Core Viewpoint - The article discusses the key changes and focuses in the "15th Five-Year Plan" (2026-2030) compared to the "14th Five-Year Plan" (2021-2025), highlighting shifts in development goals, industry focus, and policy priorities. Development Environment - The "15th Five-Year Plan" emphasizes the complexity of the development environment, including unilateralism and hegemonism, while also recognizing favorable long-term trends. It highlights issues such as insufficient effective demand and pressures on employment and income growth, indicating a greater focus on total demand during this period [1][14][16]. Development Goals - The "15th Five-Year Plan" sets seven goals, with a clear emphasis on "significant achievements in high-quality development," which includes maintaining reasonable economic growth, improving total factor productivity, and increasing the resident consumption rate. The plan also introduces a new goal of significantly enhancing self-reliance in technology [2][17][18]. Industry Development - The plan includes a focus on optimizing traditional industries and nurturing emerging and future industries. It highlights the importance of traditional sectors like mining and manufacturing while also emphasizing new industries such as quantum technology and hydrogen energy [3][19][20]. Technological Innovation - The "15th Five-Year Plan" aims for decisive breakthroughs in key core technologies through a new national system and extraordinary measures, particularly in areas like integrated circuits and advanced materials. It also proposes increased R&D tax deductions and greater government procurement of innovative products [4][20][21]. Expanding Domestic Demand - The plan shifts from a supply-driven approach to one that emphasizes demand, aiming to stimulate consumption and investment. It includes measures to enhance consumer spending and streamline government investment processes [5][22][23]. Systemic Reform - The "15th Five-Year Plan" focuses on enhancing the vitality of various business entities and improving the market-oriented allocation of resources. It emphasizes the need for stronger protection of property rights and the optimization of asset structures [7][24][25]. Opening Up - The plan advocates for a steady expansion of institutional openness, aiming to align with international high-standard trade rules and enhance the internationalization of the Renminbi, reflecting a proactive approach in the context of global economic changes [8][26]. Rural Revitalization - The "15th Five-Year Plan" continues to prioritize rural revitalization, incorporating lessons from previous initiatives to improve rural infrastructure and public services, thereby promoting agricultural modernization [9][27][28]. Regional Development - The plan emphasizes the role of key regions in driving economic growth and proposes measures to enhance public services based on residency registration, reflecting a focus on urbanization and regional advantages [10][29]. Green Development - The "15th Five-Year Plan" aims to accelerate the establishment of a new energy system, focusing on increasing the share of renewable energy and implementing dual control over carbon emissions, indicating a commitment to sustainable development [11][30]. Social Welfare - The plan places a strong emphasis on high-quality employment and income distribution, introducing measures to enhance social security and housing supply, reflecting a shift in the perception of housing as a social issue [12][31][32].

10月20日至23日，中国共产党第二十届中央委员会第四次全体会议在京召开。全会审议通过《中共中央 关于制定国民经济和社会发展第十五个五年规划的建议》（以下简称《建议》），圆满完成各项议程。 相信很多人都关注到了这一点，党的二十届四中全会部署12项战略任务，明确把"建设现代化产业体 系，巩固壮大实体经济根基"摆在第一条。这足以说明实体经济的分量，以及对我国"立身之本"的重 视。 市场方面，大国经济都是内需为主导，市场是当今世界最稀缺的资源。因此，构建强大国内市场不仅是 发展的必然选择，更是推进中国式现代化的关键战略依托，这也体现了我们发展的战略定力。在具体路 径上，《建议》提出坚持扩大内需这个战略基点。一是拓展增量，二是提升效益，三是畅通循环。 在提升效益方面，国家发展改革委方面表示，我国固定资产投资年度规模已达到50万亿元，但惠民生、 补短板、育动能等任务还很重，必须把"钱"特别是政府资金更好地用在发展紧要处，花在群众生活上。 对此，《建议》提出优化政府投资结构，提高民生类政府投资比重，统筹用好各类政府投资，加强政府 投资全过程管理等举措，将更好地发挥政府投资的撬动作用，不断增进投资的综合效益。 推动经济行稳 ...

Core Viewpoint - The Fourth Plenary Session of the 20th Central Committee of the Communist Party of China emphasized the importance of building a modern industrial system and strengthening the foundation of the real economy as a priority for national development [1][2]. Group 1: Industrial Development - The proposal aims to optimize and upgrade traditional industries, focusing on enhancing the global competitiveness of sectors such as chemicals, machinery, and shipbuilding, which account for approximately 80% of the manufacturing value added in China [2]. - An estimated market space of around 10 trillion yuan will be created over the next five years through these initiatives [2]. - The development of emerging pillar industries, including new energy, new materials, aerospace, and low-altitude economy, is expected to generate several trillion-level market opportunities [2]. Group 2: Economic Strategy - The strategy emphasizes the importance of domestic demand as the main driver of the economy, highlighting the need to build a strong domestic market as a key strategic support for modernization [2]. - The proposal outlines three specific pathways to expand domestic demand: increasing volume, enhancing efficiency, and ensuring smooth circulation [2]. Group 3: Investment and Efficiency - The annual scale of fixed asset investment in China has reached 50 trillion yuan, with a focus on improving the effectiveness of government investments in areas that benefit people's livelihoods and address critical gaps [3]. - The proposal suggests optimizing the structure of government investment to increase the proportion allocated to public welfare, thereby enhancing the overall effectiveness of investments [3]. - The synergy between upgrading traditional industries and the growth of emerging industries is crucial for achieving stable and dynamic economic growth [3].

Core Viewpoint - The integration of artificial intelligence (AI) into manufacturing is revitalizing the industrial landscape in Liuzhou, Guangxi, with significant advancements in various sectors, including robotics and smart vehicles [1][4]. Group 1: AI Integration in Manufacturing - Liuzhou's manufacturing sector is experiencing a transformation through AI, with the first industrial humanoid robot and low-speed autonomous vehicles being tested [1][2]. - The production value of AI products in Liuzhou reached 8.87 billion yuan from January to July, with a 23.7% year-on-year increase in smart terminals and robots [3]. - Companies like Guangxi Liugong Machinery and Zhituo Technology are leveraging AI for precision tasks, enhancing efficiency in production and maintenance processes [2][3]. Group 2: Traditional Industries Transformation - Traditional industries in Liuzhou, such as automotive and steel, are undergoing digital transformation, with 435 small and medium-sized enterprises adopting AI technologies [4][7]. - The Guangxi Liugong Group's smart factory can produce an excavator in just 13 minutes, showcasing the efficiency brought by AI [7]. - The local steel industry is implementing AI platforms to optimize production costs and energy consumption [7]. Group 3: Government Support and Policy Framework - The local government has established a dedicated task force to promote AI development, implementing various policies to support the growth of AI and manufacturing sectors [8][10]. - Liuzhou aims to achieve a breakthrough of 50 billion yuan in AI-related industries by 2027, with a focus on integrating AI into manufacturing processes [8][10]. - The city has created over 100 demonstration application scenarios for emerging industries, facilitating market access for new products [10]. Group 4: Collaborative Efforts and Future Prospects - Liuzhou is fostering collaboration with national institutions and enterprises to enhance technological advancements in AI [9]. - The partnership between SAIC-GM-Wuling and Huawei aims to develop smart vehicles, indicating a shift towards intelligent and connected automotive solutions [5][6]. - The establishment of a comprehensive AI ecosystem encompassing various sectors is underway, with a focus on smart manufacturing and supply chain optimization [6].

Group 1: Macroeconomic Insights - In September, industrial enterprises' profits improved year-on-year to 21.6%, up from 20.4% in August, driven by a low base effect and strong export performance [3] - Revenue growth for industrial enterprises also increased to 3.1% in September from 2.3% in August, indicating a positive trend in cash flow due to anti-involution policies [3] Group 2: Fixed Income Market Analysis - The bond market has shown signs of recovery in October, influenced by trade tensions and a loose liquidity environment, with expectations for a better fourth quarter compared to the third [5] - The market anticipates a controlled impact from new redemption regulations, with a focus on short to medium-term credit bonds as a primary investment strategy [5] Group 3: Oil and Gas Sector - Oil prices have entered a downward trend due to OPEC+ increasing production targets and seasonal demand decline, with Brent crude expected to average $68 in 2025 and $62 in 2026 [9] - Despite short-term volatility from geopolitical tensions, the long-term outlook suggests limited impact from sanctions on oil prices, with high-dividend energy companies presenting investment opportunities [9] Group 4: Real Estate and Construction - The real estate market is experiencing a decline in transaction volumes for both new and second-hand homes, attributed to high base effects and seasonal factors [8] - The construction sector shows mixed signals, with some recovery in cement supply and demand, while asphalt production rates have decreased [8] Group 5: Key Company Performances - Beike-W (2423 HK) is projected to benefit from a gradual market recovery, with a target price of HKD 65.64 based on a 26x PE ratio for 2026 [11] - Zhiou Technology (301376 CH) reported a revenue of CNY 60.8 billion for the first three quarters, with a year-on-year growth of 6.2%, and is expected to improve profitability as tariff risks ease [12] - Tianhai Defense (300008 CH) showed significant growth in Q3, with a revenue increase of 57.27% year-on-year, driven by strong orders in shipbuilding and defense sectors [14] - Kuka Home (603816 CH) reported steady revenue growth of 6.5% in Q3, with a focus on global expansion and brand strength [15] - Weixing New Materials (002372 CH) experienced a revenue decline of 9.83% in Q3, but is expected to see margin recovery as product prices stabilize [16] Group 6: Consumer Goods and Services - Salted Fish (002847 CH) reported a revenue increase of 14.7% year-on-year, with a focus on optimizing product categories and channels to enhance profitability [27] - Petty Co. (300673 CH) continues to see strong growth in its domestic brand, with a focus on single product strategies despite challenges in overseas markets [18] - Jiangsu Bank (601009 CH) reported a steady growth in net profit and revenue, driven by stable interest income and effective cost management [32]

Core Viewpoint - The mechanical industry is a foundational and strategic sector for the national economy, and the "Mechanical Industry Stabilization Growth Work Plan (2025-2026)" aims to promote high-quality development and provide strong support for stable industrial economic operations [1][2]. Group 1: Industry Goals and Measures - The plan targets an average annual revenue growth rate of approximately 3.5%, aiming for total revenue to exceed 10 trillion yuan by 2026, reflecting a balance between scale and quality [2][3]. - Key measures include strengthening coordination among departments, supporting equipment enterprises in modern manufacturing service platform construction, and enhancing financial support for equipment companies [3][4]. Group 2: Market Expansion Strategies - The plan emphasizes expanding effective demand through five tasks: tapping into domestic market potential, fostering new demand, increasing effective investment, promoting digital transformation, and enhancing international cooperation [5][6]. - Specific recommendations include leveraging new economic trends to expand applications in sectors like elderly care, winter sports, and education equipment, as well as focusing on green technology development [5][6]. Group 3: Technological and Talent Development - The plan highlights the importance of intelligent transformation, addressing challenges such as insufficient supply of intelligent manufacturing equipment and the need for deeper integration of AI technologies [7][8]. - There is a call for enhancing the self-sufficiency of key technologies and improving the talent supply structure to meet the demands of industry upgrades [8].

Core Insights - The article discusses the key points from the press conference held by the Central Committee of the Communist Party of China, focusing on the "14th Five-Year Plan" and its implications for industry development and market construction [2][3]. Group 1: Industry Development - Traditional industries are emphasized as the "basic plate" of China's industrial system, contributing approximately 80% to the manufacturing value added [2]. - The plan aims to enhance key industries such as chemicals, machinery, and shipbuilding to strengthen international competitiveness, with an estimated market space of about 10 trillion yuan to be added over the next five years [2]. Group 2: Market Construction - The article outlines three key tasks for expanding domestic demand: "expanding increment," "improving efficiency," and "smoothening circulation" [3]. - The potential for expanding domestic demand is significant, with actions proposed to boost consumption, maintain reasonable investment growth, and enhance the participation of private enterprises in major projects [3]. - The government aims to optimize investment structures, increase the proportion of investments in people's livelihoods, and improve overall management to enhance the effectiveness of government investments [3]. - The negative list for market access has been reduced from 328 to 106 items, and over 4,200 policies hindering factor flow have been cleared, although challenges remain [3]. Group 3: Policy Changes - The recent plenary session highlighted a shift in focus towards building a strong domestic market, indicating a stronger commitment to domestic market development compared to previous plans [4]. - The new emphasis on combining investments in goods and people suggests that more policy resources will be allocated to consumer and livelihood enhancement, potentially including expanded subsidies for childbirth [4]. - The prioritization of "boosting consumption" over "expanding total investment" in the latest plan signals a clear focus on consumption expansion as a core direction for economic work in the coming five years [5].

Core Viewpoint - The quarterly reports of four public funds managed by Xinda Australia Fund's Feng Mingyuan reveal a significant reduction in the number of holdings, with some stocks seeing a decrease of over 50% compared to the end of Q2 2023, while others like GoerTek and Hengxuan Technology received increased investments [1][2]. Group 1: Fund Holdings Changes - The funds have shown a notable reduction in holdings for stocks such as Huahong Semiconductor, Zhaoyi Innovation, and Sitaiwei-W, with Huahong Semiconductor's shares decreasing by 51.75% to 501,500 shares by the end of Q3 [1][2]. - In contrast, GoerTek and Hengxuan Technology saw increased positions, and some funds initiated new significant holdings in companies like Amlogic and Juchip Technology [1][2]. Group 2: Sector Focus - The fund manager indicated that the primary sectors for investment include electronics, new energy, communications, automotive parts, and machinery, with advancements in AI and robotics expected to drive growth in these industries [1][2]. Group 3: Fund Performance - Despite a cooling in the tech stock market during Q3, the performance of the funds managed by Feng Mingyuan is considered above average, with the highest net value return of 38.71% for the Xinda Leading Intelligent Manufacturing Mixed Fund [2]. - The median performance for mixed equity funds in Q3 was 22.67%, with the top-performing fund achieving a 100.06% increase [2]. Group 4: Fund Size Changes - The total share count for the funds managed by Feng Mingyuan has decreased, with the Xinda Zhiyuan three-year fund dropping from 4.07 billion shares at the end of Q2 to 3.31 billion shares by the end of Q3 [3]. - Institutional investors have also redeemed a significant number of shares from these funds, with one fund seeing a reduction of 77 million shares during the reporting period [3].

- The diffusion index model has been tracking out-of-sample performance for four years, with notable results in 2021 when momentum strategies captured industry trends, achieving excess returns of over 25% before a significant drawdown in September due to cyclical stock adjustments. In 2022, the strategy maintained stable returns with an annual excess return of 6.12%. However, in 2023, excess returns declined to -4.58%, and in 2024, a major drawdown occurred after September due to the model's focus on upward trends, missing rebound industries, resulting in an annual excess return of -5.82%[24][28] - The diffusion index model suggests allocating to industries such as non-bank finance, construction, and defense military, which showed significant week-on-week improvement in rankings. The top six industries based on diffusion index rankings as of October 24, 2025, are non-bank finance (0.988), banking (0.967), steel (0.952), communication (0.946), comprehensive (0.913), and non-bank finance (0.9)[25][26][27] - The GRU factor model, based on minute-level volume and price data processed through GRU deep learning networks, has shown strong performance in short cycles but weaker performance in long cycles. The model has been effective in capturing trading information since 2021, achieving significant excess returns. However, since February 2025, the model has faced challenges in generating excess returns due to market focus on thematic trading[31][37] - The GRU factor model ranks industries based on their GRU factor scores. As of October 24, 2025, the top six industries are non-bank finance (1.13), banking (1), electric power and utilities (0.54), textile and apparel (0.03), automotive (-0.58), and machinery (-0.73). Industries with the lowest GRU factor scores include food and beverage (-17.79), non-ferrous metals (-10.81), basic chemicals (-8.82), agriculture (-8.76), coal (-6.57), and building materials (-6.48)[6][13][32] - The GRU factor model's weekly industry rotation suggests allocating to non-bank finance, electric power and utilities, textile and apparel, transportation, steel, and petrochemicals. For the week ending October 24, 2025, the model achieved an average return of 1.89%, underperforming the equal-weighted return of the CSI first-tier industries by -0.77%. For October, the model's excess return is 1.80%, while the year-to-date excess return stands at -6.41%[6][34][39]

Core Insights - The report emphasizes the importance of building a modern industrial system and strengthening the foundation of the real economy, reflecting the policy makers' high attention to modern industrial systems and new productive forces [1] Group 1: Achievements and Future Outlook - During the "14th Five-Year Plan" period, the contribution of new productive forces to the economy has significantly increased, with strategic emerging industries surpassing the real estate sector in contribution since 2023. The "15th Five-Year Plan" period is expected to see new policy support for industries such as new energy, new materials, aerospace, and future industries like quantum technology [1] - Since 2021, the manufacturing sector has maintained a reasonable share in the national economy. In the "15th Five-Year Plan" period, it is anticipated that policy focus on manufacturing will intensify, with traditional industries like chemicals, machinery, and shipbuilding undergoing quality upgrades, while advanced manufacturing clusters in aerospace and biomanufacturing may encounter new development opportunities [1] - The contribution of technological advancements to China's economic growth has been steadily increasing in recent years. The "15th Five-Year Plan" period will further highlight the importance and urgency of achieving high-level technological self-reliance, with expectations for increased investment in basic research and support for original innovation and key core technology breakthroughs [1]