Core Viewpoint - The Central State-Owned Enterprises Innovation-Driven ETF (515900) has shown positive performance, with a recent increase in value and significant growth in scale, reflecting the ongoing support for innovation and strategic industries in China [3][4][5]. Group 1: ETF Performance - As of July 16, 2025, the Central State-Owned Enterprises Innovation-Driven ETF has achieved a net value increase of 55.62% over the past five years, ranking in the top 8.44% among 995 index equity funds [5]. - The ETF has recorded a maximum monthly return of 15.05% since its inception, with an average monthly return of 3.97% during rising months [5]. - The ETF's management fee is 0.15% and the custody fee is 0.05%, making it the lowest among comparable funds [5]. Group 2: Market Trends and Developments - Recent government initiatives emphasize the importance of integrating state-owned enterprises with the national technology innovation system, focusing on strategic emerging industries and enhancing collaboration with various ownership enterprises [4]. - The demand for renewable energy consumption in industries such as steel and cement is expected to increase significantly, with an estimated additional demand of approximately 500 billion kilowatt-hours for wind and solar energy in the current year [4]. Group 3: Index Composition - The Central State-Owned Enterprises Innovation-Driven Index includes 100 representative listed companies evaluated for their innovation and profitability, with the top ten weighted stocks accounting for 34.87% of the index [6].

Core Insights - The report indicates that 12 industries experienced net inflows of capital, while 19 industries faced net outflows on the trading day [1][2] - The utility sector saw the highest net inflow of capital at 2.823 billion yuan, despite a slight decline of 0.20% in its stock price [1] - The communication sector recorded the largest net outflow of capital at 4.019 billion yuan, with a price increase of 0.37% [1] Industry Summary - **Utilities**: Net inflow of 2.823 billion yuan, trading volume of 4.061 billion shares, and a turnover rate of 1.02% [1] - **Pharmaceuticals**: Net inflow of 2.095 billion yuan, trading volume of 7.603 billion shares, and a turnover rate of 2.79% [1] - **Automotive**: Net inflow of 1.865 billion yuan, trading volume of 5.311 billion shares, and a turnover rate of 2.44% [1] - **Light Industry**: Net inflow of 1.071 billion yuan, trading volume of 1.919 billion shares, and a turnover rate of 2.29% [1] - **Social Services**: Net inflow of 0.390 billion yuan, trading volume of 1.192 billion shares, and a turnover rate of 2.64% [1] - **Household Appliances**: Net inflow of 0.362 billion yuan, trading volume of 1.402 billion shares, and a turnover rate of 1.82% [1] - **Food and Beverage**: Net inflow of 0.282 billion yuan, trading volume of 1.171 billion shares, and a turnover rate of 1.29% [1] - **Petrochemicals**: Net inflow of 0.145 billion yuan, trading volume of 1.080 billion shares, and a turnover rate of 0.29% [1] - **Transportation**: Net inflow of 0.141 billion yuan, trading volume of 2.742 billion shares, and a turnover rate of 0.65% [1] - **Retail**: Net inflow of 0.125 billion yuan, trading volume of 1.976 billion shares, and a turnover rate of 1.65% [1] - **Textiles and Apparel**: Net inflow of 0.068 billion yuan, trading volume of 1.901 billion shares, and a turnover rate of 2.70% [1] - **Comprehensive**: Net inflow of 0.045 billion yuan, trading volume of 0.379 billion shares, and a turnover rate of 2.07% [1] - **Agriculture, Forestry, Animal Husbandry, and Fishery**: Net outflow of 0.013 billion yuan, trading volume of 1.600 billion shares, and a turnover rate of 1.70% [1] - **Beauty and Personal Care**: Net outflow of 0.054 billion yuan, trading volume of 0.272 billion shares, and a turnover rate of 2.42% [1] - **Machinery and Equipment**: Net outflow of 0.071 billion yuan, trading volume of 7.694 billion shares, and a turnover rate of 2.85% [1] - **Coal**: Net outflow of 0.300 billion yuan, trading volume of 1.156 billion shares, and a turnover rate of 0.88% [1] - **Construction Materials**: Net outflow of 0.440 billion yuan, trading volume of 1.516 billion shares, and a turnover rate of 2.04% [1] - **Real Estate**: Net outflow of 0.478 billion yuan, trading volume of 4.052 billion shares, and a turnover rate of 1.86% [1] - **Construction Decoration**: Net outflow of 0.543 billion yuan, trading volume of 3.077 billion shares, and a turnover rate of 1.10% [2] - **Steel**: Net outflow of 0.588 billion yuan, trading volume of 3.090 billion shares, and a turnover rate of 1.57% [2] - **Media**: Net outflow of 0.654 billion yuan, trading volume of 4.495 billion shares, and a turnover rate of 3.07% [2] - **Banking**: Net outflow of 0.687 billion yuan, trading volume of 4.236 billion shares, and a turnover rate of 0.32% [2] - **Environmental Protection**: Net outflow of 0.869 billion yuan, trading volume of 1.505 billion shares, and a turnover rate of 1.69% [2] - **Basic Chemicals**: Net outflow of 1.276 billion yuan, trading volume of 5.444 billion shares, and a turnover rate of 2.06% [2] - **Defense Industry**: Net outflow of 1.450 billion yuan, trading volume of 1.865 billion shares, and a turnover rate of 1.73% [2] - **Electrical Equipment**: Net outflow of 1.686 billion yuan, trading volume of 6.202 billion shares, and a turnover rate of 2.50% [2] - **Non-Banking Financials**: Net outflow of 1.985 billion yuan, trading volume of 5.048 billion shares, and a turnover rate of 1.21% [2] - **Nonferrous Metals**: Net outflow of 2.084 billion yuan, trading volume of 4.361 billion shares, and a turnover rate of 1.99% [2] - **Computers**: Net outflow of 2.920 billion yuan, trading volume of 7.963 billion shares, and a turnover rate of 4.47% [2] - **Electronics**: Net outflow of 3.559 billion yuan, trading volume of 6.314 billion shares, and a turnover rate of 2.28% [2] - **Telecommunications**: Net outflow of 4.019 billion yuan, trading volume of 3.279 billion shares, and a turnover rate of 1.88% [2]

Market Overview - The Shanghai Composite Index decreased by 0.18% as of 13:59, with a trading volume of 886.85 million shares and a turnover of 1,183.92 billion yuan, representing a 10.79% decrease compared to the previous trading day [1][2]. Industry Performance - The top-performing sectors included: - Comprehensive: +1.07% with a turnover of 19.26 billion yuan, led by Tianchen Co., which rose by 9.97% [1]. - Beauty Care: +1.03% with a turnover of 38.11 billion yuan, led by Jinbo Biological, which increased by 3.57% [1]. - Automotive: +0.87% with a turnover of 737.60 billion yuan, led by Redick, which surged by 12.52% [1]. - The worst-performing sectors included: - Steel: -1.70% with a turnover of 100.63 billion yuan, led by Liugang Co., which fell by 8.08% [2]. - Banking: -0.92% with a turnover of 261.70 billion yuan, led by Qilu Bank, which decreased by 2.89% [2]. - Non-bank Financial: -0.77% with a turnover of 442.13 billion yuan, led by *ST Tianmao, which dropped by 4.98% [2]. Summary of Sector Changes - The overall market saw 3,054 stocks rise, with 61 hitting the daily limit up, while 2,139 stocks fell, with 5 hitting the daily limit down [1]. - The sectors with the largest gains were Comprehensive, Beauty Care, and Automotive, while Steel, Banking, and Non-bank Financial experienced the largest declines [1][2].

Summary of Conference Call Notes Company/Industry Involved - The conference call focuses on market sentiment and industry trends, specifically analyzing various market indicators and their implications for investment strategies. Core Points and Arguments 1. **Market Sentiment Analysis**: The current market sentiment is observed to be low, with no significant indicators suggesting a recovery. The overall market is in a downtrend, and the probability of further decline is high [3][6][13]. 2. **Indicators of Market Activity**: The industry trading volatility indicator remains at 0, indicating low trading activity compared to previous periods. This suggests a lack of investor engagement and market momentum [3][5]. 3. **Negative Signals from PCR and VIX**: The PCR and VIX indicators are also at low levels, contributing to negative market sentiment. These indicators have been consistently low over the past two weeks [4][6]. 4. **Financing Balance Indicator**: The financing balance as a percentage of market capitalization has dropped significantly, indicating a bearish trend in market sentiment. This indicator has shifted from a score of 1 to 0, reflecting a substantial decline [4][5]. 5. **Sector Performance**: The sectors showing the most significant gains over the past two weeks include telecommunications, media, and textiles, while sectors like household appliances and food and beverage have seen consistent declines [8][10]. 6. **Trend Analysis**: The trend analysis indicates that the market lacks a clear upward trajectory, with many sectors exhibiting weak performance. The overall trend is characterized by a lack of strong bullish signals [9][12]. 7. **Growth vs. Value Styles**: There is a noted divergence between growth and value styles, with growth currently showing a slight advantage. However, the overall differentiation remains weak [11][12]. 8. **Small-Cap Dominance**: The small-cap style is currently favored, with a significant distance in the RSI indicating a stronger trend compared to larger caps [12]. Other Important but Possibly Overlooked Content 1. **Geopolitical and Economic Uncertainty**: The market is influenced by macroeconomic uncertainties and geopolitical factors, particularly regarding tariff negotiations between the US and China. These uncertainties are contributing to the current market sentiment [6][13]. 2. **Expectation of Market Recovery**: There is skepticism regarding the potential for a quick recovery in market sentiment without significant catalysts or unexpected positive developments [7][13]. 3. **Investment Strategy Outlook**: The overall investment strategy is advised to remain cautious, focusing on a volatile and oscillating market rather than expecting rapid upward movements [7][13].

Quantitative Models and Construction Methods 1. Model Name: Industry Crowding Monitoring Model - **Model Construction Idea**: This model is designed to monitor the crowding levels of Shenwan First-Level Industry Indices on a daily basis, identifying industries with high or low crowding levels to provide actionable insights[4] - **Model Construction Process**: The model calculates crowding levels for each industry index daily, using metrics such as main fund flows and single-day crowding changes. For example, the model identified that non-ferrous metals and steel had high crowding levels, while automobiles and electronics had lower levels. Additionally, significant single-day crowding changes were observed in the power equipment sector[4] - **Model Evaluation**: The model provides a useful tool for identifying industry crowding trends and potential investment opportunities[4] 2. Model Name: Premium Rate Z-Score Model - **Model Construction Idea**: This model is used to screen ETF products for potential arbitrage opportunities by calculating the Z-score of premium rates on a rolling basis[5] - **Model Construction Process**: The Z-score is calculated for the premium rates of ETF products over a rolling window. This helps identify ETFs with significant deviations from their historical averages, signaling potential arbitrage opportunities. The model also flags ETFs with potential downside risks[5] - **Model Evaluation**: The model effectively identifies ETFs with potential arbitrage opportunities while also highlighting associated risks[5] --- Model Backtesting Results 1. Industry Crowding Monitoring Model - **Key Observations**: - Non-ferrous metals and steel had the highest crowding levels on the previous trading day[4] - Automobiles and electronics exhibited the lowest crowding levels[4] - Power equipment showed significant single-day crowding changes[4] 2. Premium Rate Z-Score Model - **Key Observations**: - The model identified ETFs with significant premium rate deviations, signaling potential arbitrage opportunities[5] --- Quantitative Factors and Construction Methods No specific quantitative factors were explicitly mentioned in the provided content --- Factor Backtesting Results No specific factor backtesting results were explicitly mentioned in the provided content

Group 1 - The core viewpoint emphasizes the integration of information technology and industrialization as a strategic task to promote new industrialization and enhance the manufacturing sector [2][3] - The document outlines 17 key tasks across five main areas to advance the digital transformation of the manufacturing industry and support small and medium enterprises [1][7] Group 2 - The establishment of a leadership mechanism for the integration of information technology and industrialization is highlighted, aiming to systematically promote digital transformation and smart manufacturing [3][4] - A comprehensive policy framework is being developed to guide the integration efforts, including high-quality development plans for industrial internet and data empowerment [3][5] Group 3 - The document stresses the importance of enhancing the evaluation and monitoring of the integration process, establishing quantifiable goals and performance assessment mechanisms [4][6] - It calls for the development of a robust foundation for integration, including investments in 5G and 6G technologies, and the promotion of industrial internet platforms [5][6] Group 4 - The promotion of digital transformation initiatives is a key focus, with pilot programs for new technology upgrades in manufacturing and digital transformation for small and medium enterprises [1][7] - The establishment of digital carbon management centers in industrial parks is aimed at precise measurement and control of energy consumption and carbon emissions [1][7] Group 5 - The document outlines the need for a collaborative network infrastructure, integrating various industrial network technologies to enhance operational efficiency [8] - It emphasizes the application of artificial intelligence in manufacturing, supporting enterprises in utilizing AI models and smart systems [8][9] Group 6 - The promotion of high-quality standards for the integration of information technology and industrialization is crucial, with efforts to develop and implement a comprehensive standard system [10][11] - The establishment of public service platforms to support enterprises in their digital transformation journey is also highlighted [11][12]

Investment Rating - The report suggests that the asset revaluation pricing model is suitable for the current macroeconomic environment in China, indicating a positive outlook for investment in this context [3][4]. Core Insights - The report emphasizes that the asset revaluation pricing model is more effective in a low-growth macroeconomic environment, drawing parallels with Japan's market experience [3][4]. - It recommends a shift in focus from net profit growth to asset revaluation growth, particularly for mature industry leaders [4][9]. - The report identifies three key sectors for investment: financial stocks, large-cap stocks, and companies with strong CAPEX and cash return capabilities [3][4]. Summary by Sections Asset Revaluation Pricing - The asset revaluation pricing model is deemed more appropriate for the future performance of A-shares as the Chinese economy transitions to stable growth [4][13]. - The model focuses on retained earnings growth and its impact on net asset value, which is more relevant in a low-growth environment [9][10]. Effectiveness of Asset Revaluation Strategy - The report highlights that the explanatory power of asset revaluation growth for industry performance has increased, making it a more effective fundamental indicator than net profit growth [19][22]. - In 2024, only three industries showed a failure in this logic, indicating a strong correlation between asset revaluation growth and stock price movements [19][22]. Financial Sector Insights - The financial sector is expected to see a broader revaluation beyond just banks, with non-bank financial institutions also having significant revaluation potential [29][33]. - The report notes that the asset revaluation growth for financial stocks is significantly higher than for non-financial sectors, driven by their lower dividend payout ratios [29][33]. Market Trends and Economic Outlook - The report discusses the ongoing market style shifts influenced by economic growth and policy expectations, suggesting a long-term trend towards stability in financial performance [19][22]. - It predicts that the Chinese economy will maintain a growth rate above the global average, despite challenges in the real estate sector and fiscal stimulus [14][15].

1. Report Industry Investment Rating - Not provided in the given content 2. Core Viewpoints - Industrial PPI is under pressure, and attention should be paid to the price fluctuations in the upstream [1] - The implementation of employment - policy tools in the service industry should be monitored [1] 3. Summaries by Relevant Catalogs 3.1. Mid - view Event Overview 3.1.1. Production Industry - In June 2025, the national consumer price increased by 0.1% year - on - year, with urban areas up 0.1%, rural areas down 0.2%, food prices down 0.3%, non - food prices up 0.1%, consumer goods prices down 0.2%, and service prices up 0.5%. The national consumer price in the first half of the year decreased by 0.1% compared with the same period last year [1] - In June 2025, the national industrial producer's ex - factory price decreased by 3.6% year - on - year and 0.4% month - on - month; the industrial producer's purchase price decreased by 4.3% year - on - year and 0.7% month - on - month [1] 3.1.2. Service Industry - The General Office of the State Council issued a notice to further increase the support for stable employment policies, emphasizing strengthening political responsibility, tracking policy implementation, improving policy tools, strengthening fund supervision, and conducting employment impact assessments [1] 3.2. Industry Overview 3.2.1. Upstream - Energy: International oil prices have rebounded [1] - Chemical: The price of PTA has declined [1] 3.2.2. Mid - stream - Chemical: The PX operating rate has seasonally declined slightly and is at the median level in the past three years [2] 3.2.3. Downstream - Real estate: The sales of commercial housing in first - and second - tier cities have seasonally declined [2] - Service: The number of domestic flights during the summer vacation has increased [2] 3.3. Market Pricing - The credit spread of the electronics industry has slightly rebounded recently [3] 3.4. Industry Credit Spread Tracking - The credit spreads of various industries such as agriculture, forestry, animal husbandry and fishery, mining, and chemical have different degrees of changes from last year to this week, with specific data shown in the table [49] 3.5. Key Industry Price Index Tracking - The prices of various products in industries such as agriculture, non - ferrous metals, and energy have different degrees of year - on - year changes, with specific data shown in the table [50]

Market Overview - The Shanghai Composite Index increased by 0.34% as of 10:28 AM, with a trading volume of 550.19 million shares and a turnover of 648.98 billion yuan, representing a decrease of 8.50% compared to the previous trading day [1] Industry Performance - Real estate, banking, and oil & petrochemicals sectors showed the highest gains, with increases of 1.24%, 1.19%, and 0.97% respectively [1] - The real estate sector had a trading volume of 88.46 billion yuan, up by 37.10% from the previous day, with Chongqing Development leading the sector with a rise of 9.94% [1] - The banking sector recorded a turnover of 153.25 billion yuan, an increase of 17.78%, with Minsheng Bank rising by 4.93% [1] - The oil & petrochemicals sector had a turnover of 48.87 billion yuan, up by 16.65%, with *ST Xinchao gaining 5.08% [1] Declining Industries - The defense, textile, and automotive sectors experienced the largest declines, with decreases of 1.24%, 0.78%, and 0.78% respectively [2] - The defense sector had a trading volume of 225.22 billion yuan, down by 30.96%, with North China Longchang falling by 8.13% [2] - The textile sector recorded a turnover of 73.19 billion yuan, down by 14.13%, with Wanlima decreasing by 7.63% [2] - The automotive sector had a turnover of 270.54 billion yuan, down by 19.82%, with Redick declining by 6.84% [2]

Group 1 - China's shipbuilding industry has achieved significant milestones with the launch of the first domestically produced electromagnetic aircraft carrier, the Fujian, the first large cruise ship, the Aida Magic City, and a leading position in large LNG carriers [1] - The "three pearls" symbolize China's innovative development during the 14th Five-Year Plan, showcasing breakthroughs in various fields such as space exploration, nuclear power, and aviation [2][3] - Despite challenges like the pandemic and trade tensions, China continues to advance on the path of innovation-driven development [3] Group 2 - Economic strength underpins China's innovation, with GDP expected to approach 140 trillion yuan, contributing approximately 30% to global economic growth [4] - R&D investment is projected to reach 3.6 trillion yuan in 2024, marking a nearly 50% increase from the end of the 13th Five-Year Plan, with R&D intensity nearing OECD averages [5] - The talent pool in China is robust, with educational attainment levels rising and the total number of R&D personnel leading globally [6][7] Group 3 - A conducive innovation ecosystem has been established, with a 73.8% increase in the value added by the core digital economy industries since the end of the 13th Five-Year Plan [8]