - cap value > small - cap value > large - cap growth > mid - cap growth > small - cap growth; stocks heavily held by funds performed better than the CSI All - Share Index [19]. - Among industries, 30 CITIC first - level industries showed mixed performance. The top performers were power equipment and new energy (2.77%), non - ferrous metals (2.50%), and food and beverages (2.26%); the bottom performers were transportation (-1.50%), household appliances (-1.33%), and computers (-1.00%) [19]. - In the concept sector, most concept sectors declined. Sectors such as reducers, PEEK materials, and industrial mother machines rose, while F5G, WiFi6, and co - packaged optics (CPO) dropped significantly [19]. 3.4 Capital Flow Performance - On September 2, the main funds had a net outflow of 151.276 billion yuan, with super - large orders having a net outflow of 98.982 billion yuan and large orders a net outflow of 52.294 billion yuan. Medium - sized orders had a net inflow of 6.729 billion yuan, and small orders continued to have a net inflow of 144.547 billion yuan [3][23]. - Southbound funds had a net inflow of 9.281 billion Hong Kong dollars on September 2. The Shanghai - Hong Kong Stock Connect had a net inflow of 5.636 billion Hong Kong dollars, and the Shenzhen - Hong Kong Stock Connect had a net inflow of 3.645 billion Hong Kong dollars. The turnover of the Hong Kong stock market was 328.119 billion Hong Kong dollars, a decrease of 52.112 billion Hong Kong dollars from the previous trading day [4][25]. 3.5 ETF Capital Flow Performance - On September 2, the trading volumes of most ETFs such as SSE 50, CSI 300, CSI 500, and CSI 1000 increased compared to the previous trading day. The trading volumes of Huaxia SSE 50 ETF, Huatai - Berie CSI 300 ETF, Harvest CSI 300 ETF, E Fund CSI 300 ETF, Southern CSI 500 ETF, Southern CSI 1000 ETF, and Huaxia CSI 1000 ETF were 2.433 billion yuan, 4.755 billion yuan, 1.063 billion yuan, 0.817 billion yuan, 1.736 billion yuan, 2.028 billion yuan, and 0.363 billion yuan respectively, with changes of - 0.511 billion yuan, - 0.740 billion yuan, + 0.251 billion yuan, - 0.141 billion yuan, + 0.424 billion yuan, + 0.850 billion yuan, and + 0.084 billion yuan respectively compared to the previous trading day [28]. - On September 1, capital mainly flowed into the ChiNext Index ETF, with an inflow of 0.608 billion yuan [3][28]. 3.6 Global Market Performance - On September 2, major Asia - Pacific stock indices closed mixed. The Hang Seng Index dropped 0.47% to 25,496.55 points, the Hang Seng Tech Index fell 1.22% to 5,728.46 points, the Nikkei 225 Index rose 0.29% to 42,310.49 points, and the S&P/ASX 200 Index declined 0.30% to 8,900.60 points [4][32]. - On September 1, major European stock indices generally rose. The German DAX Index rose 0.57% to 24,037.33 points, the UK FTSE 100 Index increased 0.10% to 9,196.34 points, and the French CAC40 Index rose 0.05% to 7,707.90 points [4].

Core Insights - The A-share market experienced a downward trend, with the ChiNext index leading the decline, while defensive sectors such as banking and public utilities showed gains [5][8][6] - The Shanghai Composite Index fell by 0.45%, the Shenzhen Component Index decreased by 2.14%, and the ChiNext Index dropped by 2.85%, while the Shanghai 50 Index rose by 0.39% [5][8] - The total market turnover was approximately 2.91 trillion yuan, with 4,055 stocks declining across the market [5][8] Industry Performance - On September 2, 2025, the banking sector (+1.97%), home appliance manufacturing (+0.99%), public utilities (+0.98%), and oil and gas petrochemicals (+0.87%) were the leading industries [8] - Conversely, the telecommunications sector (-5.57%), computer industry (-4.17%), and electronics sector (-3.70%) faced significant declines [8] - Concept stocks such as central enterprise banks (+2.16%), reducers (+2.05%), and gold jewelry (+1.97%) performed well, while sectors like optical modules (-8.24%) and digital currency faced substantial corrections [8] Market Drivers - The decline in major A-share indices was attributed to a cautious market sentiment, particularly affecting the technology sector, which saw significant adjustments [8][6] - The technology sector's previous rapid gains led to profit-taking, contributing to the overall market's cautious shift, despite defensive sectors attempting to stabilize the market [8][6] - The gold price increased due to the interest rate cut cycle, benefiting the gold jewelry sector, while industrial mother machine concept stocks gained strength following new standards issued by regulatory bodies [8][6] Future Outlook - The report maintains a bullish outlook on the Chinese stock market, anticipating continued monetary and fiscal support policies [8] - Historical experiences from previous bull markets in 1999, 2014, and 2019 suggest that domestic policy initiatives can help the market withstand external risks and volatility [8] - Investment directions include focusing on non-bank sectors in a "slow bull" market, technology growth areas like AI computing, and sectors benefiting from improved supply-demand dynamics such as metals, transportation, chemicals, lithium batteries, photovoltaics, and pig farming [8]

Market Overview - A total of 44 stocks hit the daily limit up, while 40 stocks faced limit down, resulting in a sealing rate of 52% [1] - The market experienced fluctuations throughout the day, with the ChiNext index leading the decline [1] - The total trading volume in the Shanghai and Shenzhen markets reached 2.87 trillion yuan, an increase of 125 billion yuan compared to the previous trading day [1] - The Shanghai Composite Index fell by 0.45%, the Shenzhen Component Index dropped by 2.14%, and the ChiNext Index decreased by 2.85% [1] Stock Performance Analysis - The advancement rate for consecutive limit-up stocks decreased to 28.57%, with Tianpu Co., Ltd. achieving an 8-day limit-up streak [3] - Stocks such as Zhaoxin Co., Ltd. and Dexin Technology also showed notable performances with 4 and 3 consecutive limit-ups, respectively [3] - Low-priced stocks have gained attention, with Zhaoxin Co., Ltd. and Shanzi Gaoke both performing well [3][16] Sector Highlights - The banking, precious metals, robotics, and oil sectors showed the most significant gains, while sectors like CPO, cross-border payments, PCB, and semiconductors faced declines [1] - The photovoltaic industry saw a rebound due to rising prices of polysilicon, with major companies adjusting their prices upwards [5][24] - The solid-state battery sector remained active, driven by recent capital movements and production benefits [5][18] Gold and Precious Metals - Gold futures reached a historical high, exceeding $3,557.1 per ounce, influenced by expectations of interest rate cuts by the Federal Reserve [6][22] - Precious metals continued to lead the gains in the non-ferrous sector, with stocks like Western Gold and Silver Holdings achieving consecutive limit-ups [6][23] Robotics and AI - The industrial mother machine concept gained traction following the release of a high-quality standard system construction plan [7][20] - Tesla's emphasis on its Optimus robot project has heightened interest in the robotics sector, with several stocks experiencing significant gains [7][13] Solid-State Battery Developments - Recent capital operations in the solid-state battery sector have intensified, with companies like Huayu Automotive announcing acquisitions [18] Conclusion - The market is currently characterized by volatility, with various sectors experiencing mixed performances. The focus on low-priced stocks and emerging technologies like robotics and solid-state batteries indicates potential investment opportunities in these areas [1][5][7][18]

Group 1: Strong Individual Stocks - As of September 2, the Shanghai Composite Index fell by 0.45% to 3858.13 points, the Shenzhen Component Index decreased by 2.14% to 12553.84 points, and the ChiNext Index dropped by 2.85% to 2872.22 points [1] - A total of 53 stocks in the A-share market hit the daily limit up, with the top three strong stocks being: Shanzi Gaoke (000981), Changchun Gaoxin (000661), and Baiyin Youse (601212) [1] - The top 10 strong stocks with specific data include: - Shanzi Gaoke (000981): 4 days and 3 boards, turnover rate of 11.78%, and a closing price of 29.2 - Changchun Gaoxin (000661): 2 consecutive boards, turnover rate of 5.53%, and a closing price of 27.3 - Baiyin Youse (601212): 2 consecutive boards, turnover rate of 1.13%, and a closing price of 3.57 [1] Group 2: Strong Concept Sectors - The top three concept sectors with the highest gains in the A-share market are: Reducers, PEEK Materials, and Industrial Mother Machines [2] - The top 10 concept sectors with their respective performance include: - Reducers: 1.87% increase - PEEK Materials: 0.8% increase - Industrial Mother Machines: 0.62% increase - Gold Concept: 0.34% increase - China-South Korea Free Trade Zone: 0.33% increase - Cultivated Diamonds: 0.04% increase - Characteristic Towns: -0.07% decrease - Integrated Die Casting: -0.1% decrease - High Dividend Selection: -0.12% decrease - Agricultural Machinery: -0.18% decrease [3]

Market Overview - The three major indices collectively declined on September 2, 2025, with the Shanghai Composite Index down 0.45% to 3858.13 points, the Shenzhen Component down 2.14% to 12553.84 points, and the ChiNext Index down 2.85% to 2872.22 points. The total trading volume in the two markets was 28,746 billion yuan, an increase of approximately 125 billion yuan compared to the previous trading day [1][2]. Market Performance - The market experienced fluctuations throughout the day, with core broad-based indices showing more declines than gains. The Dividend Index and FTSE China A50 led the gains, while the Sci-Tech 200 and Sci-Tech 100 indices faced the largest declines [1][2]. - In terms of sector performance, the banking, public utilities, and home appliance sectors saw increases, while the communication, computer, and electronics sectors experienced declines [3][4]. Sector Analysis - The banking sector rose by 2.0%, with improvements in performance driven by narrowing interest margin declines and reduced non-interest disturbances. The outlook suggests a continued improvement in the liability side, with the potential for interest margins to stabilize [6]. - The home appliance sector increased by 0.9%, while the automotive sector rose by 0.4%. However, the coal, real estate, and transportation sectors saw declines of 0.2%, 0.7%, and 0.7%, respectively [4][3]. Concept Themes - The reducer, PEEK materials, and industrial mother machine sectors saw increases of 1.9%, 0.8%, and 0.6%, respectively. Conversely, the F5G concept, WiFi6, and co-packaged optics (CPO) sectors faced declines of 5.2%, 5.1%, and 5.0% [5].

Market Overview - The Shanghai Composite Index closed at 3858.13 points, down 0.45%, with a trading volume of 12,228 billion yuan [1] - The Shenzhen Component Index closed at 12,553.84 points, down 2.14%, with a trading volume of 16,522.14 billion yuan [1] - The ChiNext Index closed at 2872.22 points, down 2.85%, with a trading volume of 8,038.44 billion yuan [1] - The total trading volume of both markets was 28,750.14 billion yuan, an increase of 1,251.01 billion yuan compared to the previous trading day [1] Sector Performance - Among sectors, banks, public utilities, home appliances, automobiles, and oil and petrochemicals showed positive performance [3] - Active concepts included industrial mother machines, gold, cultivated diamonds, reducers, and PEEK materials [3] - The electronics, computer, defense, construction materials, chemicals, media, and beauty care sectors experienced declines [3] Stock Performance - A total of 1,063 stocks rose while 3,983 stocks fell, with 100 stocks remaining flat and 7 stocks suspended [3] - 53 stocks hit the daily limit up, while 28 stocks hit the daily limit down [3] Fund Flow - The net outflow of main funds from the Shanghai and Shenzhen markets was 1,196.85 billion yuan, with the ChiNext seeing a net outflow of 524.41 billion yuan [6] - Only three sectors, public utilities, textiles, and comprehensive services, saw net inflows, while the electronics sector had the highest net outflow of 247.16 billion yuan [6] Individual Stock Highlights - 54 stocks received net inflows exceeding 1 billion yuan, with the highest inflow in Jilun Intelligent at 1.196 billion yuan [10] - Conversely, 303 stocks experienced net outflows exceeding 1 billion yuan, with Xinyi Sheng leading at 3.168 billion yuan [13] Institutional Activity - Institutions had a net buy of 12 stocks, with Liou shares leading at approximately 222.44 million yuan [17] - The total net sell by institutions was about 1.22 billion yuan, with Jingwang Electronics seeing the highest net sell at approximately 290.27 million yuan [17]

Group 1 - The CPO (Co-Packaged Optics) concept sector experienced a decline of 5.05%, ranking among the top declines in concept sectors, with stocks like Xingsen Technology, Jingwang Electronics, and Guangxun Technology hitting the daily limit down [1][2] - Major outflows of capital were observed in the CPO sector, with a net outflow of 22.156 billion yuan, affecting 95 stocks, and 46 stocks seeing outflows exceeding 1 billion yuan [2][4] - The top stocks with significant capital outflows included Xinyi Technology with a net outflow of 3.104 billion yuan, followed by Zhongji Xuchuang and Huagong Technology with outflows of 1.435 billion yuan and 1.063 billion yuan respectively [2][4] Group 2 - Among the stocks that saw gains, Jia Yuan Technology, Qingshan Paper, and Lingyun Light had increases of 10.59%, 9.96%, and 4.50% respectively [1][4] - The CPO sector's performance was notably poor, with many stocks experiencing significant declines, including De Ke Li and Zhi Shang Technology, which fell by 14.63% and 12.39% respectively [4][3] - The trading volume and turnover rates varied significantly across the sector, with stocks like Xingsen Technology and Guangxun Technology showing turnover rates of 13.41% and 11.99% respectively [2][3]

Market Overview - The three major stock indices experienced significant fluctuations, with the Shanghai Composite Index dropping over 1% during the day, and the ChiNext Index falling nearly 4% at one point [1] - At the close, the Shanghai Composite Index decreased by 0.45% to 3858.13 points, the Shenzhen Component Index fell by 2.14% to 12533.84 points, and the ChiNext Index declined by 2.85% to 2872.22 points [1] - The SSE 50 Index, however, rose by 0.39%, and the total trading volume across the Shanghai and Shenzhen markets reached 29,128 billion yuan [1] Sector Performance - The semiconductor sector saw a significant decline, while military, pharmaceutical, non-ferrous metals, liquor, and brokerage sectors also experienced downturns [1] - Conversely, the banking, electricity, and automotive sectors showed resilience, with industrial mother machines and robotics concepts remaining active [1] Market Sentiment and Future Outlook - According to Zhongyou Securities, market volatility is expected to increase, and investors should pay attention to changes in market rhythm [1] - Despite the market reaching new highs in the previous week, there is a noticeable increase in divergence among investors [1] - The options market has shown a significant rise in volatility expectations for the next 30 days, indicating that some funds may believe the current trend could change and are opting for hedging and protective strategies [1] - With the completion of semi-annual report disclosures, the overall performance of A-shares is still in a bottom-seeking phase, prompting a reassessment of the alignment between the current macroeconomic environment and individual stock valuations [1]

Core Viewpoint - The industrial mother machine ETF (159667) has seen a significant inflow of 60 million units, indicating strong market interest in the industrial mother machine assets. The release of the "High-Quality Standard System Construction Plan for Industrial Mother Machines" on September 1 highlights the government's focus on enhancing standards in this sector [1]. Group 1: Industry Developments - The "High-Quality Standard System Construction Plan" consists of six levels: basic general, design matching, manufacturing equipment, manufacturing processes, inspection and testing, and industry applications, comprising 34 major categories and 17 subcategories, with dynamic adjustments based on industry development [1]. - Key tasks outlined in the plan include accelerating the development of urgently needed standards, promoting the revision of series standards, strengthening the development of standards in cross-disciplinary fields, and enhancing the internationalization of China's standards [1]. Group 2: Market Insights - The industrial mother machine ETF (159667) tracks the China Securities Machine Tool Index (931866), which selects listed companies involved in machine tool manufacturing and related technology development, reflecting the overall performance of the machine tool industry [2]. - The China Securities Machine Tool Index is highly representative of the industry, focusing on the industrial machinery sector, and is indicative of the market value and technological strength of related enterprises [2].