Report Industry Investment Rating - Not provided Core Viewpoints - The inter - bank market liquidity remains loose, with the central repurchase rates of major tenors moving down. The LPR quotes remained unchanged in November. The stock index rebounded, and it is expected that market differences will be gradually digested through index fluctuations this year. In the short term, the index will mainly operate in a volatile manner, and the downside risk is expected to be controllable. Short - term attention can be paid to overseas liquidity change signals and whether domestic policies will take effect in advance [4][6] Summary by Relevant Content Macro - financial Data - **Interest Rates**: DR001 closed at 1.32 with a - 0.05bp change, DR007 at 1.45 with a - 1.62bp change, GC001 at 1.42 with a 0.00bp change, GC007 at 1.53 with a - 2.50bp change, SHBOR 3M at 1.58 with a 0.00bp change, LPR 5 - year at 3.50 with a 0.00bp change, 1 - year treasury bond at 1.34 with a - 0.10bp change, 5 - year treasury bond at 1.55 with a 1.30bp change, 10 - year treasury bond at 1.81 with a - 0.30bp change, and 10 - year US treasury bond at 4.04 with a - 2.00bp change [3] - **Central Bank Operations**: The central bank conducted 3021 billion yuan of 7 - day reverse repurchase operations with an operating rate of 1.40%. 4075 billion yuan of reverse repurchases matured on the same day, resulting in a net withdrawal of 1054 billion yuan [3] Stock Index Data - **Index Closing Prices and Changes**: The CSI 300 closed at 4490, up 0.95%; the SSE 50 at 2968, up 0.60%; the CSI 500 at 6954.6, up 1.25%; the CSI 1000 at 7249.9, up 1.31%. The trading volume of the two markets reached 18121 billion yuan, an increase of 844 billion yuan from the previous day. Industry sectors generally rose, with education, gaming, precious metals and others leading the gains, while the shipbuilding sector fell sharply [5] - **Futures Contracts**: For the IF contract, the closing price was 4473, up 0.9%, the trading volume was 108933 with a - 4.2% change, and the open interest was 264574 with a - 1.5% change; for the IH contract, the closing price was 2959, up 0.5%, the trading volume was 43866 with a - 2.0% change, and the open interest was 88482 with a - 1.1% change; for the IC contract, the closing price was 6900, up 1.1%, the trading volume was 134717 with a 2.1% change, and the open interest was 258131 with a 2.1% change; for the IM contract, the closing price was 7172, up 1.1%, the trading volume was 213192 with a - 4.8% change, and the open interest was 367936 with a - 2.5% change [5] Futures Premium and Discount - **IF Premium and Discount**: The current - month contract was 5.89%, the next - month contract was 5.19%, the current - quarter contract was 3.28%, and the next - quarter contract was 3.58% - **IH Premium and Discount**: The current - month contract was 4.61%, the next - month contract was 3.31%, the current - quarter contract was 1.52%, and the next - quarter contract was 1.37% - **IC Premium and Discount**: The current - month contract was 11.94%, the next - month contract was 10.90%, the current - quarter contract was 9.98%, and the next - quarter contract was 10.80% - **IM Premium and Discount**: The current - month contract was 16.35%, the next - month contract was 14.19%, the current - quarter contract was 12.96%, and the next - quarter contract was 12.81% [7]

Core Viewpoint - The A-share market is performing well, with major indices rising, driven by positive internal and external factors [1] Market Performance - As of the report, the three major A-share indices are up, with the ChiNext Index increasing by over 2.00%, the Shanghai Composite Index rising by 0.25%, and the Shenzhen Component Index up by 0.90% [1] - Nearly 2000 stocks in the Shanghai, Shenzhen, and Beijing markets have seen price increases [1] External Factors - The weak U.S. labor market, with July non-farm payroll data falling short of expectations and previous months' data being significantly revised down, has raised concerns about the U.S. economy [1] - This situation has led to heightened expectations for a potential interest rate cut by the Federal Reserve in September, which may improve overseas liquidity [1] Internal Factors - Domestic policies are actively supporting the market, and the fundamental economic conditions remain resilient, which is expected to support domestic asset prices [1] - The combination of "anti-involution and major infrastructure" policies is likely to optimize the supply-demand structure, leading to stabilization and improvement in overall profitability and return on equity (ROE) across the A-share market [1] Future Outlook - With the systematic decline of domestic risk-free interest rates and the spillover of overseas dollar liquidity, incremental capital is expected to continue flowing into the market [1] - The market is anticipated to transition to a performance-driven phase, with the index's central tendency gradually moving upward as earnings improve [1]

Group 1 - A-shares market indices showed strong performance, with the Shanghai Composite Index breaking the previous high of 3674.40 points, reaching 3680.21 points, the highest since December 2021 [1] - Over 3100 stocks in the A-share market experienced gains, with notable sectors including industrial gases, semiconductor materials, and cultivated diamonds [1] - The financing balance in the A-share market reached a new high of 20345.33 billion yuan, with an increase of 411.73 billion yuan in August alone [1] Group 2 - Overall, the A-share market is expected to maintain strong performance due to accumulating internal and external favorable factors [2] - External factors include a weak US labor market and expectations of a potential interest rate cut by the Federal Reserve, which may improve overseas liquidity [2] - Domestic policies are actively supporting the market, with a focus on infrastructure and supply-demand optimization, leading to an anticipated stabilization and improvement in overall profitability and return on equity (ROE) [2]

Market Performance - The market rebounded last week, with the China Securities Xinhua National Brand Index rising by 0.94% to 1666.03 points [1] - The Shanghai Composite Index increased by 0.76%, the Shenzhen Component Index by 0.52%, the ChiNext Index by 1.38%, and the CSI 300 Index by 1.12% [1] Strong Stock Performances - Notable strong performers in the brand index included BGI Genomics, which rose by 17.27%, and Yiling Pharmaceutical, which increased by 9.81% [1] - Other significant gainers included Stone Technology and Marubi Biological, which rose by 7.18% and 6.79%, respectively [1] Year-to-Date Stock Gains - Since the beginning of 2025, Marubi Biological has surged by 60.82%, leading the gains, followed by Shanghai Jahwa with a 46.72% increase and BGI Genomics with a 34.45% rise [2] - Other stocks with notable increases include Anji Technology, Xintai, and Weir Shares, each rising over 20% [2] Market Outlook - Institutions expect the market to refocus on domestic economic fundamentals, with a positive policy response anticipated [2][3] - The current market is viewed as being in a high cost-performance range, with significant policy support expected to stabilize the economy and market [2] Economic Data Focus - Attention is drawn to upcoming economic data, particularly export performance and the sustainability of the export supply chain recovery [3] - The prevailing market conditions are supported by policy measures and liquidity easing, which are expected to bolster the stability of the domestic economy and capital markets [3]