1. Report Industry Investment Rating No specific industry investment rating is provided in the content. 2. Core Viewpoints - The suspension of the "reciprocal tariff" for 90 days has been postponed from July 9 to August 1, keeping investors' risk appetite at a high level. Amid the rising expectation of the second supply - side reform, corresponding investment opportunities are worth exploring. In the equity market, pay attention to industries with low capacity utilization; in the bond market, uncertainty may bring some benefits, but the downward space of interest - rate bonds is limited; for commodities, gold is expected to benefit from the increased risk - aversion sentiment and has short - term long - making opportunities [12]. 3. Summary by Related Information Stock Market - In the past week (20250630 - 20250706), U.S. stocks rose, with the Nasdaq, S&P 500, and Dow Jones Industrial Average changing by 1.62%, 1.72%, and 2.30% respectively, while the Nasdaq China Technology Index fell by 0.60%. The Hang Seng Index fell by 1.52% [2]. - Most A - share sectors or industries rose. The Wind All - A Index rose 1.22%. From a style perspective, in the Shanghai market, blue - chips rose and growth stocks fell; in the Shenzhen market, both blue - chips and growth stocks rose, and the North Securities 50 Index fell. Among 30 CITIC industries, 25 rose, led by steel, banking, building materials, and medicine with weekly gains of over 3.50% [3]. Bond Market - In the past week (20250630 - 20250706), the price of interest - rate bonds rose slightly, and the yield curve steepened. The 10 - year Treasury bond futures rose 0.05%, and the yield of the 10 - year Treasury bond active bond fell 0.29 BP to 1.6433%. Most maturity yields declined, with larger declines in maturities of 6 months and less [4]. - The capital price dropped significantly, and the central bank conducted a net withdrawal in the open - market operations. As of July 4, 2025, R007 was 1.4881%, down 43.20 BP from June 27, 2025; DR007 was 1.4222%, down 27.46 BP. The central bank net withdrew 1375.3 billion yuan in the past week [5]. - The bond - market leverage level decreased. The 7 - day capital cost is higher than the 5 - year Treasury bond yield. The trading volume of inter - bank pledged repurchase (5 - day average) decreased from 7.77 trillion yuan on June 27, 2025, to 7.60 trillion yuan on July 4, 2025 [6]. - U.S. Treasury yields increased, and the curve shifted upward. As of July 4, 2025, the 10 - year U.S. Treasury yield rose 6 BP to 4.35%. Yields of all maturities increased, with larger increases in maturities of 7 years and less [7][8]. Foreign Exchange and Commodity Market - The U.S. dollar depreciated, and the price of gold rose. In the past week (20250630 - 20250706), the U.S. dollar index fell 0.28%. The price of London gold spot rose 1.84% to $3331.90 per ounce, and COMEX gold futures rose 1.94% to $3332.50 per ounce. Domestic Shanghai gold also rose [9]. Policy and Events - The Sixth Meeting of the Central Financial and Economic Commission may raise expectations for the second - round supply - side reform. The meeting mentioned governing low - price and disorderly competition and promoting the orderly exit of backward production capacity. Industries such as food manufacturing, chemical raw materials and products manufacturing have low capacity utilization [10]. - The "Big and Beautiful" Act in the U.S. officially came into effect, which may increase the U.S. fiscal deficit. The act involves large - scale tax cuts, structural adjustment of fiscal expenditures, and raising the debt ceiling. The CBO estimated that it will add $3.25 trillion in deficits in the next 10 years [11].

Summary of Key Points from Conference Call Records Industry or Company Involved - **Oil and Gas Industry**: Focus on Iran-Israel conflict and its impact on oil and gas resources [1][2] - **Mining Industry**: Mention of Iran's mineral resources, including copper and zinc [2] - **Solid-State Battery Industry**: Development and market potential of solid-state batteries [3][16] - **Pharmaceutical Industry**: AI in drug development and optimization of drug procurement [6][17] - **Military and Defense Industry**: Impact of geopolitical tensions on military supplies and equipment [10][17] Core Points and Arguments Oil and Gas - The Iran-Israel conflict may disrupt oil and gas supplies, potentially increasing oil prices by 25% if the Strait of Hormuz is blocked [1] - Iran is a significant supplier of crude oil and LNG to China, with 1.5 million barrels per day exported in Q1 2025, accounting for 13% of China's total crude imports [1] - Iran's sulfur supply is crucial, with 66,600 tons exported to China in 2024, representing 6.7% of total imports [2] Mining - Iran ranks third globally in copper reserves and accounts for 12% of global zinc exports, with Chinese companies heavily reliant on Iranian zinc [2] - Lithium carbonate production in Iran is significant, with 24.3% of China's consumption sourced from Iranian materials [2] Solid-State Batteries - The solid-state battery market is expected to grow significantly, with major companies ramping up production lines [3][16] - Key materials like lithium sulfide are critical, with a projected market share of 65% by 2030 [16] - Companies like Hai Chen Pharmaceutical and Guanghua Technology are leading in the development of solid-state battery materials and equipment [3][16] Pharmaceuticals - The optimization of drug procurement is underway, with new rules expected to be implemented soon [6][17] - Strategic partnerships in AI drug development, such as the collaboration between Stone Pharmaceutical and AstraZeneca, highlight the shift towards AI in pharmaceuticals [17] Military and Defense - The demand for military supplies, particularly nitrocellulose, is increasing due to global tensions, with a significant drop in global production capacity [10][17] - Companies involved in military equipment are seeing growth due to increased defense spending and geopolitical instability [10][17] Other Important but Possibly Overlooked Content - The potential for increased demand for methanol due to disruptions in Iranian production, with China being a major importer [17] - The impact of geopolitical events on the supply chain for various industries, including pharmaceuticals and military supplies, indicating a broader market risk [17] - The upcoming Paris Air Show will showcase significant military and aerospace advancements, reflecting the ongoing investment in defense technologies [18] This summary encapsulates the critical insights from the conference call records, highlighting the interconnectedness of geopolitical events and various industries, particularly oil and gas, mining, solid-state batteries, pharmaceuticals, and military defense.

Macro Dynamics - The State-owned Assets Supervision and Administration Commission (SASAC) has mandated central enterprises to enhance fund coordination to ensure timely payments, particularly to small and medium-sized enterprises (SMEs) [1] - The SASAC's initiative aims to address the issue of delayed payments to enterprises, thereby facilitating the smooth circulation of funds and supporting the national economy [1] - A revised regulation on ensuring payment to SMEs will take effect on June 1, 2025, as part of broader efforts to improve the regulatory framework regarding enterprise payments [1] Service Industry Expansion - The State Council has approved a plan to accelerate the expansion of service industry pilot projects, adding nine new cities to the existing eleven pilot areas [2] - The new pilot cities include Dalian, Ningbo, Xiamen, Qingdao, Shenzhen, Hefei, Fuzhou, Xi'an, and Suzhou, aiming to enhance institutional innovation and efficiency in service industry development [2] Financial Institutions - Li Jiping, former Vice President of the China Development Bank, has been sentenced to 14 years in prison for bribery [4][5] Market Data - The Shanghai Composite Index rose by 0.45%, marking a seven-day consecutive increase, with total trading volume in both markets exceeding 1 trillion yuan [7] - The financing balance in both markets has decreased for three consecutive days, with a total reduction of 62.63 billion yuan [8] Company Dynamics - CATL launched the Xiaoyao dual-core battery, which features a dual-core architecture for enhanced energy output and safety, alongside the second-generation Shenxing supercharging battery with a range of 800 kilometers [9] - Haiguang Information reported a net profit of 506 million yuan for Q1 2025, a year-on-year increase of 75.33%, driven by strong demand in general and AI computing markets [11] - Zhongyida announced that its stock price has significantly diverged from its fundamentals, with a 197.77% increase since March 10, 2025, despite reporting a net loss of 14.08 million yuan for 2024 [12] - China Communications Construction Company plans to repurchase A-shares worth 500 million to 1 billion yuan, while its controlling shareholder intends to increase H-shares by 250 million to 500 million yuan [13] - Guangda Special Materials reported a net profit increase of 1488.76% year-on-year for Q1 2025, attributed to strong industry demand and internal efficiency improvements [14]