Group 1: Fixed Income Market Changes - The easing of US-China tariff tensions has led to a rapid steepening of the bond market, with limited short-term adjustment space expected [1][2] - Long-term bond yields are unlikely to fully recover from previous declines, with resistance levels identified at 1.70% for 10-year bonds and 1.95% for 30-year bonds [2][3] - The current monetary policy environment is expected to remain accommodative, with a significant amount of liquidity in the market, enhancing the attractiveness of long bonds [2][3] Group 2: Mid-term Market Outlook - The bond yield curve is anticipated to steepen during the recovery period, with short-term rates benefiting from the current liquidity conditions [3] - The market's sensitivity to trade tensions has decreased, suggesting that future fluctuations in trade policy may have limited impact on risk appetite [3][4] - Investment strategies should focus on mid to short-duration bonds, credit bonds, and leveraged strategies as the market adjusts [3][4] Group 3: Long-term Market Perspective - The narrative surrounding long-term bond yields is shifting towards a more confident outlook, with expectations for lower yield limits being revised upwards [4] - The previous strategy of "buying every dip" may reach its limits, indicating a need for a more cautious approach in bond market investments [4] - Historical trends suggest a transition towards a strategy focused on bond selection rather than timing, favoring mid to short-duration bonds with higher carry [4]

Core Viewpoints - The necessity to enhance domestic demand policies to counteract the potential impacts of slowing external demand, thereby solidifying the recovery of domestic demand since the first quarter [1][4] - The market consensus on a clear mainline for policy response is still awaited, indicating that the timing for a more aggressive market approach is not yet ripe [1][7] Economic Performance - China's GDP growth in the first quarter exceeded expectations, with a year-on-year increase of 5.4% and a quarter-on-quarter increase of 1.2% [2][4] - Retail sales grew by 4.6%, and fixed asset investment (excluding rural households) increased by 4.2% [2] - The urban unemployment rate averaged 5.3%, and per capita disposable income rose to 12,179 yuan, reflecting a nominal increase of 5.5% [2] Trade and External Factors - The trade surplus contributed 2.2 percentage points to the nominal GDP growth in the first quarter, up from 1.9 percentage points in the previous quarter [4] - A decline in container bookings to the U.S. by 67% in the first week of April indicates potential headwinds for exports in the second quarter [4] Investment Strategies - Recommendations to maintain a defensive investment strategy in light of ongoing global uncertainties, with a focus on safe assets such as gold and government bonds [5][21] - Emphasis on sectors benefiting from domestic demand and those that have been undervalued due to market sentiment, particularly in the context of "China Special Valuation" and "Science and Technology Valuation" [6][10] Market Outlook - The market is expected to remain volatile, with a need for further observation of policy impacts before a clear bullish trend can be established [7][19] - The potential for a gradual decrease in funding rates as macroeconomic stimulus measures are anticipated to be implemented [17]

Investment Rating - The report maintains a "Buy" rating for the companies discussed, including recommendations for specific stocks such as Eft-U and Changsheng Bearings [9][10][25]. Core Insights - The report highlights the ongoing competition between GPGPU and ASIC in the chip industry, noting that while ASICs excel in low-precision tasks with better power efficiency, they still struggle to match GPGPU performance in high-precision applications [22]. - The emergence of AI applications is driving demand for AI inference, with major companies investing in self-developed AI chips to meet this growing need [22]. - The report discusses the recent advancements in brain-machine interface technology, emphasizing the establishment of pricing guidelines by the National Healthcare Security Administration to support the clinical application of these technologies [7][8][24]. Summary by Sections Macro Strategy - Recent U.S. economic data presents mixed signals, with non-farm employment slightly below expectations, alleviating some recession fears [12]. - The "tight fiscal" approach from the Trump administration is impacting market sentiment, leading to declines in U.S. stocks and the dollar [12][17]. Fixed Income - The report discusses the upcoming issuance of Haohan Convertible Bonds, with an expected listing price range of 118.73 to 132.27 yuan [20]. Industry Analysis - The competition between GPGPU and ASIC is analyzed, with GPGPU maintaining a strong market position due to superior interconnect capabilities [22]. - Major companies are increasingly investing in self-developed AI chips, with significant R&D expenditures required to cover initial costs [22]. - The report identifies key players in the AI chip manufacturing space, including Broadcom and Marvell, highlighting their competitive advantages [22]. Medical and Biological Industry - The successful implementation of brain-machine interface technology is noted, with new pricing projects established to facilitate its clinical use [7][8][24]. - The report suggests potential investment opportunities in companies involved in brain-machine interface technologies, both listed and unlisted [24].