Core Viewpoint - China National Offshore Oil Corporation (CNOOC) announced the full production of the "Deep Sea No. 1" Phase II project, marking the completion of China's largest offshore gas field [1][3]. Group 1: Project Overview - The "Deep Sea No. 1" gas field has a total proven geological reserve of over 150 billion cubic meters, with the maximum operational water depth exceeding 1,500 meters and well depths over 5,000 meters [1][3]. - The Phase II project faced extreme geological conditions, with the highest formation temperature reaching 138 degrees Celsius and maximum pressure exceeding 69 MPa, which is equivalent to 1,000 times the working pressure of a household pressure cooker [3]. Group 2: Technological Innovations - The project introduced an innovative development model combining underwater production systems, shallow water jacket platforms, and deep-water semi-submersible platform remote control systems [3]. - A total of 12 underwater gas wells were deployed across three well areas (south, north, east), along with the construction of one jacket platform, one underwater production system, five subsea pipelines, and five deep-water umbilicals, creating a large-scale oil and gas production facility cluster spanning over 170 kilometers [3]. Group 3: Production Capacity and Impact - The "Deep Sea No. 1" gas field has reached its maximum design capacity, with an expected annual gas production of over 4.5 billion cubic meters [3]. - The produced deep-water natural gas will flow to the Guangdong-Hong Kong-Macao Greater Bay Area and Hainan through various land terminals, integrating into the national natural gas pipeline network [3][4].

Market Overview - A-shares experienced a significant rally, with the ChiNext Index rising by 1.34%, driven by strong performances in the military and diversified financial sectors [1] - Northbound capital saw a substantial inflow of 8.1 billion yuan, indicating increased foreign interest in A-shares [1] External Market Influence - U.S. stock markets rose over 1%, with the Nasdaq China Golden Dragon Index increasing by 3.31%, positively impacting A-shares [3] - The easing of tensions in the Middle East and a 6% drop in international oil prices contributed to a more favorable market environment [3] Technical Analysis - The ChiNext Index broke through the critical resistance level of 2050 points, indicating a strong upward momentum [3] - The Shanghai Composite Index showed potential to challenge the 3450-point mark, contingent on volume support [3] Capital Flow - Northbound funds were actively purchasing, with over 4 billion yuan each in both the Shanghai and Shenzhen stock connects, reflecting foreign optimism towards A-shares [4] - Domestic capital showed a net outflow overall, but focused on military, financial, and solid-state battery sectors [4] Sector Performance - The military sector saw significant gains, with over ten stocks hitting the daily limit, supported by a 7.2% increase in defense budgets and geopolitical risk hedging [4] - The financial sector's surge was attributed to favorable policies announced at the Lujiazui Forum, including the establishment of a digital RMB international operation center in Shanghai [4] - The solid-state battery sector is gaining traction, with companies like Xiangtan Electrochemical achieving five consecutive trading limits, driven by advancements in technology and upcoming production milestones [5] Underperforming Sectors - The oil and gas extraction sector faced declines, with companies like Zhun Oil Co. hitting the daily limit down, linked to the drop in international oil prices [6] - The port shipping and film industry are also experiencing adjustments due to economic cycles and market capital flow [6] - The liquor sector remains sluggish, with prices for premium products like Moutai dropping significantly due to seasonal consumption declines and industry de-financialization [6] Investment Strategy - For long-term investors, the military and financial sectors present ongoing opportunities, particularly in military stocks supported by policy and earnings expectations [6] - Caution is advised in the solid-state battery sector due to high short-term volatility, emphasizing the need to identify companies with genuine technological breakthroughs [6] - The ChiNext Index's ability to maintain above 2100 points could lead to a challenge of 2200 points, with a focus on technology and new energy sectors [6]

Core Viewpoint - The A-share market showed a positive trend in the morning session, with the ChiNext index rising over 1%, driven by strong performances in the military industry sector [1] Market Performance - All three major A-share indices rose in the morning, with the Shanghai Composite Index increasing by 0.28%, the Shenzhen Component Index by 0.64%, and the ChiNext Index by 1.34% [1] - The total trading volume in the Shanghai and Shenzhen markets exceeded 920 billion [1] Sector Performance - The military industry sector led the market gains, indicating strong investor interest [1] - Financial sectors, including securities and banking, also performed well, contributing to market stability [1] - The stablecoin concept saw a pre-lunch surge, reflecting growing interest in digital currencies [1] - The oil and gas extraction sector experienced a continuous decline, with Huai Oil shares hitting the daily limit down [1] - The port and shipping sector showed weak performance, indicating potential challenges in that area [1]

Core Insights - The "Deep Sea No. 1" gas field is China's most challenging deep-water gas field, characterized by the deepest operational water depth, highest formation temperature and pressure, and significant exploration and development difficulties [1] Industry Development - China's deep-water oil and gas engineering capabilities have significantly improved in recent years, achieving a transition from shallow to ultra-deep water operations [1] - The equipment technology has reached a world-class advanced level, indicating a strong competitive position in the global market [1] Project Specifications - The second phase of the "Deep Sea No. 1" project features a maximum operational water depth of nearly 1000 meters, with the highest formation temperature reaching 138 degrees Celsius and the highest pressure exceeding 69 MPa [1] - The total designed well depth exceeds 60,000 meters, and the main production facilities span a geographical distance of over 170 kilometers, making it the deepest and most extensive deep-water gas field developed independently by China [1] - The project faces extreme challenges due to the combination of "deep water, deep layers, high temperature, and high pressure" [1]

Group 1 - The A-share oil and gas extraction sector continues to show weakness, with companies like Beiken Energy and Huai Oil Co. hitting the daily limit down [1] - Tongyuan Petroleum experienced a decline of over 7%, while other stocks such as Zhongman Petroleum and Intercontinental Oil & Gas also followed the downward trend [1]

Core Viewpoint - International oil prices experienced a significant decline due to the de-escalation of geopolitical tensions, with prices dropping over 8% in a single day, effectively reversing gains made since June 13 [1][2][3] Oil Price Movement - On June 23, international oil prices fell sharply after initial increases due to heightened geopolitical risks, with WTI crude oil futures dropping by $6.61 to $67.23 per barrel (down 8.95%) and Brent crude oil futures falling by $6.36 to $70.65 per barrel (down 8.26%) [2] - Following the announcement of a ceasefire between Iran and Israel, oil prices continued to decline, nearly erasing all gains from the previous weeks [1][3] Impact on Oil and Shipping Stocks - The oil and shipping sectors in the A-share market faced significant losses on June 24, with companies like Shandong Molong and Tongyuan Petroleum hitting their daily limit down [1][4] - Prior to the decline, oil-related stocks had surged, with Shandong Molong experiencing a nearly 95.44% increase from June 13 to June 23 [4] Market Sentiment and Future Outlook - Analysts predict that the easing of geopolitical tensions will shift market focus back to fundamental and macroeconomic drivers, with expectations of oil prices stabilizing in the $60-$65 per barrel range for Q3, but facing potential downward pressure in Q4 [6] - The market is also influenced by OPEC's continued production increases and macroeconomic factors such as U.S. tariff policies and inflation risks [6]

Core Viewpoint - The "Deep Sea No. 1" Phase II project, China's first deep-water high-pressure gas field, has been fully put into production, marking a significant achievement in the country's energy sector [1] Group 1: Project Overview - "Deep Sea No. 1" gas field is the deepest and most challenging deep-water gas field developed independently in China, with a maximum operating water depth exceeding 1500 meters and a maximum formation temperature of 138 degrees Celsius [1] - The proven geological reserves of natural gas in the field exceed 150 billion cubic meters [1] - The project is developed in two phases, with Phase I launched in June 2021 and Phase II deploying 12 underwater gas wells across three well areas: south, north, and east [1] Group 2: Infrastructure Development - Phase II includes the construction of one jacket platform, one underwater production system, five subsea pipelines, and four deep-water umbilicals, creating a large-scale oil and gas production facility cluster with a geographical span of over 170 kilometers and a water depth span exceeding 1500 meters [1]

Group 1 - The Shanghai Composite Index opened lower but rose later, with the Shanghai Energy Industry Layered Equal-Weight Index down by 1.71% to 2502.08 points, with a trading volume of 14.174 billion yuan [1] - The Shanghai Energy Industry Layered Equal-Weight Index has increased by 1.24% in the past month, decreased by 4.91% in the past three months, and has fallen by 10.24% year-to-date [1] - The index includes companies from eleven primary industries, providing diversified investment targets through market capitalization weighting and equal weighting within secondary industries [1] Group 2 - The top ten holdings of the Shanghai Energy Industry Layered Equal-Weight Index include: Continental Oil & Gas (3.64%), China Coal Energy (3.53%), China National Petroleum (3.46%), Sinopec Oilfield Service (3.44%), China Oil Engineering (3.44%), Shaanxi Coal and Chemical Industry (3.44%), CNOOC Engineering (3.39%), CNOOC Development (3.39%), China National Offshore Oil Service (3.38%), and Shanghai Petrochemical (3.37%) [1] - The index's holdings are entirely from the Shanghai Stock Exchange, with coal accounting for 46.42%, oilfield services for 13.60%, coke for 12.94%, fuel refining for 10.31%, integrated oil and gas companies for 6.75%, oil and gas extraction for 3.44%, oil and gas circulation and others for 3.35%, and natural gas processing for 3.19% [2]

Core Viewpoint - The introduction of an intelligent downhole operation system at the Changqing Oilfield is set to revolutionize shale oil development by significantly enhancing operational efficiency and decision-making speed, addressing challenges in the industry [3][4]. Group 1: Technological Advancements - The intelligent system, referred to as the "shale oil brain," allows for historical data and fault diagnosis to be accessed in under 10 seconds, a drastic reduction from over 40 minutes previously [3]. - The system aims to achieve zero time in decision response, zero delays in collaboration, zero blind spots in fault handling, and zero deviations in evaluation systems [3]. - The accuracy of fault identification has reached 90%, showcasing the system's effectiveness in improving operational efficiency [3]. Group 2: Industry Context - Shale oil is a crucial component of unconventional oil and gas resources, with its efficient development being vital for national energy security [3]. - The Changqing Oilfield accounts for over 50% of China's total shale oil production, yet faces challenges such as low operational efficiency and insufficient precise decision-making due to various factors [3][4]. Group 3: Innovation and Collaboration - The company emphasizes the need for innovative thinking to optimize industrial structure and leverage digital technologies for business model reconstruction and management transformation [4]. - Collaboration with specialized digital companies has led to the development of a diagnostic expert knowledge base, enhancing the entire operational process from perception to evaluation [4]. Group 4: Operational Efficiency - The intelligent system integrates over 20 parameters, including downhole pressure, temperature, and flow, enabling real-time monitoring and preemptive alerts for operational issues [4][6]. - The transition from "post-repair analysis" to "pre-repair warning" has significantly reduced response times for downhole diagnostics from hours to seconds [4]. - The application of the intelligent model is expected to lower maintenance costs and improve decision-making efficiency, with average fault handling times previously exceeding three days [6].

Group 1: Market Overview - The Hong Kong stock market experienced a collective rebound on June 24, with the Hang Seng Index rising by 2.06%, the Hang Seng China Enterprises Index increasing by 1.9%, and the Hang Seng Tech Index gaining 2.14% [1] Group 2: Sector Performance - Education stocks led the gains, with New Oriental-S (09901.HK) up 8.68%, NetDragon (00777.HK) up 6.59%, and Thinker Education (01769.HK) up 5.36% [1] - Chinese brokerage stocks also saw significant increases, with Hongye Futures (03678.HK) rising by 15.28%, China Galaxy (06881.HK) by 8.75%, and CICC (03908.HK) by 6.06% [1] - The insurance sector performed strongly, with China Taiping (00966.HK) up 5.75%, Ping An (02318.HK) up 5.16%, and New China Life (01336.HK) up 4.43% [1] Group 3: Investment Trends - Insurance stake acquisitions continued to be active, with a total of 19 instances reported by June 20, 2025, involving 16 companies, including 13 in Hong Kong [2] - The smart driving concept stocks surged, with Zhejiang Shibao (01057.HK) up 30.72% and Youjia Innovation (02431.HK) up 5.68% [2] - The automotive supply chain, including electric vehicles and Tesla-related stocks, also showed strength [2] Group 4: Other Sector Movements - Pharmaceutical stocks, including Rongchang Bio (09995.HK) up 16.22% and Meilitiantian Medical Health (02373.HK) up 8.27%, saw notable increases [3] - Other sectors such as film, Apple-related stocks, and new consumption concepts also performed well [4] Group 5: Declines in Specific Sectors - Shipping stocks faced a collective decline, with Pacific Basin Shipping (02343.HK) down 16.53% and COSCO Shipping Energy (01138.HK) down 9.81% [4] - Oil and gas stocks, influenced by a significant drop in international oil prices, also retreated, with China Oilfield Services (01033.HK) down 15.85% [4]