Core Viewpoint - The equity market experienced a phase of adjustment in October due to external economic and trade environment impacts, but is expected to rebound supported by significant planning and positive discussions [1] Group 1: Market Performance - In October, the equity market saw a temporary reduction in trading volume, but sectors such as electric equipment, new energy, and non-ferrous metals began to perform well, taking over from the technology sector [1] - The technology sector is anticipated to rise again following the release of the "14th Five-Year Plan" and the third-quarter earnings reports [1] - The banking sector, representing dividend stocks, gained an advantage during the market's risk-off phase due to overseas tariff impacts [1] Group 2: Future Outlook - By November 2025, the market is expected to undergo wide fluctuations to alleviate funding pressure, with a rising possibility of a balanced style [2] - The "14th Five-Year Plan" is expected to clarify domestic policy directions, focusing on industrial upgrades and technological innovation as key economic drivers for the next five years [2] - Although domestic demand remains weak, incremental policy deployments may be anticipated for the following year [2] Group 3: Key Factors to Monitor - The release of supporting details for the "14th Five-Year Plan" is expected in mid to late November, with a focus on information from the Ministry of Science and Technology, National Development and Reform Commission, and Ministry of Industry and Information Technology [2] - The potential continuation of the U.S. government shutdown could disrupt federal data releases, impacting the Federal Reserve's decision-making process [3] - Upcoming technology conferences may reveal new product details and industry opportunities [3] Group 4: Sector Focus - In the technology manufacturing sector, companies with overseas orders, core technologies, stable profits, and industry barriers are likely to outperform as the market enters a selective phase [3] - The innovative pharmaceutical and non-ferrous metal sectors are expected to benefit from continued low interest rates and economic recovery, with a focus on the ongoing development of overseas business deals [3] - High-dividend consumer stocks may face short-term performance pressure, but their current valuations reflect mid-term pessimism, suggesting potential for excess returns as the "14th Five-Year Plan" outlines economic growth and demand expansion [4]

Group 1 - A-share market has attracted significant capital attention, with over 95% of public FOF products achieving positive annual returns, marking the best performance in the last five years [1][2] - The recent strong performance of A-shares, with a weekly increase of 1.70%, has led to high success rates for public FOF investments, with all stock-type FOFs recording positive returns [2][3] - The best-performing FOF products this year include Guotai Preferred Navigation, Guotai Industry Rotation, and ICBC Smart Progress, with annual returns of 34.28%, 31.27%, and 28.92% respectively [2] Group 2 - The expectation of overseas interest rate cuts is boosting risk appetite among investors, contributing to the upward trend in A-shares [3][4] - The A-share market has shown strong performance across various sectors, with 22 out of 31 primary industries experiencing gains, particularly in the communication and electronics sectors [3] - The current market environment is characterized as a non-typical bull market under weak economic recovery, with low-risk returns and rising risk preferences, despite no significant improvement in corporate earnings [4]

Core Viewpoint - The disparity between the overseas AI chain and the domestic AI chain is widening, with overseas companies showing strong recovery while domestic counterparts lag behind [1] Group 1: Market Performance - Global tech stocks faced pressure due to tariff policies in early April, but have since rebounded, particularly in the AI sector, with companies like NVIDIA and Microsoft reaching new highs [1] - In contrast, domestic AI companies, including those in foundational computing power, algorithm services, and application solutions, have not experienced similar rebounds, leading to a divergence in stock performance [1] Group 2: Domestic AI Developments - Despite the slower commercialization of domestic AI applications, there are emerging local products with significant revenue potential, such as Kuaishou's Kling AI, which achieved an annualized revenue run rate exceeding $100 million within 10 months [4] - The domestic AI models are continuously improving, with significant increases in token usage, indicating a growing demand for cloud computing power to support AI applications [3] Group 3: Investment Opportunities - Investment focus is suggested on domestic AI computing power chains, including AI inference chips (e.g., Cambrian, Haiguang Information) and AI servers (e.g., Inspur, Huaqin Technology, Lenovo Group) [5] - Notable AI applications to consider include consumer-facing products like Kuaishou-W and Wanjing Technology, as well as business solutions from companies like Hand Information and Glodon [5]