Group 1: Core Views - The Sci-Tech Innovation Board (STAR Market) has successfully supported unprofitable tech companies, with 54 such companies listed, of which 22 have achieved profitability post-listing [1] - The STAR Market's "1+6" reform has established a growth tier to create a management loop for unprofitable companies, promoting tech innovation while managing market risks and protecting investors [1] Group 2: Financial Performance - By the first half of 2025, revenue for 32 companies in the STAR Market's growth tier increased by 37.79% year-on-year, while net profit losses were significantly reduced by 71.23 billion yuan [1] Group 3: Fundraising and Capital - As of September 2023, 16 companies in the STAR Market's growth tier have announced refinancing plans to raise a total of 29.5 billion yuan, with 8 companies successfully raising 13.2 billion yuan [3] - The introduction of standards for light assets and high R&D investments has enhanced financing flexibility, allowing companies to increase R&D spending [3] - For instance, Cambrian Technology raised 3.985 billion yuan through a private placement, with over 30% of the funds allocated to R&D [3][4] Group 4: Mergers and Acquisitions - The STAR Market's policies have invigorated mergers and acquisitions, with 6 transactions disclosed since the introduction of the "STAR Market Eight Articles" [6] - ChipLink Integration's acquisition of a 72.33% stake in ChipLink Yuezhou marks the first asset purchase transaction using stock issuance in the STAR Market [6] Group 5: Talent Retention - Stock incentive plans are crucial for attracting and retaining talent in tech companies, with 33 companies in the STAR Market's growth tier implementing such plans [8] - For example, Junshi Biosciences has launched three stock incentive plans, covering over 2,200 employees, with a coverage rate exceeding 90% [9]

Core Viewpoint - The article highlights the innovative reforms in the Sci-Tech Innovation Board (STAR Market) that support unprofitable technology companies to go public, fostering a management loop for these companies to grow and achieve profitability while balancing market risks and investor protection [1] Group 1: Support for Unprofitable Companies - The STAR Market has seen 54 unprofitable companies go public, with 22 of them achieving profitability post-listing [1] - The "1+6" reform framework has established a growth tier for unprofitable companies, promoting a management cycle of entry, cultivation, and exit [1] - In the first half of 2025, revenue for 32 companies in the growth tier increased by 37.79%, while net losses were significantly reduced by 71.23 billion yuan [1] Group 2: Financing and Capital Raising - As of September 2023, 16 companies in the growth tier have announced refinancing plans, aiming to raise a total of 29.5 billion yuan, with 8 companies successfully raising 13.2 billion yuan [2] - The introduction of standards for light assets and high R&D investments has enhanced financing flexibility, allowing companies to increase R&D spending [2] - For instance, Cambrian Technology raised 3.985 billion yuan primarily for chip and software platform development, with over 30% of the funds allocated to R&D [2][3] Group 3: Mergers and Acquisitions - Mergers and acquisitions (M&A) have been revitalized by the "Eight Articles" and "Six Articles" policies, leading to 6 disclosed M&A transactions in the growth tier, all focused on industrial acquisitions [4] - The acquisition of 72.33% of Chiplink by Chiplink Integration marks the first share issuance for asset purchase in the STAR Market, showcasing innovative valuation methods for unprofitable tech assets [4] Group 4: Employee Incentives - Stock incentive plans are crucial for attracting and retaining talent in tech companies, with 33 companies in the growth tier implementing such plans by September 2025 [5] - The second type of restricted stock incentive tool has been widely adopted, with 28 instances reported, covering over 12,000 employees, which is approximately 30% of total company personnel [5] - For example, Junshi Biosciences has launched three stock incentive plans, covering over 2,200 employees, with a performance target set for future profitability [6]

Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - This week, the anti - "involution" policy drove up the stock prices of related sectors, coupled with the rebound of the large - financial sector, leading to a recovery in market risk appetite. Overseas, the impact of US tariffs is gradually materializing. Domestically, attention should be focused on the expectations of the "Political Bureau Meeting of the CPC Central Committee" in July, with anti - "involution" expected to be one of the important themes. Strategically, opportunities for market style rotation should be monitored, and it is recommended to go long on IF stock index futures on dips [10][11]. Summary by Directory 1. Weekly Assessment and Strategy Recommendation - **Important News**: Include the start of the Yarlung Zangbo River downstream hydropower project, the release of the "Rural Highway Regulations", power consumption growth, state - owned asset optimization, potential innovation in the Sci - tech Innovation Board, possible large - scale redemptions of bond funds, and Trump's proposed tariff policy [10]. - **Economic and Corporate Earnings**: China's Q2 GDP annual rate was 5.2%, with positive performance in consumption, industrial added value, and exports. However, the real estate sector continued to decline, and there was still significant pressure to stabilize prices. The social financing scale and money supply showed certain growth [10]. - **Interest Rates and Credit Environment**: The 10Y treasury and credit bond interest rates rebounded synchronously, with unchanged credit spreads. The DR007 interest rate rebounded seasonally at the end of the month, and liquidity tightened temporarily [10]. - **Trading Strategies**: Hold a small number of IM long positions in the long - term due to its medium - to - low valuation and long - term discount. Hold IF long positions for six months as a new round of interest rate cuts may benefit high - dividend assets [12]. 2. Spot and Futures Markets - **Market Indexes**: Data for major indexes such as the Shanghai Composite Index, Shenzhen Component Index, and others are not available. The AH ratio was 123.52, down 2.19% from 126.28 [14]. - **Futures Contracts**: Data for various stock index futures contracts including IF, IH, IC, and IM are not available [15]. - **Volume and Ratio Analysis**: Multiple charts show historical data on trading volume, open interest, basis, and contract ratios of stock index futures [17][19][21][23][28][30]. 3. Economic and Corporate Earnings - **Economic Indicators**: Q2 GDP actual growth was 5.2%. In June, the manufacturing PMI was 49.7%, up 0.2 percentage points from May. Consumption growth slowed to 4.8%. Exports remained resilient with a 5.8% year - on - year increase. Investment growth was 2.8%, with declines in manufacturing, real estate, and infrastructure investment [35][38][41]. - **Corporate Earnings**: In Q1 2025, the revenue growth rate of all A - share non - financial listed companies slightly declined compared to Q4 but was still higher than Q3 last year. The operating net cash flow increased year - on - year and improved compared to Q4, mainly due to reduced inventory [44]. 4. Interest Rates and Credit Environment - **Interest Rates**: The 10 - year treasury bond yield and 3 - year AA - corporate bond yield are presented in charts. The DR007 interest rate and 7 - day reverse repurchase rate, along with reverse repurchase volume, show liquidity and policy rate trends. Sino - US 10 - year bond interest rates and spreads, as well as the relationship between interest rates and exchange rates, are also analyzed [47][50][52]. - **Credit Environment**: In June 2025, M1 growth was 4.6% and M2 growth was 8.3%. The social financing increment was 4.20 trillion yuan, with government bonds and corporate short - term loans being the main contributors [57]. 5. Capital Flows - **Inflow**: This week, the new share issuance of equity - biased funds was 194 million shares, and the net margin purchase was 392 million yuan [63][66]. - **Outflow**: This week, major shareholders had a net increase in holdings of 3883 million yuan, and the number of IPO approvals was 1 [69]. 6. Valuation - The price - to - earnings ratio (TTM) of the Shanghai 50 was 11.41, the CSI 300 was 13.51, the CSI 500 was 30.73, and the CSI 1000 was 40.26. The price - to - book ratio (LF) of the Shanghai 50 was 1.26, the CSI 300 was 1.42, the CSI 500 was 2.06, and the CSI 1000 was 2.29 [73].