Group 1: Economic Overview - The trend of expanding consumption in China remains unchanged, with new consumption drivers continuing to grow [1] - Despite facing risks and challenges, the long-term positive support conditions and basic trends of the economy have not changed [1] - The macroeconomic policies are showing effectiveness, with market demand expanding and new productive forces developing [1] Group 2: Export Growth - China's exports are expected to grow in the second half of the year due to several favorable conditions, including the diversification of foreign trade and enhanced competitiveness of export products [2] - The overall stability of consumer prices in July indicates positive changes, although the market still faces weak demand [2] - Policies aimed at expanding domestic demand and promoting a unified national market are expected to continue yielding positive effects [2] Group 3: Investment Landscape - Investment in China continues to expand, with structural optimization, although there are temporary pressures on investment growth [3] - There is significant potential for investment, as per capita capital stock remains lower compared to developed countries [3] - Efforts to promote a unified national market and optimize the investment environment are crucial for stimulating private investment and expanding effective investment [3] Group 4: Green Development - China is focusing on creating new growth areas in green development, achieving significant results with an increasing "green content" in economic development [4] - In July, production of new energy products such as electric vehicles and lithium-ion batteries saw year-on-year growth of 17.1% and 29.4%, respectively [4] Group 5: Industrial Production - Industrial production remained stable in July, with ongoing improvements in development quality, despite external complexities and pressure on industrial profits [5] - There are favorable conditions for the positive development of industrial production, emphasizing the need to expand domestic demand and strengthen innovation [5]

Core Viewpoint - The financial report of Sanbian Technology Co., Ltd. for the first half of 2025 shows a decrease in total revenue and net profit compared to the same period in 2024, indicating potential challenges in maintaining growth and profitability [1][4][6]. Financial Statements Assets - Total assets increased from 2,152,617,400.98 yuan at the beginning of the period to 2,332,436,597.98 yuan at the end, reflecting a growth of approximately 8.4% [1][2]. - Current assets rose from 1,759,761,397.15 yuan to 1,958,169,712.48 yuan, an increase of about 11.3% [1][3]. - Inventory significantly increased from 530,208,665.18 yuan to 708,197,568.11 yuan, marking a rise of approximately 33.6% [1][3]. Liabilities - Total liabilities decreased slightly from 1,496,278,514.79 yuan to 1,469,205,246.32 yuan, a decline of about 1.8% [2][4]. - Current liabilities increased from 1,255,405,821.23 yuan to 1,368,933,720.97 yuan, reflecting a growth of approximately 9% [2][3]. Equity - Total equity rose from 656,338,886.19 yuan to 863,231,351.66 yuan, an increase of about 31.5% [2][4]. - The capital reserve increased significantly from 23,770,128.63 yuan to 184,420,296.06 yuan, indicating a substantial growth in equity financing [2][4]. Income Statement - Total operating revenue decreased from 849,653,161.18 yuan in the first half of 2024 to 744,388,059.07 yuan in 2025, a decline of approximately 12.4% [4][5]. - Total operating costs also decreased from 793,529,612.26 yuan to 711,919,197.31 yuan, a reduction of about 10.3% [4][5]. - Net profit for the period was not explicitly stated but indicated a decline compared to the previous year, with basic and diluted earnings per share both at 0.12 yuan, down from 0.2 yuan [5][6]. Cash Flow Statement - Net cash flow from operating activities improved to 1,174,537.32 yuan in 2025 from a negative cash flow of -54,609,445.05 yuan in 2024, indicating a recovery in operational efficiency [6][7]. - Cash and cash equivalents at the end of the period increased to 303,715,538.41 yuan from 73,594,041.98 yuan, reflecting a significant improvement in liquidity [6][7].

Quantitative Models and Construction Methods 1. Model Name: Southbound Capital Monthly Net Purchase Model - **Model Construction Idea**: This model uses the monthly net purchase amount of Southbound Capital to evaluate its effectiveness in driving sector rotation in the Hong Kong stock market[12][40]. - **Model Construction Process**: - The net purchase amount for each stock is calculated as: $$ S_{i,t} = (N_{i,t} - N_{i,t-1}) * P_{i,t} $$ Where: \( N_{i,t} \) = Southbound Capital holdings of stock \( i \) on day \( t \)[37] \( P_{i,t} \) = Average price of stock \( i \) on day \( t \)[37] - The sector-level net purchase amount is aggregated as: $$ Ind_{t} = \sum S_{i,t} $$ Where \( Ind_{t} \) represents the cumulative net purchase amount for the sector on day \( t \)[37]. - **Model Evaluation**: The model demonstrates a positive Rank IC mean, indicating its effectiveness in sector rotation strategies[40]. 2. Model Name: Market Cap-Adjusted Southbound Capital Model - **Model Construction Idea**: Adjust the Southbound Capital net purchase amount by sector market capitalization to improve strategy performance[40]. - **Model Construction Process**: - The net purchase amount is calculated as in the previous model. - Adjustments are made based on the market capitalization of each sector to normalize the influence of large-cap sectors[40]. - **Model Evaluation**: This adjustment improves strategy returns and reduces maximum drawdown compared to the unadjusted model[46][48]. 3. Model Name: Three-Year Percentile Southbound Capital Model - **Model Construction Idea**: Use the three-year percentile rank of Southbound Capital net purchases to identify sector preferences over a longer historical period[40]. - **Model Construction Process**: - Calculate the three-year percentile rank of the net purchase amount for each sector. - Rank sectors based on their percentile values to determine rotation preferences[40]. - **Model Evaluation**: The three-year percentile model provides a longer-term perspective but shows slightly lower Rank IC values compared to the unadjusted model[40]. 4. Model Name: Market Cap-Adjusted Three-Year Percentile Model - **Model Construction Idea**: Combine market capitalization adjustments with the three-year percentile rank to enhance strategy robustness[40]. - **Model Construction Process**: - Apply market cap adjustments to the three-year percentile rank of net purchases. - Rank sectors based on the adjusted values to guide rotation decisions[40]. - **Model Evaluation**: This model achieves the best overall performance, with the highest Sharpe ratio and IR among all tested strategies[46][48]. --- Model Backtest Results 1. Southbound Capital Monthly Net Purchase Model - **Annualized Return**: 4.73% - **Excess Return**: 3.22% - **Maximum Drawdown**: 56.01% - **Sharpe Ratio**: 0.3130 - **IR**: 0.3864[52] 2. Market Cap-Adjusted Southbound Capital Model - **Annualized Return**: 5.40% - **Excess Return**: 3.89% - **Maximum Drawdown**: 50.24% - **Sharpe Ratio**: 0.3384 - **IR**: 0.3901[52] 3. Three-Year Percentile Southbound Capital Model - **Annualized Return**: 3.61% - **Excess Return**: -2.05% - **Maximum Drawdown**: 54.33% - **Sharpe Ratio**: 0.2704 - **IR**: 0.1498[52] 4. Market Cap-Adjusted Three-Year Percentile Model - **Annualized Return**: 7.99% - **Excess Return**: 2.33% - **Maximum Drawdown**: 45.84% - **Sharpe Ratio**: 0.4350 - **IR**: 0.4713[52] --- Quantitative Factors and Construction Methods 1. Factor Name: Southbound Capital Monthly Net Purchase - **Factor Construction Idea**: Measure the monthly net purchase amount of Southbound Capital to assess its impact on sector rotation[40]. - **Factor Construction Process**: - Calculate the net purchase amount for each stock and aggregate it at the sector level as described in the model construction process[37]. - **Factor Evaluation**: The factor shows a positive Rank IC mean, indicating its predictive power for sector rotation[40]. 2. Factor Name: Market Cap-Adjusted Southbound Capital - **Factor Construction Idea**: Adjust the net purchase amount by sector market capitalization to reduce bias from large-cap sectors[40]. - **Factor Construction Process**: - Apply market cap adjustments to the net purchase amount as described in the model construction process[40]. - **Factor Evaluation**: The adjustment improves the factor's effectiveness, as evidenced by higher Rank IC values[40]. 3. Factor Name: Three-Year Percentile Southbound Capital - **Factor Construction Idea**: Use the three-year percentile rank of net purchases to capture longer-term sector preferences[40]. - **Factor Construction Process**: - Calculate the three-year percentile rank for each sector's net purchase amount[40]. - **Factor Evaluation**: The factor provides a longer-term perspective but shows slightly lower Rank IC values compared to the unadjusted factor[40]. 4. Factor Name: Market Cap-Adjusted Three-Year Percentile - **Factor Construction Idea**: Combine market cap adjustments with the three-year percentile rank to enhance factor robustness[40]. - **Factor Construction Process**: - Apply market cap adjustments to the three-year percentile rank as described in the model construction process[40]. - **Factor Evaluation**: This factor achieves the best overall performance, with the highest Rank IC values among all tested factors[40]. --- Factor Backtest Results 1. Southbound Capital Monthly Net Purchase Factor - **Rank IC Mean**: 7.72% - **Rank IC t-Value**: 24.31%[41] 2. Market Cap-Adjusted Southbound Capital Factor - **Rank IC Mean**: 5.15% - **Rank IC t-Value**: 15.66%[41] 3. Three-Year Percentile Southbound Capital Factor - **Rank IC Mean**: 4.13% - **Rank IC t-Value**: 12.75%[41] 4. Market Cap-Adjusted Three-Year Percentile Factor - **Rank IC Mean**: 4.55% - **Rank IC t-Value**: 14.82%[41]

Core Viewpoint - Fudan Fuhua (SH 600624) announced a board meeting held on August 11, 2025, to discuss external investment proposals for its subsidiaries [1] Group 1: Company Financials - For the fiscal year 2024, Fudan Fuhua's revenue composition is as follows: Industrial sector accounts for 48.28%, Software development for 42.88%, Real estate for 6.57%, and Other businesses for 2.27% [1] - As of the report date, Fudan Fuhua's market capitalization is 5 billion yuan [1]

Group 1: Market Overview - The Asia-Pacific stock markets showed strength, with the Nikkei 225 index rising over 2% to reach a historical high, while the Korean Composite Index and India's SENSEX30 index increased nearly 1% [1] - A-shares also performed well, with the Shanghai Composite Index hitting a new yearly high, and the ChiNext and Sci-Tech 50 indices showing strong performance [1] - The Hong Kong stock market showed slight weakness, with the Hang Seng Index experiencing a minor decline [1] Group 2: Sector Performance - The financial sector was notably strong, with Guosheng Financial Holdings hitting the daily limit, and Postal Savings Bank and Agricultural Bank reaching new highs [1] - The human brain engineering concept saw significant activity, with Cambrian Technologies surging over 13% and breaking the 800 yuan/share mark, while Tibet Pharmaceutical hit the daily limit [1] - The liquid cooling server concept gained traction, with Shenling Environment hitting the daily limit and Industrial Fulian rising over 8% to reach a new high [1] - The industrial hemp sector emerged strongly, with Fu'an Pharmaceutical and Rhine Biology both experiencing substantial gains [1] - Several local stocks from Xinjiang performed well, with Bayi Steel, Beixin Road and Bridge, and Xinjiang Communications Construction achieving three consecutive daily limits [1] Group 3: Xinjiang Local Stocks - Xinjiang local stocks showed strong performance, with Bayi Steel, Beixin Road and Bridge, and Xinjiang Communications Construction all achieving three consecutive daily limits [2] - The establishment of the New Tibet Railway Company, with a registered capital of 95 billion yuan, is expected to boost infrastructure projects in the region [2] - The New Tibet Railway project is anticipated to significantly increase cement demand, estimated at around 4 million tons, which could enhance cement consumption growth in Xinjiang and Tibet [2] Group 4: Human Brain Engineering - The human brain engineering concept experienced a strong surge, with Cambrian Technologies rising over 13% and other companies like Tibet Pharmaceutical and Xiangyu Medical also showing gains [3] - The Ministry of Industry and Information Technology, along with six other departments, issued guidelines to promote the development of the brain-computer interface industry, aiming for breakthroughs in key technologies by 2027 [3][4] - The guidelines outline the establishment of a robust industrial ecosystem and the cultivation of globally influential leading enterprises by 2030 [3][4] Group 5: Liquid Cooling Servers - The liquid cooling server concept saw active trading, with Shenling Environment rising over 15% and Industrial Fulian increasing by approximately 7% [5][6] - The demand for computing power continues to rise due to the AI wave, leading to increased power consumption in server chips [6] - The transition from traditional air cooling to liquid cooling is driven by the need for efficient heat dissipation in high-density computing environments [6]

政策支持固然重要，但企业内生动力才是根本。山东民营企业深明此理，主动锻造核心竞争力。魏桥创 业集团董事长张波点明关键——科技创新与绿色发展是核心驱动力。该集团正推进全域数智化转型，引 入AI优化生产，打造智能工厂，并谋划在"十五五"期间构建新能源轻量化产业集群。这份前瞻性布局， 正是山东民企向"新"而行的缩影。同时，"差异化战略"成为众多企业共识，力求在激烈市场中以"人无 我有、人有我优"的独特优势开辟新天地（301277）。 问题导向的行动，最终指向高质量发展之路。服务民企专项行动的"六个着力"，既是对当下痛点精准施 策，更是为长远发展铺路搭桥。省委金融办创新探索"数据信用""订单融资"模式，正是推动金融服务从 传统抵押向价值创造转变的生动实践。这些举措旨在激活民企内生动力，使其在"数智化、绿色化、高 端化"的新航道上行稳致远。 山东民企的"量稳质升"并非偶然。它源于政府以高频互动与精准政策营造的良性生态，更来自企业自身 在科技创新、绿色转型与差异化竞争中的不懈攀登。从"企业呼声"到"政策回声"，再到"发展强音"，山 东正谱写政企同频共振的三重奏。山东民企在这样一片沃土上，必能以"强省建设"为己任，把"世界 ...

Economic Indicators - In July, China's CPI increased by 0.4% month-on-month, reversing a 0.1% decline from the previous month, and the year-on-year core CPI rose by 0.8%, marking the highest increase since March 2024 [3] - The PPI in July decreased by 0.2% month-on-month, but the decline was narrowed by 0.2 percentage points compared to the previous month, marking the first contraction since March [3] Agricultural Sector - The Ministry of Agriculture and Rural Affairs reported that China's pork production and consumption account for about 60% of total meat consumption, and measures will be taken to adjust the breeding of approximately 1 million sows to prevent price volatility [3] Small and Medium Enterprises - The China Small and Medium Enterprises Development Index (SMEDI) for July remained stable at 89.0, with significant increases in sectors such as construction, transportation, real estate, and information technology [3] Trade and Tariffs - The U.S. trade-weighted average tariff rate has risen to 20.11%, significantly higher than the 2.44% at the beginning of the year, indicating a substantial increase in trade barriers [5] - The World Trade Organization has downgraded the global goods trade growth forecast for 2026 from 2.5% to 1.8%, citing recent tariff adjustments as a negative influence on global trade prospects [5] International Relations - European leaders emphasized that any diplomatic solution regarding the Ukraine crisis must protect the significant security interests of Europe and Ukraine [5] - Discussions are ongoing between Qatar and the U.S. regarding a comprehensive ceasefire agreement for the Gaza conflict, expected to be submitted for discussion soon [5]

Policy Overview - In January 2025, Chongqing government issued policies to improve the housing tax pilot program, excluding non-local buyers from taxation on ordinary residential purchases [2] - From February 8, 2025, the trading restrictions on previously limited housing in central urban areas were lifted, enhancing market liquidity [2] - By April 15, 2025, the first mortgage rate was reduced to 3.25%, and the down payment ratio for first homes dropped to 15% [2] High-Quality Housing Initiatives - On May 19, 2025, Chongqing's planning authority introduced measures to support high-quality residential development, focusing on safety, comfort, and sustainability [3] - The 2025 housing development plan aims to supply approximately 15 million square meters of commercial housing and 24,000 rental housing units [3] Real Estate Market Analysis - From January to June 2025, industrial land transactions dominated, accounting for 68.42% of total land sales, while residential land made up about 21.05%, with a 71.43% increase in transaction numbers year-on-year [6] - The average floor price for residential land in central Chongqing rose to 7,410 yuan/m², a 15.69% increase from the previous year [8] Residential Market Performance - The average residential price in central Chongqing was 14,054 yuan/m² in the first half of 2025, down 7.1% year-on-year [13] - Residential sales volume reached approximately 237.1 million m², a 10.7% increase year-on-year, while supply decreased by 10.9% [13] Commercial Real Estate Trends - The average price for commercial properties in central Chongqing was 11,559 yuan/m², reflecting a 1.3% increase year-on-year [14] - Commercial transaction volume decreased by 23.7%, indicating ongoing challenges in the commercial real estate sector [15] Office Space Market - The average price for office space was 9,901 yuan/m², a 6.2% increase year-on-year, but transaction volume fell by 60.3% [23] - Key areas for office transactions included Shapingba, Jiangbei, and Yubei, with significant declines in other regions [26] Industrial and Warehouse Market - Investment in key industrial projects reached 240.95 billion yuan, achieving 50.2% of the annual target, with a focus on high-end and green industrial transformation [29] - Despite external economic pressures, the industrial land market showed significant growth, supported by government policies [29] Overall Market Summary - The residential market is stabilizing in core areas, while commercial and office sectors continue to face inventory challenges [30] - The overall real estate market in Chongqing remains in an adjustment phase, with some signs of recovery in select areas [30]

Market Developments - The U.S. President Trump nominated Stephen Moore to the Federal Reserve Board to fill the vacancy left by the sudden resignation of Adrienne Kugler [1] - The White House signed an executive order allowing 401(k) investors to invest in alternative assets for better returns and diversification [1] - The International Chamber of Commerce stated that the new U.S. tariff measures significantly increase complexity for businesses, especially small and medium-sized enterprises, and called for clearer execution guidelines [1] Economic Indicators - The U.S. initial jobless claims increased by 7,000 to 226,000, slightly above market expectations [2] - The German Federal Statistical Office reported a 1.9% month-on-month decline in industrial output for June, the lowest level since May 2020, influenced by external factors such as U.S. tariffs [3] - Germany's exports in June increased by 2.4% year-on-year and 0.8% month-on-month, driven by strong demand from China and the EU, ending a two-month decline [3] - The Bank of England lowered its benchmark interest rate by 25 basis points to 4%, marking the fifth rate cut in a year due to ongoing economic challenges [3] - Japan's government revised its GDP growth forecast for the fiscal year 2025 down from 1.2% to 0.7% due to the impact of U.S. tariffs and persistent inflation [5] Market Performance - The Dow Jones Industrial Average fell by 224.48 points to 43,968.64, a decline of 0.51%; the S&P 500 dropped by 5.06 points to 6,340.00, a decrease of 0.08%; while the Nasdaq Composite rose by 73.27 points to 21,242.70, an increase of 0.35% [6] - COMEX gold futures rose by 1.44% to $3,482.70 per ounce, and silver futures increased by 1.66% to $38.53 per ounce [7] - Crude oil prices fell, with light crude futures down by $0.47 to $63.88 per barrel, and Brent crude futures down by $0.46 to $66.43 per barrel [7] Currency Movements - The U.S. dollar index increased by 0.23% to 98.400, with the euro trading at 1.1622 against the dollar and the pound at 1.3410 [8] - The onshore Chinese yuan closed at 7.1777 against the dollar, appreciating by 123 basis points from the previous trading day [8]

Domestic News - The Ministry of Finance announced that the free childcare education policy will cover all kindergarten senior class children, benefiting approximately 12 million people in the upcoming autumn semester [1][2] - The Ministry of Finance expressed satisfaction with S&P's decision to maintain China's sovereign credit rating and stable outlook, highlighting recognition of China's economic resilience and debt management effectiveness [2] - The Ministry of Industry and Information Technology, along with six other departments, issued a plan to achieve breakthroughs in key brain-computer interface technologies by 2027, establishing an advanced technology, industry, and standards system [2] - The General Administration of Customs reported that China's total goods trade value reached 25.7 trillion yuan in the first seven months of the year, with a year-on-year growth of 3.5%, accelerating by 0.6 percentage points compared to the first half of the year [3] Economic Data - As of the end of July, China's gold reserves increased to 73.96 million ounces, marking a rise of 60,000 ounces and continuing a nine-month streak of gold accumulation [4] - The State Administration of Foreign Exchange reported that China's foreign exchange reserves stood at $32,922 billion at the end of July, a decrease of $25.2 billion or 0.76% from the end of June [4]