Market Performance - A-shares experienced a strong opening and closing, with the Shanghai Composite Index surpassing 4000 points, closing up 0.97% [1] - The Shenzhen Component Index rose by 1.73%, while the ChiNext Index increased by 1.84%, and the Sci-Tech 50 Index surged by 3.34% [1] - Over 2800 stocks in the market saw gains, with total trading volume exceeding 2 trillion yuan [1] Sector Highlights - The phosphate chemical sector saw significant gains, with stocks like Qing Shui Yuan, Ba Tian Co., and Yun Tian Hua hitting the daily limit [1] - The semiconductor sector also performed well, with stocks such as Deming Li reaching the daily limit and Han Wu Ji rising over 9% [1] - The humanoid robot concept was active, with stocks like Wan Xiang Qian Chao and Fang Zheng Electric hitting the daily limit [1] - Apple-related stocks rose in the afternoon, with Dongshan Precision hitting the daily limit and Lens Technology increasing over 9% [1] Declines - The media and entertainment sector faced adjustments, with Yue Media hitting the daily limit down [1] - Other sectors that saw declines included CPO concepts, non-ferrous metals, Hainan Free Trade, duty-free concepts, and tourism [1]

- The report discusses the concept of index futures arbitrage, which includes forward and reverse arbitrage strategies. Forward arbitrage occurs when the spot price is undervalued and the futures price is overvalued, while reverse arbitrage happens when the spot price is overvalued and the futures price is undervalued. The theoretical basis is that futures and spot prices converge on the delivery date[43] - The formula for forward arbitrage return is: $$P={\frac{(F_{\mathrm{t}}-S_{\mathrm{t}})-(S_{\mathrm{t}}+F_{\mathrm{t}}M_{\mathrm{f}})(1+r_{\mathrm{f}})^{\frac{T-t}{360}}-S_{\mathrm{t}}C s-F_{\mathrm{t}}C f)}{S_{\mathrm{t}}+F_{\mathrm{t}}M_{\mathrm{f}}}}$$ In this formula: - \(F_t\) and \(S_t\) represent the futures and spot prices at time \(t\) - \(M_f\) is the margin ratio for futures - \(C_s\) and \(C_f\) are transaction costs for spot and futures respectively - \(r_f\) is the risk-free interest rate[43] - The formula for reverse arbitrage return is: $$P={\frac{(S_{t}-F_{t})-(S_{t}M l+F_{t}M_{f})(1+r_{f})^{\frac{T-t}{360}}-S_{t}C s-F_{t}C f-S_{t}r^{\frac{T-t}{l360}})}{S_{t}M l+F_{t}M_{f}}}$$ In this formula: - \(M_l\) is the margin ratio for short selling - \(r_l\) is the annualized interest rate for short selling[43] - The report evaluates the risks associated with arbitrage strategies, including margin call risk, basis non-convergence risk, dividend risk, tracking error risk, and liquidity risk[44] - Dividend prediction methodology is outlined, where historical dividend patterns are used to forecast future dividend points. For companies with stable dividends over three years, the average dividend rate is used. For companies with unstable dividends but consistent profitability, the previous year's dividend rate is applied. For companies with no profitability or significant changes, a zero dividend rate is assumed[45][48] - The formula for calculating the dividend impact on index points is: $$\text{Dividend Points} = \sum \left( \text{Per Share Dividend} \times \text{Index Closing Price} \times \text{Component Stock Weight} \right) / \text{Component Stock Closing Price}$$ Alternatively: $$\text{Dividend Points} = \sum \left( \text{Forecast Dividend Rate} \times \text{Index Closing Price} \times \text{Component Stock Weight} \right)$$[49]

Report Summary 1. Market Performance Overnight - US stocks: The three major US stock indexes closed mixed. The Dow fell 0.48%, the S&P 500 rose 0.17%, and the Nasdaq rose 0.46%. The Wande US Tech Seven Giants Index rose 1.04%. Amazon hit a record high, up 4%, and Tesla rose more than 2%. Chinese concept stocks were mixed [5]. - European stocks: The three major European stock indexes closed mixed. The German DAX index rose 0.68%, the French CAC40 index fell 0.14%, and the UK FTSE 100 index fell 0.16%. European stocks were affected by the strength of US tech stocks and weak eurozone manufacturing data [5]. - Precious metals: International precious metals closed mixed. COMEX gold futures rose 0.43% to $4013.7 per ounce, and COMEX silver futures fell 0.52% to $47.91 per ounce. Gold was supported by central bank purchases, geopolitical uncertainty, and Fed rate - cut expectations [5]. - Crude oil: US crude oil futures rose 0.04% to $61.02 per barrel, and Brent crude oil futures rose 0.14% to $64.86 per barrel [6]. - Base metals: London base metals were mixed. LME zinc, aluminum, and lead rose, while tin, copper, and nickel fell [8]. 2. Important Macroeconomic News - China - South Korea currency swap: The People's Bank of China and the Bank of Korea renewed a bilateral currency swap agreement worth 400 billion yuan/70 trillion won for five years, which helps deepen currency and financial cooperation and promote trade [10]. - China's manufacturing PMI: In October, RatingDog's China manufacturing PMI fell to 50.6, with most sub - indicators declining month - on - month, and new export orders falling into contraction [10]. - Fed officials' views: Fed Governor Smilan said current monetary policy is too tight, and Governor Cook said a December rate cut is possible, depending on future data [10][12]. - US Treasury borrowing: The US Treasury estimated borrowing of $569 billion in Q4, $21 billion less than the July estimate [10]. 3. Energy and Chemical Futures - Oil demand outlook: ADNOC CEO said oil demand will remain above 100 million barrels per day after 2040, but warned of near - term challenges [14]. - Oil price forecast: Morgan Stanley raised its Brent crude price forecast to $60 per barrel in H1 2026, and expects supply - demand balance in H2 2027 with prices rising to $65 [14]. - Styrene inventory: As of November 3, 2025, Jiangsu styrene port inventory decreased by 7.10% week - on - week [15]. - Log出库量: Last week, the average daily出库量 of coniferous logs at 13 ports in 7 Chinese provinces decreased by 2.48% [15]. - OPEC's view: OPEC Secretary - General said the organization sees positive oil demand signs, expects 1.3 million barrels per day growth this year, and OPEC+ will pause production increases in Q1 2026 [16]. 4. Metal Futures - Alumina production: In October 2025, China's metallurgical - grade alumina production increased year - on - year and month - on - month, but the operating capacity decreased slightly [19]. - Copper production: Chile's copper production in September was 456,663 tons, up 7.79% month - on - month but down 4.5% year - on - year [19]. - PV component price: JinkoSolar expects component prices to face short - term pressure and recover in Q2 2026 [19]. 5. Black - Series Futures - Iron ore arrivals: From October 27 to November 2, 2025, the arrivals at 47 Chinese ports increased by 1.2298 million tons week - on - week [21]. - Iron ore shipments: Global iron ore shipments decreased by 174,500 tons week - on - week [21]. - Steel inventory: In late October, the social inventory of 5 major steel products in 21 cities decreased by 3.3% month - on - month [21]. 6. Agricultural Futures - Palm oil production: In October 2025, Malaysia's palm oil production increased by 5.55% month - on - month [24]. - Pig farming cost: Muyuan's pig - farming cost in September 2025 was about 11.6 yuan/kg [25]. - Pig and grain prices: As of October 29, the national pig price rose 4.59% week - on - week, and the pig - grain ratio rose 5.52% [25]. - Soybean crushing: In October, the soybean crushing volume of major Chinese oil mills decreased, but is expected to reach 9 million tons in November [25]. - Palm oil exports: Malaysia's palm oil exports from October 1 - 31, 2025, increased by 26.54% year - on - year [26]. - Indian edible oil imports: India's 2024/2025 edible oil imports increased slightly, with palm oil imports down and soybean oil imports up [26]. - Brazilian crop sowing: As of last Thursday, Brazil's 2025/26 soybean sowing rate reached 47%, and the first - crop corn sowing area reached 60% of the planned area [27]. - US soybean exports: As of October 30, 2025, the US soybean export inspection volume decreased week - on - week [27]. 7. Financial Markets Financial - Regulatory official's case: Former CSRC vice - chairman Wang Jianjun was investigated for serious violations [30]. - A - share market: A - shares rebounded. The Shanghai Composite Index rose 0.55%, and the trading volume was 2.13 trillion yuan [30]. - Hong Kong stock market: The Hang Seng Index rose 0.97%, and southbound funds had a net purchase of HK$5.472 billion [30]. - Brokerage "golden stocks": As of November 3, 186 stocks were short - listed for November "golden stocks", and industry insiders are optimistic about tech - growth sectors [32]. - ETF approval: The China Securities Regulatory Commission approved the issuance of the ChinaAMC CSI Smart - Selected Shanghai - Hong Kong - Shenzhen Technology 50 ETF, expected to start in December [32]. Industry - AI development: The Minister of Industry and Information Technology called for promoting the "two - way empowerment" of AI innovation and manufacturing applications [33]. - Display equipment: Three high - end equipment for 8.6 - generation large - size OLED screens were launched at the 2025 World Display Industry Innovation and Development Conference [33]. - Robot industry: In the first three quarters of this year, China's robot industry revenue increased by 29.5% year - on - year [33]. - Marine economy: In the first three quarters, China's marine GDP reached 7.9 trillion yuan, up 5.6% year - on - year [33]. - Water - saving equipment: The MIIT and the MWR issued a plan to promote the high - quality development of water - saving equipment by 2027 [35]. - Auto market: The auto consumption index in October was 90.5, and the November retail sales are expected to increase slightly [36]. - Memory market: Three major memory manufacturers suspended DDR5 quotes, and the resumption is expected in mid - November [36]. Overseas - New Zealand visa policy: Chinese passport holders entering from Australia can enter New Zealand visa - free for up to 3 months from November 3, 2025, on a 12 - month trial basis [37]. - Fed officials' views: Fed Governor Milan called for more aggressive rate cuts, and Governor Cook said a December rate cut is possible [37]. - US aviation safety: US Transportation Secretary Sean Duffy said the government may close the aviation system if the "shutdown" affects safety [37]. - US corporate layoffs: As of September, US corporate layoffs reached nearly 950,000, the highest since 2020 [39]. - US manufacturing PMI: The US ISM manufacturing PMI in October was 48.7, contracting for the eighth consecutive month [39]. - Eurozone economic situation: The eurozone manufacturing PMI in October was 50, with new orders flat and exports falling [39]. International Stock Markets - US stocks: The three major US stock indexes closed mixed, and over 100 S&P 500 companies will release earnings this week [40]. - European stocks: The three major European stock indexes closed mixed, affected by US tech stocks and eurozone manufacturing data [40]. - South Korean stocks: The South Korean Composite Index broke through 4200 points for the first time, driven by the semiconductor sector [42]. - Company news: Beyond Meat postponed its Q3 earnings, and Palliser pressured Rio Tinto to bid for Teck Resources [42][43]. Commodities - Precious metals: International precious metals closed mixed, with gold rising and silver falling [44]. - Crude oil: Crude oil prices rose, supported by OPEC+ production decisions and institutional price forecasts [44]. - Base metals: London base metals were mixed [44]. Bonds - Domestic bonds: The domestic bond market fluctuated narrowly, and most Treasury bond futures contracts declined [46]. - US bonds: US bond yields rose across the board [46]. - Corporate bond issuance: Alphabet plans to raise $17.5 billion in US dollar bonds and at least €3 billion in euro bonds [47]. Foreign Exchange - Currency swap: The People's Bank of China and the Bank of Korea renewed a bilateral currency swap agreement [48]. - RMB exchange rate: The on - shore RMB against the US dollar closed lower, and the RMB exchange rate index reached a new high since April [48]. - Dollar index: The US dollar index rose 0.15%, and most non - US currencies fell [49]. 8. Upcoming Events - Central bank events: The RBA will announce its interest - rate decision, and ECB President Lagarde will speak at multiple events [53]. - Conferences: The 2025 Petrochemical and Chemical Industry Digital Transformation Conference and the 2025 Auto Core Components Advanced Manufacturing Technology Forum will be held [53]. - Budget and reports: Canada will announce its annual budget, and the RBNZ will release its financial stability report [53]. - Earnings reports: AMD, Yum China, and Uber will release earnings [53].

Group 1 - The non-ferrous metal sector stocks experienced a decline in early trading, with Northern Rare Earth and Luoyang Molybdenum falling over 5%, and Zijin Mining and Huayou Cobalt dropping over 4% [1] - The related ETFs for non-ferrous metals dropped nearly 4% due to adjustments in heavy-weight stocks [1] - Specific ETF performance includes: Non-ferrous Metal ETF at 1.701 (-3.95%), Non-ferrous 60 ETF at 1.629 (-3.89%), and Non-ferrous Leaders ETF at 0.872 (-3.75%) [2] Group 2 - Brokerages indicate that the non-ferrous metal sector will face high market volatility risks in 2025, influenced by uncertainties from both demand and supply sides [2] - Emerging demand in the downstream structure of copper and aluminum has shifted from quantitative to qualitative changes, which is expected to support a long-term upward adjustment in the price center of non-ferrous metals [2]

Core Insights - The A-share market has shown significant recovery in 2025, with the Shanghai Composite Index reaching a 10-year high of 4025.70 points by the end of October, leading to a strong performance of public equity funds and the emergence of numerous "doubling funds" [1][3] Group 1: Fund Performance - The average net value growth rate of actively managed equity funds for the first ten months reached 27.48%, with the best-performing funds exceeding 200% [3][5] - Over 98% of actively managed equity funds reported positive net value growth rates, with 705 funds achieving over 50% growth, and 34 funds surpassing 100% [7][5] - The top-performing fund, Yongying Technology Smart Selection A, achieved a net value growth rate of 200.63%, capitalizing on opportunities in the cloud computing market [9][8] Group 2: Index and Sector Performance - Major indices such as the ChiNext Index and the Science and Technology Innovation 50 Index saw annual growth rates exceeding 50%, with the ChiNext Index at 48.84% [1][4] - The communication equipment sector emerged as a significant winner, with related index funds showing remarkable performance, including the Guotai CSI All-Index Communication Equipment ETF, which had a growth rate of 98.87% [12][13] Group 3: Investment Themes and Manager Insights - Fund managers are focusing on structural opportunities in sectors like AI, innovative drugs, and robotics, which have shown strong performance [7][14] - Investment strategies include a focus on domestic semiconductor equipment and energy storage, with managers highlighting the increasing production capacity of domestic storage chips and the growing demand for energy storage solutions [15][14]

Group 1 - The market opened high and rose further, surpassing the 4000-point mark, influenced by a strong performance in US stocks overnight, but the trust crisis in brokerage firms did not stimulate bullish sentiment [1] - The Hainan sector was a focal point, with the index rising over 6%, reaching a four-year high due to the upcoming full island closure of the Hainan Free Trade Port on December 18 [1] - The energy storage concept showed strong performance, with Sunshine Power rising over 15%, pushing its total market value above 400 billion, driven by a surge in industry bidding volume [1] Group 2 - The non-ferrous metals sector saw significant gains, with demand for minor metals increasing [1] - The banking sector faced pressure, while brokerages and insurance companies strengthened, indicating a rise in market risk appetite [1] - The overall market surge may be attributed to bets on interest rate cuts, with investors advised to pay attention to evening policy announcements, as any outcomes below expectations could lead to adjustments the following day [1]

Report Industry Investment Ratings - **Macro Finance**: Long-term bullish on stock indices, recommended to buy on dips; hold a neutral stance on government bonds [1][5] - **Black Building Materials**: Adopt a range trading strategy for coking coal and rebar; sell call options for glass [1][7][8] - **Non-ferrous Metals**: Cautiously hold long positions on copper on dips without chasing highs; wait for price pullbacks to go long on aluminum; either hold a wait-and-see stance or go short on nickel on rallies; use a range trading strategy for tin, gold, and silver [1][11][12] - **Energy and Chemicals**: PVC, caustic soda, styrene, rubber, urea, and methanol are expected to trade in a range; polyolefins are expected to trade in a wide range; take a short position on the 01 contract of soda ash [1][20][22][23] - **Cotton Textile Industry Chain**: Cotton and cotton yarn are expected to trade with a slight upward bias; PTA is expected to trade in a range; apples are expected to trade with a slight upward bias; red dates are expected to trade in a range [1][35][36] - **Agriculture and Animal Husbandry**: Go short on hogs and eggs on rallies; corn is expected to trade with a downward bias; soybean meal is expected to rebound from a low level; oils are expected to experience a high-level adjustment with palm oil being weak and soybean oil being strong [1][39][40][46] Core Views - The report provides investment strategies and market outlooks for various futures products based on factors such as supply and demand, cost, macroeconomic policies, and international trade relations [1][5][7] - It emphasizes the importance of considering multiple factors and market uncertainties when making investment decisions, and provides specific price ranges and trading strategies for different products [11][20][21] Summary by Industry Macro Finance - **Stock Indices**: The market is expected to trade with a slight upward bias in the medium to long term. The recent market has seen an increase in trading volume, with sectors such as new energy and non-ferrous metals performing strongly. Positive factors such as Sino-US talks and the Fed's interest rate cut expectations may support the upward movement of stock indices [5] - **Government Bonds**: The market is expected to trade in a range. Although the central bank will resume open market bond trading, the improving market risk appetite may limit the upward potential of government bonds [5] Black Building Materials - **Double Coking (Coking Coal and Coke)**: The market is expected to trade in a range. The recent price increase is mainly driven by the strengthening of upstream coking coal prices, and the short-term supply shortage is the core factor supporting the strong operation of coal prices [7] - **Rebar**: The market is expected to trade in a range. The futures price has strengthened recently, and the low valuation and improving market sentiment may limit the downward space of steel prices. It is recommended to go long on the RB2601 contract on dips [7] - **Glass**: It is recommended to sell call options. The recent fundamental situation has continued to deteriorate, and the lack of macro policy expectations may make it difficult for the price to rise. It is expected that the price will be more likely to fall than rise [8][9] Non-ferrous Metals - **Copper**: The market is expected to trade at a high level. The recent strong rise in copper prices is driven by factors such as supply shortage concerns and optimistic trade prospects. However, the high price may suppress downstream demand, and the price is expected to maintain a volatile upward trend in the near term [11][12] - **Aluminum**: The market is expected to trade at a high level. The recent decline in electrolytic aluminum production capacity and the positive signals from Sino-US and overseas economic policies may support the price. It is recommended to take profit on long positions on rallies and pay attention to tariff developments and market sentiment [13] - **Nickel**: The market is expected to trade in a range. The new RKAB policy in Indonesia may bring some uncertainties to the supply of nickel ore, and the medium to long-term supply surplus may continue. It is recommended to hold a wait-and-see stance or go short on rallies [16] - **Tin**: The market is expected to trade in a range. The supply of tin ore is expected to improve in the fourth quarter, but the downstream demand is weak. It is recommended to use a range trading strategy and pay attention to the supply resumption and downstream demand recovery [17][18] - **Silver and Gold**: The market is expected to trade in a range. The recent decline in prices is due to factors such as the improvement of the US government shutdown situation and the divergence in the market's expectations for interest rate cuts. However, the expected interest rate cuts and safe-haven sentiment may support the prices in the medium term [18][19] Energy and Chemicals - **PVC**: The market is expected to trade in a range. The high supply and weak domestic demand, along with the uncertain export sustainability, may keep the PVC market in a weak position. However, the low valuation and potential policy and cost disturbances may limit the downward space [20][21] - **Caustic Soda**: The market is expected to trade with a downward bias. The short-term supply pressure may be relieved by new maintenance, but the future increase in production and the weak demand may lead to a downward trend in prices. It is recommended to pay attention to the downstream stocking rhythm and export situation [22][23] - **Styrene**: The market is expected to trade in a range. The high inventory and limited demand may lead to a weak supply-demand situation. It is recommended to pay attention to factors such as oil prices, pure benzene production and imports, and macro data and policies [23][24] - **Rubber**: The market is expected to trade in a range. The strong raw material prices and positive macro sentiment may support the price, but the high inventory may limit the upward space. It is recommended to pay attention to factors such as inventory changes and downstream demand [25] - **Urea**: The market is expected to trade in a range. The increase in maintenance devices and the improvement in agricultural and industrial demand may support the price, but the high inventory may limit the upward space. It is recommended to pay attention to factors such as supply and demand changes and export situations [26][27] - **Methanol**: The market is expected to trade in a range. The decrease in production capacity utilization and the increase in demand from the methanol-to-olefins industry may support the price, but the high inventory may limit the upward space. It is recommended to pay attention to factors such as macro changes, device maintenance, and coal prices [28][29] - **Polyolefins**: The market is expected to trade with a downward bias. The expected increase in supply and the slow recovery of demand may lead to a downward trend in prices. It is recommended to pay attention to factors such as downstream demand, Fed interest rate cuts, and Sino-US trade relations [29][30] - **Soda Ash**: It is recommended to take a short position on the 01 contract. The supply surplus and weak demand may lead to a downward trend in prices. It is recommended to pay attention to factors such as supply and demand changes and cost pressures [33][34] Cotton Textile Industry Chain - **Cotton and Cotton Yarn**: The market is expected to trade with a slight upward bias. The increase in global cotton production and consumption, along with the progress of Sino-US trade negotiations, may support the price [35] - **PTA**: The market is expected to trade in a range. The weak supply-demand situation and the high inventory may lead to a downward trend in prices. It is recommended to pay attention to factors such as oil prices and supply and demand changes [35][36] - **Apples**: The market is expected to trade with a slight upward bias. The stable market situation in the western regions and the increase in demand may support the price. It is recommended to pay attention to factors such as production and quality changes [36] - **Red Dates**: The market is expected to trade in a range. The stable market price and the expected increase in supply may lead to a stable price trend. It is recommended to pay attention to factors such as new-season listing and price changes [37][38] Agriculture and Animal Husbandry - **Hogs**: The market is expected to face pressure on the upside. The current supply is relatively loose, and the intervention of secondary fattening may shift the supply pressure to the future. It is recommended to take a short position on the 01, 03, and 05 contracts in the medium term and pay attention to the supply and demand changes and capacity reduction [39][40] - **Eggs**: The market is expected to face pressure on the upside. The current supply is relatively large, and the seasonal decline in demand may limit the upward space of egg prices. It is recommended to take a short position on the 12 contract on rallies and hold a wait-and-see stance on the 01 contract [41][42] - **Corn**: The market is expected to trade with a downward bias. The increase in new grain supply and the weak demand may lead to a downward trend in prices. It is recommended to take a short position on the 01 contract on rallies and pay attention to factors such as policy and weather changes [43][44] - **Soybean Meal**: The market is expected to rebound from a low level. The increase in soybean imports and the improvement in demand may support the price. It is recommended to hold long positions on the M2601 contract and pay attention to the Sino-US trade relations and soybean procurement [46][47] - **Oils**: The market is expected to experience a high-level adjustment. The short-term pressure on the price is due to factors such as the increase in palm oil production and the weak demand. However, the potential supply shortage and the positive signals from Sino-US and Sino-Canadian relations may support the price in the medium term. It is recommended to pay attention to the support levels of the 01 contracts of soybean, palm, and rapeseed oils and the spread between soybean and palm oils [48][49][54]

Market Overview - The Shanghai Composite Index closed above the 4000-point mark, ending at 4016.33, with a gain of 0.70% [2][4] - The Shenzhen Component Index rose by 1.95% to 13691.38, while the ChiNext Index increased by 2.93% to 3324.27, marking a significant upward trend in the market [2][4] Sector Performance - The top-performing sectors included Electric Power Equipment (+4.79%), Non-ferrous Metals (+4.28%), and Non-bank Financials (+2.08%) [3] - Conversely, the sectors that underperformed were Banks (-1.98%), Food & Beverage (-0.56%), and Textiles & Apparel (-0.24%) [3] Future Outlook - The market is expected to continue its upward trend, supported by a favorable macroeconomic environment and ongoing capital inflows, with a trading volume of 2.26 trillion yuan, an increase of 108.2 billion yuan from the previous trading day [6] - Key sectors to focus on include dividends, TMT (Technology, Media, and Telecommunications), New Energy, and Non-ferrous Metals, as the market is likely to maintain a steady upward trajectory [6] Policy Insights - The recent announcement from the Central Committee emphasizes the need to accelerate the construction of a financial powerhouse, which includes enhancing the central bank's system and developing various financial sectors such as technology finance and green finance [5] - The central bank's commitment to preventing systemic financial risks and supporting the capital market's positive momentum is expected to bolster market confidence [5]

Market Overview - The market experienced a strong upward trend with major indices rising, including the ChiNext Index reaching a new high for the year, and the Shanghai Composite Index surpassing 4000 points [1] - The total trading volume in the Shanghai and Shenzhen markets was 2.26 trillion, an increase of 108.2 billion compared to the previous trading day [1] Sector Performance - The energy storage sector showed significant activity, with stocks like Sungrow Power and Tongrun Equipment hitting their daily limits [1] - The photovoltaic sector also surged, with companies such as LONGi Green Energy and Tongwei Co. seeing their stocks hit the daily limit [1] - The non-ferrous metals sector experienced a rapid rise, particularly in electrolytic aluminum, with stocks like Zhongfu Industrial reaching their daily limit [2] - The Hainan sector performed strongly, with companies like China Tungsten High-Tech and Hainan Airlines hitting their daily limits [1][2] Key Company Updates - Sungrow Power reported a net profit of 11.9 billion for the first three quarters of 2023, a year-on-year increase of 56%, surpassing the total profit for 2024 [1] - CITIC Securities reported that from January to September, new domestic energy storage project tenders reached 255.8 GWh, a year-on-year increase of 97.7%, with expectations for the total to reach at least 361.6 GWh for the year [1] Investment Trends - The renewable energy sector is seeing a recovery in valuations, with funds accelerating their positions, indicating a potential continuation of the bullish trend [2] - The non-ferrous metals sector is also gaining momentum, with a projected global demand growth of 2.3% next year, leading to an expected increase in global aluminum prices [2] - The market is currently experiencing a rotation of hot sectors, with a focus on core stocks, suggesting opportunities for low-entry positions during market fluctuations [2][7] Policy Developments - The Beijing Securities Regulatory Bureau and other departments have introduced policies to attract long-term funds into the market, aiming to optimize the market ecosystem and enhance the quality of listed companies [10] - The Ministry of Commerce and other departments have launched an action plan to integrate emerging technologies into urban commercial systems, promoting the application of AI, IoT, and other technologies [11]

1. Report Industry Investment Rating - The report does not provide a specific industry investment rating [1][2][3][4][6][7][9] 2. Core Viewpoints of the Report - Short - term asset allocation should be balanced. After the Fed's interest rate cut decision in the October meeting, the progress of China - US tariff talks, and the release of details from the 20th Fourth Plenary Session, it is expected to benefit overseas and domestic equity sectors (especially the science and technology innovation sector) and non - ferrous metals. Black commodities may also have a rebound opportunity due to domestic policy improvement, while precious metals may continue to adjust in the short term [6] 3. Summary According to Relevant Catalogs 3.1 Macro Highlights - **Overseas Macro**: The US government shutdown continued this week. China - US tariff expectations eased, and the CPI in September was lower than expected, strengthening the expectation of monetary easing. Reasons include the lower - than - expected September CPI, the 12th rejection of the temporary budget bill by the Senate, the increased economic downward pressure after the government shutdown, and the easing of China - US tariff expectations [6] - **Domestic Macro**: On October 28, the "Proposal of the Central Committee of the Communist Party of China for Formulating the 15th Five - Year Plan for National Economic and Social Development" and its explanatory notes were released, emphasizing the strategic position of science and technology and emerging industries, and also covering areas such as boosting consumption, expanding effective investment, and "anti - involution" [6] - **Asset Views**: Short - term balanced allocation is recommended. After the Fed's interest rate cut decision, China - US tariff talks, and the release of details from the plenary session, equity sectors and non - ferrous metals may benefit, black commodities may rebound, and precious metals may continue to adjust [6] 3.2 Market Performance of Various Assets - **Financial Market**: Stock index futures showed a shrinking - volume rebound, with the growth style being active due to technology events. Stock index options had a slightly lower trading volume. Treasury bond futures remained weak [2][7] - **Precious Metals**: Gold and silver entered a short - term adjustment phase due to the easing of geopolitical and economic and trade tensions [7] - **Shipping**: The freight rate of the European container shipping line was under pressure as the peak season in the third quarter ended [7] - **Black Building Materials**: The steel industry faced policy disturbances and inventory pressure. Iron ore was mainly affected by sentiment. Coke's price increase was about to be implemented, and coking coal prices were strong. Other related products also had their own market characteristics [7] - **Non - ferrous Metals and New Materials**: Copper prices fell in the short term due to trade frictions. Aluminum prices rose, while zinc prices were weak. Other non - ferrous metals also showed different trends [7] - **Energy and Chemicals**: The energy and chemical industry still faced a weak supply - demand situation. Most products were expected to fluctuate, with some showing a downward trend [9] - **Agriculture**: The agricultural market showed a mixed trend. Some products were affected by factors such as weather, trade relations, and supply - demand [9]