Market Overview - The machinery, power equipment, and automotive industry indices experienced declines of -0.76%, -2.62%, and -2.36% respectively over the last week, ranking 9th, 24th, and 21st among 31 primary industries [2] Industry Insights - The engineering machinery market showed signs of improvement in July, with the China Machinery Index (CMI) at 100.73, reflecting a year-on-year increase of 5.54% but a month-on-month decrease of 4.20%. The index remains slightly above the contraction threshold of 100, indicating a seasonal downturn [3] - Compared to June, the July CMI's year-on-year growth rate increased by 0.46 percentage points, and the month-on-month decline narrowed by 7.79 percentage points, suggesting a continued year-on-year improvement trend in the domestic engineering machinery market [3] - Excavator sales in the first half of the year grew rapidly but showed volatility, with expectations for stable growth in the second half supported by domestic infrastructure and an upward trend in the replacement cycle. The engineering machinery sector, particularly leading companies with high earnings certainty, is recommended for continued attention [3] - In the photovoltaic sector, recent procurement announcements from China Huadian Group for 20GW of high-efficiency N-type TOPCon and HJT components are expected to boost short-term market conditions. The efficiency requirements for these components are set at ≥23.8% [3] - Companies like Aiko Solar and LONGi Green Energy have reported high efficiency rates of 24.6% and 24.8% respectively for their N-type components, indicating a strong competitive position in the market [3] - The BC battery technology is emerging as a core direction for cost reduction and efficiency improvement in the photovoltaic industry, with significant long-term growth potential, although challenges related to technology iteration and cost control need to be monitored [3] Automotive Sector - In the fourth week of July (July 21-27), the average daily retail sales of passenger vehicles reached 67,000 units, marking a year-on-year increase of 5%, despite a 30% decline compared to the previous month [4] - The domestic automotive market is expected to maintain rapid growth, supported by promotional activities such as trade-in programs and a surge in exports. Attention is advised for manufacturers with brand and scale advantages [4]