Valuation Changes in A-shares - Compared to the low point on April 7, the congestion level of the Sci-Tech Innovation 50 Index has significantly increased, with notable rises in the congestion levels of indices such as the Sci-Tech 50, CSI 500, and Shenzhen Component Index, particularly in sectors like power equipment, non-ferrous metals, and electronics [1] - The valuation of the ChiNext Index has significantly increased compared to the April 7 low, with the Sci-Tech 50 Index's valuation rising over 100%, and substantial increases in valuations observed in the real estate, telecommunications, and power equipment sectors [2] - The financing balance of major broad-based indices and most industry indices has risen compared to the April 7 low, with significant increases in financing balances for indices such as the SSE 50, ChiNext Index, and Sci-Tech 50, particularly in the telecommunications and electronics sectors [2] Industry Tracking: Photovoltaics - A market rumor suggests that relevant authorities may issue a document to strengthen photovoltaic capacity regulation, focusing on "anti-involution" policies, which may accelerate the elimination of outdated supply capacities [3] - The core of this reform is to "prohibit sales below cost," targeting the upstream silicon material segment, with legal measures being taken to set price war boundaries [4] - The investment return rate for photovoltaic power stations requires a minimum on-grid electricity price of 0.25 yuan/kWh, while component prices should not exceed 0.70 yuan/W, indicating that price increases will be limited by terminal demand capacity [4] - Future pathways for photovoltaics will depend on policy guidance, technological innovation, and globalization, with high-efficiency technologies like BC batteries and cost-reduction techniques such as copper paste metallization being key to achieving differentiated profitability [4][5] - BC batteries are gaining market attention due to their higher conversion efficiency and reduced production costs, with the cost difference from TOPCon technology expected to narrow significantly [5] - Copper paste technologies are developing alongside silver alternatives, with low-temperature silver-coated copper paste becoming mainstream in HJT batteries, capturing a market share of 75% [5]

Group 1 - The report indicates that the recent tariff actions by the Trump administration are more likely aimed at setting the stage for future negotiations rather than purely exerting pressure, with the market's response expected to be more rational this time around [2][5][18] - Compared to April, the A-share market has seen significant increases in valuation and leverage, particularly in sectors such as TMT and non-ferrous metals, suggesting a strong upward trend despite short-term volatility [2][6][8] - The report emphasizes that the core logic driving the "slow bull" market in A-shares remains unchanged, with technology sectors identified as the long-term focus for investment [2][8][36] Group 2 - The report highlights that the response strategies from China have become more precise and targeted, with specific measures taken against U.S. industries, indicating a shift towards a more nuanced approach in trade relations [5][18] - It notes that the market's reaction to the recent tariff threats is expected to be more resilient, as investors have adjusted their expectations based on previous experiences and the targeted nature of China's countermeasures [5][18] - The report outlines that sectors heavily reliant on exports, such as electronics and automotive parts, may face short-term challenges, while defensive sectors like banking and agriculture could benefit from increased risk aversion [8][36]