Report Industry Investment Rating No relevant content provided. Core Views of the Report - After the holiday this year, the A-share market had a positive start, but new changes emerged in early October, including news on margin trading risk prevention and new developments in Sino-US trade relations, which will impact this week's market, with a greater expected impact on IC and IM than on IH and IF [1][2]. - The new trade friction is an unexpected factor. The market trend after the lower opening on Monday depends on whether there are new negative or positive factors. The progress of trade friction and the intensity and timeliness of domestic policy hedging are key. The market may still recover after a bottom - finding process, and it is advisable to prepare funds and set up long positions [3]. - In the larger cycle, the market will show a more obvious slow - bull feature after this shock. The opening of the market's upward space requires an improvement in real - level profitability [4][5]. Summary by Directory 1. Spot Market Review - Last week, global stock indices showed mixed performance. The Nikkei 225 rose 5.07%, the Taiwan Weighted Index rose 2.02%, the Shanghai Composite Index rose 0.37%, and the Hang Seng Index rose 0.34%. The NASDAQ fell 2.53%, the Brazilian BOVESPA Index fell 2.44%, and the Russia RTS fell 3.13% [10][11]. - Since 2025, major domestic indices have shown varying degrees of increase. The ChiNext Index has risen 45.4%, the Small and Medium - sized Board Index has risen 30.0%, and the Shenzhen Component Index has risen 28.2% [13]. - Last week, most of the major domestic indices declined. The ChiNext Index fell 3.86%, the Shenzhen Component Index fell 1.26%, and the Small and Medium - sized Board Index fell 1.03% [15]. - Last week, sectors in the CSI 300 and CSI 500 indices showed mixed gains and losses. Among them, the CSI 500 Energy sector rose 3.19%, the CSI 300 Energy sector rose 4.06%, and the CSI 500 Utilities sector rose 5.67% [18]. 2. Stock Index Futures Market Review - Last week, the IM futures contract had the largest decline among the main contracts, and the IF futures contract had the largest amplitude [17]. - The trading volume and open interest of stock index futures rebounded [18]. - The basis of the main stock index futures contracts (futures - spot) and the cross - variety relationship showed certain trends [21]. 3. Index Valuation Tracking - As of October 10, the TTM price - to - earnings ratio of the CSI 300 Index was 14.25 times, and that of the SSE 50 Index was 11.78 times [22]. - The TTM price - to - earnings ratio of the CSI 500 Index was 35.18 times, and that of the CSI 1000 Index was 47.78 times [23]. 4. Market Capital Flow Review - The new - established equity - biased fund shares and margin trading balance showed certain trends [26]. - Last week, the capital interest rate declined, and the central bank had a net capital withdrawal [27][28].