Group 1 - The core view of the report emphasizes a focus on growth sectors, particularly in the context of the February market outlook, suggesting that high valuation sectors like electronics, power equipment, machinery, non-ferrous metals, communications, and computers are worth investors' attention [2][3] - The report anticipates a spring market rally, with expectations of favorable policy and fundamental news in the coming months, although a brief market correction may occur before the Spring Festival [3] - The report highlights the expected increase in trading activity post-holiday, driven by high-frequency data and industry news, potentially leading to a new upward market trend [3] Group 2 - The report on Huadian New Energy indicates that the company benefits from stable investment returns in nuclear power and continuous breakthroughs in installed capacity, positioning it as a leading player in the renewable energy sector [10] - The report on Aerospace Hanyu outlines the company's strategic positioning in communication and aerospace composite materials, which is expected to benefit from opportunities in domestic civil aviation and commercial aerospace [11] - The report predicts a decrease in net profit for Aerospace Hanyu for 2025 and 2026, with an increase forecasted for 2027, reflecting the company's adaptation to market demands [11]

1. Report Industry Investment Rating - No industry investment rating is provided in the report. 2. Core Viewpoints of the Report - The expectation of a 7D OMO interest rate cut is rising, but there is no direct link between the decline in the marginal winning bid rate of 3M repurchase and the 7D OMO interest rate cut [1][9]. - Policy interest rate cuts are expected in the next two to three months as the internal and external factors restricting interest rate cuts have significantly eased, and the implementation of the policy depends on the economic situation [2][10]. - CD interest rates still have room to decline in the first half of this year. Assuming a 10bp cut in the 7D OMO interest rate, the spreads between the three - term CD interest rates and the 7D OMO will widen [3][16]. - The central bank does not intend to guide the monthly average of DR001 to rise to the same level as the 7D OMO interest rate. The monthly average of DR001 may be 1 - 7bp lower than the 7D OMO interest rate [3][17]. - Investors don't need to worry about the capital situation around the Spring Festival. There will likely be 6M repurchase and continuous 14D repurchase operations next week, and MLF operations will follow after the resumption of work [3][17]. - The probability that the 2026 GDP growth target is set at "4.5% to 5%" is not low. After the expectation of a 7D OMO interest rate cut is formed, the central level of the 10Y Treasury bond yield will "substantially" decline [4][20]. 3. Summary by Relevant Catalog 7D OMO Interest Rate Cut Expectation - Recently, the market's expectation of a 7D OMO interest rate cut has increased. Some investors believe that the decline in the 3M repurchase rate will force a 7D OMO interest rate cut. However, the marginal winning bid rate of repurchase and MLF is market - formed and has no direct link with the 7D OMO interest rate cut [1][9]. - Investors should focus on real - time market interest rates instead of over - focusing on the central bank's operation volume and winning bid rate [2][9]. CD Interest Rates - Since the end of the 2025 Central Economic Work Conference, the interest rates of 3M, 6M, and 1Y AAA - rated CDs have been steadily declining. As of February 6, 2026, they have decreased by 5bp, 6bp, and 8bp respectively from their highs in December 2025 [2][10]. - CD interest rates have room to decline in the first half of this year. Assuming a 10bp cut in the 7D OMO interest rate, the spreads between the three - term CD interest rates and the 7D OMO will expand compared to the median spreads since 25Q2 [3][16]. Repurchase Market Interest Rates - The report maintains the view in the January 23, 2026 report that the central bank does not intend to guide the monthly average of DR001 to rise to the same level as the 7D OMO interest rate. The monthly average of DR001 may be 1 - 7bp lower than the 7D OMO interest rate, with a larger difference in the beginning of the quarter and a smaller difference at the end of the quarter [3][17]. Capital Situation around the Spring Festival - There is no need to worry about the capital situation around the Spring Festival. The fluctuations in capital interest rates around the Spring Festival in the past two years have been precisely stabilized. Next week, there will likely be 6M repurchase and continuous 14D repurchase operations, and MLF operations will follow after the resumption of work [3][17]. Bond Market Interest Rates - The report maintains the view in the January 27, 2026 report that the probability that the 2026 GDP growth target is set at "4.5% to 5%" is not low. After the expectation of a 7D OMO interest rate cut is formed, the central level of the 10Y Treasury bond yield will "substantially" decline [4][20].