Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - Policy effects are gradually emerging, with obvious economic structural changes, including improved price data, high production - end prosperity, accelerated transformation of new and old drivers, effective "trade - in" policies, and optimized manufacturing investment structure [4][5]. - There is insufficient demand for entity financing, and residents' consumption willingness and ability still need to be improved, with weak real - economy financing demand, the real estate sector dragging down the economy, and economic data awaiting trend - based improvement [4][6]. - The economy is expected to continue a mild recovery in 2025, with high - end manufacturing and green transformation investment growing, the external environment improving marginally, and short - term policies likely in an observation period [4][24]. - Investment suggestions include re - balancing the equity market style, a likely volatile bond market, and increased differentiation in the commodity market [4]. Summary by Directory 1. 10 - month Economic Overview - The macro - economy cooled in October, with economic repair structure differentiation intensifying. Policy effects led to economic structural changes, while entity financing demand was insufficient, and economic data awaited improvement [5][6]. 2. Interpretation of 10 - month Economic Sub - data - Manufacturing PMI declined seasonally, with both supply and demand slowing. High - tech and equipment manufacturing, and consumer goods industries supported the manufacturing sector, while high - energy - consuming industries declined. The service industry expanded, and the construction industry declined [7][8]. - Fixed - asset investment decreased year - on - year, but manufacturing investment continued to grow. The real estate sector dragged down investment, while high - end and green - related manufacturing investment increased [9]. - The consumption end maintained a mild recovery, with the double - festival effect and "Double Eleven" boosting consumption. However, high base numbers and weak resident leverage may limit growth [10]. - Exports turned negative year - on - year in October, mainly due to high base numbers and weak external demand. Exports are expected to be under short - term pressure but remain resilient [10][11][12]. - Real estate sales continued to bottom out, with both sales area and investment declining. The industry is expected to improve with further policy support [13]. - The production end remained resilient, with high - tech and equipment manufacturing driving growth [14]. - PPI turned positive month - on - month for the first time this year, with supply - side policies taking effect. PPI is expected to maintain a mild upward trend [17][19]. - Social financing growth slowed in October, with both positive and negative aspects. M1 growth may have reached its peak this year, and there was a shift in deposits [20]. 3. Future Economic Outlook - Overseas, short - term liquidity may improve, but data shortages increase policy uncertainty. The probability of the Fed cutting interest rates in December has decreased [22]. - Domestically, short - term policy intensification is less necessary, and long - term policies focus on high - quality development [23]. - The economy is expected to continue a mild recovery in 2025, with high - end manufacturing and green transformation driving growth, the external environment improving, and short - term policies in an observation period [24]. 4. Investment Suggestions - Equity market: Short - term, it may fluctuate. Focus on North American power transformation, high - dividend stocks, "anti - involution" sectors, new consumption, and "15th Five - Year Plan" key areas [25][26][28]. - Bond market: It may remain volatile in the short term. A dumbbell - shaped strategy is recommended [29]. - Commodity market: Differentiation is intensifying. Precious metals are bullish in the long term but may be volatile in the short term, and crude oil may remain weakly volatile [30].

Market Performance - The three major indices closed higher this week, with the Shanghai Composite Index briefly surpassing 4000 points, reaching a high of 4025.70 points, but ultimately closing at 3954 points after two days of decline [1] - The Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index recorded cumulative increases of 0.11%, 0.67%, and 0.50% respectively [1] - Small-cap stocks outperformed, with the North Securities 50 Index rising by 7.52% and the National Securities 2000 Index increasing by 1.18%, while large-cap stocks underperformed, with the CSI 300 and SSE 50 indices falling by 0.43% and 1.12% respectively [1] Sector Performance - Eight primary sectors saw gains, with notable increases in electric equipment, non-ferrous metals, and steel, while sectors such as telecommunications, beauty care, and banking experienced significant declines [1] Investment Trends - The latest investment direction of the "National Big Fund" has emerged, with 30 A-share listed companies having the "National Big Fund" among their top ten circulating shareholders, including companies like Northern Huachuang, Hushi Silicon Industry, and others [1] - A series of favorable news has been released, including the official publication of the "14th Five-Year Plan" which emphasizes original innovation and key core technology breakthroughs in various sectors [2] - The Ministry of Science and Technology indicated a focus on increasing high-quality technological supply and promoting major national science and technology projects during the "14th Five-Year" period [3] Foreign Investment - Recent data shows a significant increase in international capital confidence in the Chinese market, with new foreign shareholders appearing in A-share companies, indicating a trend of foreign capital returning to China [4] - Analysts suggest that foreign capital inflow is a natural outcome of valuation recovery, industrial upgrades, and global asset rebalancing, with A-shares and Hong Kong stocks showing considerable long-term growth potential [4] Market Outlook - The A-share market is expected to experience a fluctuating upward trend in November, supported by policy drivers and improvements in the external environment [4] - Analysts recommend focusing on four key investment themes: TMT and technological self-reliance, high-end manufacturing and green transformation, energy resource security, and financial support for the real economy [5]