Core Viewpoint - The A-share market experienced a collective decline on the last trading day of the month, with significant drops across major indices and a notable increase in trading volume [2] Market Performance - The Shanghai Composite Index fell by 1.18% - The Shenzhen Component Index decreased by 1.73% - The ChiNext Index dropped by 1.66% - The North Star 50 Index declined by 1.16% - Total trading volume in the Shanghai and Shenzhen markets reached 19,618 billion yuan, an increase of 909 billion yuan compared to the previous day [2] Sector Performance - The AI sector, liquid cooling server sector, and assisted reproductive technology sector showed strength, with several stocks hitting the daily limit - The steel, coal, and insurance sectors faced adjustments, with significant declines in stock prices [2] Notable Stocks - In the AI sector, Yidian Tianxia reached the daily limit with a 20% increase - The liquid cooling server sector saw strong performance, with Sihua New Materials also hitting the daily limit - In the assisted reproductive technology sector, Gongtong Pharmaceutical and Anke Bio both reached the daily limit [2] Declines in Specific Sectors - The steel sector experienced a downturn, with Baogang Co. falling over 8% - The coal sector saw a comprehensive decline, with all stocks in the sector showing negative performance, including Antai Group which dropped over 7% [2]

Market Overview - The market showed mixed performance with the Shanghai Composite Index down by 0.68% while the ChiNext Index increased by 0.43%, indicating a divergence in market trends [1] - Over 3,400 stocks experienced declines, suggesting a concentrated movement of funds into specific sectors, as trading volume increased by over 50 billion compared to the previous day [1] AI Sector - The AI sector, particularly the liquid cooling technology, saw significant gains with companies like Yidian Tianxia hitting the daily limit up, driven by the increasing demand for computing power in AI model training [3] - Liquid cooling technology is becoming essential due to the limitations of traditional air cooling in handling high-density computing requirements, indicating a genuine industry need rather than speculative trading [3] Assisted Reproductive Technology - The assisted reproductive technology sector also experienced gains, with companies like Gongtong Pharmaceutical and Hancheng Group reaching their daily limit up, supported by recent policy changes that include assisted reproductive technology in health insurance [3] - The policy shift reduces the financial burden on individuals facing fertility issues, leading to an expected increase in demand for these services, which is viewed as a stable long-term growth opportunity [3] Traditional Sectors - Traditional sectors such as steel and coal showed weakness, with Chongqing Steel dropping over 5% and the coal sector declining across the board, reflecting a lack of significant changes in supply and demand dynamics [3] - The shift of funds towards more certain growth sectors indicates a market preference for industries with clear demand drivers and policy support [4] Investment Strategy - The current market environment emphasizes the importance of identifying sectors with real performance backing, such as AI liquid cooling and assisted reproductive technology, rather than focusing solely on index fluctuations [4] - Investors are encouraged to look for companies that can benefit from industry trends and policy incentives, highlighting a strategic approach to long-term investment [4]

Core Viewpoint - Peabody Energy (NYSE: BTU) is identified as the largest thermal coal producer in the US and is considered undervalued, presenting a potential investment opportunity despite the general aversion to coal stocks [1] Company Summary - Peabody Energy is the largest producer of thermal coal in the United States, which typically leads to skepticism among investors due to the industry's reputation [1] - The stock is described as genuinely mispriced, indicating that it may be undervalued compared to its true worth [1]

Market Trends - Asia's coal price benchmark increased to a five-month high [1] - Hot summer weather drove up demand for air conditioning [1] - Reduced inventories contributed to the price increase [1]

Group 1 - The market experienced a rebound with a total trading volume of 1.74 trillion yuan, a decrease of 45 billion yuan compared to the previous trading day, with over 2,700 stocks rising [1] - Key sectors that performed well included PCB, film and television, CPO, and military equipment, while coal, steel, Hainan Free Trade Zone, and precious metals saw declines [1] - The national childcare subsidy policy was announced, set to begin on January 1, 2025, providing an annual subsidy of 3,600 yuan per child for those under three years old [1] Group 2 - According to China International Capital Corporation, coal supply is expected to be released more rationally in the second half of the year, with potential price rebounds aiding industry profitability recovery [2] - Long-term profitability in the coal industry is crucial, with expectations for future coal prices to rise alongside marginal cost increases, benefiting companies with superior resource endowments and low costs [2] Group 3 - Solid-state battery technology is gaining momentum, with several companies announcing production timelines, including Honeycomb Energy's plan to produce its first generation of semi-solid batteries by Q4 2025 [3] - Chang'an Automobile is investing in solid-state battery R&D, aiming for vehicle validation by 2026 and gradual mass production by 2027, targeting an energy density of 400 Wh/kg [3] - The solid-state battery technology is at an industrialization turning point, with a projected market size of 63.6 billion yuan for lithium battery equipment by 2030 [3]

Climate & Energy - China's proposed coal mine developments risk creating an oversupply [1] - The oversupply could derail climate goals [1] Source - The information comes from Global Energy Monitor [1]

Core Insights - Alliance Resource Partners, L.P. (NASDAQ: ARLP) is well-managed and has substantial cash reserves, but it has reached a critical turning point in its business strategy [1] Company Analysis - The company recognizes that merely selling coal to U.S. power plants is no longer a sustainable business model [1] - The focus of the research is primarily on small- to mid-cap companies, which are often overlooked by investors, while also occasionally analyzing large-cap companies for a broader market perspective [1]

Core Viewpoint - The article provides a ranking of open-end funds based on their net asset value growth, highlighting the top and bottom performers in the market as of July 28, 2025 [2][4]. Fund Performance Summary Top 10 Funds - The top 10 funds with the highest net value growth on July 28, 2025, include: 1. 泰信汇盈债券A: Unit Net Value 1.3064, Cumulative Net Value 1.3760, Daily Growth 27.75% 2. 泰信汇盈债券C: Unit Net Value 1.1155, Cumulative Net Value 1.1851, Daily Growth 7.74% 3. 德邦鑫星价值A: Unit Net Value 2.1317, Cumulative Net Value 2.2697 4. 德邦鑫星价值C: Unit Net Value 2.0496, Cumulative Net Value 2.1976 5. 信澳业绩驱动混合A: Unit Net Value 0.9926, Cumulative Net Value 0.9926 6. 信澳业绩驱动混合C: Unit Net Value 0.9751, Cumulative Net Value 0.9751 7. 东兴数字经济混合发起C: Unit Net Value 1.1123, Cumulative Net Value 1.1123 8. 东兴数字经济混合发起A: Unit Net Value 1.1140, Cumulative Net Value 1.1140 9. 信澳转型创新股票C: Unit Net Value 1.0330, Cumulative Net Value 1.0330 10. 信澳转型创新股票A: Unit Net Value 1.0520, Cumulative Net Value 1.0520 [2][4]. Bottom 10 Funds - The bottom 10 funds with the lowest net value growth on July 28, 2025, include: 1. 恒生前海恒源昭利债券E: Unit Net Value 1.2406, Cumulative Net Value 1.2406 2. 国泰中证煤炭ETF: Unit Net Value 1.0823, Cumulative Net Value 2.4246 3. 招商中证煤炭等权指数C: Unit Net Value 1.9518, Cumulative Net Value 1.9518 4. 招商中证煤炭等权指数E: Unit Net Value 1.9423, Cumulative Net Value 1.9423 5. 招商中证煤炭等权指数A: Unit Net Value 1.9594, Cumulative Net Value 1.3858 6. 国联煤炭C: Unit Net Value 1.7540, Cumulative Net Value 1.7540 7. 富国中证煤炭指数C: Unit Net Value 1.9060, Cumulative Net Value 1.9060 8. 国联煤炭A: Unit Net Value 1.7680, Cumulative Net Value 1.7680 9. 国泰中证煤炭ETF联接C: Unit Net Value 1.9107, Cumulative Net Value 2.2817 10. 国泰中证煤炭ETF联接E: Unit Net Value 1.9374, Cumulative Net Value 1.9374 [4][5]. Market Analysis - The Shanghai Composite Index showed a slight recovery, with a trading volume of 1.76 trillion, and the number of advancing stocks outnumbered declining ones at 2781 to 2438. The leading sectors included insurance, components, and communication equipment, with gains exceeding 2% [7].

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Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **Chinese economy**, specifically tracking economic activity and policy updates as of July 25, 2025. It includes high-frequency indicators related to consumption, production, investment, macro activity, and market policies [1][4][5]. Core Insights and Arguments Consumption and Mobility - **Property Transactions**: The daily property transaction volume in the primary market across 30 cities was reported to be below last year's levels [2][12]. - **Traffic Congestion**: Traffic congestion levels were slightly below those of the previous year, indicating a potential decline in mobility [8][10]. - **Consumer Confidence**: Consumer confidence remained depressed as of May, suggesting ongoing challenges in consumer sentiment [14]. Production and Investment - **Steel Demand**: Flat steel demand has slightly decreased but remains above last year's levels, while long steel demand has remained roughly flat and below year-ago levels [17][19]. - **Steel Production**: Overall steel production has edged down and is below last year's levels, indicating a contraction in the sector [19]. - **Local Government Bonds**: As of July 25, 2025, RMB 2.8 trillion in local government special bonds have been issued out of a total quota of RMB 4.4 trillion for the year, representing 63.1% of the annual quota [23][24]. - **Coal Consumption**: Daily coal consumption in coastal provinces was reported to be below last year's levels, reflecting a potential decline in energy demand [25]. Other Macro Activity - **Port Activity**: Official port container throughput has increased over the past two weeks and remains above year-ago levels, indicating a positive trend in trade activity [33]. - **Rare Earth Exports**: Chinese exports of rare earth materials saw a sharp increase in June, highlighting a potential area of growth in international trade [36]. Markets and Policy - **Interbank Rates**: Interbank repo rates have edged down recently, suggesting a potential easing of liquidity conditions in the banking system [43]. - **Oil Demand**: The nowcast indicates that China's oil demand hovered around 16.8 million barrels per day in the latest reading, reflecting stable demand levels [44]. - **Currency Movements**: The Chinese Yuan (CNY) appreciated against the USD and the CFETS basket in recent weeks, indicating strengthening currency dynamics [45]. - **Policy Announcements**: Several macro policy announcements have been made since March, focusing on investment, growth, and consumption, including the start of the Yarlung Zangbo River hydropower project and measures to stabilize employment [50]. Other Important Insights - The report highlights a shift in data sources for traffic congestion from Gaode map to Baidu map, which may affect future comparisons and analyses [10]. - The report emphasizes the importance of monitoring these indicators bi-weekly to capture the evolving economic landscape in China [1]. This summary encapsulates the key points and insights from the conference call, providing a comprehensive overview of the current state of the Chinese economy and its various sectors.