Report Industry Investment Rating No relevant content provided. Core Views Index Futures - Trump threatens to significantly increase tariffs on India over oil purchases from Russia; Switzerland plans to offer a more attractive trade proposal to the US to reduce tariffs; the President of the San Francisco Fed predicts more than two interest rate cuts this year; the former third - in - command of the Fed believes internal differences are exaggerated. A - share new account openings in July increased by 71%. With high margin trading in China, a decline in fund holding ratios, and the Politburo meeting not exceeding expectations, there may be minor fluctuations during the intensive semi - annual report disclosure period in late August, and index futures may oscillate [1]. Treasury Bond Futures - After the announcement of the resumption of VAT on interest income from government bonds, local government bonds, and financial bonds on Friday, there was a wave of "scrambling for old bonds" in the bond market. On Monday, the yield of active bonds dropped by 1 - 1.5BP compared to Friday's last trading. Without major positive or negative factors, the market may return to low - volatility, and the 10 - year Treasury bond may oscillate within a narrow range around 1.70 [2]. Market Review Index Futures - The main contract futures of CSI 300 rose 0.52%, SSE 50 rose 0.54%, CSI 500 rose 0.97%, and CSI 1000 rose 1.42% [4]. Treasury Bond Futures - The 10 - year main contract rose 0.02%, the 5 - year main contract fell 0.01%, the 30 - year main contract rose 0.08%, and the 2 - year main contract remained unchanged [5]. Technical Analysis Index Futures - The KDJ indicator shows a rebound trend for the broader market [4]. Treasury Bond Futures - The MACD indicator shows that the T main contract may rebound [6]. Strategy Suggestions Index Futures - Oscillate [1]. Treasury Bond Futures - Oscillate [2]. Futures Data (2025 - 08 - 04) | Futures Variety | Closing Price (Yuan/Contract) | Change (%) | Trading Volume (Lots) | Open Interest (Lots) | | --- | --- | --- | --- | --- | | CSI 300 Main Continuous | 4,052.80 | 0.52 | 44,736 | 146,808 | | SSE 50 Main Continuous | 2,770.40 | 0.54 | 24,294 | 56,661 | | CSI 500 Main Continuous | 6,169.00 | 0.97 | 42,885 | 102,178 | | CSI 1000 Main Continuous | 6,642.60 | 1.42 | 119,420 | 177,500 | | 10 - year Treasury Bond Main Continuous | 108.47 | 0.02 | 77,910 | 175,703 | | 5 - year Treasury Bond Main Continuous | 105.72 | - 0.01 | 62,616 | 128,789 | | 30 - year Treasury Bond Main Continuous | 119.19 | 0.08 | 122,755 | 105,770 | | 2 - year Treasury Bond Main Continuous | 102.35 | 0.00 | 36,387 | 90,529 | [7]

Trading Activity & Volatility - Market trading activity has slightly decreased but remains at a high point since March of this year, with major index volatility also declining. Sectors such as pharmaceuticals, steel, construction, consumer services, military, and telecommunications have trading activity above the 80th percentile, while most sectors have volatility below the 50th historical percentile [1]. Profit Forecasts - The net profit forecasts for the entire A-share market for 2025 and 2026 have been adjusted downwards. However, sectors including electricity and utilities, non-ferrous metals, pharmaceuticals, real estate, chemicals, coal, and light industry have seen their profit forecasts for 2025 and 2026 raised [4][10]. Northbound Capital Activity - Northbound capital activity has rebounded, with overall net selling of A-shares. Structurally, there has been significant net buying in sectors such as electronics, pharmaceuticals, and telecommunications, while net selling has occurred in food and beverage, agriculture, electricity, and utilities [12]. Margin Trading Activity - Margin trading activity has reached a new high for the year, with significant net buying in pharmaceuticals, electronics, and computers, while net selling has been observed in non-ferrous metals, coal, and non-bank financials [17]. 龙虎榜 Trading Activity - The trading activity on the龙虎榜 has continued to rise, with sectors like construction, steel, food and beverage, light industry, and telecommunications showing a relatively high and increasing proportion of trading volume [19][22]. Active Fund Positions - Active equity funds have seen a rebound in positions, with notable increases in sectors such as telecommunications, military, and steel, while reductions have been made in media, banking, and home appliances [23][35]. ETF Activity - Overall, ETFs have experienced net selling, primarily driven by institutional investors. The main net purchases have been in sectors like non-bank financials, food and beverage, and coal, while net selling has occurred in electronics, pharmaceuticals, and new energy [30][32].

Investment Rating - The industry investment rating is "Recommended," indicating an expected increase in the industry index by more than 5% over the next 3-6 months compared to the benchmark index [28]. Core Insights - The total amount raised through IPOs in the Hong Kong stock market from January to July 2025 has exceeded the total for each year from 2022 to 2024, with a total of HKD 127.5 billion, representing a year-on-year increase of 604% [2]. - In the A-share market, the number of IPO applications accelerated significantly, with 148 companies applying in June 2025, accounting for 84% of the total for January to July [3]. - The reactivation of the fifth set of standards for the Sci-Tech Innovation Board and the introduction of the third set of standards for the Growth Enterprise Market are expected to broaden financing channels for unprofitable technology companies, thereby accelerating the IPO process and increasing the scale of equity financing in the industry [3]. Summary by Sections IPO Market Performance - In the Hong Kong market, 52 new stocks were listed from January to July 2025, marking a 30% year-on-year increase [2]. - The significant fundraising success is highlighted by the listing of CATL, which raised HKD 41 billion, accounting for 32.1% of the total fundraising amount [2]. A-Share Market Dynamics - The A-share IPO acceptance rate saw a notable increase in June 2025, with 148 companies applying compared to only 29 in June 2024 [3]. - The concentration of applications in June is attributed to the financial reporting deadline, prompting many companies to submit their applications before June 30 [3]. Company Earnings Forecast and Valuation - Key companies in the industry, such as GF Securities, CITIC Securities, and Huatai Securities, have been rated as "Recommended" with projected earnings per share (EPS) for 2025 estimated at CNY 1.45, CNY 1.82, and CNY 1.91 respectively [5]. - The price-to-earnings (PE) ratios for these companies are projected to be 13.36, 15.76, and 10.38 for 2025, indicating favorable valuations [5]. Market Performance Metrics - The absolute performance of the industry over the past 12 months is reported at 42.8%, with a relative performance of 24.3% compared to the benchmark [7]. - As of August 1, 2025, the PE TTM valuation for the brokerage sector stands at 21.21x, which is at the 50.5% percentile over the past five years [9].

Company Performance - Jingwang Electronics' stock price has reached a new historical high, with 13 trading days in the past month where the stock price has set new records [2] - As of 10:14, the stock is up 3.96%, priced at 68.82 yuan, with a trading volume of 13.66 million shares and a transaction amount of 0.93 billion yuan [2] - The latest total market capitalization of the stock is 64.88 billion yuan, and the circulating market capitalization is 64.23 billion yuan [2] Industry Overview - The electronics industry, to which Jingwang Electronics belongs, has an overall increase of 1.21%, with 322 stocks rising, including notable gainers like N Dingjia (up 461.56%), Siquan New Materials (up 20.00%), and Dongxin Co. (up 19.99%) [2] - Conversely, 148 stocks have declined, with the largest drops seen in Ashi Chuang (down 3.68%), Rongda Photoelectric (down 3.02%), and Chip Source Micro (down 2.63%) [2] Financial Highlights - In the first quarter, the company achieved a revenue of 3.34 billion yuan, representing a year-on-year growth of 21.90% [2] - The net profit for the same period was 0.33 billion yuan, with a year-on-year increase of 2.18% [2] - The basic earnings per share were 0.3900 yuan, and the weighted average return on equity was 2.82% [2] Margin Trading Data - As of July 30, the latest margin trading balance for the stock is 1.08 billion yuan, with a financing balance of 1.07 billion yuan, reflecting an increase of 0.45 billion yuan over the past 10 days, which is a 73.22% increase [2]

Core Viewpoint - Pengding Holdings' stock price reached a historical high, reflecting strong market performance and positive financial indicators [2] Company Performance - As of 9:35, the stock price increased by 2.22% to 55.30 yuan, with a trading volume of 6.6345 million shares and a transaction value of 365 million yuan, resulting in a turnover rate of 0.29% [2] - The latest total market capitalization of the company is 128.188 billion yuan, with a circulating market value of 127.565 billion yuan [2] - The company reported a first-quarter revenue of 8.087 billion yuan, representing a year-on-year growth of 20.94%, while net profit was 488 million yuan, a year-on-year decrease of 1.83% [2] - The basic earnings per share were 0.2100 yuan, and the weighted average return on equity was 1.51% [2] - The company issued a half-year performance forecast on July 15, expecting a net profit between 1.198 billion yuan and 1.260 billion yuan, indicating a year-on-year change range of 52.79% to 60.62% [2] Industry Overview - The electronic industry, to which Pengding Holdings belongs, experienced an overall increase of 1.04%, with 419 stocks rising, including notable gainers like N Dingjia (up 439.87%), Dongxin Co. (up 19.83%), and Siquan New Materials (up 17.13%) [2] - Conversely, 55 stocks in the industry saw declines, with the largest drops from Ashi Chuang (down 3.29%), Rongda Photoelectric (down 2.79%), and Electric Connection Technology (down 1.46%) [2] - The latest margin trading data shows that as of July 30, the margin balance for the stock was 1.352 billion yuan, with a financing balance of 1.347 billion yuan, reflecting a recent increase of 173 million yuan, or a 14.76% growth [2]

Core Viewpoint - Heng Rui Medicine has seen significant trading activity, with a total of 13.13 billion yuan in block trades over the past three months, indicating strong institutional interest [2][3]. Group 1: Trading Activity - On July 29, Heng Rui Medicine recorded 8 block trades totaling 13.59 million shares and 832 million yuan in transaction value, with an average price of 61.25 yuan, reflecting a 4% discount compared to the closing price [2]. - In the last three months, the stock has experienced 16 block trades, amounting to a total transaction value of 13.13 billion yuan [2]. - The stock closed at 63.80 yuan on the same day, up 2.84%, with a trading volume of 107.31 billion yuan and a net outflow of 352 million yuan in main funds [2]. Group 2: Institutional Involvement - Institutional specialized seats participated in 3 of the block trades, with a total transaction value of 349 million yuan and a net purchase of 349 million yuan [2]. - The latest margin financing balance for the stock is 3.446 billion yuan, having increased by 419 million yuan (13.84%) over the past five days [3]. - Four institutions provided ratings for the stock in the last five days, with the highest target price set at 84.00 yuan by Guotai Junan Securities [3].

Group 1: Macro Liquidity - The US dollar index has declined again, and the degree of "inversion" in the China-US interest rate spread has narrowed, with inflation expectations continuing to rise [1][11][14] - Offshore dollar liquidity has marginally eased, while the domestic interbank funding situation has shown a pattern of first easing and then tightening [1][14] Group 2: Market Trading Activity - Overall market trading activity has continued to rise, with most industry trading heat above the 80th percentile [2][20] - The volatility of major indices has also increased, with most industry volatilities below the 40th historical percentile [2][26] Group 3: Institutional Research - The electronic, computer, retail, communication, and pharmaceutical sectors have seen high research activity, while real estate and non-bank sectors have also experienced a rise in research heat [3][36] Group 4: Analyst Forecasts - Analysts have simultaneously lowered the net profit forecasts for the entire A-share market for 2025/2026, while increasing forecasts for sectors such as non-ferrous metals, light industry, steel, and utilities [4][19] - The net profit forecasts for the CSI 500 index for 2025/2026 have been raised, while those for the CSI 300, SSE 50, and ChiNext have been lowered [4][23] Group 5: Northbound Trading Activity - Northbound trading activity has rebounded, with overall net purchases of A-shares, particularly in sectors like non-ferrous metals, pharmaceuticals, and chemicals [4][31] - The ratio of buy/sell amounts for the top 10 active stocks has increased in sectors such as non-ferrous metals and pharmaceuticals [4][32] Group 6: Margin Financing Activity - Margin financing activity has continued to rise, reaching a year-to-date high, with significant net purchases in sectors like machinery, non-ferrous metals, and pharmaceuticals [6][10] - The proportion of financing purchases in real estate, consumer services, and utilities has increased [6][38] Group 7: Fund Activity - Active equity funds have slightly reduced their positions, primarily increasing allocations in sectors like computers, electronics, and banks [5][45] - ETFs have seen overall net subscriptions, particularly in sectors such as construction, steel, and chemicals, while electronic, pharmaceutical, and banking sectors have experienced net redemptions [5][53]

Market Overview - The A-share market has surpassed the 3600-point mark, with the Shanghai Composite Index closing at 3605.73 points, up 0.65%, and the Shenzhen Component Index rising by 1.21% [1] - The total market turnover reached 1.8739 trillion yuan, a decrease of 24.5 billion yuan from the previous day, with over 4300 stocks experiencing gains [1] - The bond market faced challenges, with the yield on the 10-year government bond rising from 1.632% to 1.73%, marking a seven-day decline [1][2] Foreign Investment Trends - Despite the surge in A-shares, foreign capital showed a net sell-off in Hong Kong stocks, with a net outflow of 1.32 billion HKD, primarily from Tencent, which saw a net sell-off of 1.129 billion HKD [3][4] - From April 24 to July 23, foreign capital recorded a cumulative net sell-off of 52.6 billion HKD [9] - In the first half of the year, foreign capital net increased holdings in domestic stocks and funds by 10.1 billion USD, reversing a two-year trend of net reductions [14] Fund Flows and ETF Activity - Margin financing in the A-share market increased by 2.647 billion yuan, reaching a new high of 1.92 trillion yuan, indicating strong leverage activity [18] - Stock ETFs, which had been experiencing net outflows since mid-April, saw three consecutive days of net inflows, totaling 5.468 billion yuan [20][22] - The most significant inflows were observed in ETFs tracking construction materials, Hong Kong internet, and infrastructure indices, with inflows of 2.813 billion yuan, 2.805 billion yuan, and 1.501 billion yuan, respectively [22][24] Sector Performance - Various sectors have shown strong performance, with construction materials and infrastructure stocks experiencing significant gains [25] - The year-to-date performance of sectors indicates that non-ferrous metals, steel, and pharmaceutical industries have seen increases of 31.13%, 20.52%, and 19.05%, respectively [27][28] - The market is witnessing a trend where funds are actively seeking to eliminate low-priced stocks, with a notable rise in sectors such as coal and steel [25]

Group 1: Macro Liquidity - The US dollar index continued to rise, with the degree of inversion in the China-US interest rate differential deepening, and inflation expectations rebounding [1][13] - Offshore dollar liquidity has marginally eased, while the domestic interbank funding situation tightened initially before easing, with the yield curve steepening [1][19] Group 2: Market Trading Activity - Overall market trading activity has rebounded, with most industry trading heat above the 80th percentile, particularly in sectors like computers, light industry, textiles, pharmaceuticals, communications, and machinery [2][26] - Major indices' volatility has decreased, with most industry volatilities below the 40th historical percentile [2][31] Group 3: Institutional Research - High research activity was noted in sectors such as electronics, pharmaceuticals, computers, communications, retail, and automotive [3][14] Group 4: Analyst Forecasts - Analysts have raised net profit forecasts for the entire A-share market for 2025/2026, with most sectors including non-ferrous metals, real estate, communications, pharmaceuticals, chemicals, machinery, building materials, light industry, electronics, transportation, electricity and utilities, retail, construction, steel, electric new energy, consumer services, and banking seeing upward revisions [3][4][19] - The proportion of stocks with upward revisions in net profit forecasts for 2025/2026 has increased across the A-share market [4][17] Group 5: Northbound Trading Activity - Northbound trading activity has increased, with overall net selling of A-shares; the buy/sell ratio in sectors like non-ferrous metals, communications, and computers has risen [4][5] - Northbound funds primarily net bought sectors such as military, automotive, and pharmaceuticals, while net selling was observed in computers, electronics, and media [4][33] Group 6: Margin Financing Activity - Margin financing activity has continued to rise, reaching the highest point since March of this year, with net purchases mainly in sectors like computers, machinery, and electronics [5][12] - The proportion of margin financing in sectors such as steel, communications, and home appliances has increased [5][38] Group 7: Fund Activity - Active equity funds have increased their positions, particularly in TMT, home appliances, and oil and petrochemicals, while reducing positions in pharmaceuticals, retail, and agriculture [6][45] - New equity fund establishment has significantly increased, with both active and passive equity fund sizes rising [6][50]

Macro Liquidity - The US dollar index rebounded last week, and the degree of "inversion" in the China-US interest rate spread deepened. The nominal and real yields of 10Y US Treasuries both increased, indicating a rise in inflation expectations [1][15] - Offshore dollar liquidity has marginally eased, while the domestic interbank funding situation remains overall balanced and slightly loose, with a slight narrowing of the yield spread between 10Y and 1Y [1][20] Market Trading Activity - Overall market trading activity has increased, with most industry trading heat above the 80th percentile. Major index volatility has also risen, although most industry volatilities remain below the 40th historical percentile [1][27] - The trading heat in sectors such as light industry, textiles, retail, computing, construction materials, and financial real estate is notably high [1][30] Institutional Research - High research activity is observed in sectors such as electronics, pharmaceuticals, home appliances, computing, retail, and non-ferrous metals, with real estate, home appliances, oil and petrochemicals, and telecommunications also seeing a rise in research activity [2] Analyst Forecasts - Analysts have raised net profit forecasts for the entire A-share market for 2025/2026. Sectors such as telecommunications, chemicals, non-ferrous metals, electric new energy, electronics, non-bank financials, construction, media, food and beverage, and home appliances have all seen upward adjustments in their profit forecasts [3][4] - The net profit forecasts for the CSI 500, ChiNext Index, and CSI 300 have been raised, while the forecast for the SSE 50 has been adjusted both up and down [3][4] - In terms of investment style, mid-cap/small-cap growth and mid-cap value sectors have seen upward adjustments in their profit forecasts for 2025/2026, while large-cap growth and large/mid/small-cap value sectors have seen downward adjustments [3][4] Northbound Trading Activity - Northbound trading activity has rebounded, with overall net purchases of A-shares. The average daily trading volume and proportion of northbound trading have both increased significantly [5][6] - Based on the top 10 active stocks, the trading volume ratio for northbound trading in sectors such as banking, telecommunications, electric utilities, computing, electric new energy, and non-ferrous metals has risen, while it has fallen in sectors like home appliances, automobiles, electronics, non-bank financials, pharmaceuticals, and agriculture [5][6] Margin Financing Activity - Margin financing activity has increased, with net purchases amounting to 22.546 billion yuan last week. The main net purchases were in non-ferrous metals, computing, non-bank financials, electric new energy, and electronics, while net sales were seen in food and beverage, transportation, oil and petrochemicals, and real estate [4][6] - The financing purchase ratio has increased in sectors such as coal, textiles, agriculture, military, and transportation [4][6] Fund Activity - Active equity funds have increased their positions, particularly in sectors like automobiles, TMT, home appliances, electric new energy, pharmaceuticals, and non-ferrous metals, while reducing positions in oil and petrochemicals, electric utilities, real estate, coal, and construction [6][9] - ETFs have seen overall net subscriptions, primarily driven by individual ETFs, with significant net purchases in sectors like electronics, military, banking, coal, steel, and machinery, while net sales were observed in non-bank financials, pharmaceuticals, electric new energy, telecommunications, media, and computing [6][9]