1. Report Industry Investment Rating No information provided in the given content. 2. Core View of the Report - The economy in the first half of 2025 showed resilience, with the real GDP growing by 5.3% year-on-year, 0.3 percentage points higher than the same period last year and the whole year of last year, reflecting the effect of counter - cyclical policy adjustment. The report predicts economic indicators for July 2025 and the third quarter, expecting a slight slowdown in economic growth in the third quarter, with GDP expected to grow by 4.9% year - on - year. The main supports for economic growth in the second half of the year are expected to come from consumption and infrastructure investment, while exports and the real estate market may pose uncertainties [1][13][81]. 3. Summary According to the Table of Contents 3.1 Industrial Added Value - Expected year - on - year growth in July: 6.0%. In July, the economic sentiment declined, with the manufacturing PMI at 49.3%, down 0.4 pct from the previous month. Production and demand both declined, with the production index at 50.5% and the new order index at 49.4%. The price index rebounded. The production PMI dropped 0.5 pct to 50.5%, and the procurement volume index dropped 0.7 pct to 49.5%, indicating a marginal decline in production enthusiasm and economic sentiment. It is expected that the industrial added value growth rate in the third quarter may slow down compared to the second quarter [2][14][21]. 3.2 Social Retail Sales - Expected year - on - year growth in July: 5.1%. High - frequency data shows that real - estate post - cycle consumption is under pressure, but automobile sales increased by 9% year - on - year from July 1 - 27, and service consumption is expected to recover. The July service PMI was 50.0%, slightly down 0.1 pct from the previous month but still in the expansion range. It is expected that social retail sales will maintain a relatively high growth rate in the third quarter, with expected year - on - year growth of 5.1%, 4.8%, and 5.4% from July to September [3][29][31]. 3.3 Fixed - Asset Investment - Expected cumulative year - on - year growth in July: 2.7%. In infrastructure, the cumulative year - on - year growth of infrastructure investment declined in July, with the construction PMI dropping 2.2 pct to 50.6%, and the new special bond issuance accelerating. In real estate, investment growth remained weak, with new home sales and land transactions below seasonal levels, and demand remaining weak despite price rebounds in some commodities. In manufacturing, investment maintained resilience. Although domestic and external demand was weak, the manufacturing production and operation activity expectation index rose to 52.6%, indicating increased confidence among manufacturing enterprises [6][36][46]. 3.4 Trade 3.4.1 Exports - Expected year - on - year growth in July: 6.8%. After the Sino - US trade negotiations in June, the policy environment risk for exports decreased. In July, the weekly average of port cargo throughput and container throughput was higher than the same period last year. Exports to ASEAN countries remained strong, while exports to the US declined. It is expected that the export growth rate in the third quarter will be 5.6%, slightly lower than the 6.2% in the second quarter [50][61]. 3.4.2 Imports - Expected year - on - year growth in July: 0.0%. The import sub - index of the manufacturing PMI in July was 47.8%, the same as the previous month, interrupting two consecutive months of upward trends. The import container freight rate index increased slightly year - on - year. It is expected that the import growth rate will turn positive in the third quarter, with expected growth rates of 0.0%, 1.4%, and 0.4% from July to September [7][64][65]. 3.5 Inflation 3.5.1 CPI - Expected year - on - year growth in July: - 0.2%. In July, pork prices fluctuated at a low level, while vegetable prices rebounded. Considering the increase in oil prices and seasonal factors, the CPI may be negative. It is expected that the CPI will be - 0.2%, - 0.3%, and - 0.1% from July to September [8][68]. 3.5.2 PPI - Expected year - on - year growth in July: - 3.2%. In July, most commodity prices rebounded, with the PPI showing "improved month - on - month and narrowing year - on - year decline." The price increase was mainly due to supply - side policies rather than demand expansion. It is expected that the PPI will be - 3.2%, - 2.5%, and - 1.8% from July to September [8][70][71]. 3.6 GDP - Expected year - on - year growth in the third quarter: 4.9%. In July, the manufacturing PMI declined unexpectedly, with seasonal disturbances and weak demand. The expansion momentum slowed down. It is expected that the economic growth in the third quarter will decline slightly compared to the second quarter, with a year - on - year growth of about 4.9%. The annual GDP is expected to achieve a growth target of about 5% [81]. 3.7 Social Financing and Credit 3.7.1 Credit - Expected new credit in July: 38 billion yuan. July is a traditional off - peak month for credit, and the bill rate dropped significantly, indicating insufficient real - economy financing demand. It is expected that corporate short - term loans will decrease less year - on - year by 22 billion yuan, corporate long - term loans will increase by 18 billion yuan year - on - year, household short - term loans will decrease less year - on - year by 16.56 billion yuan, household long - term loans will increase by 1 billion yuan year - on - year, and bill financing will increase by 43 billion yuan, with a year - on - year decrease of 13 billion yuan [84][86][95]. 3.7.2 Social Financing - Expected new social financing in July: 162 billion yuan. It is expected that government bond net financing will be about 115 billion yuan, corporate bond net financing will be about 19 billion yuan, and non - standard financing will be - 24 billion yuan. The corresponding year - on - year growth rate of social financing stock is expected to be 9.1%, higher than that in June. The M2 year - on - year growth rate in July is expected to be basically the same as that in June, at 8.3% [96][102][106].