Core Viewpoint - The industrial production growth in China is expected to slow down in the second half of the year due to export-related factors, but supportive policies and the cultivation of new growth drivers will help maintain stable industrial growth [1][5][8]. Group 1: Industrial Production and Economic Growth - The export delivery value accounts for nearly 40% of China's industrial output, indicating a significant reliance on exports [1][5]. - In the first half of the year, the industrial added value of large-scale enterprises grew by 6.4% year-on-year, with June seeing a notable increase of 6.8%, exceeding market expectations [1][6]. - The Ministry of Industry and Information Technology (MIIT) plans to implement new growth stabilization plans for key industries such as steel and petrochemicals in the second half of the year [1][6][9]. Group 2: Key Industry Performance - Major industrial provinces have shown strong performance, with all 31 provinces reporting year-on-year growth in industrial added value, and several provinces achieving over 8% growth [6][7]. - Key industries such as electrical machinery, automobiles, and electronics have contributed significantly to industrial growth, with high-tech manufacturing sectors showing robust performance [6][7]. Group 3: Future Growth Drivers - Emerging industries like humanoid robots and 3D printing are expected to provide new growth points for the economy, with the potential to become new pillars of growth [7][12]. - The MIIT is focusing on nurturing new industries and developing future sectors such as bio-manufacturing and low-altitude industries [9][11]. Group 4: Support for Small and Medium Enterprises (SMEs) - The MIIT plans to enhance the development environment for SMEs by addressing issues like overdue payments and providing policy support [13][14]. - The National SME Development Fund has completed the establishment of its seventh batch of sub-funds, with a total scale of 8.287 billion yuan, focusing on hard technology sectors [14][15].

Domestic Macro - Demand Side - As of July 17, 2025, retail sales of passenger cars reached 571,000 units, a year-on-year increase of 5.7%, but a month-on-month decrease of 6.7%[2] - The average number of domestic flights in July was 14,500, a month-on-month increase of 13.08% and a year-on-year increase of 2.28%[2] - The Baltic Dry Index (BDI) averaged 1630.4 in July, a month-on-month decrease of 2.7% and a year-on-year decrease of 14.8%[2] Domestic Macro - Production Side - As of July 20, 2025, the average operating rate of blast furnaces decreased by 0.3 percentage points to 83.35%[3] - The operating rate of asphalt plants increased by 6.58 percentage points to 32.4%[3] - The operating rate of rebar production increased by 0.36 percentage points to 43.06%[3] Price Performance - As of July 18, 2025, the average wholesale price of pork increased by 0.2% week-on-week, while the average wholesale price of 28 monitored vegetables decreased by 0.09%[2] - WTI and Brent crude oil prices fell by 1.44% and 1.05% respectively as of July 18, 2025[3] - The price of glass increased by 8.66% due to the "anti-involution" policy and a decrease in production[3] Fiscal and Investment - This week, new special bonds issued amounted to 123 billion, with local general bonds at 19 billion, achieving a 60.8% issuance progress[3] - The issuance of special bonds (excluding debt relief) reached 1,315 billion, with a 53.0% progress[3] Overseas Macro - The U.S. CPI for June was 2.7% year-on-year, with core CPI at 2.9%, indicating controlled inflation despite tariff impacts[4] - The U.S. retail sales nominal month-on-month growth was 0.6%, exceeding expectations primarily due to price increases rather than volume[4]

针对工程建设审批"部门分散、标准不一、协同低效"等问题，当地以"减时限、减材料、减环节"为核心，创新推出"三段式并联审批"制度，推动 审批从"人跑"向"数跑"转变，有效提升审批效率，降低企业办事成本。 辽宁鼎际得石化科技有限公司厂区。新华社记者张博群摄 大连长兴岛是国家七大石化产业基地之一，形成了以绿色石化为核心的产业集群。上下游产业链条不断完善，吸引了越来越多的企业来此投资。 当地全力推动"高效办成一件事"各项重点任务落地实施，以经营主体和群众需求为导向，创新推行"集中审批+要素统筹"改革，通过职能整合、流 程再造、服务升级，为项目早落地、早投产注入动能。 大连长兴岛经济技术开发区自然资源局局长孙东升说："为解决企业在办理用地、用林、用海等手续时'多头跑、反复跑'的问题，我们成立了自然 资源要素保障推进组，打破科室职能界限，推行'一门受理、统一审核、统一批复'的闭环管理机制，实现要素保障从'企业跑'到'政府跑'、从'后置 审批'到'前置服务'的转变。企业仅需提交一次材料，我们提供全程一站式服务。" 今年以来，该局自然资源要素保障推进组已服务重点项目12个，平均审批周期较改革前缩短40%，真正实现了"要素跟着 ...

Investment Rating - The investment rating for the chemical industry is "Positive" (maintained) [1] Core Viewpoints - The petrochemical industry's stable growth plan is expected to optimize the competitive landscape of the chemical industry on the supply side [4][30] - The TDI market price has risen sharply due to supply disruptions caused by an incident at a production facility in Germany [4][24] - The overall profitability of the chemical industry is under pressure due to increased capital expenditures and concentrated new capacity over the past four years, but the upcoming stable growth plans may lead to the elimination of outdated capacity and recovery of product profitability [30] Summary by Sections Industry Trends - The chemical industry index outperformed the CSI 300 index by 0.69% this week, with 302 out of 545 stocks in the sector rising [18] - The CCPI (China Chemical Product Price Index) reported a decrease of 0.27% this week [20] Key Products Tracking - The TDI market price increased to an average of 14,063 CNY/ton, up 17.06% from the previous week [24] - The glyphosate market is showing strong performance with prices continuing to rise, averaging 25,901 CNY/ton [55] Recommended and Beneficiary Stocks - Recommended stocks include Wanhua Chemical, Hualu Hengsheng, Hengli Petrochemical, and others in various sub-sectors [6][30] - Beneficiary stocks include Cangzhou Dahua and others that may benefit from the current market conditions [25][31]

Group 1: New Central Enterprise - China Yajiang Group - The Yarlung Tsangpo River downstream hydropower project has officially commenced, with a total investment of approximately 1.2 trillion yuan [2] - China Yajiang Group has been established as the 22nd central enterprise, following China Three Gorges Corporation and preceding State Energy Investment Corporation [2] Group 2: A-Share Merger - The China Securities Regulatory Commission has approved the merger of China Shipbuilding (600150.SH) and China Shipbuilding Industry Corporation (601989.SH), marking a significant step in the integration of major shipbuilding platforms [3] - Post-merger, the total asset scale of the surviving company will exceed 400 billion yuan, positioning it as the world's largest publicly listed shipbuilding company [4] - Both companies have reported earnings forecasts that significantly exceed market expectations, with China Shipbuilding projecting a 98.25% to 119.49% increase in net profit for the first half of 2025 [4] Group 3: New Energy Vehicle Industry Regulation - The Central Fourth Guidance Group is focusing on addressing irrational competition in the new energy vehicle industry, emphasizing the importance of regulatory measures for high-quality development [5][6] - A joint meeting by the Ministry of Industry and Information Technology, National Development and Reform Commission, and State Administration for Market Regulation has been held to further standardize competition in the new energy vehicle sector [6][7] - Key measures include enhancing supervision, establishing long-term mechanisms, and strengthening industry self-discipline to foster a healthy competitive environment [6][7] Group 4: Low-altitude Economy Development - The National Development and Reform Commission has convened a meeting to promote the safe and healthy development of the low-altitude economy, emphasizing the need for tailored approaches based on local conditions [8] - The meeting highlighted the importance of safety in development and the establishment of regulatory frameworks to prevent inefficient and harmful competition in the low-altitude industry [8] Group 5: Key Industries Growth Plans - The Ministry of Industry and Information Technology is set to release growth plans for ten key industries, including steel, non-ferrous metals, and petrochemicals, focusing on structural adjustments and the elimination of outdated capacity [9] Group 6: Stablecoin Legislation in the U.S. - President Trump has signed the "Guidance and Establishment of a National Innovation Act for Stablecoins," marking the first formal regulatory framework for digital stablecoins in the U.S. [10] Group 7: Stock Market Performance - The Nasdaq Composite Index reached a new historical high, with a slight increase of 0.05%, while major tech stocks showed mixed performance [11] - Chinese concept stocks mostly rose, with the Nasdaq Golden Dragon China Index increasing by 0.6% [12] Group 8: Upcoming Events - The 2025 World Artificial Intelligence Conference is scheduled to take place from July 26 to 28, featuring over 800 global enterprises and a record exhibition area [13] - The first batch of mid-year reports from Shenzhen Stock Exchange companies will be released soon, with several companies set to disclose their financials [14]

Domestic Macro - Demand Side - The travel market is heating up during the summer, with domestic flight numbers averaging 14,500 per day, a 13.08% increase month-on-month and a 2.28% increase year-on-year[2] - Retail sales of passenger cars reached 571,000 units in the first two weeks of July, a year-on-year increase of 5.7%, but a month-on-month decrease of 6.7%[2] Domestic Macro - Production Side - The average operating rate of blast furnaces decreased by 0.3 percentage points to 83.35% as of July 20, while the operating rate of coke ovens fell by 0.94 percentage points to 72.93%[2] - The operating rate of asphalt plants increased by 6.58 percentage points to 32.4%, indicating significant growth in real estate infrastructure[2] Price Performance - As of July 18, the average wholesale price of pork rose by 0.2% week-on-week, while the average wholesale price of 28 monitored vegetables fell by 0.09%[2] - The PPI showed a decline in oil prices, with WTI and Brent crude oil prices dropping by 1.44% and 1.05%, respectively[3] Fiscal and Investment - This week saw the issuance of special government bonds increase significantly, with 123 billion yuan in new special bonds and 1,315 billion yuan in new special bonds (excluding debt relief) issued, marking a notable acceleration in issuance[3] - The cement shipment rate has rebounded, indicating an increase in construction activity, particularly in water conservancy and public facilities projects[3] Overseas Macro - The U.S. inflation rate for June was 2.7% year-on-year, with core inflation at 2.9%, indicating manageable inflation levels despite tariff impacts[4] - The U.S. "GENIUS Act" and other cryptocurrency-related bills have passed the House, supporting the development of private sector digital currencies and reinforcing the dollar's position[3]

Group 1 - The collaboration between Liaoning Province and the National Natural Science Foundation of China (NSFC) has strengthened, focusing on major economic and social development needs in Liaoning [1][2] - The National Joint Fund has supported significant technological breakthroughs, resulting in 28 key technology challenges overcome, 76 authorized invention patents, and 50 major achievement transformations, generating an economic benefit of 4.18 billion yuan [1] - Liaoning Province has organized 143 National Joint Fund projects from 2020 to 2024, leading to the selection of over 20 individuals as national high-level talents and the training of more than 500 outstanding young scientific talents [2] Group 2 - In 2024, Liaoning Province was approved for 40 National Joint Fund projects with funding of 120 million yuan, achieving record highs in the number of new national youth science fund A and B project recipients [2] - The province has emphasized demand-oriented approaches, collecting and refining 222 major scientific issues that align with Liaoning's economic and social development needs [2][3] - The National Joint Fund has facilitated collaboration between local researchers and external research institutions, with 50% of the fund's undertaking units being from outside the province [3]

Investment Rating - The report suggests a positive outlook for the AI PCB industry chain, indicating it is in an upward phase of prosperity, with attractive valuations for leading companies in the sector [1][2][3] Core Insights - The AI PCB industry is expected to see a correction in market expectations as leading companies report better-than-expected performance, despite recent stock price increases [1][2] - The report emphasizes the importance of monitoring the "anti-involution" trend, highlighting recent government actions and discussions that may impact various industries, including the automotive sector [1][2] - The chemical sector is currently at a stage where it is advisable to increase allocations, particularly in leading companies that are at the bottom of the cycle in terms of inventory, valuation, and expectations [1][3] Summary by Sections Market Review - The chemical market has shown strong performance, with the SW Chemical Index rising by 1.77%, outperforming the CSI 300 Index by 0.68% [2][11] - Key events include the suspension of certain production lines by Korean companies and price increases in TDI due to supply disruptions [2][4] Recent Views from the Chemical Team - The report recommends gradually increasing positions in the sector, focusing on technology materials and price-increasing products like nitrocellulose and glyphosate [3][28] Key Chemical Product Price Changes - The report details significant price movements in various chemical products, with notable increases in TDI prices and stable prices in other segments [2][29][34] Important Industry Information - The report highlights major events affecting the industry, including production suspensions and price adjustments due to supply chain disruptions [4][28]

Core Viewpoint - The Ministry of Industry and Information Technology (MIIT) is enhancing financial support for new industrialization, focusing on integrating finance with industry to promote innovation and development in key sectors [1][2]. Financial Support and Policy Initiatives - MIIT plans to improve financial policies to support new industrialization, emphasizing the integration of technology and industry [1]. - Over 3,100 financial and investment institutions have launched more than 800 financial products, resulting in a cumulative financing scale exceeding 1.2 trillion yuan, with an average of nearly 34 million yuan in financing support per benefiting enterprise [1]. - In the first half of the year, the A-share market raised 148.8 billion yuan for industrial enterprises, marking a 51.6% year-on-year increase [1]. Focus on Key Industries - The MIIT is collaborating with the People's Bank of China to direct more financial resources towards technology innovation, advanced manufacturing, green development, and support for small and medium-sized enterprises [2]. - The industrial added value of large-scale industries grew by 6.4% year-on-year, with the manufacturing sector's contribution to GDP stabilizing at 25.7% [2][3]. - Key industries such as electrical machinery, automotive, electronics, and chemicals have shown significant growth, contributing positively to the overall industrial economy [3]. New Growth Strategies - A new round of growth stabilization plans will be implemented for ten key industries, including steel and non-ferrous metals, focusing on structural adjustments and eliminating outdated production capacity [3]. - MIIT aims to accelerate the development of 6G technology and foster new industries, including bio-manufacturing and low-altitude industries [3][4]. Technological Advancements - The domestic hardware ecosystem has seen breakthroughs with several companies releasing globally significant products in high-growth areas such as AI and smart devices [4]. - The demand for digital consumption continues to rise, with mobile internet traffic experiencing double-digit growth for six consecutive months [4]. - As of June, China had 4.55 million 5G base stations and 1.118 billion 5G mobile users, indicating robust growth in telecommunications infrastructure [4].

Group 1 - In the first half of the year, China's industrial added value above designated size grew by 6.4% year-on-year, with the manufacturing added value accounting for 25.7% of GDP [1] - The number of industrial enterprises above designated size reached 520,000, and profits in the manufacturing sector increased by 5.4% year-on-year [1] - The digital industry, driven by rapid advancements in digital technologies such as 5G and AI, achieved a business revenue growth of 9.3%, an increase of 3.4 percentage points compared to the same period last year [1] Group 2 - In the automotive industry, production and sales reached 15.621 million and 15.653 million units respectively, marking year-on-year growth of 12.5% and 11.4% [2] - New energy vehicles saw production and sales of 6.968 million and 6.937 million units, with year-on-year growth of 41.4% and 40.3%, making up 44.3% of total new car sales [2] - The Ministry of Industry and Information Technology plans to introduce stability growth plans for key industries such as steel, non-ferrous metals, petrochemicals, and building materials [2]