Market Overview - The A-share market showed mixed performance in the morning session, with the Shanghai Composite Index slightly up and total market turnover exceeding 1.55 trillion yuan [1] - The CSI A500 Index rose by 0.04%, while the CSI 300 Index increased by 0.1%. The ChiNext Index and the STAR Market 50 Index fell by 0.2% and 0.4%, respectively [1][3] Sector Performance - Leading sectors included quantum technology, steel, batteries, energy metals, software development, liquor, and port shipping, which saw significant gains [1] - Conversely, sectors such as precious metals, CPO, PCB, and photolithography experienced declines [1] Hong Kong Market - The Hong Kong market showed upward movement, with the Hang Seng China Enterprises Index rising by 0.5%. Key sectors that performed well included non-ferrous metals and coal [1] - In contrast, the pharmaceutical, media, and real estate sectors faced declines [1]

Core Insights - The Social Security Fund has disclosed its stock holdings as of the end of Q3, appearing in the top ten shareholders of 490 companies, with new investments in 154 companies and increased holdings in 124 companies [1][2] - The total number of shares held by the Social Security Fund is 7.605 billion, with a total market value of 157.906 billion yuan [1] - The fund's major holdings are concentrated in the machinery, pharmaceutical, and basic chemical industries, with 49, 48, and 46 stocks respectively [2] Stock Holdings - The Social Security Fund's largest holding is in Fenzhong Media, with 333 million shares, followed by Changshu Bank and Vanadium Titanium Shares with 211 million and 170 million shares respectively [1][2] - The highest percentage of shares held by the fund is in Nossger, accounting for 8.16% of its circulating shares, followed by Bai Ao Intelligent at 7.23% [1] - A total of 11 stocks have over 100 million shares held by the fund, with Fenzhong Media leading [1] Performance Metrics - Among the stocks held by the Social Security Fund, 305 companies reported year-on-year profit growth in Q3, with the highest growth seen in Xin Qiang Lian at 1939.50% [2] - The average increase in the fund's major stocks since October is 0.90%, underperforming the Shanghai Composite Index [2] - The best-performing stock is Sifang Shares, with a cumulative increase of 45.91%, while Guomai Culture has seen the largest decline at 42.51% [2]

Core Insights - The 2025 Enterprise Sustainable Development Conference won the "Outstanding Large-scale Event Award" at the first Media Sustainable Development ESG Awards for its notable practices in the ESG field [2][3] Group 1: Forum and Awards - The forum, themed "Communication and Good Governance: Media ESG Breaking the Deadlock," focuses on the implementation of sustainable development concepts in the media industry, aiming to empower high-quality development through ESG [3] - The "First Media Sustainable Development ESG Awards" is guided by the China News Culture Promotion Association and involves a cross-disciplinary evaluation system combining 60% objective scoring and 40% subjective scoring, ensuring professionalism and authority [3] Group 2: Conference Details - The 2025 Enterprise Sustainable Development Conference will be held in April 2025 at the Shanghai Tower, themed "Those Who Care Win, Those Who Act Succeed," bringing together government agencies, leading enterprises, universities, and media for in-depth discussions on key topics like green finance and corporate low-carbon transformation [5] - The conference aims to create an international platform for sustainable development exchanges, contributing to the achievement of global sustainable development goals (SDGs) [5] Group 3: Media's Role in ESG - The media organization is seen as both a communicator of ESG concepts and a practitioner of sustainable development, with First Financial Media focusing on ESG practices and green development through in-depth reporting and case studies [5][7] - The recent award recognizes First Financial's sustainable development practices and emphasizes the importance of cross-sector collaboration to deepen the implementation of ESG concepts in the corporate sector [5][7]

Core Viewpoint - The A-share market opened lower with the Shanghai Composite Index down by 0.21% and the ChiNext Index down by 0.32%, indicating a bearish sentiment in the market [1] Market Analysis - Huajin Securities suggests that the slow bull market and technology as the main line remain unchanged, recommending investments in technology growth and certain cyclical and core asset industries [1] - The recommended sectors for short-term investment include telecommunications (computing power), electronics (semiconductors, consumer electronics), media (gaming, AI applications), machinery (robots), computers (AI applications, autonomous driving), non-ferrous metals, and chemicals [1] - Additionally, sectors benefiting from the "14th Five-Year Plan" and improved Q3 performance include new energy, pharmaceuticals, consumer goods (food, retail), and military industry (commercial aerospace) [1] Future Market Outlook - Dongfang Securities notes that after the Shanghai Composite Index surpassed 4000 points, market trading enthusiasm has decreased, leading to increased volatility among major indices [1] - Despite potential trading disturbances, the overall trend suggests that the index is likely to continue its upward trajectory [1]

Core Viewpoint - Huizhou Intelligent has been penalized for financial misconduct, including falsifying financial reports for two consecutive years, leading to a risk warning on its stock and a change in its trading name to "ST Huizhou" [2][4]. Summary by Relevant Sections Regulatory Actions - The Zhejiang Securities Regulatory Bureau has issued an administrative penalty notice to Huizhou Intelligent and its related personnel for violations of information disclosure laws [2][6]. - The company will face a risk warning starting October 31, with its stock being renamed to "ST Huizhou" [4]. Financial Misconduct Details - Investigations revealed that from 2019 to 2020, Huizhou Intelligent's subsidiaries engaged in false advertising and other deceptive practices, resulting in inflated revenues of 59.90 million yuan and 96.89 million yuan for the respective years, which accounted for 5.08% and 13.42% of reported figures [5]. - The total inflated profit amounted to 14.16 million yuan and 17.77 million yuan, representing 0.88% and 8.72% of the reported profit for the same periods [5]. Penalties Imposed - The regulatory body plans to impose a fine of 5 million yuan on Huizhou Intelligent, along with individual fines of 2.5 million yuan each for the former chairman and general manager, and 1.5 million yuan each for the former financial director and board secretary [7][10]. Company Response - Huizhou Intelligent has acknowledged the accounting errors and committed to improving internal governance, compliance awareness, and financial management to enhance the quality of information disclosure [8][10]. Financial Performance - In the first three quarters of the year, Huizhou Intelligent reported revenues of 809 million yuan, a year-on-year increase of 16.57%, while net profit attributable to shareholders decreased by 18.12% to 56.24 million yuan [10].

Macro Strategy - The Federal Reserve's interest rate decisions are influenced by historical missions, evolving from a stabilizer to a highly independent central bank focused on maximizing employment and price stability [1] - The Taylor rule suggests only one rate cut in 2026, while traders are pricing in 2.7 cuts, with expectations of at least three cuts in 2026, potentially lowering the policy rate to 2.75-3.0% [1] - A more accommodative monetary policy could lead the U.S. economy from a soft landing to expansion, impacting market dynamics such as lower short-term Treasury yields and higher long-term yield premiums [1] Tourism Investment - The emotional need for happiness drives mainland Chinese tourists to seek cultural experiences abroad, with 39.8% prioritizing happiness through travel, 13.6 percentage points higher than the global average [2] - High cultural value is essential for tourism activities favored by Chinese tourists, with significant demand for pop culture events and related merchandise [2] - Classic cultural IPs significantly enhance long-term tourism spending, as seen with Disney and iconic film locations like New Zealand's "The Lord of the Rings" [2] Fixed Income - Credit expansion across industries remains moderate, with structural differentiation evident, as overall leverage has not returned to pre-pandemic levels [4] - Industries currently experiencing credit expansion include light manufacturing, electronics, and public utilities, characterized by stable cash flows and predictable capital expenditure returns [4] - Sectors facing credit contraction include real estate and consumer goods, which require broader economic recovery to boost demand [4] Non-Banking Financial Sector - The wealth management industry is transitioning from a seller-driven model to a buyer advisory model, influenced by rapid fintech development and increasing national wealth [5] Automotive Industry - 2025 marks a pivotal year for automotive smart technology, with significant advancements in urban NOA (Navigation on Autopilot) capabilities among leading manufacturers [6] - A comparative evaluation of six smart driving suppliers indicates that Huawei and XPeng lead in overall performance, while other manufacturers are closing the gap [6] Non-Banking Financial Sector Insights - The non-banking sector is experiencing an upward trend in market conditions, with public fund holdings in this sector remaining relatively low, indicating potential for growth [8] Company-Specific Reports - Shoulu Hotel's RevPAR decline is narrowing, with ongoing optimization in store openings and structural upgrades, leading to adjusted profit forecasts for 2025-2027 [9] - Xingrong Environment's Q3 performance exceeded expectations, driven by stable pricing mechanisms and growing operational capacity in wastewater treatment [10] - The semiconductor and display sectors are expected to see continued growth, with significant orders and product deliveries enhancing revenue prospects for companies like Jingce Electronics [11] Energy and Environment - Nanfang Storage's Q3 results reflect a strong revenue increase, supported by new project launches and stable pricing in the energy sector [13] - The company is well-positioned for future growth with a focus on energy storage solutions and expanding its market presence [13] Miscellaneous Company Reports - Companies like China Ping An and Huazhong Technology are adjusting profit forecasts upward due to improved operational performance and market conditions [38][39] - The food industry is seeing mixed results, with companies like Anji Food adjusting profit expectations due to fluctuating demand and cost pressures [30][34]

Investment Value Awards - The evaluation scope includes non-financial A-share listed companies listed before January 1, 2024, excluding ST companies and those with significant legal and ethical flaws, resulting in a sample of 3,884 companies [1] - A maximum of 120 companies will be selected for the awards [1] - The evaluation method combines principal component analysis and negative adjustments to determine the award winners [1] - Key indicators for principal component analysis include total market value, net assets, total operating income, and adjusted profitability and solvency metrics [1] New Quality Enterprise Awards - The evaluation scope focuses on companies listed on the Sci-Tech Innovation Board, excluding newly listed stocks after December 31, 2023, resulting in a sample of 549 companies [2] - A maximum of 60 companies will be selected for the awards [2] - The evaluation method also employs principal component analysis and negative adjustments [2] - The indicator system emphasizes innovation metrics while reducing profitability indicators [3] Small Giant Awards - The evaluation scope includes companies listed on the Beijing Stock Exchange, with specific exclusions leading to a final sample of 225 companies [5] - A maximum of 30 companies will be selected for the awards [5] - The evaluation method utilizes principal component analysis with negative adjustments [5] - The indicator system is adjusted to focus on scale metrics, using data from the end of 2024 [5] Dividend Return Awards - The evaluation scope includes non-financial A-share listed companies listed before January 1, 2024, resulting in a sample of 4,438 companies [6] - A maximum of 60 companies will be selected for the awards [6] - The evaluation method uses indicator weight analysis and negative adjustments [6] - Key indicators include total dividends, dividend yield, and frequency of dividends, calculated using z-score standard scoring [6] Outstanding Entrepreneur Awards - The evaluation scope targets A-share listed company executives with a market cap in the top 5% and a minimum of 80 billion yuan, resulting in a candidate pool of 200 [7] - A maximum of 10 executives will be selected for the awards [7] - The evaluation combines quantitative analysis and expert recommendations, focusing on leadership, industry influence, and corporate governance [8] Entrepreneur Achievement Awards - The evaluation scope includes executives from A-share listed companies with a market cap in the top 15% and a minimum of 40 billion yuan, resulting in a candidate pool of 200 [9] - A maximum of 20 executives will be selected for the awards [9] - The evaluation combines quantitative analysis and expert recommendations, focusing on leadership and industry influence [9] Innovation Awards - The evaluation scope includes executives from A-share listed companies recognized for achievements in innovation [10] - A maximum of 50 executives will be selected for the awards [10] - The evaluation is based on expert recommendations, focusing on leadership and innovation [11] Secretary Awards - The evaluation scope includes secretaries of A-share listed companies, resulting in a candidate pool of 600 [12] - A maximum of 200 secretaries will be selected for the awards [12] - The evaluation combines quantitative analysis and expert recommendations, focusing on information disclosure and communication skills [12] CFO Awards - The evaluation scope includes CFOs of A-share listed companies, resulting in a candidate pool of 600 [15] - A maximum of 60 CFOs will be selected for the awards [15] - The evaluation combines quantitative analysis and expert recommendations, focusing on financial performance metrics [15] Information Disclosure Awards - The evaluation scope includes A-share listed companies with a disclosure rating of "A" or "B," resulting in a sample of 4,433 companies [16] - A maximum of 500 companies will be selected for the awards [16] - The evaluation focuses on the quality and efficiency of information disclosure across multiple dimensions [16]

Group 1: Report Industry Investment Rating - No industry investment rating information is provided in the report. Group 2: Core View of the Report - From October 19 to October 25, 2025, the convertible bond market recovered with the warming of the stock market. In the short term, it is still mainly characterized by structural rotation, with obvious style differentiation. The growth sector performed relatively strongly, with active trading in the power equipment and electronics sectors. Low - price and short - duration individual bonds showed prominent elasticity. The valuation of medium - and low - price varieties was slightly compressed, and the implied volatility rebounded slightly but remained high. The market is in a stage of shock and momentum accumulation, and investors can appropriately participate in trading opportunities in the rotation rhythm by combining the fundamentals and valuation of the underlying stocks. The supply in the primary market is stable, and clause games remain an important variable in the market [2][6]. Group 3: Summary According to the Directory 3.1 Market Confidence and Overall Situation - Since the end of August, the CSI Convertible Bond Index has entered a shock consolidation stage. The current market's expectation of the future has improved marginally, and some varieties show signs of market price repair. The market is in a shock and momentum - accumulating stage, and the style has not yet formed a dominant trend [9]. - The current implied volatility of the convertible bond market has a slight upward trend, while the 30 - day historical volatility of the Wind All - A Index is declining, indicating that investors' expectations of the future are being repaired, and the market may be accumulating power for a new round of trend - based market [15]. 3.2 A - share Market Performance - During the week, the A - share market rebounded as a whole, with major stock indexes generally rising. The ChiNext and the Science and Technology Innovation 50 performed relatively prominently. The outflow of main funds converged, and trading volume shrank, reflecting that market sentiment tended to be cautious. Structurally, the technology - growth sector continued to be strong, with communication, electronics, and media leading the gains, while the consumer sector performed relatively weakly. The electronics sector still had a high trading volume ratio, indicating that the technology direction still attracted capital attention. However, the valuation and congestion of some sectors are at a high level, and short - term callback pressure and capital game rhythm need to be noted [9]. 3.3 Convertible Bond Market Performance - During the week, the convertible bond market strengthened with the recovery of the equity market, and the small - cap style had better elasticity. The valuation structure was slightly stretched, and the valuation of medium - and low - market - price convertible bonds was slightly compressed, reflecting the strong performance of the underlying stocks. The implied volatility rebounded slightly and remained at a high level, and the median market price fluctuated strongly, indicating the repair of market expectations. In terms of industries, the growth direction led the gains, and trading was concentrated in sectors such as power equipment and electronics. Individual bonds generally rose, and some short - duration varieties had high gains, showing structural differentiation [9]. 3.4 Primary Market Supply - During the week, the supply in the primary market remained stable. One new convertible bond was listed, and 11 companies updated their issuance plans, with the overall issuance progress being steady [9]. 3.5 Clause Games - In terms of downward revisions, 5 convertible bonds announced that they were expected to trigger downward revisions, 6 announced no downward revisions, and 1 proposed a downward revision. In terms of redemptions, 6 convertible bonds announced that they were expected to trigger redemptions, 3 announced no early redemptions, and 2 announced early redemptions. Clause events were active, and clause games remained the focus of market attention [9].

1. Report Industry Investment Rating There is no information about the industry investment rating in the report. 2. Core Viewpoints of the Report - Deng Xinyu, a fund manager at China - Europe Fund, uses fundamental quantitative methods for the "plus" part of the "fixed - income +" investment framework, with multiple strategies such as dividend, value, quality, growth, and micro - cap strategies, and a macro - based asset allocation framework [3][9]. - China - Europe Dingli is a medium - to - high - volatility secondary bond fund with a quantitative boom - growth strategy. It emphasizes the company's financial health, profit sustainability, and growth momentum, and shows high return - risk performance and increasing investor profitability over time [12][14][32]. - China - Europe Enhanced Return is a low - volatility absolute - return product aiming for an absolute return within a 2% drawdown target. It emphasizes the safety margin of equity assets through valuation and has excellent performance in multiple core indicators [44][45][46]. 3. Summary by Relevant Catalogs 3.1. China - Europe Fund Deng Xinyu: A Practitioner of Fundamental Quantitative Fixed - Income + - Personal resume: Deng Xinyu joined China - Europe Fund in October 2023. He currently serves as a member of the fixed - income investment decision - making committee, the head of the hybrid asset group, and a fund manager. He manages multiple funds including China - Europe Dingli and China - Europe Enhanced Return [7]. - Investment framework: The "plus" part of the "fixed - income +" uses fundamental quantitative methods, with multiple strategies based on fundamental analysis and a macro - based asset allocation framework [9][11]. - Managed products: He manages products worth 8.768 billion yuan, covering first - tier and second - tier bond funds and flexible - allocation funds, achieving over 7% and 2% returns for China - Europe Dingli and China - Europe Enhanced Return respectively [8]. 3.2. China - Europe Dingli: A Medium - to - High - Volatility Secondary Bond Fund with a Boom - Growth Strategy - Product positioning: It is a medium - to - high - volatility secondary bond fund using a quantitative boom - growth strategy with three nested layers [12]. - Boom judgment: It uses financial statements to assess a company's financial health, profit sustainability, and growth momentum [14]. - Comparison with other products: It is comparable to Smart Beta products. Growth - style products have high volatility and high long - term returns, and China - Europe Dingli's equity return in 2025 has exceeded the growth index [19][30]. - Product characteristics: It has high return - risk performance, with a 2025 - to - date return of 11.41% (in the 10.16% percentile) and an annualized volatility of 8.44% (in the 8.59% percentile). Investor profitability increases with holding time [32][33]. - Portfolio: It has a stock position of 16.29% and a convertible bond position of 13.14%, with a focus on growth - oriented industries such as electronics, machinery, and power equipment [37]. 3.3. China - Europe Enhanced Return: A Low - Volatility Absolute - Return Product - Product positioning: It aims to create an absolute return within a 2% drawdown target, emphasizing the safety margin of equity assets through valuation [44][45]. - Performance: In 2025, it achieved a cumulative return of 3.53% with an annualized volatility of 2.26%, ranking in the 14.21% and 16.50% percentiles among first - tier bond funds with equity. Multiple core indicators rank high in the industry [45][46]. - Investor profitability: Investor profitability increases with holding time, with average returns of 0.49%, 1.08%, and 1.54% for 1 - month, 2 - month, and 3 - month holding periods respectively, and a 100% winning rate for 2 - and 3 - month holding periods [47].

Market Overview - The A-share market showed mixed performance in October, with the Shanghai Composite Index rising by 2.7% while the Sci-Tech Innovation 50 Index fell by 1.6% [1][8] - The Hong Kong stock market experienced a pullback, with major indices such as the Hang Seng Index and Hang Seng Technology Index declining by 1.9% and 5.8% respectively [1][11] A-share Insights - The market is expected to maintain a strong performance due to multiple favorable factors, including the approval of the 15th Five-Year Plan by the Communist Party and anticipated interest rate cuts by the Federal Reserve [2][15] - The focus for mid-term investments should be on the TMT (Technology, Media, and Telecommunications) and advanced manufacturing sectors, while high-dividend and consumer sectors may be considered if market volatility increases [2][20] Hong Kong Insights - The Hong Kong market is likely to continue its upward trend amidst the Federal Reserve's interest rate cuts, with a focus on a "barbell" strategy that includes technology growth and high-dividend stocks [3][22] - Key sectors to watch include self-sufficient technology, chips, and high-end manufacturing, as well as stable dividend-paying sectors like telecommunications and utilities [3][22] Stock Recommendations - The A-share stock selection for November includes: Sunlord Electronics, Aolai Technology, Zhongji Xuchuang, Hangcha Group, Sany Heavy Industry, Zhengguang Co., Haier Smart Home, China Petroleum, Zijin Mining, and Shanghai Lingang [3][24] - The Hong Kong stock selection for November includes: New China Life Insurance, China Life Insurance, Tencent Holdings, SMIC, and Hua Hong Semiconductor [3][28]