Core Insights - Changzhou Jinchuang Aerospace Industry Investment Co., Ltd. has been established with a registered capital of 100 million yuan [1] - The company's business scope includes research and testing of small satellites, manufacturing of small satellites, research and manufacturing of rocket launch equipment, and AI application system integration services [1] - Jinchuang Group (603680) holds 100% ownership of the newly established company [1]

Investment Rating - The industry investment rating is "Overweight" [3][29] Core Views - The establishment of a 51 billion yuan central enterprise strategic fund aims to empower the development of the low-altitude economy, focusing on strategic emerging industries such as artificial intelligence, aerospace, and high-end equipment [1][22] - The successful maiden flight of the T1400 unmanned helicopter marks a significant technological breakthrough, indicating the low-altitude economy has entered the "ton-level era" [1][25] - The low-altitude economy is experiencing vertical implementation from macro (national industrial planning) to micro (infrastructure bidding and application scenario development), suggesting a positive outlook for the sector [1][18] Summary by Sections Industry Investment Rating - The report maintains a positive outlook on the low-altitude economy sector, indicating expected outperformance compared to the overall market [3][29] Policy Support - On October 29, a special fund for the development of strategic emerging industries was launched, with an initial scale of 51 billion yuan, aimed at enhancing core functions and competitiveness of state-owned enterprises [1][22][17] Industry Dynamics - The "Air-Ground Integrated Cluster Smart AI Ecological Alliance" was established to promote the systematic and scenario-based development of the industry [1][23] - The largest "sky test field" in the Guangdong-Hong Kong-Macao Greater Bay Area has officially commenced operations, enhancing Shenzhen's position in the low-altitude economy [1][24] Individual Stock Dynamics - The T1400 unmanned helicopter, developed by Harbin United Aircraft, successfully completed its maiden flight with a maximum payload of 650 kg, supporting logistics and emergency rescue applications [1][25][18] - Recommended stocks include Wolong Electric Drive and Green Energy Huichong, with beneficiaries in low-altitude manufacturing, infrastructure, and operations [1][18]

Group 1 - Xi Jinping and Donald Trump held a meeting in Busan, emphasizing the importance of stable Sino-US relations and the need for cooperation despite differences [2] - The consensus from the Sino-US economic and trade consultations in Kuala Lumpur includes the US canceling a 10% tariff on Chinese goods and suspending a 24% tariff for one year, while China will adjust or suspend corresponding countermeasures [2] - The State-owned Enterprises Strategic Emerging Industries Development Fund has officially launched with an initial scale of 51 billion yuan, focusing on sectors like AI, aerospace, and quantum technology [3] Group 2 - The added value of the electronic information manufacturing industry increased by 10.9% year-on-year in the first three quarters, outperforming the overall industrial and high-tech manufacturing growth rates [4] - A joint notice on promoting the integration of medical and elderly care services was issued, aiming to address the health and elderly care needs of the aging population [4] - The scale of public equity funds has surpassed 10 trillion yuan, with significant growth in the third quarter, particularly in equity funds [4][6] Group 3 - The Federal Reserve cut interest rates by 25 basis points, with the federal funds rate now at 3.75%-4.00%, and indicated that further cuts are not guaranteed [6] - The Indian Securities and Exchange Board proposed modifications to mutual fund disclosure and fee rules, seeking public feedback by November 17 [7] Group 4 - Global stock markets saw an increase in the week of October 27 to October 31, with notable gains in major indices across the US, Asia, and Europe [8] - The bond market experienced a decline, with the yield on 1-year Chinese government bonds dropping by 9.11 basis points [10] Group 5 - In the bank wealth management market, fixed-income plus and pure debt funds dominated, reflecting investors' preference for stable returns [15] - Bank wealth management subsidiaries accounted for 76.46% of new product issuance, indicating their strong market position [15][17] Group 6 - Different institutions show distinct preferences in bond allocation, with banks favoring interest rate bonds and insurance institutions focusing on low-risk bonds [21] - The current market sentiment is influenced by the central bank's actions, with expectations of continued monetary easing [22]

Summary of the Conference Call for Zhenhua Co., Ltd. Industry Overview - The global chromium industry is experiencing a supply-demand imbalance, with demand growth at approximately 9% outpacing production growth at around 3%. A projected supply gap of 4% is expected by 2025, increasing to nearly 25% by 2028 [2][5][25]. - Demand for metallurgical-grade chromium, particularly in commercial aviation, gas turbines, and military sectors, is forecasted to grow at rates between 19% and 22% [2][5]. Company Insights - Zhenhua Co., Ltd. is positioned as a global leader in the chromium industry, enhancing profitability through cost control, capacity expansion (increasing sodium dichromate capacity to 350,000 tons, with a long-term goal of 450,000 tons), and acquisitions of competitors [2][6][25]. - The company is expected to benefit from the growth in AI and aerospace demand, alongside supply-side constraints, leading to a potential revaluation of its stock [2][6]. Key Points on Demand and Supply - The chromium industry is entering a tight balance state, with improved performance during off-peak seasons and earlier price increases during peak seasons. Price hikes are anticipated to start in April 2024 and February 2025, indicating a potential price increase cycle beginning as early as late 2025 [2][7]. - The most constrained segment of the chromium salt industry is the sodium dichromate segment due to strict regulations on chromium slag treatment, which is expected to lead to shortages [2][10]. Price Trends - As of July 29, the price of metallic chromium reached a historical high but has since declined due to tariffs imposed by China on U.S. exports. It is anticipated that prices will enter an upward trend again following trade rebalancing [2][9]. Future Outlook for Zhenhua Co., Ltd. - Zhenhua Co., Ltd. is expected to see significant growth in the coming years due to its proactive management, cost reductions, and capacity expansions. The company’s valuation is currently below its actual value, with new applications expected to drive revaluation [2][6][25]. - The company is also expanding its production capacity, with sodium dichromate production expected to reach 300,000 tons in 2025, increasing to 350,000 tons in 2026, and potentially 450,000 tons by 2028 [2][8]. Demand from Key Sectors - The demand for metallic chromium in commercial aviation engines is significant, with each additional 10,000 tons of chromium demand translating to an increase of 40,000 tons in sodium dichromate demand. Boeing and Airbus are experiencing substantial order backlogs, with Boeing's orders increasing by 300% year-on-year [2][15][16]. - The military sector is also driving demand for high-temperature alloys and metallic chromium, with European military spending increasing significantly [2][17]. Global Market Dynamics - China holds a dominant position in the global metallic chromium supply chain, with exports expected to reach historical highs in 2024 despite tariff impacts on U.S. imports. The European market is showing significant demand growth [2][11][21][24]. Risks and Considerations - The downstream industries exhibit cyclical volatility risks, including potential changes in environmental policies and safety production risks that need to be closely monitored [2][25].

Core Points - The Central Enterprise Strategic Emerging Industry Development Special Fund has been launched to accelerate the development of strategic emerging industries in China [1] - The initial scale of the fund is 51 billion yuan, with China Guoxin contributing approximately 15 billion yuan [1] - The investment period of the fund is set for 5 years, with a total management and exit period of 8 years, extendable by 2 years, making a total of 15 years [1] Industry Focus - The fund will support state-owned enterprises in addressing industrial weaknesses and enhancing core competitiveness [1] - Key areas of investment include artificial intelligence, aerospace, high-end equipment, quantum technology, future energy, future information, and future manufacturing [1] - The fund aims to align with national strategic needs, strengthen industrial chains, and promote the development of state-owned enterprises in strategic emerging industries [1]

Group 1 - The central enterprise strategic emerging industry development special fund, initiated by the State-owned Assets Supervision and Administration Commission (SASAC), has been launched in Beijing with an initial scale of 51 billion yuan, of which China Reform Holdings Corporation plans to contribute approximately 15 billion yuan [1] - The fund has an investment period of 5 years and a management and exit period of 8 years, with a possible extension of up to 2 years, totaling a maximum of 15 years [1] - The fund aims to support state-owned enterprises in addressing industrial weaknesses, enhancing core functions, and improving competitiveness, focusing on strategic emerging industries such as artificial intelligence, aerospace, high-end equipment, quantum technology, and future industries like future energy and manufacturing [1] Group 2 - China Unicom announced that its indirect holding subsidiary, China United Network Communications Limited, through its wholly-owned subsidiary, Unicom Innovation and Entrepreneurship Investment Co., Ltd., plans to invest 1.5 billion yuan in the central enterprise strategic emerging industry fund, accounting for 2.94% of the fund [2] - The fund will target investments in strategic emerging industries to support industrial development [2]

Core Viewpoint - The establishment of a strategic emerging industry development fund by the State-owned Assets Supervision and Administration Commission (SASAC) aims to accelerate the growth of strategic emerging industries in China, with a focus on enhancing the core competitiveness of state-owned enterprises (SOEs) [1][2]. Group 1: Fund Overview - The initial scale of the fund is 51 billion yuan, with China Reform Holdings Corporation Limited contributing approximately 15 billion yuan [2]. - The investment period for the fund is set at 5 years, with a management and exit period of 8 years, which can be extended by up to 2 years, totaling a maximum of 15 years [2]. Group 2: Investment Focus - The fund will primarily support strategic emerging industries such as artificial intelligence, aerospace, high-end equipment, quantum technology, as well as future energy, future information, and future manufacturing sectors [2]. - The fund's strategy is aligned with national strategic needs, focusing on strengthening and supplementing the industrial chain to enhance the scale and quality of SOEs in emerging industries [2].

Core Viewpoint - The establishment of a special fund for strategic emerging industries, initiated by the State-owned Assets Supervision and Administration Commission (SASAC), aims to accelerate the development of these industries in China, with an initial scale of 51 billion yuan [1]. Group 1 - The fund has a first-phase scale of 51 billion yuan, with China Reform Holdings Corporation Limited contributing approximately 15 billion yuan [1]. - The investment period for the fund is set at 5 years, with a management and exit period of 8 years, and the total duration can extend up to 15 years [1]. - The fund will focus on supporting strategic emerging industries such as artificial intelligence, aerospace, high-end equipment, quantum technology, as well as future energy, information, and manufacturing sectors [1]. Group 2 - The fund is designed to address the shortcomings of state-owned enterprises (SOEs) in the industry, enhance core functions, and improve competitiveness [1]. - It aims to align with national strategic needs, strengthen and supplement industrial chains, and promote the simultaneous improvement of scale and quality in emerging industries [1]. - The initiative is part of a broader effort to foster high-level self-reliance and strength in key national sectors [1].

Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - Although the Shanghai Composite Index failed to hold above 4000 points with a slight decline in trading volume, it is certain that the index will reach 4000 points. Considering the "15th Five-Year Plan" and the current market environment, the strategic value of the technology and military sectors is prominent. It is recommended to focus on these two core sectors and seize the opportunity to go long on stock index futures [3]. Summary by Related Catalogs Market Analysis - The full text of the "15th Five-Year Plan" proposal has been released, aiming for economic growth within a reasonable range, increased total factor productivity, and a significantly higher household consumption rate. It also aims to boost technological self - reliance, deepen reforms, and ensure synchronous growth of household income and economic growth, as well as labor compensation and labor productivity. The plan proposes to accelerate the development of strategic emerging industries and promote new economic growth points. It also plans to break through key core technologies in key areas and implement the "Artificial Intelligence +" action. Additionally, it aims to boost consumption and improve the capital market [1]. - The central bank governor stated that the moderately loose monetary policy will be implemented, and new policy measures will be studied and reserved to consolidate the positive momentum of the capital market and improve the market - stabilizing mechanism. Overseas, the three major US stock indexes closed higher [2]. Spot Market - A - share indexes rose and then fell. The Shanghai Composite Index dropped 0.22% to 3988.22 points, and the ChiNext Index fell 0.15%. Most sector indexes declined, with national defense and military, transportation, and textile and apparel sectors leading the gains, while non - ferrous metals, beauty care, and steel sectors had the largest declines. The trading volume of the Shanghai and Shenzhen stock markets was 2 trillion yuan [2][13]. Futures Market - In the futures market, the basis of the current - month contracts of the four major stock index futures rebounded. The trading volume and open interest of stock index futures decreased simultaneously [2][15]. Strategy - Focus on the technology and military sectors and seize the opportunity to go long on stock index futures [3].

Market Overview - On October 29, A-shares saw all three major indices rise, with the ChiNext Index increasing by over 1.5% [1] - Key sectors such as Hainan Free Trade Port, ultra-high voltage, copper-clad laminates, and energy storage remained active [1] ETF Performance - The newly listed Shanghai Stock Exchange 180 ETF (510670) experienced a slight increase, with top-performing holdings including Huaneng International, Industrial Fulian, TBEA, LONGi Green Energy, China Aluminum, and Top Group [1] - The Sci-Tech Innovation 50 ETF (159783) rose over 1% at one point, with leading stocks such as Canadian Solar, Sungrow Power Supply, Sanan Optoelectronics, Tigermed, and EVE Energy [1] Policy Insights - The Central Committee of the Communist Party of China released suggestions for the 15th Five-Year Plan on October 28, emphasizing the cultivation of emerging and future industries [1] - Strategic emerging industry clusters such as new energy, new materials, aerospace, and low-altitude economy are prioritized for development [1] - The plan aims to enhance the inclusiveness and adaptability of capital market systems and improve the coordination between investment and financing functions [1]