Domestic Market Overview - The domestic market experienced a rise in both volume and price, with the Shanghai Composite Index closing at 3617.6 points, up 0.96%, and the Shenzhen Component Index closing at 11106.96 points, up 0.59% [1][4][8] - All 30 sectors of the CITIC first-level industries saw gains, with banking, telecommunications, and steel leading the increases [1][4][8] - The total trading volume for the entire A-share market was 16158 billion, showing a decrease compared to the previous day [1][4][8] Overseas Market Overview - The three major U.S. stock indices all closed lower, with the Dow Jones down 0.14%, the S&P 500 down 0.49%, and the Nasdaq down 0.65% [2][4] - The index tracking the seven major U.S. tech companies fell by 0.66%, with Facebook and Microsoft both dropping over 1% [2][4] Key News Highlights - The State Council issued opinions on gradually promoting free preschool education, aiming for universal access by 2025 [3][10] - The People's Bank of China and six other departments released guidelines to support new industrialization, focusing on a mature financial system by 2027 [3][9][10] - The China Machinery Industry Federation called for fair competition in the photovoltaic industry to maintain high-quality development in foreign trade [3][11] - Fujian Province announced support for the healthy development of the platform economy to expand employment in new economic sectors [3][12]

Core Viewpoint - The implementation of the "Guidelines for Compliance with Charging Behavior of Online Trading Platforms" aims to regulate the charging practices of platforms, ensuring fair competition and protecting the rights of operators within the platform economy [1][2][3]. Group 1: Regulatory Framework - The guidelines prohibit platforms from charging operators multiple times and from forcing operators to purchase services or participate in promotional activities [1]. - The guidelines require platforms to publicly solicit opinions when modifying charging rules, enhancing the bargaining power of operators and reducing their operational cost pressures [2]. Group 2: Impact on Competition - The guidelines promote fair competition by eliminating price discrimination and mandatory promotional fees, allowing quality merchants to thrive without excessive cost burdens [2]. - By standardizing charging practices for operators under similar trading conditions, the guidelines level the playing field for all operators [2]. Group 3: Economic Ecosystem - The implementation of the guidelines is expected to alleviate the issue of "involution" in the platform economy, allowing operators to focus on product differentiation and service upgrades rather than solely on low-price strategies [3]. - The guidelines signify a shift towards a more refined and standardized governance of the platform economy, correcting existing irregularities and ensuring long-term healthy development [3]. Group 4: Enforcement and Compliance - Regulatory bodies are urged to monitor and penalize platforms that engage in evasive practices such as "repeated charging under different names" and "price hikes after initial reductions" [4]. - There is a need to lower the cost of rights protection for operators and establish a rapid response mechanism for complaints to ensure that small merchants do not abandon their rights due to high costs [4].

National Level - The central financial committee proposed to "legally govern low-price disorderly competition by enterprises" by July 2025[2] - Key legal tools include the Anti-Unfair Competition Law, Anti-Monopoly Law, Price Law, Fair Competition Review Regulations, and Guidelines for the Construction of a Unified National Market[3] - The revised Anti-Unfair Competition Law, effective from October 15, 2025, prohibits platform operators from forcing sellers to sell below cost[3] Industry Level - The 2024 Industrial Structure Adjustment Guidance Catalog categorizes projects into encouraged (352 items), restricted (231 items), and eliminated (422 items) categories[18] - The Cement and Glass Industry Capacity Replacement Implementation Measures (2024) prohibit new capacity for cement clinker and flat glass projects without a replacement plan[19] - The draft Network Transaction Platform Rules aims to prevent unreasonable restrictions on platform operators' pricing autonomy[20] Product Level - National mandatory standards are being raised to phase out outdated production capacity, focusing on energy consumption limits and equipment efficiency standards[6] - By 2025, 25 products, including cement and glass, must complete upgrades or phase-outs, while 11 products, including urea and PVC, must do so by 2026[21][24] - New mandatory national standards have been issued since 2024, impacting various industries, but specific compliance timelines are still unclear[25]

Core Viewpoint - The economic prosperity in Shanghai is on the rise, driven by the acceleration of three leading industries, which is expected to contribute significantly to both Shanghai's and the national economic growth [1] Group 1: Economic Indicators - In the first half of the year, Shanghai's total retail sales of consumer goods reached 826.041 billion yuan, with a year-on-year growth of 1.7%, an increase of 2.8% compared to the first quarter [1] - The retail sales of goods increased by 2.4% year-on-year, supported by the effectiveness of the consumer goods replacement policy [1] Group 2: Industry Performance - The information service industry in Shanghai saw a revenue increase of 20.4% year-on-year, which is 6.1% higher than the national average and 5.9% higher than the growth rate in the first quarter [1] - The growth in integrated circuit design and platform economy is highlighted as a key factor in the acceleration of the three leading industries [1]

Group 1 - The provincial government is implementing measures to promote high-quality development of the platform economy, focusing on enhancing consumption and leading development [1] - Support will be provided for the construction and operation of online trading platforms, encouraging enterprises to expand sales through public networks and build vertical platforms to aid the digital transformation of SMEs [1] - The government aims to attract national platforms and cross-border e-commerce businesses, supporting the establishment of regional headquarters and operational centers [1] Group 2 - The initiative encourages the integration of live streaming with various sectors such as dining, commerce, exhibitions, and night economy to foster a vibrant commercial atmosphere [2] - There is a push for the deep integration of live streaming with traditional industries, promoting models that combine online reservations with offline experiences [2] - The government plans to enhance service levels across multiple business formats, guiding traditional malls to transform into community commercial centers [2]

Investment Focus - The report suggests waiting for a better entry point in the market, indicating that the recent rally was initially driven by new consumption and innovative pharmaceuticals, followed by financials, while the technology sector is poised for a rebound [1][7] - The Hang Seng Index rose by 2.8%, the Hang Seng Tech Index surged by 5.5%, and the Shanghai Composite gained 0.7%, indicating a positive market trend despite a decline in the banking sector [1][7] - The technology sector experienced a strong rebound due to NVIDIA's resumption of H20 chip sales to China and upward revisions in CPO earnings, suggesting a potential for further growth [1][7] Economic Outlook - China's GDP growth reached 5.3% in the first half of the year, which has reduced expectations for large-scale stimulus measures from the Politburo meeting in July [8][9] - The report highlights the potential impact of a stronger USD and rising U.S. Treasury yields on global risk appetite, which could lead to a market correction [8][9] Policy Developments - Anti-involution policies are being intensified, with regulatory bodies urging rational competition among major platforms, which may provide short-term boosts to stock valuations in affected sectors [10] - The report anticipates that stronger policy support could help certain sectors form a bottom and gradually recover, contingent on the implementation of supportive measures [10] Market Dynamics - The short-selling ratio in Hong Kong remains low at 13%, indicating a lack of bearish sentiment, while southbound capital recorded a net inflow of HKD 21.5 billion, suggesting positive investor sentiment [11] - In A-shares, margin financing and securities lending have increased significantly, reflecting rising retail investor participation, but also indicating that leverage levels are approaching high points [12] Investment Strategy - The report concludes that the market is in a wide consolidation phase, with a potential short-term correction on the horizon. It recommends gradually shifting exposure from leading sectors to large-cap blue chips, especially during dips [13]

Group 1 - The market regulatory authority has summoned major platform companies like Ele.me, Meituan, and JD.com, urging them to comply with laws and regulations and to engage in rational competition [2] - The competitive landscape has been characterized by intense rivalry, with companies feeling compelled to engage in battles that may not be sustainable, leading to a distorted market mechanism [2] - The ongoing "burning money" strategies by some leading companies are creating market bubbles and harming overall industry and consumer interests, indicating a need for a more sustainable approach to competition [2] Group 2 - The platform economy should focus on service rather than capital competition, and the current subsidy wars among delivery platforms could serve as an opportunity to optimize industry competition [3] - Regulatory bodies are encouraged to play a more active role in defining subsidy limits based on company size and operational status, and to scrutinize practices like excessive spending to capture market share [3] - Companies are advised to move away from the mindset of "having to compete" and instead engage in rational competition for long-term stability and growth [3]

Core Viewpoint - The sustainable development of platform economy relies on the design of scientific rules to create a "value symbiosis" ecosystem among multiple stakeholders [1][2]. Group 1: Value Creation and Distribution - The current model of platforms forcing merchants to lower prices can lead to unhealthy competition and squeeze the survival space of small operators [1]. - A new paradigm focusing on "value symbiosis" is essential for the healthy development of platform economy, as illustrated by the example of Taobao Flash Sale [1]. - The "platform-data-algorithm" triadic collaborative framework is proposed to establish a new value distribution mechanism [1]. Group 2: Role of Algorithms - Algorithmic innovation is crucial in avoiding "involution" and achieving value symbiosis, as demonstrated by Taobao Flash Sale [2]. - Optimizing supply chain scheduling algorithms can enhance fulfillment efficiency and improve user experience without cost-cutting [2]. - Innovative subsidy distribution algorithms can prevent inefficient blanket subsidies and avoid excessive concentration of resources on top merchants [2]. Group 3: Long-term Strategy and Social Responsibility - Platforms should move beyond short-term traffic thinking and embed social responsibility into rule and algorithm design [2]. - The core competitiveness of platforms in the digital economy era lies in the harmonious construction of the ecosystem, deep exploration of data value, and innovative application of algorithm technology [2]. - A fair, efficient, and sustainable value creation and distribution system is necessary to empower ecosystem partners and meet user needs, driving the platform economy towards high-quality development [2].

Group 1 - The core viewpoint emphasizes the importance of high-quality development of the platform economy in Zhejiang, aiming to establish six new benchmarks in various areas such as innovation, industry modernization, international cooperation, consumer vitality, harmonious labor relations, and modern governance [2][3] - Zhejiang has seen a significant increase in platform enterprises, growing from 310 to over 850 in two years, maintaining a leading position in terms of quantity and transaction volume nationwide [3] - The provincial government acknowledges the increasing competition in the platform economy, highlighting the need for strategic initiatives to maintain its leading position and address challenges such as market saturation and insufficient international competitiveness [3] Group 2 - Emerging technologies like AI and supply chain intelligence are identified as new growth points for platform enterprises, with a focus on encouraging transformation towards high-tech enterprises [4] - Alibaba plans to invest over 380 billion yuan in cloud and AI hardware infrastructure over the next three years, marking the largest investment in this sector by a private company in China [4] - By 2027, Zhejiang aims to have over 1,000 platform enterprises, with more than 50 reaching a scale of 10 billion yuan, and a total revenue of platform enterprises reaching 2.2 trillion yuan [4]

Core Insights - Zhejiang Province is emphasizing the high-quality development of its platform economy, aiming to establish itself as a strong province in this sector through a three-year action plan focused on creating six new benchmarks [1][2]. Group 1: Development Strategy - The six new benchmarks include: 1. Fostering technology-driven innovation 2. Building a modern industrial system through digital and physical integration 3. Enhancing international competitiveness through open collaboration 4. Stimulating consumer activity by balancing supply and demand 5. Promoting harmonious labor relations for public welfare 6. Establishing modern governance practices [1][2]. Group 2: Current Status and Challenges - As of now, Zhejiang has over 850 platform enterprises, a significant increase from 310 two years ago, maintaining a leading position in terms of both quantity and transaction volume nationally [2]. - However, the province faces increasing competition as more regions prioritize platform economies, making it challenging to retain its leading status [2]. Group 3: Technological Advancements - Emerging technologies such as AI and supply chain intelligence are identified as new growth points for platform enterprises, with a focus on encouraging transformation towards high-tech enterprises [3]. Group 4: Future Goals - Zhejiang aims to exceed 1,000 platform enterprises by 2027, with over 50 achieving a scale of 10 billion yuan in revenue, and a total platform enterprise revenue target of 2.2 trillion yuan [5].