Core Insights - The event "Investment for Good" focused on ESG and charitable asset management, highlighting the importance of multi-asset investment strategies in the current economic environment [1][8]. Group 1: Market Opportunities and Asset Allocation - The current market presents a mixed picture; while the attractiveness of equities may be declining compared to last year, they still offer better value compared to low-risk returns below 2% [3][18]. - The discussion emphasized the significance of multi-asset allocation, particularly in a low inflation environment, with equities, bonds, and commodities being the most favorable asset classes [4][23]. - The concept of risk parity was highlighted as a crucial strategy for achieving stable returns while managing volatility, especially in the context of China's capital market [10][23]. Group 2: Investment Strategies and Perspectives - The panelists discussed the importance of absolute return strategies, particularly for institutional investors like university endowments, which require stable and consistent returns [6][30]. - There is a growing recognition that value and growth stocks can coexist, with some stocks fitting into both categories, suggesting a more integrated approach to stock selection [4][20]. - The need for strategic asset allocation was emphasized, with a focus on risk budgeting and the importance of diversifying across low-correlated assets to enhance overall portfolio performance [12][23]. Group 3: Challenges and Market Dynamics - The panelists expressed concerns about potential market overheating, particularly in sectors that have seen rapid price increases, indicating a cautious approach to current market conditions [19][26]. - The discussion also touched on the unique characteristics of university endowment funds, which typically have longer investment horizons and lower risk appetites compared to other funds [27][30]. - The role of ESG factors in investment decisions was highlighted, with a consensus that while ESG may not significantly enhance returns, it contributes to risk management and stability [28][30].

Macro Strategy - The September FOMC meeting resulted in a 25bps rate cut, with guidance indicating two more cuts within the year and an additional cut next year, which is more hawkish than market expectations [1][17] - Powell's statements on employment and inflation were consistent with the August Jackson Hole meeting, lacking significant dovish information, leading to volatile movements in major asset classes [1][17] - The focus is shifting towards the independence of the Federal Reserve, with potential political pressures influencing future rate cuts and increasing dollar credit risks [1][17] Fixed Income - The convertible bond market experienced fluctuations, with high-priced bonds outperforming mid and low-priced ones, indicating a highly structured opportunity landscape driven by the current equity market [2][19] - The China convertible bond index has risen over 30% since its low in August 2024, with a corresponding increase in the premium rate of about 8-12 percentage points [2][19] - The issuance of green bonds totaled approximately 20.052 billion yuan this week, a significant increase from the previous week, indicating strong market interest [4][23] Industry Insights - In the semiconductor equipment sector, domestic equipment manufacturers are expected to benefit significantly from the development of domestic computing power chips [12] - The oil service equipment industry is poised to gain from Saudi Aramco's plan to initiate 85 major projects over the next three years, with specific recommendations for companies like Jereh and Neway [13] - The precision manufacturing sector, particularly in 3C electronics, is highlighted for its growth potential, with companies like Fuliwang expected to see significant profit increases from 2025 to 2027 [16]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - China is in a marginal de - leveraging process, with the growth rate of the real - sector liabilities expected to decline to around 8% by the end of the year, and the government - sector liabilities to around 12.5% [3][4][17] - After the risk - preference repair is basically in place, the equity style will gradually shift to value - dominance, and the recommended asset allocation is 60% for the Shanghai Stock Exchange 50 Index, 20% for the China Securities 1000 Index, and 20% for the 30 - year Treasury Bond ETF [9][24][25] - In the de - leveraging cycle, the cost - performance ratio of stocks and bonds favors bonds to a limited extent, and value stocks are more likely to outperform. The recommended A + H dividend portfolio and A - share portfolio are mainly concentrated in industries such as banking, telecommunications, petroleum and petrochemicals, and transportation [10][63] 3. Summary According to the Table of Contents 3.1 National Balance Sheet Analysis Liabilities - The growth rate of real - sector liabilities in August 2025 was 8.9%, down from 9.1% previously, and is expected to continue to decline. The government - sector liabilities growth rate was 15.0% at the end of August, and is expected to drop to 12.5% by the end of the year [3][4][17] - Last week, the money market tightened marginally, and the stock and bond markets moved in the same direction, mainly trading on expectations of a Fed rate cut [3][7][17] Assets - The physical - quantity data in August was weaker than in July. The annual real economic growth target for 2025 is around 5%, and the nominal economic growth target is around 4.9%. It remains to be seen if this will be the central target for the next 1 - 2 years [5][19] 3.2 Stock - Bond Cost - Performance and Stock - Bond Style - Last week, the money market tightened, resulting in a double - bear market for stocks and bonds. The equity style was still growth - dominant, but the cost - performance ratio slightly favored bonds [7][22][24] - After the two sessions in 2025, the trend of the national balance sheet has been more clearly judged. There have been two real - sector expansions this year, with different triggering factors [8][23] - The risk - preference repair is basically in place, and the equity style is expected to shift to value - dominance. The recommended asset allocation includes the Shanghai Stock Exchange 50 Index, the China Securities 1000 Index, and the 30 - year Treasury Bond ETF [9][24][25] 3.3 Industry Recommendation 3.3.1 Industry Performance Review - This week, the A - share market declined on heavy volume. The Shanghai Composite Index fell 1.3%, while the Shenzhen Component Index rose 1.1% and the ChiNext Index rose 2.3%. Among the Shenwan primary industries, coal, power equipment, electronics, automobiles, and machinery had the largest gains, while banking, non - ferrous metals, non - bank finance, steel, and agriculture, forestry, animal husbandry, and fishery had the largest losses [30] 3.3.2 Industry Crowding and Trading Volume - As of September 19, the top five crowded industries were electronics, power equipment, machinery, computers, and automobiles, while the bottom five were beauty care, comprehensive, petroleum and petrochemicals, steel, and textile and apparel [33] - This week, the top five industries with increased crowding were automobiles, machinery, household appliances, social services, and coal, while the top five with decreased crowding were non - ferrous metals, computers, pharmaceutical biology, power equipment, and non - bank finance [33] - The trading volume of the entire A - share market increased this week. Coal, building decoration, household appliances, real estate, and transportation had the highest year - on - year growth rates in trading volume [34] 3.3.3 Industry Valuation and Earnings - This week, among the Shenwan primary industries, coal, automobiles, power equipment, electronics, and real estate had the largest increases in PE(TTM), while banking, non - ferrous metals, non - bank finance, steel, and agriculture, forestry, animal husbandry, and fishery had the smallest increases [38] - As of September 19, 2025, industries with high 2024 full - year earnings forecasts and relatively low valuations compared to history included banking, insurance, coal, petroleum and petrochemicals, transportation, traditional Chinese medicine, pharmaceutical biology, beauty care, and consumer electronics [39] 3.3.4 Industry Prosperity - External demand generally recovered. The global manufacturing PMI rose from 49.7 to 50.9 in August, and most major economies' PMIs increased [43] - Internal demand showed mixed signals. Second - hand housing prices fell last week, and quantity indicators were mixed. The highway truck traffic volume increased, and the capacity utilization rate of ten industries decreased slightly in September after rising from May to August [43] 3.3.5 Public Fund Market Review - In the third week of September (September 15 - 19), most active public equity funds outperformed the CSI 300. As of September 19, the net asset value of active public equity funds was 4.18 trillion yuan, slightly up from 3.66 trillion yuan in Q4 2024 [58] 3.3.6 Industry Recommendation - In the de - leveraging cycle, the cost - performance ratio favors equities to a limited extent, and value stocks are more likely to outperform. The recommended A + H dividend portfolio and A - share portfolio mainly include stocks from industries such as banking, telecommunications, petroleum and petrochemicals, and transportation [10][63]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The pressure on the bond market has been persistent recently, mainly due to three factors: the strengthening year - on - year growth of M1 signaling an economic recovery, the return of market risk appetite and the stability of the A - share market leading to capital diversion, and the "anti - involution" policy expectations driving up commodity prices and intensifying inflation expectations. The current one - year rolling stock - bond spread is - 0.6762%, approaching the + 2 standard deviation range (- 0.5408%) [5][60]. - The redemption pressure on public bond funds may ease temporarily, and there may be opportunities for the narrowing of the spread between 5 - 10 - year China Development Bank (CDB) bonds and treasury bonds. The market has already priced in the potential impact of the new public bond fund sales fee policy, causing the spread between CDB bonds and treasury bonds, especially in the 5 - 10 - year segment, to widen significantly. Since the policy is still in the consultation stage, the redemption pressure on public bond funds is expected to ease, and the spread may narrow [5][64]. - In the short term, be wary of the temporary impact caused by institutional profit - taking at the end of the quarter. Institutions that have increased their fixed - income asset allocations in the past three years are under significant profit - assessment pressure this year. The selling behavior at the end of the quarter, especially in September, may disrupt the market. Also, pay attention to the Federal Reserve's interest - rate meeting this week [6][65]. 3. Summary According to Relevant Catalogs 3.1 Weekly Bond Market Review - From September 8th to 12th, treasury bond yields first rose and then fell. Policy expectations and institutional behavior jointly dominated the market rhythm. The market was initially affected by the new public bond fund sales fee policy, and then gradually stabilized due to factors such as the central bank's liquidity support, clear expectations of interest - rate bond supply, and stable financial data [11]. - As of September 12th, treasury bond yields generally increased. The 1 - year, 10 - year, and 30 - year treasury bond yields rose by 0.41bp, 4.10bp, and 7.15bp respectively compared to the previous Friday. The yields of CDB bonds also increased, with the 10 - year CDB bond yield rising by 15.53bp [16]. - Most of the key term spreads of treasury bonds widened. The 10Y - 1Y spread of treasury bonds widened by 3.69bp to 46.70bp, and the 30Y - 10Y spread widened by 3.05bp to 31.70bp. For CDB bonds, the 10Y - 1Y spread widened by 11.88bp to 45.04bp, while the 30Y - 10Y spread narrowed by 8.88bp to 23.21bp [22]. 3.2 Bond Market Data Tracking 3.2.1 Funding Situation - From September 8th to 12th, the central bank's net open - market operation injection was 1,961.00 billion yuan. The central bank conducted 12,645.00 billion yuan in reverse repurchases, with 10,684.00 billion yuan maturing. Next week, 12,645.00 billion yuan of reverse repurchases will mature, a larger amount than the previous week [24]. - Funding rates generally increased. R001, DR001, R007, and DR007 rose by 3.7bp, 4.83bp, 2.51bp, and 3.25bp respectively compared to the previous week. The SHIBOR rates also increased. As of September 12th, the overnight, 1 - week, 2 - week, 1 - month, and 3 - month SHIBOR rates rose by 5.10bp, 3.30bp, 5.70bp, 1.20bp, and 0.30bp respectively compared to September 5th [25][35]. - The bill rate remained low, and the bill rate continued to be inverted with the SHIBOR rate. The difference in funding costs between non - bank institutions and banks narrowed, and the phenomenon of funding stratification eased [25][38]. 3.2.2 Supply Side - From September 8th to 12th, the total issuance of interest - rate bonds increased, while the net financing decreased. The total issuance scale of interest - rate bonds was 16,522.02 billion yuan, an increase of 6,280.41 billion yuan from the previous week. The net financing scale was 1,403.59 billion yuan, a decrease of 3,178.30 billion yuan from the previous week [40]. - The issuance scale of government bonds increased, and the net financing also increased. Treasury bonds were issued at 5,663.70 billion yuan, an increase of 2,173.00 billion yuan from the previous week, and local government bonds were issued at 3,016.72 billion yuan, an increase of 2,082.81 billion yuan from the previous week [43]. - The issuance scale of negotiable certificates of deposit (NCDs) increased, the net financing decreased, and the issuance rate increased. The total issuance of NCDs was 7,841.60 billion yuan, an increase of 2,024.60 billion yuan from the previous week, and the net financing was - 4,680.10 billion yuan, a decrease of 7,196.60 billion yuan from the previous week [46]. 3.3 Next Week's Outlook and Strategy 3.3.1 Next Week's Outlook - The supply pressure of treasury bonds will decrease next week. The planned issuance of treasury bonds is 2,770.00 billion yuan, and the planned issuance of local government bonds is 1,885.19 billion yuan [58]. - The central bank's net open - market operation injection was 1,961.00 billion yuan from September 8th to 12th. Although there will be tax payments next week, considering that September is not a major tax - paying month and the central bank's attitude towards liquidity support, the central level of funding rates is expected to remain stable [59]. 3.3.2 Bond Market Strategy - Pay attention to the opportunity of the narrowing spread between CDB bonds and treasury bonds. Given that the new public bond fund sales fee policy is still in the consultation stage, the redemption pressure on public bond funds is expected to ease, and the spread between CDB bonds and treasury bonds may narrow [64]. - Be wary of the temporary impact caused by institutional profit - taking at the end of the quarter. Institutions may sell bonds to realize floating profits in their OCI accounts at the end of the quarter, which may disrupt the market [65]. 3.4 Global Asset Classes - The U.S. Treasury yield curve flattened. As of September 12, 2025, the yields of 1Y, 2Y, 3Y, 5Y, 10Y, and 30Y U.S. Treasuries changed by + 1bp, + 5bp, + 4bp, + 4bp, - 4bp, and - 10bp respectively compared to September 5th, and the 10Y - 2Y spread narrowed by 9bp to 50bp [69]. - The U.S. dollar index weakened slightly, and the central parity rate of the U.S. dollar against the Chinese yuan decreased slightly. The prices of gold, silver, and crude oil generally strengthened. As of September 12, 2025, the COMEX gold futures price rose by 1.26%, the COMEX silver futures price rose by 2.81%, the WTI crude oil price rose by 1.13%, and the Brent crude oil price rose by 1.84% compared to September 5th [69][73].

Report Summary 1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core Viewpoints - The economic data for August 2025 shows that the industrial production has slowed down, the year - to - date cumulative year - on - year growth rate of fixed - asset investment has continued to decline, and the month - on - month growth rate of social consumption is weaker than the seasonal average. The "anti - involution" policy's impact on the real economy is emerging, and the economy still faces difficulties and challenges in maintaining continuous recovery [2][10]. - Regarding the bond market, it is advisable to be optimistic. The 10Y Treasury bond yield is estimated to fluctuate around 1.7%. Convertible bonds are relatively high - quality assets in the long - term, but currently, the valuation is high, and more attention should be paid to the structure [3][24]. 3. Summary by Relevant Catalogs 3.1 Event On September 15, 2025, the National Bureau of Statistics released the economic data for August 2025: the year - on - year growth rate of industrial added value above designated size in August was 5.2%, the cumulative year - on - year growth rate of fixed - asset investment from January to August was 0.5%, and the year - on - year growth rate of total retail sales of consumer goods in August was 3.4% [1][6][9]. 3.2 Economic Data Analysis - **Industrial Production**: In August, the year - on - year growth rate of industrial added value above designated size was 5.2%, a decrease of 0.5 percentage points from July, and the growth rate has declined for two consecutive months. The main reasons for the decline in the year - on - year growth rate of industrial added value were the slowdown in manufacturing and the production of electricity, heat, gas, and water supply industries. The "anti - involution" policy's impact on the real economy began to appear [2][6][10]. - **Fixed - Asset Investment**: From January to August 2025, the cumulative year - on - year growth rate of fixed - asset investment was 0.5%. The month - on - month growth rate in August was - 0.2%, continuing to decline. The cumulative year - on - year growth rates of real estate, manufacturing, and general infrastructure investment all decreased. In August, the year - on - year growth rate of fixed - asset investment decreased by 9.3% [12][13]. - **Social Consumption**: In August 2025, the year - on - year growth rate of total retail sales of consumer goods was 3.4%. The month - on - month growth rate was 0.17%, turning positive but weaker than the seasonal average. Among consumer goods, the year - on - year growth rate of necessary consumption declined, while some optional consumption items maintained good performance, and the year - on - year growth rate of catering consumption increased but was mediocre [16][19]. 3.3 Bond Market Views - **Interest - Rate Bonds**: Since August 2025, the yield of Treasury bonds has shown a significant divergence. The short - end yield has fluctuated little, while the long - end yield has increased significantly. Given the relatively abundant liquidity, the need for fundamental improvement, and the increasing cost - effectiveness of bonds compared to stocks, an optimistic attitude towards the bond market is recommended, with the 10Y Treasury bond yield expected to fluctuate around 1.7% [3][24]. - **Convertible Bonds**: As of September 12, 2025, the performance of the convertible bond market was slightly lower than that of the equity market. Currently, convertible bonds are in a stage of high - level valuation compression. In the long run, they are still relatively high - quality assets, but attention should be paid to the structure due to the high current valuation [25].

Macro Strategy - The core viewpoint indicates that the recent cooling of U.S. employment data makes a rate cut in September almost certain, with expectations of a 25bps cut and potential for 1-2 additional cuts throughout the year [1][14][18] - The U.S. non-farm payrolls for August showed an increase of only 22,000, significantly below the expected 75,000, indicating a weakening labor market [1][18] - The unemployment rate rose to 4.324%, slightly above expectations, highlighting a trend of weakening labor demand [1][18] Fixed Income - In the week of September 1-5, 19 green bonds were issued in the interbank and exchange markets, totaling approximately 8.767 billion yuan, an increase of 1.651 billion yuan from the previous week [2] - The secondary market saw a total trading volume of green bonds amounting to 48.2 billion yuan, a decrease of 4 billion yuan from the previous week [2] Industry Analysis - The domestic aluminum electrolytic capacitor industry is experiencing stable growth, with a focus on supercapacitors expected to drive a second growth curve for Jianghai Co., Ltd. [10] - Jianghai Co., Ltd. is positioned as a leader in the supercapacitor market, with a compound annual growth rate of 23.9% in the domestic market from 2017 to 2023 [10] - The report highlights the potential for significant growth in the supercapacitor business, particularly in AI computing applications, as the company collaborates with multiple AI clients [10] Company Recommendations - Yapu Co., Ltd. is expected to see revenue growth from 9.123 billion yuan in 2025 to 10.961 billion yuan in 2027, with a corresponding net profit increase from 575 million yuan to 756 million yuan [9] - Jianghai Co., Ltd. is projected to achieve revenues of 4.565 billion yuan in 2025, growing to 5.770 billion yuan by 2027, with net profits expected to rise from 791 million yuan to 1.025 billion yuan [13] - China Pacific Insurance is maintaining a positive outlook with projected net profits of 51.6 billion yuan in 2025, increasing to 55.3 billion yuan by 2027 [12]

Group 1: Macro Economic Outlook - Multiple public fund institutions believe the economy is at a critical stabilization phase, with clear macro policy signals aimed at steady growth [2] - Monetary policy is moderately loose, and fiscal policy is increasingly proactive, covering areas from traditional investments to consumption and real estate [2] - Investment in new productive forces is on the rise, suggesting a favorable era for RMB assets [2] Group 2: Market Sentiment on A-shares and H-shares - Public fund institutions generally hold an optimistic view on A-share and H-share market trends, citing high attractiveness for equity assets based on stock-bond valuation indicators [3] - Confidence in the capital market's medium to long-term development is supported by government policies and improving corporate governance [3] - The expectation of increased foreign capital inflow into A-shares and H-shares is driven by a weakening US economy and excess savings entering various financial products [3][4] Group 3: Investment Focus Areas - Technology, pharmaceuticals, and gold are highlighted as key investment sectors in the autumn investment strategy meetings [3][4] - The technology sector remains a primary focus, with an emphasis on high-end manufacturing and hard technology, particularly AI [3][4] - The pharmaceutical sector is expected to perform well in the medium to long term, with growth potential in oncology, weight loss drugs, and autoimmune disease treatments [4] - Gold is seen as having significant allocation value due to a weak dollar trend and uncertainties in the global economy, although short-term fluctuations may occur [4]

Macro Strategy - The recent cooling of US employment data makes a rate cut in September almost certain, with expectations of a 25bps cut and potential for 1-2 additional cuts throughout the year [1][12][16] - Gold prices surged, breaking the $3600 per ounce mark, driven by concerns over Eurozone fiscal stability and US rate cut expectations [1][12] - Upcoming US non-farm payroll data and inflation metrics (PPI, CPI) will significantly influence the tone of the September FOMC meeting [1][12][16] Employment Data Analysis - In August, the US added only 22,000 non-farm jobs, significantly below the expected 75,000, with previous months' data also revised downwards [2][16] - The unemployment rate rose to 4.324%, slightly above expectations, indicating a weakening labor demand [2][16] - The labor market is characterized by a "bizarre balance" of weak supply and demand, leading to a more pronounced decline in job additions compared to the rise in unemployment [2][16] Fixed Income Market Insights - The issuance of green bonds increased to approximately 8.767 billion yuan, reflecting a growing interest in sustainable finance [3] - The secondary market for green bonds saw a decrease in trading volume, totaling 48.2 billion yuan, indicating a potential cooling in investor interest [3] - The bond market is experiencing a "stock-bond seesaw" effect, with limited downward movement in bond yields despite significant stock market corrections [4][5] Industry Analysis: Semiconductor Sector - The domestic computing power sector is showing signs of recovery, with increased activity in GPU orders from major internet companies [10] - Companies like Cambrian and Haiguang are actively pursuing capital operations and acquisitions, indicating a bullish sentiment in the semiconductor space [10] - The release of new high-performance chips is expected to drive further growth in the domestic computing power market, with significant implications for internet and ODM companies [10] Company-Specific Insights: NIO Inc. - NIO's new vehicle performance is strong, but the company has revised its net profit forecasts for 2025-2026 downwards due to increased industry competition [11] - Despite the downward revision, NIO maintains a "buy" rating based on its comprehensive technology layout and marketing strategies [11]

Core Insights - Recent strength in the equity market has led to a dilemma for newly established funds regarding the timing of their investments [1][2] - Some fund managers have begun to build positions, while others remain cautious and are observing market conditions [3][4] Fund Activity - Several newly established funds, such as the Guotai Quality Core Mixed Fund, have started building positions shortly after their inception, with the fund's net value rising to 1.0035 within a week of its launch [2] - The healthcare sector has gained attention, with funds like the Jianxin Medical Innovation Stock Fund seeing a return of 2.45% since its establishment [2] - Other funds, including the Yifangda Value Return Mixed Fund, have shown slight fluctuations in net value since their launch [2] Manager Strategies - Not all fund managers are actively investing; for instance, renowned manager Xu Yan has maintained a largely "empty" position in his newly established fund, with a total return of -0.06% as of September 10 [3] - Some managers are making selective purchases, such as Ji Jun Kai from Haifutong Fund, who recently increased his stake in a technology ETF based on long-term industry trends [3] Market Outlook - Fund managers suggest that investors should evaluate their strategies based on current market conditions, with a focus on a "core + satellite" approach for A-share allocations [4] - The overall market is perceived to be in a historically average range, with equities still offering attractive allocation opportunities compared to bonds [5]

Report Information - Report Title: "Bonds Rise Amid Dispute - Asset Allocation Weekly" - Date: September 7, 2025 - Analysts: Luo Yunfeng, Huang Hailan 1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Report Core View - China is in a marginal de - leveraging process, with the entity sector's debt growth rate trending downward. The government aims to stabilize the macro - leverage ratio, and large - scale debt resolution is beneficial for the whole society's expectations [2][19]. - In the short - term, the capital market shows a pattern of "stock bear and bond bull", with risk preference declining. The cost - performance ratio of stocks and bonds favors bonds, and the equity style turns to value dominance [6][24]. - In the de - leveraging cycle, the cost - performance ratio of stocks and bonds favors equities to a limited extent, and the value style is more likely to be dominant. The report recommends an A + H dividend portfolio and an A - share portfolio [9][66]. 3. Summary According to the Directory 3.1 National Balance Sheet Analysis Liability Side - In July 2025, the debt growth rate of the entity sector was 9.1% (previous value 8.9%), expected to drop to about 9.0% in August and further decline to around 8% by the end of the year. The capital situation in the financial sector may be tight in September [2][19]. - The net increase of government bonds last week was 184 billion yuan (higher than the planned 156.5 billion yuan), and this week's planned net increase is 578 billion yuan. The government's debt growth rate is expected to decline to 12.5% by the end of the year [3][20]. - The one - year Treasury bond yield is expected to have a lower limit of about 1.3%, the ten - year Treasury bond yield's lower limit is about 1.6%, and the thirty - year Treasury bond yield's lower limit is about 1.8% [3][20]. Asset Side - After a brief stabilization in June, the physical quantity data declined again in July. The full - year nominal economic growth target in 2025 is about 4.9%, and it is necessary to observe whether this will become the central target for China's nominal economic growth in the next 1 - 2 years [4][21]. 3.2 Stock - Bond Cost - Performance and Stock - Bond Style - Last week, the capital situation tightened, risk preference declined, and the cost - performance ratio of stocks and bonds favored bonds. The ten - year Treasury bond yield decreased by 1 basis point to 1.84%, and the one - year Treasury bond yield increased by 3 basis points to 1.40% [6][24]. - The broad - based rotation strategy underperformed the CSI 300 index by - 1.07 pct last week and - 7.11 pct since July. The maximum drawdown was 12.1% (compared with the CSI 300's 15.7%) [6][24]. - This week, the report moderately increases the proportion of growth stocks, recommending the CSI 1000 index (80% position) and the 30 - year Treasury bond ETF (20% position) [8][27]. 3.3 Industry Recommendation 3.3.1 Industry Performance Review - This week, A - shares declined with reduced trading volume. The Shanghai Composite Index fell 1.2%, and the Shenzhen Component Index fell 0.8%, while the ChiNext Index rose 2.4%. Among the Shenwan primary industries, power equipment, comprehensive, non - ferrous metals, medicine and biology, and textile and apparel had the largest increases, while national defense and military industry, computer, non - bank finance, electronics, and steel had the largest declines [32]. 3.3.2 Industry Crowding and Trading Volume - As of September 5, the top five crowded industries were electronics, power equipment, machinery, computer, and communication, while the bottom five were beauty care, comprehensive, coal, petroleum and petrochemical, and steel [33]. - The top five industries with increased crowding this week were power equipment, commercial retail, media, medicine and biology, and basic chemicals, while the top five with decreased crowding were computer, non - bank finance, national defense and military industry, electronics, and food and beverage [33]. - As of September 5, the crowding of power equipment, communication, electronics, machinery, and commercial retail was at relatively high percentiles since 2018, while that of petroleum and petrochemical, food and beverage, agriculture, forestry, animal husbandry and fishery, transportation, and coal was at relatively low percentiles [33]. 3.3.3 Industry Valuation and Earnings - This week, among the Shenwan primary industries, real estate, coal, petroleum and petrochemical, beauty care, and textile and apparel had the largest increases in PE(TTM), while national defense and military industry, computer, non - bank finance, electronics, and communication had the smallest increases [39]. - As of September 5, 2025, industries with high full - year 2024 earnings forecasts and relatively low current valuations compared to history include banks, insurance, coal, petroleum and petrochemical, transportation, auto parts, beauty care, and consumer electronics [40]. 3.3.4 Industry Prosperity - Externally, there was a general recovery. The global manufacturing PMI rose from 49.7 to 50.9 in August, and most major economies' PMIs increased. The CCFI index decreased by 0.62% week - on - week in the latest week, and port cargo throughput rebounded [44]. - Domestically, second - hand housing prices fell in the latest week, and quantity indicators showed mixed trends. The highway truck traffic volume declined, and the ten - industry fitted capacity utilization rate continued to rise slightly from July to August [44]. 3.3.5 Public Fund Market Review - In the first week of September (September 1 - 5), most active public equity funds outperformed the CSI 300. As of September 5, the net asset value of active public equity funds was 4.05 trillion yuan, slightly up from 3.66 trillion yuan in Q4 2024 [61]. 3.3.6 Industry Recommendation - In the de - leveraging cycle, the cost - performance ratio of stocks and bonds favors equities to a limited extent, and the value style is more likely to be dominant. The recommended A + H dividend portfolio and A - share portfolio mainly focus on industries such as banks, telecommunications, petroleum and petrochemical, and transportation [66].