Report Industry Investment Rating - No industry investment rating was provided in the report Core Viewpoints - In the current market pattern where Sino-US relations are marginally easing, aggregate policies remain stable, the macro - fundamentals are structurally pressured, and liquidity is stable without significant easing, the market will mainly fluctuate, and structural opportunities will dominate the trading rhythm [7] - It is recommended to adopt a "reverse layout" strategy, cashing in when the sector rises sharply and laying out when the sector adjusts [7] Summary by Directory Market Observation - Impact of Sino - US Leaders' Phone Call - The Sino - US leaders' phone call injected stabilizing factors into bilateral relations, and the probability of short - term risk escalation is low [5] - Sino - US structural differences still exist, and the actual implementation of Trump's visit to China is complex with low short - term possibility [5] - The negotiation paths of the two sides are different, and there may be "asymmetric concessions" on structural issues in subsequent negotiations, with the US likely to make larger concessions [5] - The main reason for the Trump administration's possible strategic concessions is the balance between industrial chain pressure and election interests [5] Investment Recommendations - New consumption sector: It is recommended to realize phased profits and avoid the risk of chasing high due to signs of reaching a high level and shareholder reduction announcements [7] - Safe assets (such as gold, military, rare earths, nuclear power equipment): They have medium - term allocation value as some valuations have corrected and the institutional position - adjustment stage is nearing completion [7] - AI and semiconductor in the technology chain: Pay attention to the Hang Seng Tech Index, Chinese server, computing infrastructure, and some semiconductor equipment companies, which are driven by both theme catalysis and low - level repair [7] - High - dividend/bonus assets: It is recommended to continue holding some high - dividend, public utility, and bond - like assets, suitable as the bottom - position allocation for a neutral and defensive portfolio [7] Market Review Market Performance - Most major market indices rose last week, with the ChiNext Index rising 2.32% [10][17] - Among major industries, the information technology and materials indices performed relatively well, rising 3.72% and 2.64% respectively; the public utility and optional consumption indices performed weakly, falling 0.22% and 0.14% respectively [10][17] - Among 30 Shenwan primary industries, 24 industries rose. The top - rising industries were communication, non - ferrous metals, and electronics, rising 5.27%, 3.74%, and 3.60% respectively; the top - falling industries were household appliances, food and beverages, and transportation, falling 1.79%, 1.06%, and 0.54% respectively [10][19] Trading Heat - The average daily trading volume of the Wind All - A Index last week was 1208.854 billion yuan (previous value: 1093.905 billion yuan), at a relatively high historical level (83.00% of the three - year historical quantile) [10][22] Valuation Tracking - As of June 6, 2025, the valuation (PE_TTM) of the Wind All - A Index was 19.18, up 0.13 from last week, at the 68.50% quantile in the past five years [28] - Among 30 Shenwan primary industries, 24 industries' valuations (PE_TTM) showed repair [28] Economic Calendar - This week, domestic economic data to be released include China's CPI year - on - year, PPI year - on - year, import and export year - on - year in US dollars, and trade balance in US dollars [30] - Overseas economic data to be released include the US unadjusted CPI year - on - year, PPI year - on - year, and the eurozone trade balance in euros [30]

Investment Rating - The report does not explicitly provide an investment rating for the industry but discusses various investment opportunities and risks associated with different sectors. Core Insights - The report highlights three major industry trends for the year: breakthroughs in private technology, defensive assets under stable policies, and safe-haven assets amid global geopolitical tensions [6][7][8]. Summary by Sections 1. Private Technology Breakthroughs - The report emphasizes investment opportunities in China's technology sector, particularly in internet leaders, computing power, and robotics. The low-cost AI wave brought by DeepSeek is expected to significantly reduce AI deployment costs, benefiting downstream industries such as internet, new energy vehicles, and robotics. However, the overall diffusion of these technologies is limited, and investors should avoid excessively high valuations in small-cap tech stocks [6][7]. 2. Defensive Assets - Under stable macroeconomic policies, defensive assets such as bonds and dividend-paying stocks (e.g., utilities) are highlighted. The report anticipates that the overall profitability of A-shares will face significant growth pressure in 2025 due to new capacity pressures in sectors like new energy vehicles and semiconductors, compounded by global trade risks. Dividend-paying assets are seen as stable with low valuations, providing strong safety margins [7][8]. 3. Safe-Haven Assets - The report discusses the potential rise in demand for safe-haven assets like gold, non-ferrous metals, and military-related industries due to increased geopolitical tensions and the "America First" policy under Trump 2.0. The weakening of the dollar and rising long-term inflation may enhance the appeal of gold as an anti-inflation asset. Additionally, the demand for construction machinery and equipment is expected to remain strong as countries expand their manufacturing capabilities [8].