Core Viewpoint - The manufacturing PMI reading in September shows a seasonal rebound, indicating a slight improvement in economic conditions compared to August, primarily due to the concentration of production replenishment in September driven by anti-involution effects [1] Manufacturing Sector - The improvement in the manufacturing sector is mainly reflected in production, finished goods inventory, and new export orders [1] - However, there are signs of a slowdown in domestic demand and price indicators, suggesting low consumer acceptance of price increases, with PPI likely to decline on a month-on-month basis [1] - Certain raw material industries and capital goods-related sectors are performing well, but the ex-factory price index in key anti-involution industries has generally fallen below 50 [1] Non-Manufacturing Sector - The non-manufacturing PMI in September shows a widening gap compared to historical levels, primarily due to a decline in the service sector's performance [1] - This decline may be linked to a slight downturn in the employment market and extreme weather events such as typhoons [1] Economic Outlook - Overall, while there is a marginal recovery in manufacturing sentiment in September, there is a decline in service and domestic demand-related indicators [1] - Looking ahead, it is anticipated that incremental policy tools will be implemented in the fourth quarter to support stable economic operations [1]

Group 1 - In September, the Manufacturing Purchasing Managers' Index (PMI) was 49.8%, an increase of 0.4 percentage points from the previous month, indicating a slight acceleration in overall economic output [1] - The Production Index for manufacturing reached 51.9%, up 1.1 percentage points, marking a six-month high, suggesting active manufacturing production [1] - Key industries such as equipment manufacturing, high-tech manufacturing, and consumer goods showed PMIs of 51.9%, 51.6%, and 50.6% respectively, all above the manufacturing average, indicating robust supply and demand [1] Group 2 - The Production and Business Activity Expectation Index for manufacturing was 54.1%, up 0.4 percentage points, reflecting positive market outlook among manufacturers [2] - The Non-Manufacturing Business Activity Index was 50.0%, down 0.3 percentage points, indicating stability in the non-manufacturing sector, while the Service Sector Index remained in the expansion zone at 50.1% [2] - Certain sectors like postal, telecommunications, and financial services maintained high business activity indices above 60.0%, while sectors closely related to consumer spending, such as dining and entertainment, fell below the critical point [2] Group 3 - Overall, September's macroeconomic indicators showed a stable improvement, with multiple positive factors contributing to increased market vitality [3] - Looking ahead to the fourth quarter, macroeconomic policies are expected to be intensified, providing new momentum and confidence to the market [3]

Core Viewpoints - The traditional sectors are experiencing weakened growth, while new momentum shows a significant recovery, necessitating attention to the effects of stable growth policies in key industries [1][7][73]. Manufacturing Sector - In September, the manufacturing PMI improved, with a rise of 0.4 percentage points to 49.8%, aligning with seasonal expectations. The production index reached a six-month high at 51.9%, up 1.1 percentage points from the previous month [1][7][73]. - The new orders index increased by only 0.2 percentage points to 49.7%, indicating a slower recovery compared to previous years. The demand structure continues to show that external demand is outperforming internal demand, with new export orders rising more significantly than domestic orders [1][13][73]. - The purchasing volume index rose by 1.2 percentage points to 51.6%, driven by stronger production, while the price indices for raw materials and factory output remained resilient [1][7][73]. New Momentum Industries - The PMI for new momentum industries, such as equipment manufacturing and high-tech manufacturing, showed significant improvement, with the equipment manufacturing PMI rising 1.1 percentage points to 51.6% and high-tech manufacturing PMI remaining in the expansion zone at 51.9% [2][19][74]. - Conversely, high-energy-consuming industries saw a decline in PMI by 0.7 percentage points to 47.5%, reflecting ongoing weakness in real estate and infrastructure investments [2][19][74]. Non-Manufacturing Sector - The non-manufacturing PMI fell to the critical point of 50%, with the construction PMI slightly recovering by 0.2 percentage points to 49.3%, while the service sector PMI dropped 0.4 percentage points to 50.1% [2][24][74]. - The service sector, particularly industries closely related to consumer travel, such as dining and cultural activities, experienced a significant decline in business activity indices, falling below critical levels [2][24][74]. Future Outlook - Although traditional momentum faces downward pressure on both quantity and price, new momentum is accelerating its support for the economy. Continuous monitoring of the effects of new incremental policies is essential [3][75]. - The upcoming stable growth policies in key industries like construction materials and steel are expected to mitigate the risks associated with the downturn in infrastructure and real estate sectors [3][75].

Economic Overview - September PMI data indicates weak economic recovery momentum, with the manufacturing sector slightly rebounding but still in contraction at 49.8%, up 0.4 percentage points from the previous month[2] - Non-manufacturing PMI stands at 50.0%, down 0.3 percentage points, reflecting weak service sector demand and increased employment pressure[2] - Overall composite PMI is at 50.6%, a slight increase of 0.1 percentage points, indicating a mixed economic outlook[2] Manufacturing Sector Insights - Manufacturing PMI shows a production index of 51.9%, up 1.1 percentage points, indicating accelerated production expansion[2] - New orders index is at 49.7%, up 0.2 percentage points, but still indicates insufficient demand recovery[2] - Large enterprises report a PMI of 51.0%, while medium and small enterprises are at 48.8% and 48.2%, respectively, highlighting significant structural differentiation[2] Non-Manufacturing Sector Insights - Non-manufacturing business activity index is at 50.1%, with a notable decline in new orders to 46.0%, down 0.6 percentage points, indicating a clear drop in demand[3] - Employment pressure is evident with the employment index at 45.0%, down 0.6 percentage points, suggesting challenges in workforce stability[3] - Business activity expectations remain optimistic at 55.7%, despite a slight decline, indicating potential for future demand recovery[3] Policy and Market Outlook - Short-term economic improvement is expected to rely heavily on policy support, with a new round of policy measures anticipated, including a potential reduction in reserve requirements and interest rates[2] - The National Development and Reform Commission is actively promoting a new 500 billion yuan policy financial tool aimed at supporting project capital[2] - Continuous monitoring of the upcoming October Politburo meeting and the Fourth Plenary Session of the 20th Central Committee is crucial for insights into economic policy direction[2]

Report Industry Investment Rating - Not provided in the content Core Views Manufacturing PMI - Supply: Manufacturing production picked up. In September, the production index was 51.9, up 1.1 from the previous month, and the supplier delivery time index was 50.8, up 0.3 from the previous month [3]. - Demand: Manufacturing demand rebounded. In September, the new order index was 49.7, up 0.2 from the previous month; the new export order index was 47.8, up 0.6 from the previous month; and the back - order index was 45.2, down 0.3 from the previous month [3]. - Supply - demand balance: The supply - demand relationship needs improvement. In September, the supply - demand index (demand - supply) was - 2.2, down 0.9 from the previous month, down 0.9 from the same period last year, and down 0.5 from the average of the past three years [3]. - Price: Manufacturing profitability contracted. In September, the raw material price index was 53.2, down 0.1 from the previous month; the ex - factory price index was 48.2, down 0.9 from the previous month. The difference between ex - factory price and raw material price was - 5.0, down 0.8 from the previous month [3]. - Inventory: De - stocking slowed down. In September, the finished goods inventory index was 48.2, up 1.4 from the previous month; the raw material inventory index was 48.5, up 0.5 from the previous month. The difference between new orders and finished goods inventory was 1.5, down 1.2 from the previous month [3]. Non - manufacturing PMI - Supply: Non - manufacturing employment slowed down. In September, the employment index was 45, down 0.6 from the previous month; among them, the construction industry was 39.7, down 3.9 from the previous month, and the service industry was 45.9, unchanged from the previous month. The supplier delivery time index was 51.1, down 0.2 from the previous month [4]. - Demand: Non - manufacturing domestic demand declined. In September, the new order index was 46, down 0.6 from the previous month; among them, the construction industry was 42.2, up 1.6 from the previous month, and the service industry was 46.7, down 1.0 from the previous month. The new export order index was 49.8, up 1.0 from the previous month, and the back - order index was 44.4, up 1.0 from the previous month [4]. - Price: Non - manufacturing industries exchanged price for volume. In September, the input price index was 49, down 1.3 from the previous month; among them, the construction industry was 47.2, down 7.4 from the previous month, and the service industry was 49.3, down 0.2 from the previous month. The sales price index was 47.3, down 1.3 from the previous month; among them, the construction industry was 48.1, down 1.6 from the previous month, and the service industry was 47.2, down 1.3 from the previous month [4]. - Inventory: De - stocking continued. In September, the inventory index was 44.9, down 0.8 from the previous month and down 0.2 from the same period last year [5] Summary by Directory Overview - Manufacturing PMI: Manufacturing sentiment improved, and enterprise production expansion accelerated. In September, the manufacturing PMI was 49.8, up 0.4 percentage points from the previous month [11]. - Non - manufacturing PMI: The non - manufacturing business activity index was 50.0, down 0.3 percentage points from the previous month, and the composite PMI output index was 50.6, up 0.1 percentage points from the previous month [11]. Demand: Manufacturing Demand Improved, Non - manufacturing Demand Weakened - Manufacturing: Driven by the continuous release of policies such as the "Two New" policies, in September, the new order index was 49.7, up 0.2 from the previous month; the new export order index was 47.8, up 0.6 from the previous month; and the back - order index was 45.2, down 0.3 from the previous month [19]. - Non - manufacturing: In September, the new order index was 46, down 0.6 from the previous month, indicating a continued contraction in non - manufacturing order demand. The new export order index was 49.8, up 1.0 from the previous month, indicating a recovery in export demand. The back - order index was 44.4, up 1.0 from the previous month, indicating an accumulation of existing orders [19]. Supply: Manufacturing Production Recovered, Non - manufacturing Sentiment Declined - Manufacturing: In September, the production index was 51.9, up 1.1 from the previous month; the production and business activity expectation index was 54.1, up 0.4 from the previous month; the supplier delivery time index was 50.8, up 0.3 from the previous month; and the employment index was 48.5, up 0.6 from the previous month [23]. - Non - manufacturing: In September, the employment index was 45, down 0.6 from the previous month; the supplier delivery time index was 51.1, down 0.2 from the previous month; and the business activity expectation index was 55.7, down 0.5 from the previous month [23]. Price: Manufacturing Profitability Contracted, Non - manufacturing Price Cuts Continued - Manufacturing: In September, the raw material price index was 53.2, down 0.1 from the previous month; the ex - factory price index was 48.2, down 0.9 from the previous month; and the difference between ex - factory price and raw material price was - 5.0, down 0.8 from the previous month [31]. - Non - manufacturing: In September, the input price index was 49, down 1.3 from the previous month; the sales price index was 47.3, down 1.3 from the previous month [31]. Inventory: Manufacturing De - stocking Slowed Down, Non - manufacturing De - stocking Continued - Manufacturing: In September, the finished goods inventory index was 48.2, up 1.4 from the previous month; the raw material inventory index was 48.5, up 0.5 from the previous month; and the difference between new orders and finished goods inventory was 1.5, down 1.2 from the previous month [39]. - Non - manufacturing: In September, the inventory index was 44.9, down 0.8 from the previous month and down 0.2 from the same period last year [39]. - Comprehensive: In September, the composite PMI index was 50.6, up 0.1 from the previous month and up 0.2 from the same period last year, indicating an improvement in overall economic sentiment [39]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The global economy is on an upward trend, with the US economy showing strong consumption and manufacturing reshoring, while China is shifting towards AI, and large - scale AI investments are expected to drive up demand for certain assets [40][41][42] - The large - scale investment in computing power is expected to push up the price of silver, and the demand for copper is also likely to increase due to large - scale power construction [49][82][85] - The Fed's new round of interest rate cuts will lead international funds to flow from the US and Europe to emerging markets represented by China, and the stock markets in emerging markets, especially China, are favored by global institutional investors [48][51][54] 3. Summary by Relevant Catalogs US Economic Indicators - In September, the US Markit manufacturing PMI was 52.0, indicating continued expansion, and the service business activity index also showed a positive trend [6][7] - In August, the US import value from China increased by nearly 40% month - on - month after the US imposed reciprocal tariffs, and the competitiveness of Chinese goods has enhanced [10] - In August, the total retail and food sales in the US increased by 0.6% month - on - month, exceeding expectations, and the wholesale sales reached a record high with a 6.2% year - on - year increase, showing strong consumption [13][16] - In August, the US capital goods import value was still high at $91.9 billion, with a 10.5% year - on - year growth, indicating the acceleration of manufacturing reshoring and "re - industrialization" [19] - In August, the US manufacturing backlog orders were at a record high, with a 7.1% year - on - year increase, and the service export value reached a record high of $101 billion [22][25] - In August, the US CPI increased by 2.9% year - on - year and 0.3% month - on - month, in line with expectations [28] Chinese Economic Indicators - In September, China's Caixin PMI production index was 51.9%, indicating an accelerated expansion of production, and the purchase price of raw materials continued to rise [31] - China has issued an "AI +" action plan, and the economy is comprehensively shifting towards AI [42] Eurozone Economic Indicators - In September, the Eurozone manufacturing PMI slightly contracted, while the service PMI accelerated its expansion [34] Indian Economic Indicators - In August, India's manufacturing and service PMIs reached new highs, and both sectors have been expanding for more than three years [36] Japanese Economic Indicators - Japan's 10 - year government bond yield reached a new high [38] AI Investment and Market Impact - Morgan Stanley predicts that global AI data center and chip investment will reach $2.9 trillion by 2028 [43][56][58] - OpenAI plans to invest about $400 billion to build five new data centers in the US, with a planned capacity of 250GW by 2033, and the power investment may be as high as $12.5 trillion [44][58][59] - Alibaba is actively promoting 380 billion yuan of AI infrastructure construction and plans to increase investment, and Morgan Stanley expects Alibaba Cloud to add more than 3GW of data center capacity annually from 2026 - 2032 [45][57] Strategy Recommendations - **Asset Allocation** - With the Fed's interest rate cuts, international funds will flow to emerging markets, and the Hang Seng Tech Index is expected to rise. Semiconductor equipment ETFs will remain prosperous due to the high demand for computing power. It is recommended to hold long positions in the CSI 300 index futures [48] - Gold prices are expected to rise as the US moves towards stagflation. Silver prices will be pushed up by data center investment, and copper demand will increase due to power construction. The 30 - year Treasury bond futures are expected to fall [49][80][88] - **Stock Market Outlook** - The CSI 300, CSI 500, and科创50 indexes are expected to perform well in the fourth quarter, and the Hang Seng Tech ETF is also expected to rise [68][71][74] - **Currency Outlook** - The offshore RMB is expected to appreciate under the pattern of trade surplus and capital inflow [91]

Report Summary 1. Report Industry Investment Rating No information regarding the industry investment rating was provided in the report. 2. Core Viewpoints - In September, the manufacturing industry showed significant improvement in its prosperity, with the production index reaching a six - month high. However, enterprises' profitability continued to face pressure, and the problem of oversupply remained prominent. The high - tech manufacturing and strategic emerging industries performed well, and enterprises' confidence in the market was relatively high. - The non - manufacturing industry presented a situation where the construction industry showed resilience while the service industry was under pressure [1][2][3]. 3. Summary by Related Catalogs Manufacturing Industry - **Overall PMI**: In September, the manufacturing PMI was 49.8, a 0.4 increase from the previous month. The production index rose 1.1 to 51.9, and the new order index increased 0.2 to 49.7. The new export order index went up 0.6 to 47.8. The import index, raw material inventory, and procurement volume all increased, indicating a significant boost in enterprises' production and operation enthusiasm [1][2]. - **Industry Differences**: Industries such as food, beverages, automobiles, and railway, ship, aerospace equipment had production and new order indices above 54.0, with rapid release of production and demand. In contrast, industries like wood processing, furniture, and petroleum and coal processing had production and demand indices below the critical point [2]. - **Enterprise Types**: Large enterprises expanded steadily, and small enterprises' business conditions improved. In September, the PMI of large, medium, and small enterprises changed by 0.2, - 0.1, and 1.6 respectively, reaching 51, 48.8, and 48.2 [2]. - **Key Industries**: The PMI of high - tech manufacturing, equipment manufacturing, consumer goods industry, and raw material industry changed by - 0.3, 1.4, 1.4, and - 0.7 respectively, reaching 51.6, 51.9, 50.6, and 47.5. The EPMI of strategic emerging industries in September was 52.4, a significant increase of 4.6 percentage points from the previous month [3]. - **Enterprise Expectations**: The production and operation activity expectation index increased by 0.4 to 54.1, rising for three consecutive months, indicating high confidence of manufacturing enterprises in the near - term market. The employment index rose 0.6 to 48.5 [3]. Non - Manufacturing Industry - **Construction Industry**: In September, the construction industry's business activity index was 49.3, a 0.2 increase from the previous month, remaining below the boom - bust line for two consecutive months [5]. - **Service Industry**: The service industry's business activity index was 50.1, a 0.4 decrease. Industries such as postal services, telecommunications, and monetary and financial services were in a high - level prosperity range with business activity indices above 60.0%, and their business volumes grew rapidly [5]. Investment Suggestions - The September PMI data indicated that the manufacturing industry's prosperity improved significantly, and the increase in mid - and upstream prices had an impact on the production side. The economic structure upgrade was a highlight, with high - tech manufacturing and equipment manufacturing leading the way. The production and operation expectations, production investment enthusiasm, and employment in the manufacturing industry showed positive trends. However, the pressure was still concentrated on the demand side, with the new order index remaining in the contraction range, and consumption, real estate, and infrastructure remaining weak [6].

Group 1: PMI Overview - In September, the manufacturing PMI improved to 49.8%, up 0.4 percentage points from 49.4% in August[1][7] - The non-manufacturing PMI decreased to 50.0%, down from 50.3% in the previous month[1][7] Group 2: Manufacturing Sector Insights - The production index rose to 51.9%, marking a 1.1 percentage point increase, the highest in nearly six months[2][8] - The new orders index increased by only 0.2 percentage points to 49.7%, indicating weaker demand recovery compared to production[2][8] - New export orders improved by 0.6 percentage points to 47.8%, outpacing the increase in domestic orders[2][3] Group 3: Industry Performance - The equipment manufacturing PMI rose by 1.1 percentage points to 51.6%, while high-tech manufacturing PMI remained in the expansion zone at 51.9%[3][16] - High-energy consumption industries saw a decline in PMI by 0.7 percentage points to 47.5%, reflecting ongoing weakness in real estate and infrastructure[3][16] Group 4: Non-Manufacturing Sector Trends - The construction PMI slightly improved by 0.2 percentage points to 49.3%, while the service sector PMI fell by 0.4 percentage points to 50.1%[4][20] - The service sector's new orders index dropped significantly by 1.0 percentage point to 46.7%, indicating reduced consumer activity[4][34]

Core Viewpoints - The economic growth structure is shifting from traditional sectors to new momentum, with significant improvements in new momentum sectors [1][7][73]. Manufacturing Sector - In September, the manufacturing PMI improved to 49.8%, up 0.4 percentage points from the previous month, aligning with seasonal trends [1][7][73]. - The production index reached a six-month high of 51.9%, increasing by 1.1 percentage points, while the new orders index rose only 0.2 percentage points to 49.7% [1][7][73]. - The demand structure shows that new export orders increased more significantly than domestic orders, with new export orders rising by 0.6 percentage points to 47.8% [1][13][73]. - The purchasing volume index rose by 1.2 percentage points to 51.6%, indicating increased procurement activity due to stronger production [1][7][73]. New Momentum Industries - New momentum industries, such as equipment manufacturing and high-tech manufacturing, saw significant PMI improvements, with equipment manufacturing PMI rising by 1.1 percentage points to 51.6% [2][19][74]. - The EPMI for emerging industries increased by 4.6 percentage points to 52.4%, indicating a positive trend in these sectors [2][19][74]. - In contrast, high-energy-consuming industries experienced a decline in PMI, dropping 0.7 percentage points to 47.5%, reflecting ongoing weakness in real estate and infrastructure investments [2][19][74]. Non-Manufacturing Sector - The non-manufacturing PMI fell to the critical point of 50%, with the construction PMI remaining low at 49.3% and the service PMI declining by 0.4 percentage points to 50.1% [2][24][74]. - The service sector, particularly industries related to consumer travel, such as dining and entertainment, saw significant declines in business activity indices [2][24][74]. - Conversely, sectors like postal and financial services maintained high activity indices above 60% [2][24][74]. Future Outlook - Although traditional sectors face downward pressure, new momentum is expected to provide stronger support for the economy, with ongoing monitoring of the effects of new growth policies [3][75]. - The implementation of new growth policies in key industries such as construction and steel is anticipated to mitigate risks associated with real estate and infrastructure downturns [3][75].

Manufacturing PMI Insights - In September, the manufacturing PMI improved to 49.8%, up 0.4 percentage points from 49.4% in August[1][7] - The production index rose to 51.9%, marking a 1.1 percentage point increase, the highest in nearly six months[2][8] - New orders index increased by only 0.2 percentage points to 49.7%, indicating weaker recovery compared to production[2][8] Demand Structure - New export orders index rose by 0.6 percentage points to 47.8%, showing stronger external demand compared to domestic orders[2][3] - The overall demand structure continues to reflect that external demand is outperforming internal demand[2][3] Sector Performance - Equipment manufacturing PMI increased by 1.1 percentage points to 51.6%, while high-tech manufacturing PMI remained in the expansion zone at 51.9%[3][17] - High-energy consumption industries saw a decline in PMI by 0.7 percentage points to 47.5%, indicating ongoing weakness in real estate and infrastructure sectors[3][17] Non-Manufacturing PMI Trends - Non-manufacturing PMI fell to 50.0%, down 0.3 percentage points, with service sector PMI dropping significantly by 0.4 percentage points to 50.1%[5][33] - Construction PMI showed slight recovery, increasing by 0.2 percentage points to 49.3%, but still remains at historical lows[5][21] Future Outlook - Despite downward pressure on traditional sectors, new economic drivers are showing significant support for growth, necessitating close monitoring of new growth policies[4][25] - The implementation of new stability policies in key industries is expected to mitigate risks associated with infrastructure and real estate downturns[4][25]