Core Viewpoint - The Ruiyuan Growth Value Mixed Fund, managed by prominent fund managers Fu Pengbo and Zhu Lin, has maintained a high asset allocation in sectors such as electronics, internet technology, precision manufacturing, and pharmaceuticals, with significant contributions from the PCB industry [1][2]. Fund Performance - As of the end of Q2, the net asset value of Ruiyuan Growth Value Mixed A shares was 1.2955 CNY, with a growth rate of 5.80%, outperforming the benchmark return of 1.67%. The C shares had a net asset value of 1.2634 CNY, with a growth rate of 5.70% [1]. Holdings Overview - The top ten holdings of the fund as of Q2 included Shenghong Technology, Tencent Holdings, CATL, China Mobile, Luxshare Precision, Xinyi Technology, Cambricon Technologies, Juxing Technology, Sanofi Biologics, and Maiwei Co., with new entry Xinyi Technology and exit of Guanghui Energy compared to Q1 [2]. Market Dynamics - The fund's managers noted fluctuations in the US-China tariff agreements, which impacted global markets. The domestic capital market managed to stabilize amid these changes, with expectations of a potential decline in exports due to demand and inventory factors [2]. Policy and Economic Environment - The Chinese government is addressing "involution" in development through policies aimed at correcting distorted factor prices, with a focus on boosting overall commodity prices. The current economic environment differs from past supply-side reforms due to weak overall demand [3]. Investment Strategy - The fund has increased its holdings in companies related to the export chain despite short-term impacts, while reducing exposure to traditional energy companies due to market style influences and fundamental pressures. The fund has also increased its allocation to the pharmaceutical sector, focusing on innovative drugs and traditional medicine benefiting from AI [4]. Future Outlook - The upcoming mid-year reports from listed companies will be used to assess the operational status and future development of existing holdings. The fund aims to identify industries and companies with upward trends in prosperity, optimizing its portfolio to manage net value fluctuations effectively [4].

Summary of Conference Call Records Industry Overview - The records primarily discuss the impact of new US tariff policies on export trade, particularly focusing on logistics, cross-border e-commerce, and the shifting supply chain dynamics in response to these tariffs [1][2][3][5][11]. Key Points and Arguments Tariff Impact on Logistics and Export - The new US tariff policy has led to a significant increase in logistics costs, with container shipping rates rising to $6,000, an increase of $1,000 to $1,500 compared to previous rates. A surge in shipping demand is expected to last for about one to two months, with a peak in exports anticipated in June [1][6][13][75]. - The overall tariff burden has increased by approximately 30% compared to 2024, with different products facing varying rates. For instance, toys are subject to a 25% tariff, while lithium battery products face rates between 20% to 30% [2][5][14]. Cross-Border E-commerce Growth - Cross-border e-commerce is rapidly developing in regions such as Russia, Mexico, and the Middle East, with Russia seeing a significant increase in light industrial product imports from China. Mexico remains a crucial channel for exports to the US, while the Middle East is experiencing increased investment [1][3][11]. - Despite the growth in e-commerce, traditional trade still dominates, although its share is gradually declining as e-commerce expands [40]. Supply Chain Adjustments - Many companies are shifting production capacity to Southeast Asia, particularly in industries like electric tools and lawnmowers, to take advantage of lower tariffs and maintain supply chain efficiency. This transition is not significantly affected by short-term changes in tariffs [7][9][66]. - Consumer electronics companies have established mature supply chains in Southeast Asia but still rely on China for about 70% of their production capacity. Companies without factories in Southeast Asia are considering relocating closer to the US, such as in Mexico or Canada, to mitigate tariff risks [9][10][66]. Future Expectations and Strategies - Companies are cautiously optimistic about future tariff negotiations after the 90-day grace period, avoiding excessive rush to export. They are prioritizing existing orders, including those for the Christmas season, which are being expedited [5][54]. - The logistics sector is expected to see continued price increases, potentially reaching $8,000 for shipping containers as demand surges [3][13][75]. Market Dynamics and Consumer Behavior - The average tariff level currently stands at approximately 50%, with significant variations across different products. The burden of these tariffs is primarily borne by importers, with cross-border e-commerce platforms able to pass on costs to consumers [23][80]. - The demand for low-value products, such as Christmas goods, is expected to rise as companies rush to fulfill orders before potential tariff increases [20][79]. Regional Trade Developments - The records highlight that trade with Russia has been increasing significantly, driven by a combination of market size and strengthened trade relations following geopolitical shifts. This trend is expected to continue as companies diversify their markets away from the US [47][81]. Other Important Insights - The logistics market is currently experiencing tight capacity, with shipping costs expected to remain high for the next month or two due to accumulated orders from previous months [75][86]. - Companies are exploring various strategies to mitigate the impact of tariffs, including relocating production and utilizing overseas warehouses to maintain competitiveness in the face of rising costs [65][66][84]. This summary encapsulates the critical insights from the conference call records, focusing on the implications of tariff changes on logistics, e-commerce, and supply chain strategies within the current trade environment.

Tariff Structure - The current tariff on Chinese goods includes a base tariff of 8.1%, an additional 7.5% from the phase one trade agreement, and a potential extra 30%, leading to a total of 35.6%[9] - Following the Geneva Agreement, the tariff increase is reduced to 30%, with an additional 24% deferred for 90 days based on negotiation outcomes[1] - By 2025, the potential total tariff on Chinese goods could reach 54% (30% + 24%) if the additional tariffs are implemented[12] Export Trends - In Q2, there may be a surge in Chinese exports as companies rush to clear inventory before the potential 24% tariff is enacted[14] - China's reliance on U.S. exports is decreasing, with increased exports to Southeast Asia and a rise in re-export trade[14] - Industries with lower re-export costs compared to tariff costs are likely to accelerate exports to mitigate global trade risks[14] Domestic Economic Impact - The high tariffs create a challenging environment for industries with low technological and brand value, which may benefit from tariff reductions[21] - The market's confidence has rebounded to pre-tariff levels, suggesting that domestic policies may not tighten further unless external risks stabilize[24] - The current fiscal policy is expected to remain cautious, with limited room for further monetary easing unless significant risks arise[24]

Group 1 - The core point of the article is the significant change in the US-China tariff situation, where both countries agreed to cancel 91% of tariffs, providing a boost to the global economy and alleviating market tensions [2] - Following the announcement, Li Ka-shing's CK Hutchison Holdings issued a statement regarding a $22.8 billion global port deal, emphasizing that it would not proceed in an illegal or non-compliant manner, contrasting with their previous stance [4][6] - The company attempted to downplay the political implications of the port deal, asserting it was a purely commercial transaction, but public scrutiny intensified instead of subsiding [8][9] Group 2 - Li Ka-shing's shift in position reflects a strategic response to the easing of US-China tensions, as the company seeks to find a balance in its business strategy amidst changing circumstances [11][13] - The company stated that the port deal must meet three conditions to proceed: legal and regulatory approval, no violations of laws, and shareholder consent, indicating a commitment to compliance [15][18] - To regain public trust, the company could consider three remedial measures: terminating the deal and accepting legal consequences, shifting core business operations back to domestic markets, and engaging in charitable projects to improve its corporate image [20][30] Group 3 - The cancellation of tariffs is expected to lead to a recovery in commodity markets, particularly benefiting copper demand due to potential renewed cooperation in the renewable energy sector [38] - Chinese steel companies may also benefit from domestic growth policies, particularly in infrastructure projects, which will enhance demand expectations for rebar and hot-rolled coils [38] - Oil prices are anticipated to rise alongside improved macroeconomic sentiment, indicating a broader positive outlook for various sectors [38]