1. Report Industry Investment Rating No information provided in the document. 2. Core Views of the Report - A long - term bull market started in early 2024, and the current market is in the transition from confidence restoration to the main up - wave or may already be in the main up - wave. In the fourth quarter, there will be a shock adjustment in October, and there is still a possibility of a new medium - level rise at the end of the year [5][7]. - The driving forces of the bull market include the cyclical recovery and improved expectations of the macro - economy, policy support, technological progress, and the shift of asset allocation directions [7]. - The overall index position is not high, but the valuation is relatively high. It is currently on the eve of the main up - wave, and the "Davis double - click" has not started yet. It is speculated that the valuation will increase first, followed by performance improvement [124]. - Index differentiation is obvious. There will be an obvious adjustment in October, and the index will continue to fluctuate upward from November to December, with the center of gravity moving up. The style may change at the end of the year, and the Shanghai Composite 50 will be stronger than the CSI 500 and CSI 1000 index futures. The long - term trend remains unchanged, and there is still hope for an upward movement around the Spring Festival [135]. 3. Summary by Relevant Catalogs 3.1 Why the Current Bull Market Started in Early 2024 - From the definition of trends, the bear - to - bull conversion was completed in February 2024, which is also the case for other indices [10]. 3.2 Driving Forces of the Bull Market 3.2.1 Cyclical Recovery and Improved Expectations of the Macro - Economy - The fundamentals are still not optimistic, facing great pressure. For example, the growth rate of industrial added value has rebounded, but the growth rate of major industrial product output remains low; the growth rate of fixed asset investment continues to decline; the growth rate of total retail sales of consumer goods has declined, and consumer confidence is hovering at a low level; the inflation situation is continuously weak; the unemployment rate has risen seasonally; the manufacturing PMI has been continuously weak; production is strong while demand is weak, and inventories are increasing; the PMI of the construction and service industries is at a low level; the export situation is expected to deteriorate [13][14][19]. - There are also many positive signals. China's share of global exports is increasing, and the new "new three" products (robots, artificial intelligence, and innovative drugs) are emerging. The chip export is increasing year by year, and the chip import - export deficit is gradually shrinking. The production and sales of automobiles have increased, and the export volume has exceeded the sum of Germany and Japan. The production and sales of excavators have improved. The profitability of industrial enterprises above a designated size has improved month - on - month [60][61][65]. 3.2.2 Policy Support - Fiscal policy is loose. The government department's leverage ratio is relatively low and there is still room to increase leverage. Various consumption subsidies are likely to continue in some form, and other measures such as increasing the deficit scale and transfer payment intensity will be implemented [81]. - The Fed's interest rate cut provides room for domestic interest rate cuts. The 7 - day reverse repurchase rate has remained low for a long time, and the capital supply will continue to be loose. The capital interest rate still has room to decline [83][84]. - The stock market's rise can stimulate economic growth, help economic transformation, improve the corporate financing environment, relieve debt pressure, and enhance international competitiveness [88]. 3.2.3 Technological Progress - Technologies such as artificial intelligence and robotics represented by the open - source DeepSeek artificial intelligence large - model and Unitree Technology may be first applied in China. The chip industry chain is the last important short - board before China becomes a technological super - power. Technological progress will bring a bull market [89]. 3.2.4 Shift of Asset Allocation Directions - Overseas funds are flowing in. As the pressure on the US dollar to depreciate increases and the US stock market is at a record high with high correction pressure, overseas investors' expectations for A - shares have improved, resulting in an increase in the surplus of foreign exchange settlement and sales [92]. - Residents are shifting from real estate to the stock market. The demand for "speculating in real estate" temporarily does not exist. The real estate is still in the bottom - building process, and the ratio of the stock market's total market value to residents' deposits is still at a low level, with great room for improvement [101][103]. 3.3 Index Valuation - The overall index position is not high, but the valuation is relatively high. This is mainly because the current macro - economy is still in the bottom - building process, corporate profits are poor, and the valuation is passively pushed up [124]. 3.4 Index Seasonality - Index differentiation is obvious. There is an obvious adjustment in October. From November to December, the index continues to fluctuate upward with the center of gravity moving up. Sometimes, in December, fund position - adjustment may cause the index to fall. At the end of the year, the style may change, and the Shanghai Composite 50 will be stronger than the CSI 500 and CSI 1000 index futures. The long - term trend remains unchanged, and there is still hope for an upward movement around the Spring Festival [135].

Group 1 - The core viewpoint of the article highlights that Shanghai New Power Automotive Technology Co., Ltd. (referred to as "Power New Science") reported a significant reduction in net loss for the first half of 2025, with a net profit attributable to shareholders of -301 million yuan, showing a substantial improvement year-on-year [1] - In the first half of 2025, Power New Science focused on market expansion, product technology research and development, and cost reduction, despite its subsidiary, SAIC Hongyan Automobile Co., Ltd., facing operational difficulties, resulting in a 87.57% decrease in complete vehicle sales to 569 units [1] - The company experienced rapid growth in its non-heavy truck business, with diesel engine sales reaching 86,300 units, a year-on-year increase of 13.60%, outperforming the industry growth rate by nearly 10 percentage points [1] Group 2 - In terms of segment performance, Power New Science sold 86,200 engines in the first half of 2025, with external market sales reaching 43,600 units, marking a 32% year-on-year increase, the highest in a decade [1] - The sales in the engineering machinery supporting market grew by 39%, while the marine power station supporting market (including data center supporting market) saw a 48.8% increase in sales [1] - The company established 18 new overseas service networks for its export business, laying a solid foundation for further international market expansion in the second half of the year [1] Group 3 - In the new energy business, Power New Science is developing projects in an orderly manner, establishing a market expansion strategy focused on industry support while continuously breaking through external support [2] - The sales of battery PACK and electric drive bridges reached 5,760 units, representing an 86.6% year-on-year increase, with active efforts to expand into the bus, light truck, and battery swap market support businesses [2] - Industry insiders believe that with the continued implementation of proactive macro policies by the state, domestic macroeconomic conditions are expected to improve in the second half of 2025, which may lead to sustained growth in Power New Science's engine and new energy businesses [2]

Core Viewpoint - The report reveals significant adjustments in the holdings of five funds managed by Ruiyuan Fund, with notable reductions in major stocks such as China Mobile, Tencent Holdings, and Xiaomi Group compared to the end of last year. However, fund managers remain optimistic about certain sectors, anticipating a positive shift in the macroeconomic environment that could support further stock market growth [1][2][4]. Group 1: Fund Performance and Adjustments - Ruiyuan Fund's three prominent managers, Fu Pengbo, Rao Gang, and Zhao Feng, have made substantial changes to their portfolios in Q1 2025, with only Ruiyuan Growth Value outperforming its benchmark [2]. - Fu Pengbo's Ruiyuan Growth Value A and C recorded net asset growth rates of 2.45% and 2.35%, respectively, underperforming their benchmarks by 0.16 and 0.26 percentage points. The fund maintained a high position and increased allocations in the Hang Seng Technology sector, medical device leaders, and the chip sector [2][3]. - Rao Gang's Ruiyuan Steady Configuration Two-Year Fund significantly reduced its holdings in China Mobile by over 43% and also decreased its positions in Tencent Holdings and Xiaomi Group by 20% and 13.91%, respectively. The fund increased its stake in CATL by nearly 10% and initiated a position in Alibaba [3][4]. - Zhao Feng's Ruiyuan Balanced Value Three-Year Fund showed strong performance with net asset growth rates of 5.79% and 5.71%, outperforming benchmarks by 3.74 and 3.66 percentage points. Zhao Feng also reduced holdings in major stocks but to a lesser extent than his peers, while significantly increasing positions in cyclical and financial stocks like Shanxi Fenjiu and China Pacific Insurance [3][4]. Group 2: Market Outlook and Investment Opportunities - The overall fund sizes have decreased, but there is a focus on emerging investment opportunities, particularly in consumer stocks. The Ruiyuan Fund managers are paying close attention to this sector [4]. - Fu Pengbo highlighted the potential for a new round of domestic consumption stimulus policies, which could positively impact the consumer sector this year [4][5]. - Rao Gang noted that while short-term tariff increases may negatively affect exports, they also present an opportunity for structural adjustments in the domestic economy, with consumption expected to play a crucial role in economic growth [4][5]. Group 3: Key Holdings and Changes - Major stock holdings across the funds include Tencent Holdings, China Mobile, and Xiaomi Group, with significant reductions in their positions. For instance, Ruiyuan Growth Value saw a 20.57% decrease in China Mobile and a 26.25% decrease in Giant Star Technology [2][3][6]. - Ruiyuan Steady Configuration Two-Year Fund's top holdings included Tencent Holdings, China Mobile, and CATL, with notable reductions in their positions [3][9]. - Ruiyuan Balanced Value Three-Year Fund's key holdings featured Tencent Holdings and Alibaba, with a focus on increasing positions in Shanxi Fenjiu and China Pacific Insurance [3][10].