Market Overview - On July 28, the A-share market experienced a rebound, with the ChiNext Index leading the gains. The total trading volume in the Shanghai and Shenzhen markets was 1.74 trillion yuan, a decrease of 45 billion yuan compared to the previous trading day. The Shanghai Composite Index rose by 0.12%, the Shenzhen Component Index increased by 0.44%, and the ChiNext Index gained 0.96% [2][3] - Over 2,700 stocks in the market saw an increase, indicating a broad-based rally [2] Sector Performance - The computing hardware sector saw a significant surge, while innovative drug concepts maintained strong performance. The commercial aerospace sector was also active [2] - Conversely, cyclical stocks such as steel and coal experienced collective adjustments, with companies like Liugang Co., Ltd. seeing declines of over 5% [2] - The PCB, film, and CPO sectors had the highest gains, while coal, steel, Hainan Free Trade Zone, and precious metals sectors faced the largest declines [2] International Market - In the U.S. stock market on July 28, the Dow Jones Industrial Average fell by 64.36 points to close at 44,837.56 points, a decrease of 0.14%. The S&P 500 index rose by 1.13 points to 6,389.77 points, an increase of 0.02%, and the Nasdaq Composite Index gained 70.27 points to close at 21,178.58 points, up 0.33% [4][6] - European markets saw all three major indices decline, with the UK FTSE 100 down 0.43%, the French CAC 40 down 0.43%, and the German DAX down 1.02% [4] - International oil prices rose, with WTI crude oil increasing by $1.55 to $66.71 per barrel, a rise of 2.38%, and Brent crude oil up $1.60 to $70.04 per barrel, an increase of 2.34% [4][5] Key Announcements - The Chinese government announced a new childcare subsidy plan, effective from January 1, 2025, providing annual subsidies of 3,600 yuan per child for those under three years old [8] - The Ministry of Industry and Information Technology is formulating a plan to enhance the adaptability of consumer goods supply and demand to support consumption expansion [9] - The Shanghai Municipal Economic and Information Commission announced a 600 million yuan initiative to reduce the cost of intelligent computing power, including issuing computing vouchers [13] Institutional Insights - Everbright Securities noted that the white liquor sector is currently in a deep value zone, with a dividend yield of 3.72% as of July 25, 2024, and a payout ratio of 71% [16] - Open Source Securities highlighted that the coal sector is at a turning point, suggesting it is time to position investments [16] - Donghai Securities anticipates an overall improvement in profitability and valuation levels in the medical device sector due to policy guidance [16] Focused Announcements - WuXi AppTec reported a net profit of 8.561 billion yuan for the first half of the year, a year-on-year increase of 101.92% [17] - SANY Heavy Industry plans to issue up to 20 billion yuan in various non-financial corporate debt financing tools [18]

Market Overview - On July 28, 2025, A-shares experienced narrow fluctuations, with the Shanghai Composite Index rising by 0.12%, the Shenzhen Component Index increasing by 0.44%, and the ChiNext Index up by 0.96%. The North Stock 50 fell by 0.25%. The total trading volume in the Shanghai and Shenzhen markets was approximately 1.742 trillion yuan, a decrease of about 45.03 billion yuan compared to the previous trading day [1] - Hong Kong stocks saw mixed performance, with the Hang Seng Index rising by 0.68% to close at 25,562.13 points, while the Hang Seng Technology Index fell by 0.24% to 5,664.02 points. The total trading volume was 250.3 billion HKD [1] - In the U.S. market, the S&P 500 Index rose by 1.59% to 5,954.5 points, the Nasdaq Composite Index increased by 1.63% to 18,847.28 points, and the Dow Jones Industrial Average rose by 1.39% to 43,840.91 points [1] Government Initiatives - The Ministry of Industry and Information Technology announced plans to enhance the adaptability of supply and demand for consumer goods to support consumption expansion. This includes implementing a new round of ten key industry growth actions and promoting the development and application of technologies such as artificial intelligence terminals and drones [3] - The National Childcare Subsidy Scheme was unveiled, providing an annual subsidy of 3,600 yuan per child for infants under three years old, effective from January 1, 2025. The subsidy is exempt from personal income tax and will not be counted as income for certain social assistance evaluations [4][6] - The State Administration for Market Regulation emphasized the need to address low-quality and low-price competition among enterprises, enhance quality standards, and improve regulatory frameworks for food, pharmaceuticals, and industrial products [5]

Group 1 - The Chinese government announced a new childcare subsidy plan, effective from January 1, 2025, providing annual subsidies of 3,600 yuan per child for those under three years old [9] - The Ministry of Industry and Information Technology is formulating a plan to enhance the adaptability of supply and demand for consumer goods to boost consumption [10] - The State Administration for Market Regulation emphasized the need to combat low-quality and low-price competition among enterprises [11] Group 2 - The National Disaster Reduction and Relief Committee initiated a level four emergency response for flood relief in Beijing and Hebei, dispatching 43,000 pieces of disaster relief materials [12] - Shanghai aims to achieve full-area testing for autonomous driving in the Pudong district by the end of the year, excluding busy areas like Lujiazui [13] - The Shanghai Municipal Economic and Information Commission issued measures to expand the application of artificial intelligence, including financial support for computing power usage [19][13] Group 3 - Alibaba Cloud announced the open-source release of its Tongyi Wanxiang 2.2 model, which includes video generation capabilities [19] - Zhipu AI launched its new flagship model GLM-4.5, designed for intelligent applications, achieving state-of-the-art performance in various tasks [20] - Douyin clarified rumors regarding stock options being canceled, stating that the actions were due to violations of company policies by a former employee [21] Group 4 - Tesla confirmed a $16.5 billion chip supply agreement with Samsung, aimed at producing next-generation AI chips at a new facility in Texas [23] - The film "Nanjing Photo Studio" has seen a surge in popularity, with box office predictions reaching 3.17 billion yuan, benefiting related stocks in the film industry [33][34]

Group 1 - The Ministry of Industry and Information Technology emphasizes the need to formulate guidelines for financial support for new industrialization and expand the implementation of "integrated technology and industry finance" initiatives [1] - The meeting highlights the importance of enhancing the industrial economy's foundation, implementing a new round of ten key industries for growth, and accelerating the development and application of technologies such as artificial intelligence and drones [1][2] - There is a focus on improving the adaptability of supply and demand in consumer goods to boost consumption, as well as addressing overdue payments to enterprises and establishing a long-term regulatory mechanism for enterprise-related fees [1] Group 2 - The meeting calls for greater efforts to promote the integration of technological innovation and industrial innovation to enhance core competitiveness [2] - Initiatives include the implementation of major national science and technology projects, strengthening the construction of innovation platforms, and fostering technology-based enterprise incubators [2] - The development of new industrial policies for emerging industries such as humanoid robots and the Internet of Things is also prioritized, along with enhancing service-oriented manufacturing and industrial design [2] Group 3 - A system for cultivating high-quality enterprises is to be established, with policies aimed at promoting the growth of specialized and innovative small and medium-sized enterprises [3] - The meeting stresses the need for comprehensive reforms to enhance the modernization of industry governance and to consolidate the achievements in regulating competition within the new energy vehicle sector [3] - There is an emphasis on strengthening the national standard system in the industrial and information sectors and improving the talent development framework [3]

Report Summary 1. Investment Rating No investment rating for the industry is provided in the report. 2. Core View The report suggests that trading positions should temporarily wait and see. Although the bond market prices rebounded significantly on the day, it is still not out of the adverse situation. The market is mainly driven by sentiment, and there is a risk of a second decline if risk assets rebound or there are new positive factors for risk appetite. It also mentions to pay attention to events such as the FOMC, Sino - US talks, and the Politburo meeting during this macro - super week [1][3]. 3. Summary by Directory 3.1. Market Performance - Treasury bond futures opened higher, then declined during the session, and finally closed sharply higher across the board. The long - end, which was greatly affected by sentiment before, also had more corrections [1]. - The open market continued net investment. The due reverse repurchase was 170.7 billion yuan, and new operations were 495.8 billion yuan, with a net investment of 325.1 billion yuan. The capital price continued to improve, with the DR001 weighted average falling to around 1.45% and the GC001 closing at around 1.35% at the end of the session [1]. 3.2. News The National Conference of Heads of Industry and Information Technology Departments held on July 28 mentioned implementing the strategy of expanding domestic demand, consolidating the industrial economic base, implementing a new round of stable - growth actions for ten key industries, formulating a plan to enhance the adaptability of consumer goods supply and demand to boost consumption, promoting the development and application of technologies such as AI terminals, and formulating guidelines for financial support for new - style industrialization [2]. 3.3. Market Analysis - The domestic market is trading around the reversal of the anti - involution sentiment, and the overall situation is still sentiment - driven. The A - share market showed strong resilience as a risk asset, with obvious sector rotation [3]. - For the bond market, although the price rebounded significantly, it is still facing challenges. The capital interest rate has not returned to the previous lower platform of 1.3 - 1.35%, and the market is passive, mainly affected by sentiment [3]. 3.4. Data - **Contract Data**: Detailed data on the prices, changes, positions, and basis of TS2509, TF2509, T2509, and TL2509 contracts are provided, as well as the trading volume of the main contracts [3]. - **Funding Rate Data**: Data on DR001, DR007, DR014, including their weighted average interest rates, changes, and trading volumes, are presented [3].

Group 1 - The Ministry of Industry and Information Technology emphasizes the implementation of a new round of ten key industries to stabilize growth and enhance the adaptability of consumer goods supply and demand to boost consumption [1] - The plan includes accelerating the development and application of technologies such as artificial intelligence terminals, ultra-high-definition video, smart wearables, and drones [1] - Financial support for new industrialization will be guided by new policies, expanding the implementation of "integrated technology and finance" initiatives [1] Group 2 - The action plan aims to clear overdue enterprise accounts and establish a long-term regulatory mechanism for enterprise-related fees [1] - Policies to alleviate burdens on enterprises will be promoted to ensure effective implementation [1] - The tobacco industry will continue to maintain steady development [1]

Core Points - The meeting emphasized the importance of implementing the decisions made by the Central Committee and the State Council, focusing on strengthening the industrial economy and ensuring high-quality development [3][5][6] Economic Performance - In the first half of the year, the industrial added value of large-scale industries increased by 6.4% year-on-year, with manufacturing added value growing by 7% [3] - The added value of equipment manufacturing and high-tech manufacturing increased by 10.2% and 9.5% respectively [3] - The total volume of telecommunications business grew by 9.3%, and revenue from software and information technology services increased by 11.9% [3] - By the end of June, there were 4.55 million 5G base stations and 10.43 million computing standard racks in use [3] Key Focus Areas for the Second Half - The meeting outlined eight key areas for focus, including: 1. Implementing strategies to expand domestic demand and stabilize the industrial economy [5] 2. Promoting high-quality development of key industrial chains and addressing risks [5] 3. Enhancing the integration of technological and industrial innovation [5] 4. Deepening the application of digital technology and promoting industrial digital transformation [5] 5. Advancing green development and improving industrial energy efficiency [5] 6. Supporting the high-quality development of the information and communication industry [5] 7. Establishing a nurturing system for quality enterprises [5] 8. Deepening reforms to enhance industry governance [5] Governance and Compliance - The meeting stressed the need for strict adherence to the Central Eight Regulations and emphasized the importance of political responsibility and effective implementation of tasks [6][7] - It highlighted the necessity of improving work styles and ensuring effective communication and emergency material support during critical periods [7][9]

Group 1: Industrial and Information Development - The industrial and information sectors in China showed positive growth in the first half of 2025, with a year-on-year increase of 6.4% in industrial added value, demonstrating strong resilience [1] - The manufacturing sector's added value accounted for 25.7% of GDP, remaining stable, while manufacturing investment grew by 7.5% [1] Group 2: Telecommunications Sector - The total revenue from telecommunications services reached 905.5 billion yuan, with a year-on-year growth of 9.3% [2] - By the end of June, the number of 5G base stations reached 4.55 million, and the number of 5G mobile phone users reached 1.118 billion, with a penetration rate exceeding 79% [2] - The demand for digital consumption has been robust, with mobile internet traffic experiencing double-digit growth for six consecutive months [2] Group 3: Support for Small and Medium Enterprises - The Ministry of Industry and Information Technology (MIIT) supported 1,241 specialized and innovative "little giant" enterprises, with over 140,000 specialized small and medium enterprises cultivated to date [4] - MIIT provided services to over 3.6 million small and medium enterprises, facilitating financing intentions exceeding 51 billion yuan and achieving technology transfer contracts worth over 8.6 billion yuan [4] - The financing scale for enterprises surpassed 1.2 trillion yuan, with an average of nearly 34 million yuan in financing support per benefiting enterprise [4][5] Group 4: Future Initiatives - MIIT plans to enhance financial policies supporting new industrialization and deepen industry-finance cooperation, focusing on key industrial chains and integrating technology and industry [5] - The ministry aims to promote pilot policies and standards in 66 national industry-finance cooperation pilot cities to support high-quality development in the manufacturing sector [5]

Group 1 - The Ministry of Industry and Information Technology emphasizes increasing financial support to guide industrial funds towards technology products and solutions with independent intellectual property rights in the integration of informatization and industrialization [1] - The initiative includes five main areas with 17 specific items aimed at promoting the integration of technology and industry [1] - The plan encourages the implementation of a "technology-industry-finance integration" special project to attract social capital into hard technology projects within the integration development field [1]

Group 1 - Shenzhen's foreign trade import and export total reached 4.5 trillion yuan in 2024, with a year-on-year growth of 16.4%, ranking first among cities in China [1] - The new policy document emphasizes the need for deepening reforms in technology innovation, talent cultivation, and capital market connectivity in the Greater Bay Area [1][2] - The strategic emerging industries in Shenzhen saw a value-added growth of 10.5% in 2024, accounting for 42.3% of the regional GDP, with significant growth in AI, robotics, and aerospace industries [3][4] Group 2 - The new policy aims to enhance the financial services for the real economy, supporting integrated financial trials for technology industries and optimizing financing mechanisms for tech enterprises [2][3] - Banks are encouraged to participate in technology industry financial integration trials, providing various financial products to meet the diverse financing needs of tech companies [3][4] - The policy promotes regional collaboration and accelerates the integration of capital markets in the Greater Bay Area, facilitating more diversified financing channels for enterprises [4][6]