Manufacturing Sector - In July, the Manufacturing Purchasing Managers' Index (PMI) decreased to 49.3%, down 0.4 percentage points from the previous month, indicating a decline in manufacturing activity due to seasonal factors and adverse weather conditions [2][3] - The production index remained in expansion at 50.5%, while the new orders index fell to 49.4%, reflecting a slowdown in market demand [3] - Large enterprises maintained expansion with a PMI of 50.3%, while medium-sized enterprises improved to 49.5%, and small enterprises decreased to 46.4% [4] - The price index showed an upward trend, with the main raw materials purchasing price index rising to 51.5%, marking the first increase above the critical point since March [3][4] - New momentum in the manufacturing sector is evident, with the equipment manufacturing PMI at 50.3% and high-tech manufacturing PMI at 50.6%, both above the critical point [4] Non-Manufacturing Sector - The Non-Manufacturing Business Activity Index stood at 50.1%, down 0.4 percentage points from the previous month, but still above the critical point [5] - The service sector's business activity index was stable at 50.0%, with significant growth in transportation and tourism-related industries, while real estate and residential services lagged [5][6] - The construction sector's business activity index fell to 50.6%, influenced by adverse weather conditions, with a corresponding decrease in market expectations [6] Composite PMI - The Composite PMI Output Index decreased to 50.2%, down 0.5 percentage points from the previous month, indicating overall expansion in production and business activities [7] - The manufacturing production index and non-manufacturing business activity index were recorded at 50.5% and 50.1%, respectively, both indicating continued expansion [7]

Group 1 - The core viewpoint is that the recent contraction of TDI capacity overseas, influenced by energy costs and environmental policies, has led to a significant increase in China's export share, with May 2025 exports reaching a historical high, up 98.45% year-on-year [1] - Southeast Asia is experiencing demand expansion, maintaining an annual growth rate of 6-8%, becoming a core export market for China [1] - A recent accident at Covestro's German plant has exacerbated supply tightness, potentially leading to further increases in TDI prices [1] Group 2 - Chinese chemical companies are expected to maintain competitive advantages in cost, technology, and delivery cycles, allowing them to expand their global market share and reshape the industry landscape in the long term [1] - The chemical leader ETF (516220) tracks a sub-sector chemical index (000813), which reflects the overall market performance and development trends of China's chemical industry [1] - Investors without stock accounts can consider the Guotai CSI Sub-sector Chemical Industry Theme ETF Connect C (012731) and A (012730) [1]