Report Industry Investment Rating - No industry investment rating was provided in the report Core Viewpoints - In the current market pattern where Sino-US relations are marginally easing, aggregate policies remain stable, the macro - fundamentals are structurally pressured, and liquidity is stable without significant easing, the market will mainly fluctuate, and structural opportunities will dominate the trading rhythm [7] - It is recommended to adopt a "reverse layout" strategy, cashing in when the sector rises sharply and laying out when the sector adjusts [7] Summary by Directory Market Observation - Impact of Sino - US Leaders' Phone Call - The Sino - US leaders' phone call injected stabilizing factors into bilateral relations, and the probability of short - term risk escalation is low [5] - Sino - US structural differences still exist, and the actual implementation of Trump's visit to China is complex with low short - term possibility [5] - The negotiation paths of the two sides are different, and there may be "asymmetric concessions" on structural issues in subsequent negotiations, with the US likely to make larger concessions [5] - The main reason for the Trump administration's possible strategic concessions is the balance between industrial chain pressure and election interests [5] Investment Recommendations - New consumption sector: It is recommended to realize phased profits and avoid the risk of chasing high due to signs of reaching a high level and shareholder reduction announcements [7] - Safe assets (such as gold, military, rare earths, nuclear power equipment): They have medium - term allocation value as some valuations have corrected and the institutional position - adjustment stage is nearing completion [7] - AI and semiconductor in the technology chain: Pay attention to the Hang Seng Tech Index, Chinese server, computing infrastructure, and some semiconductor equipment companies, which are driven by both theme catalysis and low - level repair [7] - High - dividend/bonus assets: It is recommended to continue holding some high - dividend, public utility, and bond - like assets, suitable as the bottom - position allocation for a neutral and defensive portfolio [7] Market Review Market Performance - Most major market indices rose last week, with the ChiNext Index rising 2.32% [10][17] - Among major industries, the information technology and materials indices performed relatively well, rising 3.72% and 2.64% respectively; the public utility and optional consumption indices performed weakly, falling 0.22% and 0.14% respectively [10][17] - Among 30 Shenwan primary industries, 24 industries rose. The top - rising industries were communication, non - ferrous metals, and electronics, rising 5.27%, 3.74%, and 3.60% respectively; the top - falling industries were household appliances, food and beverages, and transportation, falling 1.79%, 1.06%, and 0.54% respectively [10][19] Trading Heat - The average daily trading volume of the Wind All - A Index last week was 1208.854 billion yuan (previous value: 1093.905 billion yuan), at a relatively high historical level (83.00% of the three - year historical quantile) [10][22] Valuation Tracking - As of June 6, 2025, the valuation (PE_TTM) of the Wind All - A Index was 19.18, up 0.13 from last week, at the 68.50% quantile in the past five years [28] - Among 30 Shenwan primary industries, 24 industries' valuations (PE_TTM) showed repair [28] Economic Calendar - This week, domestic economic data to be released include China's CPI year - on - year, PPI year - on - year, import and export year - on - year in US dollars, and trade balance in US dollars [30] - Overseas economic data to be released include the US unadjusted CPI year - on - year, PPI year - on - year, and the eurozone trade balance in euros [30]

Group 1 - The core viewpoint of the report emphasizes that the recent phone call between the Chinese and U.S. presidents has injected stability into the complex bilateral relationship, with both sides agreeing to hold further talks soon [3][14]. - The report indicates that the probability of risk escalation in the short term is low, as the official communication from both sides highlights a commitment to existing agreements and a focus on advancing negotiations [4][14]. - Structural differences between China and the U.S. remain significant, particularly on key issues such as rare earth exports, TikTok regulations, and the "fentanyl tax," with no clear commitments made by China in the official statements [4][15]. Group 2 - The report suggests that the Trump administration's potential strategic concessions are primarily driven by political calculations related to upcoming elections, particularly concerning the automotive industry in key swing states [5][17]. - Investment recommendations are made in the context of a stabilizing market influenced by U.S.-China relations, with a focus on sectors such as new consumption, safety assets, technology chains, and high-dividend assets [6][18]. - Specific strategies include taking profits in the new consumption sector due to high valuations and potential risks, while suggesting a focus on safety assets and technology sectors that may benefit from easing export restrictions [19][20]. Group 3 - The report outlines a market outlook characterized by volatility, with major indices showing upward trends, particularly in small-cap growth sectors [12][23]. - It highlights that the market's overall activity has increased, with significant trading volumes and a notable rise in the turnover rate for major indices [12][35]. - The report also tracks valuation indicators, noting that certain industries, such as defense and automotive, are trading above historical median valuations, indicating potential investment opportunities [40][44].