Core Insights - The report highlights the current industry allocation of the Bank of China’s multi-strategy system, with significant positions in non-ferrous metals (15.3%), non-bank financials (12.9%), and comprehensive sectors (7.3%) [1] - The average weekly return for the CITIC primary industries was -3.0%, while the average return over the past month was 3.1% [3][10] - The report identifies the top-performing industries for the week as electric equipment and new energy (2.4%), food and beverage (0.8%), and pharmaceuticals (0.5%), while the worst performers were defense and military (-11.9%), computers (-9.8%), and electronics (-9.7%) [3][10] Industry Performance Review - The report provides a detailed performance review of CITIC primary industries, indicating that the average weekly return was -3.0% and the average monthly return was 3.1% [10] - The top three industries by weekly performance were electric equipment and new energy (2.4%), food and beverage (0.8%), and pharmaceuticals (0.5%) [11] - The bottom three industries were defense and military (-11.9%), computers (-9.8%), and electronics (-9.7%) [11] Valuation Risk Warning - The report employs a valuation warning system based on the PB ratio over the past six years, identifying industries with a PB ratio above the 95th percentile as overvalued [14][15] - Currently, the industries triggering high valuation warnings include retail, media, computers, and defense and military, all exceeding the 95th percentile in PB valuation [15][16] Strategy Performance - The report outlines the performance of various strategies, with the composite strategy yielding a cumulative return of 20.2% year-to-date, outperforming the CITIC primary industry benchmark by 2.3% [3] - The highest excess return strategy was the industry profitability tracking strategy (S1), with an excess return of 5.1% compared to the benchmark [3] - The report indicates a shift in strategy allocations, increasing positions in upstream cyclical and pharmaceutical sectors while reducing exposure to TMT, consumer, and midstream cyclical sectors [3] Current Industry Rankings - The report ranks industries based on profitability expectations, with non-ferrous metals, non-bank financials, and agriculture being the top three [18] - The implied sentiment momentum strategy ranks communication, non-ferrous metals, and electronics as the top three industries based on market sentiment indicators [22] - The macroeconomic style rotation strategy identifies comprehensive finance, computers, communication, defense and military, electronics, and media as the top six industries based on macroeconomic indicators [25]

Core Points - The Chongqing Economic and Information Commission officially released the third batch of major technological equipment products, highlighting breakthroughs in high-end equipment research and industrial upgrades in Chongqing [1] - The new products cover six key areas: intelligent manufacturing, energy conservation and environmental protection, power and electrical, transportation, intelligent detection, and medical equipment [1] - Notable products include a coal mine gas extraction drilling robot, a heavy-duty robotic arm joint reducer, an intelligent ventilation controller, a dual-flow urban train, and a nano time gauge [1] Summary by Category Product Highlights - The coal mine gas extraction drilling robot is the first of its kind in China, integrating positioning navigation, autonomous movement, condition perception, and automatic drilling [1] - The heavy-duty robotic arm joint reducer fills a gap in the domestic market for precision joint reducers used in electric-driven heavy-duty robotic arms [1] - The intelligent ventilation controller is the first electromechanical integrated product in the ventilation market, enhancing the localization level of core components [1] - The dual-flow urban train utilizes a domestically developed dual-flow automatic switching technology for interconnectivity between suburban and urban areas [1] - The nano time gauge breaks through traditional displacement measurement technology limitations, overcoming foreign technological barriers in precision displacement measurement [1] Collaboration and Market Impact - Several companies in Chongqing signed cooperation agreements with research institutes and key user units across various fields, including rail transportation, clean energy, intelligent manufacturing, and green environmental protection [2] - The implementation of these projects is expected to accelerate the application of major technological equipment from "first set" to "multiple sets," expanding market application space [2] - Since 2015, nearly 700 equipment products have been included in the first set promotion directory, achieving sales of over 1,500 sets, amounting to more than 8 billion yuan [2] - As of 2023, Chongqing has recognized 97 companies with 160 products, continuously promoting the transformation of technological breakthroughs into real production capacity [2]

Group 1 - The report from Galaxy Securities indicates a shift in financing trends, with sectors like electronics, computers, and communications seeing a reversal in net financing since the market fluctuations on September 2, while sectors such as power equipment, non-bank financials, automotive, transportation, and pharmaceuticals continue to experience net inflows [1] - The outlook for the A-share market suggests a likely continuation of a fluctuating upward trend, although short-term volatility risks should be monitored, particularly regarding marginal changes in market volume [1] - Domestic and international conditions are influencing the market, with weak U.S. non-farm payroll data in August reinforcing expectations for Federal Reserve interest rate cuts, alongside enhanced policy expectations under the "14th Five-Year Plan," which provide support for market performance [1] Group 2 - On September 5, the China Securities Regulatory Commission revised and released the "Publicly Raised Securities Investment Fund Sales Fee Management Regulations (Draft for Comments)," marking the completion of the third phase of fee rate reforms in the public fund industry [1] - The ongoing deepening of capital market reforms is expected to inject incremental funds into the A-share market and boost market confidence, aiding in the stabilization and improvement of market conditions [1]

Core Viewpoint - Insurance capital private equity funds are increasingly favoring "Chinese-character" stocks, particularly in sectors like banking, public utilities, and transportation, reflecting a preference for high-dividend, low-valuation stocks that offer stable returns and manageable risks [1][2][3]. Group 1: Investment Trends - As of June 30, insurance capital private equity funds held seven A-share stocks, with a notable preference for "Chinese-character" stocks [1][2]. - The three private equity funds managed by Guofeng Xinghua (Beijing) Private Fund Management Co., Ltd. have maintained their positions in key stocks such as Yili Industrial, Shaanxi Coal and China Telecom [2]. - The investment strategy emphasizes stocks with high dividend yields and stable development, with specific stocks like Shaanxi Coal, China Shenhua, and China Petroleum showing dividend yields of 6.6%, 5.9%, and 5.28% respectively [3][4]. Group 2: Fund Performance and Strategy - The first phase of the Honghu Zhiyuan fund has completed its investment and achieved good returns, while the second phase is nearing completion [3]. - The third phase of the fund focuses on large A+H shares that meet specific criteria, including good governance and stable dividends, with the investment team showing significant improvement in stock selection capabilities [4]. - Insurance companies are increasingly prioritizing equity asset allocation, particularly in high-dividend stocks, to counterbalance the declining safety of fixed-income assets [6]. Group 3: Market Position and Holdings - As of June 30, insurance companies appeared in the top ten shareholders of 735 listed companies, holding a total of 927.4 billion shares, with a market value of approximately 1.57 trillion yuan [5]. - The top five holdings by insurance companies include Minsheng Bank, Shanghai Pudong Development Bank, China Unicom, Beijing-Shanghai High-Speed Railway, and Zheshang Bank [5]. - Insurance companies are optimistic about the A-share market in the second half of the year, focusing on sectors like technology innovation and advanced manufacturing for investment opportunities [6].

Report Information - Report Title: "Bonds Rise Amid Dispute - Asset Allocation Weekly" - Date: September 7, 2025 - Analysts: Luo Yunfeng, Huang Hailan 1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Report Core View - China is in a marginal de - leveraging process, with the entity sector's debt growth rate trending downward. The government aims to stabilize the macro - leverage ratio, and large - scale debt resolution is beneficial for the whole society's expectations [2][19]. - In the short - term, the capital market shows a pattern of "stock bear and bond bull", with risk preference declining. The cost - performance ratio of stocks and bonds favors bonds, and the equity style turns to value dominance [6][24]. - In the de - leveraging cycle, the cost - performance ratio of stocks and bonds favors equities to a limited extent, and the value style is more likely to be dominant. The report recommends an A + H dividend portfolio and an A - share portfolio [9][66]. 3. Summary According to the Directory 3.1 National Balance Sheet Analysis Liability Side - In July 2025, the debt growth rate of the entity sector was 9.1% (previous value 8.9%), expected to drop to about 9.0% in August and further decline to around 8% by the end of the year. The capital situation in the financial sector may be tight in September [2][19]. - The net increase of government bonds last week was 184 billion yuan (higher than the planned 156.5 billion yuan), and this week's planned net increase is 578 billion yuan. The government's debt growth rate is expected to decline to 12.5% by the end of the year [3][20]. - The one - year Treasury bond yield is expected to have a lower limit of about 1.3%, the ten - year Treasury bond yield's lower limit is about 1.6%, and the thirty - year Treasury bond yield's lower limit is about 1.8% [3][20]. Asset Side - After a brief stabilization in June, the physical quantity data declined again in July. The full - year nominal economic growth target in 2025 is about 4.9%, and it is necessary to observe whether this will become the central target for China's nominal economic growth in the next 1 - 2 years [4][21]. 3.2 Stock - Bond Cost - Performance and Stock - Bond Style - Last week, the capital situation tightened, risk preference declined, and the cost - performance ratio of stocks and bonds favored bonds. The ten - year Treasury bond yield decreased by 1 basis point to 1.84%, and the one - year Treasury bond yield increased by 3 basis points to 1.40% [6][24]. - The broad - based rotation strategy underperformed the CSI 300 index by - 1.07 pct last week and - 7.11 pct since July. The maximum drawdown was 12.1% (compared with the CSI 300's 15.7%) [6][24]. - This week, the report moderately increases the proportion of growth stocks, recommending the CSI 1000 index (80% position) and the 30 - year Treasury bond ETF (20% position) [8][27]. 3.3 Industry Recommendation 3.3.1 Industry Performance Review - This week, A - shares declined with reduced trading volume. The Shanghai Composite Index fell 1.2%, and the Shenzhen Component Index fell 0.8%, while the ChiNext Index rose 2.4%. Among the Shenwan primary industries, power equipment, comprehensive, non - ferrous metals, medicine and biology, and textile and apparel had the largest increases, while national defense and military industry, computer, non - bank finance, electronics, and steel had the largest declines [32]. 3.3.2 Industry Crowding and Trading Volume - As of September 5, the top five crowded industries were electronics, power equipment, machinery, computer, and communication, while the bottom five were beauty care, comprehensive, coal, petroleum and petrochemical, and steel [33]. - The top five industries with increased crowding this week were power equipment, commercial retail, media, medicine and biology, and basic chemicals, while the top five with decreased crowding were computer, non - bank finance, national defense and military industry, electronics, and food and beverage [33]. - As of September 5, the crowding of power equipment, communication, electronics, machinery, and commercial retail was at relatively high percentiles since 2018, while that of petroleum and petrochemical, food and beverage, agriculture, forestry, animal husbandry and fishery, transportation, and coal was at relatively low percentiles [33]. 3.3.3 Industry Valuation and Earnings - This week, among the Shenwan primary industries, real estate, coal, petroleum and petrochemical, beauty care, and textile and apparel had the largest increases in PE(TTM), while national defense and military industry, computer, non - bank finance, electronics, and communication had the smallest increases [39]. - As of September 5, 2025, industries with high full - year 2024 earnings forecasts and relatively low current valuations compared to history include banks, insurance, coal, petroleum and petrochemical, transportation, auto parts, beauty care, and consumer electronics [40]. 3.3.4 Industry Prosperity - Externally, there was a general recovery. The global manufacturing PMI rose from 49.7 to 50.9 in August, and most major economies' PMIs increased. The CCFI index decreased by 0.62% week - on - week in the latest week, and port cargo throughput rebounded [44]. - Domestically, second - hand housing prices fell in the latest week, and quantity indicators showed mixed trends. The highway truck traffic volume declined, and the ten - industry fitted capacity utilization rate continued to rise slightly from July to August [44]. 3.3.5 Public Fund Market Review - In the first week of September (September 1 - 5), most active public equity funds outperformed the CSI 300. As of September 5, the net asset value of active public equity funds was 4.05 trillion yuan, slightly up from 3.66 trillion yuan in Q4 2024 [61]. 3.3.6 Industry Recommendation - In the de - leveraging cycle, the cost - performance ratio of stocks and bonds favors equities to a limited extent, and the value style is more likely to be dominant. The recommended A + H dividend portfolio and A - share portfolio mainly focus on industries such as banks, telecommunications, petroleum and petrochemical, and transportation [66].

Group 1 - The second round of ecological environment protection inspection in Yueyang City, Hunan Province, revealed three major issues requiring accountability and rectification [1] - A total of 26 individuals were held accountable, including 2 city-level officials and 24 officials at the county level or below, with 4 receiving party disciplinary actions and 22 undergoing organizational handling [1] - The inspection emphasized the importance of adhering to Xi Jinping's ecological civilization thought and the need for effective problem rectification and accountability measures [1] Group 2 - Issues related to ship pollution prevention were identified, with several officials from the transportation and water management sectors failing to fulfill their responsibilities, leading to violations affecting water quality [2] - The investigation resulted in disciplinary actions against various officials, including party warnings and reprimands for those responsible for the ship pollution issues [2] - The energy conservation efforts in Yueyang were found lacking, with multiple departments not effectively monitoring and guiding energy management, resulting in negative impacts [3] Group 3 - The management of construction waste was criticized, with the urban construction bureau failing to establish effective waste reduction mechanisms and allowing illegal dumping to occur [4] - Disciplinary actions were taken against officials in the construction and urban management sectors for their inadequate handling of construction waste management [4] - The report called for all levels of government to learn from these cases and strengthen accountability to support the modernization of Yueyang [5]

Core Insights - Insurance funds have significantly increased their presence in the A-share market, with nearly 800 companies listed among the top ten shareholders as of June 2025, and over 280 stocks being increased in the second quarter alone [2][3] - The total investment scale of insurance funds reached 36 trillion yuan by the end of the second quarter of 2025, with stock investments amounting to 3.07 trillion yuan, a net increase of approximately 640 billion yuan compared to the previous quarter [2][3] Group 1: Investment Trends - The seven major A+H listed insurance companies have a combined investment scale of 21.85 trillion yuan, accounting for 60.30% of the total industry [2] - The stock investment scale of these companies reached 2.05 trillion yuan, with a net increase of 431.3 billion yuan, representing 67.39% of the industry's net increase [3] - Insurance funds are increasingly allocating to equity assets due to declining risk-free returns, with different companies showing varied strategies in their asset allocation [4][5] Group 2: Company-Specific Actions - China Ping An saw the largest increase in stock investment, with a net increase of 211.9 billion yuan, raising its proportion by 2.9 percentage points [4] - China Life's stock investment increased by 119.1 billion yuan, with a 1.1 percentage point rise in proportion [4] - Sunshine Insurance has the highest stock investment proportion among the seven companies at 14.1%, with a 23.9% increase [4] Group 3: Sector Preferences - As of mid-2025, insurance funds have allocated nearly 1 trillion yuan to high-dividend other comprehensive income (OCI) stocks, with a significant increase in the proportion of OCI stocks in their portfolios [6] - The top five sectors for insurance fund holdings include banking, transportation, communication, real estate, and utilities, with the media, communication, and utilities sectors seeing the largest increases in holdings [6] Group 4: Market Dynamics - Insurance funds have engaged in 30 "block trades" since the beginning of 2025, with the banking sector being the most active [8] - The shift in accounting standards is expected to influence the stability of insurance companies' net profits, prompting a greater focus on OCI asset allocation [9] - Recent policy changes have encouraged insurance companies to invest more in the A-share market, with a target of 30% of new premiums allocated annually [10]

Core Viewpoint - The service industry is a key driver for Shandong's economy, with its value-added expected to account for 53.1% of the province's GDP in 2024, and a growth rate of 5.8% in the first half of this year, surpassing overall GDP growth [1] Group 1: Measures to Support Service Industry - Shandong has introduced 42 measures to support the service industry, focusing on solving problems for enterprises and expanding market opportunities [1] - Key sectors such as wholesale and retail, transportation, finance, and real estate, which account for 54.7% of service industry value-added, are prioritized for support to stabilize operations and enhance growth [2] - The government will streamline support for large enterprises in key sectors, allowing them to directly connect with provincial authorities for assistance [2] Group 2: High-End Productive Services Development - The focus is on enhancing the quality of service development, particularly in high-end productive services like AI, industrial internet, and technology services [4] - Financial support includes a new budget of 100 million yuan for high-growth enterprises, with individual project subsidies up to 200,000 yuan [4] - The initiative aims to attract international consulting firms and enhance competitiveness in sectors like AI and big data [5] Group 3: Consumer Market Activation - The measures aim to boost consumer confidence and demand, enhancing service quality and profitability for businesses [6] - In the cultural tourism sector, Shandong has seen significant growth, with 410 million visitors and tourism revenue exceeding 500 billion yuan, both achieving nearly 10% growth [7] - Upcoming initiatives will focus on expanding tourism offerings and enhancing consumer experiences through various events and activities [7] Group 4: Improving Quality of Life - The measures include initiatives to enhance elderly care and childcare services, tapping into the potential of these sectors [8] - The government aims to increase the number of registered home service companies to over 850 by the end of the year, promoting a credit system for the industry [8] - Seasonal activities will be organized to stimulate demand in health and home service sectors, contributing to overall service consumption growth [8]

Group 1 - A total of 59 institutions conducted 1,678 "buy" ratings covering 929 stocks from September 1 to September 5 [1] - Among the stocks rated "buy," 89 saw a decrease in shareholder accounts compared to the end of Q2, with 41 stocks experiencing a decline of over 10% [1] - The 41 stocks with significant concentration of shares had an average increase of over 20% year-to-date, with 6 stocks, including Aosaikang and Tengya Precision, rising over 50% [1] Group 2 - 15 stocks underperformed the Shanghai Composite Index, which had a year-to-date increase of 13.75%, with 8 stocks, including Zhejiang Dingli, Huaihe Energy, and Huaibei Mining, experiencing a decline in stock price [1][2] - Specific companies such as Zhejiang Dingli and Huaihe Energy reported significant drops in net profit, with declines of 17.96% and 14.36% respectively [2] - The coal industry showed notable underperformance, with companies like Huaihe Energy and Huaibei Mining reporting net profit decreases of 22.15% and 64.85% respectively [2]

Core Viewpoint - The article highlights the significant transformation in Henan's development trajectory towards a low-carbon economy, emphasizing the integration of clean energy, green transportation, and low-carbon lifestyle practices as part of a broader strategy for high-quality development [1]. Energy Structure Optimization - The Qinghai-Henan ±800 kV UHVDC project has transmitted over 700 billion kWh of clean energy from Qinghai to Henan since 2020, reducing coal consumption by 22.32 million tons [2]. - Henan's electricity grid has become a crucial hub for national energy distribution, with a capacity to deliver over 20 million kW, meeting about 25% of the province's load demand [2]. Renewable Energy Development - Since the 14th Five-Year Plan, Henan's renewable energy installed capacity has surpassed 85 million kW, a 162% increase from 2020, achieving over 100 billion kWh in annual generation and over 50% in installed capacity share [3]. - The share of coal in primary energy consumption has decreased, while non-fossil energy consumption has risen to 18%, an increase of approximately 7 percentage points since 2020 [3]. Green Transportation Initiatives - The launch of the "Yujiaotou 001" electric smart cargo ship marks a significant step in the electrification of inland shipping, reducing carbon emissions by over 90% and cutting fuel costs by 85% [4]. - Henan is actively promoting clean transportation, with initiatives like "road-to-rail" and "road-to-water" logistics, resulting in 189,000 TEUs sent via rail-sea intermodal transport and over 100,000 TEUs handled at inland ports [4]. Advocacy for Low-Carbon Lifestyle - The introduction of a carbon reduction certification program has led to the issuance of certificates for 3,560 projects, resulting in a total CO2 reduction of 1,266.4 tons, equivalent to the carbon sequestration of approximately 3,286 acres of forest [5]. - Public engagement in low-carbon practices is increasing, with initiatives such as waste sorting and the use of reusable shopping bags becoming more common among residents [6]. Environmental Conservation Efforts - Henan has implemented energy-saving standards for all new buildings, achieving a 32% reduction in per capita energy consumption in public institutions compared to 2020 [6]. - The province has successfully reduced energy consumption per unit of GDP by 15%, surpassing national targets ahead of schedule [6].