Group 1 - The core viewpoint of the news is that AVIC Power has seen a significant stock price increase of 5.22%, reaching 47.80 CNY per share, with a trading volume of 2.873 billion CNY and a turnover rate of 2.34%, resulting in a total market capitalization of 127.415 billion CNY [1] - AVIC Power, established on December 23, 1993, and listed on April 8, 1996, is primarily engaged in the manufacturing of aircraft engines and related products, with its main business revenue composition being 91.55% from aircraft engines and derivatives, 6.17% from foreign trade exports, and 2.28% from non-aerospace products [1] Group 2 - From the perspective of fund holdings, one fund under AVIC has a significant position in AVIC Power, specifically the AVIC Huazheng Commercial Aircraft High-end Manufacturing Industry Index Fund A (017651), which reduced its holdings by 11,900 shares to 73,900 shares, accounting for 6.65% of the fund's net value, making it the third-largest holding [2] - The AVIC Huazheng Commercial Aircraft High-end Manufacturing Industry Index Fund A (017651) was established on March 7, 2023, with a latest scale of 17.1102 million CNY, achieving a year-to-date return of 10.08% and a one-year return of 28.4%, ranking 2631 out of 4243 in its category [2] Group 3 - The fund managers of the AVIC Huazheng Commercial Aircraft High-end Manufacturing Industry Index Fund A are Long Chuan and Han Hao, with Long Chuan having a tenure of 10 years and 256 days and a total fund asset size of 183 million CNY, achieving a best return of 44.49% during his tenure [3] - Han Hao has a tenure of 8 years and 41 days, managing a total fund asset size of 15.589 billion CNY, with a best return of 251.88% during his tenure [3]

Core Viewpoints - The recent LPR reduction and deposit rate cuts are part of a broader monetary easing policy, with limited impact on bank interest margins expected in the short term [3][21][22] - The small-cap stocks are likely to continue outperforming due to a lack of systemic risk in the capital market and improving risk appetite [6][25] - The aerospace sector is expected to benefit from increased military spending and China's growing share in the global arms trade [13] Interest Rate and Monetary Policy - The LPR was lowered for the first time this year, with the 1-year rate dropping to 3% and the 5-year rate to 3.5%, both down by 10 basis points [3] - Major banks have also reduced deposit rates, with cuts ranging from 5 to 25 basis points, indicating a shift in the monetary policy landscape [3][21] - The impact of these rate cuts on bank net interest margins is expected to be limited, as the trend of deposit rates falling faster than loan rates continues [3][21] Equity Market Insights - Citic Securities highlights that uncertainty surrounding Trump’s policies remains a key factor in asset allocation, with a focus on potential shifts towards domestic policies [5] - The Hong Kong stock market is currently lacking catalysts for upward movement, with external uncertainties and insufficient internal momentum [7] - The small-cap stock trend is expected to persist, supported by a favorable liquidity environment and ongoing economic transformation [6] Industry Research - The aerospace and defense sector is poised for growth due to rising global military expenditures and China's technological advancements in military equipment [13] - The U.S. nuclear energy sector has seen a surge following policy changes, which may influence the domestic nuclear power industry positively [14] - A balanced investment approach is recommended, with optimism for AI and high-end manufacturing sectors amid ongoing uncertainties in U.S.-China trade relations [15] Macro and Fixed Income - The recent deposit rate cuts are not expected to significantly disrupt the funding landscape before 2024, with limited effects on market liquidity anticipated [21] - Short-term interest rate bonds are seen as having strong investment value due to the downward pressure on rates from deposit rate cuts [22] - Gold is viewed as a strategic asset in light of ongoing uncertainties in U.S. policies and potential dollar weakness, suggesting a diversified approach to asset allocation [23]