Core Viewpoint - The article discusses the recent developments in the Chinese automotive market, highlighting the government's intervention to curb price wars and promote high-quality industry growth through measures such as regulating supplier payment terms [4][6]. Group 1: Market Trends and Performance - From January to April, the profit margin of the Chinese automotive industry was 4.1%, increasing to 4.4% in April, compared to 3.9% in Q1 and 3.5% in March, indicating a positive trend [7]. - In May, the retail sales of passenger vehicles reached 1.932 million units, a year-on-year increase of 13.3% and a month-on-month increase of 10.1%, surpassing the level of 1.81 million units in May 2018 [9]. - Cumulative retail sales from January to May reached 8.811 million units, up 9.1% year-on-year [9]. Group 2: Sales Data and Company Performance - In the first five months, sales of Chinese brand passenger vehicles reached 7.562 million units, a year-on-year increase of 26.3%, accounting for 68.8% of total passenger vehicle sales [10]. - The top ten automotive groups sold 10.708 million units in total, representing 84% of the overall market, with varying performance among individual companies [11]. - In May, BYD sold 382,476 units, a year-on-year increase of 15.35%, while SAIC Group sold 366,000 units, up 10.25% [13][14]. Group 3: Competitive Landscape - The article notes that some companies engaged in aggressive pricing strategies, leading to a temporary surge in market activity, but this has raised concerns about sustainability [12]. - The sales performance of major companies varied, with some like Geely and Changan showing significant growth, while others like GAC and Dongfeng experienced declines [14][39]. - New energy vehicle sales are highlighted as a key growth area, with companies like Changan and BYD reporting substantial increases in this segment [29][37].

Group 1: New Energy Vehicle Market - From June 1 to June 8, the national retail sales of new energy vehicles reached 202,000 units, a year-on-year increase of 40% compared to the same period last year, and a month-on-month increase of 4%. The retail penetration rate of the new energy market is 58.8%, with cumulative retail sales of 4.559 million units this year, up 34% year-on-year [1][6] - In the same period, the wholesale of new energy vehicles reached 166,000 units, a year-on-year increase of 5% but a month-on-month decrease of 6%. The wholesale penetration rate is 53.5%, with cumulative wholesale of 5.373 million units, a year-on-year increase of 39% [6] Group 2: Consumer Subsidy Policies - Recent news regarding the suspension of national subsidies for consumer goods exchange programs has raised concerns. However, officials from Hubei and Jiangsu stated that the subsidy program will continue until the end of the year, while Chongqing announced that the second phase of the subsidy policy is expected to be introduced in early June [1][6] Group 3: ETF Market Developments - On June 10, the largest ETF product in the market, Huatai-PB CSI 300 ETF, announced a dividend distribution, with the total dividend expected to exceed 8 billion yuan [2][11] Group 4: Battery Industry Insights - In May, China's power battery installation volume reached 57.1 GWh, with a month-on-month increase of 5.5% and a year-on-year increase of 43.1%. Lithium iron phosphate batteries accounted for 81.6% of the total installation volume, showing a year-on-year growth of 57.7% [7] Group 5: Corporate Actions and Announcements - On June 10, several major automotive companies, including BYD and Geely, committed to standardizing supplier payment terms to within 60 days, aiming to enhance cash flow and collaboration with suppliers [9][11] - On June 10, Vanke announced the sale of 22 million A-shares, raising approximately 146 million yuan, which will be used to supplement the company's liquidity [18]

Core Viewpoint - The domestic wholesale sales of passenger cars in May showed a month-on-month and year-on-year increase, with a notable decrease in inventory by 110,000 units, and strong export performance. It is recommended to focus on companies that are in a new car cycle and are leading in intelligence [1][2]. Group 1: Sales Performance - In May, the wholesale sales of passenger cars reached 2.31 million units, representing a year-on-year increase of 12.8% and a month-on-month increase of 5.5% [2]. - Cumulative wholesale sales from January to May totaled 10.784 million units, reflecting a year-on-year growth of 11.5% [2]. Group 2: Inventory Trends - The overall inventory of passenger car manufacturers decreased by 110,000 units in May, compared to a decrease of 90,000 units in the same month last year [2]. - The cumulative inventory for the industry from January to May remained flat compared to the same period last year, marking a change from the continuous inventory reduction seen in the past two years [2]. Group 3: New Energy Vehicle (NEV) Insights - In May, the penetration rate of new energy vehicles reached 52.6%, an increase of 8.0 percentage points year-on-year and 0.9 percentage points month-on-month [3]. - The wholesale sales of new energy passenger vehicles in May were 1.216 million units, showing a year-on-year increase of 33.0% and a month-on-month increase of 7.0% [3]. - Cumulative sales of new energy vehicles from January to May reached 5.2 million units, with a year-on-year growth of 40.0% [3]. Group 4: Export Performance - In May, the total export of passenger vehicles (including complete vehicles and CKD) was 448,000 units, representing a year-on-year increase of 13.5% and a month-on-month increase of 6.0% [3]. - Cumulative exports from January to May reached 2 million units, reflecting a year-on-year increase of 3.0% [3]. - The export of new energy passenger vehicles was 200,000 units in May, showing a year-on-year increase of 80.9% and accounting for 44.6% of total passenger vehicle exports, an increase of 16.6 percentage points year-on-year [3].

Group 1: Capital Expenditure Cycle Analysis - The capital expenditure (CAPEX) cycle is a dominant driver of industry cycles in China, influencing the relationship between CAPEX, price-to-book (PB) ratio, and return on equity (ROE) [4] - The CAPEX cycle is divided into three stages: Stage 1 (oversupply leads to declining ROE and poor market performance), Stage 2 (declining CAPEX results in rising free cash flow and market rebound), and Stage 3 (supply-side clearing leads to improved ROE and better market performance) [4][14][15] - The PB-ROE model indicates significant investment value in Stage 2 (low PB and improving ROE) and Stage 3 (reasonable PB and steadily rising ROE) [16] Group 2: Market and Industry Comparisons - In Q4 2024 and Q1 2025, the overall capital expenditure of A-share companies (excluding finance and real estate) is contracting, while free cash flow is improving [20] - The median CAPEX/depreciation ratio for secondary industries decreased from 1.35 to 1.29, while the median free cash flow/equity ratio increased from 4.4% to 4.8% [21] - The proportion of secondary industries with free cash flow greater than 0 has significantly increased, indicating a positive trend in cash flow [21][24] Group 3: Sector-Specific Insights - The consumer sector shows overall CAPEX contraction and slight decline in free cash flow, with CAPEX levels below market averages and free cash flow above market averages [26] - The advanced manufacturing sector also experiences CAPEX contraction, while free cash flow shows slight improvement [4][26] - Eight industries within the consumer sector are highlighted as potential investment opportunities based on supply-side improvements [4][26]

Core Insights - The report highlights the growth in employment and average salaries within listed companies in China, indicating a positive trend in the job market post-pandemic [1][10]. Employment Growth - The total number of employees in listed companies in China exceeded 25 million in 2024, showing a continuous increase since the pandemic [1]. - The average monthly salary for employees in these companies is approximately 10,800 yuan [1]. Industry Employment Distribution - The financial, automotive, construction, real estate, and consumer electronics sectors are the largest employers, accounting for 36.2% of the total employment in listed companies [1]. - State-owned banks employ the most individuals, with 1.655 million employees, representing 6.5% of total employment [1]. - The passenger vehicle sector has seen significant growth, with an employee count of 1.409 million, reflecting a 21.3% increase [1][2]. Sector-Specific Employment Trends - The automotive and consumer electronics industries have contributed significantly to new job creation, with the passenger vehicle sector alone adding 248,000 jobs, which is 38% of the total increase across all industries [2][3]. - Export-related industries have also shown consistent growth, with the export scale surpassing 25 trillion yuan in 2024, marking a 7.1% year-on-year increase [3]. Declining Employment Sectors - The insurance and real estate development sectors have experienced a decline in employee numbers, with retail and real estate being the most affected [4][5]. - The general retail sector's employee count has fallen to below 70% of its 2019 levels [5]. Salary Trends - Industries such as telecommunications services, chemical products, and automotive services have seen significant increases in average monthly salaries, with growth rates of 14.9%, 11.0%, and 9.6% respectively [7]. - Conversely, sectors like tourism retail, photovoltaic equipment, and securities have experienced notable salary declines, with reductions of 16.7%, 12.2%, and 9.6% [8]. Market Demand Indicators - Industries such as engineering machinery, bioproducts, and semiconductors are experiencing strong demand, as indicated by the growth in employee numbers and average salaries [9].

Summary of Key Points from the Conference Call Industry Overview - Recent domestic passenger car terminal sales experienced a month-on-month decline of 20% to 360,000 units, but weekly average sales still showed a year-on-year increase of 10% [1][4] - Year-to-date cumulative sales have increased by over 10%, indicating the effectiveness of the vehicle replacement policy [1][4] - The penetration rate of domestic new energy vehicles (NEVs) reached 56%, close to this year's high, with an average penetration rate of 53% year-to-date, representing a nearly 20% increase compared to the same period last year [1][5] Market Performance by Price Segment - NEVs priced between 100,000 to 150,000 yuan saw a growth rate of 60%, driven by high-cost performance models such as BYD Qin PLUS DM-i series and Geely Galaxy series [1][6] - Sales of mid-to-high-end NEVs priced above 300,000 yuan remained flat or slightly increased, with some segments even experiencing a decline due to product cycle impacts from leading brands like Li Auto and Aito [1][6] Key Players and Market Share - BYD's terminal sales this week were 54,900 units, a 10% decrease month-on-month, but market share rebounded to around 15% [1][7][8] - The market concentration of the top 10 companies (CR10) decreased to 63%, down from 70% in the second half of last year, indicating increased competition from smaller brands due to subsidy policies [1][9] - Geely, including its Galaxy and Zeekr brands, emerged as a significant competitor with sales of approximately 30,000 units this week [1][10] Competitive Landscape - The overall trend in domestic passenger car demand is showing a steady upward trajectory, with both total and structural sales stabilizing [1][3] - Increasing discounts within the industry are noted, with a recommendation to prioritize technology-driven leading new forces while also tracking mid-to-low-priced, high-demand, and low-valuation car manufacturers [1][3] Other Notable Mentions - Wuling ranked second with total sales of 10,000 units, while Geely ranked third with around 30,000 units [1][10] - Tesla's sales for the period were 8,600 units, with a need to monitor the impact of the new Full Self-Driving (FSD) feature on its supply chain [1][2][10]

对于自主品牌乘用车保持高增长的原因，崔东树认为，这主要得益于自主品牌在新能源车市场和出口市 场获得明显增量。特别是主流车企转型升级表现优异，包括比亚迪（002594）汽车、吉利汽车、奇瑞汽 车、长安汽车等传统车企品牌市场份额提升明显。 6月9日，中国汽车流通协会乘用车市场信息联席分会发布《2025年5月份全国乘用车市场分析》显示，5 月份全国乘用车市场零售193.2万辆，同比增长13.3%。今年以来累计零售881.1万辆，同比增长9.1%。 乘联分会秘书长崔东树表示，与过去几年国内车市零售呈现"前低后高"的走势不同，今年5月车市零售 量较2018年5月销售181万辆的最高水平增长了6%，呈现出强增长态势。 不仅零售，5月乘用车厂商批发和生产均创当月历史新高。5月乘用车生产227.0万辆，同比增长12.6%， 较历史同期高点2024年5月的202万辆高出25万辆；5月全国乘用车厂商批发231.0万辆，同比增长 12.8%。 崔东树表示，受"两新"政策的拉动，春节后车市热度持续走强。在国家促消费政策推动下，很多省市出 台并逐步落实了相应的地方促消费政策，叠加车展等线下活动的全面启动，推动5月车市走势良好。 以旧换 ...

Market Performance - On June 9, the Shanghai Composite Index rose by 0.43%, the Shenzhen Component Index increased by 0.65%, and the ChiNext Index gained 1.07%[3] - Market turnover reached 1.31 trillion, an increase of approximately 130 billion compared to the previous trading day[1] Sector Analysis - All sectors except food and beverage saw gains, with pharmaceuticals, military industry, agriculture, and textiles leading the increases[1] - The military and innovative pharmaceuticals sectors have shown significant strength, driven by recent geopolitical events and advancements in clinical research[1] Economic Indicators - In May, the Consumer Price Index (CPI) decreased by 0.1% year-on-year, while the Producer Price Index (PPI) fell by 0.4% month-on-month, with a year-on-year decline of 3.3%[5] - For the first five months of the year, China's total goods trade value reached 17.94 trillion, reflecting a year-on-year growth of 2.5%[6] Investment Trends - In the first week of June, new fund issuance exceeded 31 billion, with equity funds showing a "high volume, low amount" characteristic, totaling only 5.82 billion[11] - Public REITs' total market value surpassed 200 billion for the first time, with the Shanghai Stock Exchange accounting for nearly 70% of this total[12][13]

Report Industry Investment Rating - No relevant content provided Core Viewpoints - The current large basis of stock index futures reflects market hedging demand, which depends on the existence of obvious Alpha returns. The market's focus remains on the consumer and technology sectors. The high - tech manufacturing industry in China is in a capital expenditure expansion cycle, and the consumer sector benefits from policy support. In June, these two sectors are expected to be the main focus of the market. The bond market's focus has returned to changes in the capital side. Although there were concerns about capital tightening in June, after the central bank's operations, the expectation of capital tightening has weakened, and the bond market is expected to oscillate strongly [1]. - The stock index futures are expected to oscillate, and the bond futures are also expected to oscillate [1]. Summary by Directory Research Views - **Stock Index Futures**: The large basis of stock index futures reflects market hedging demand, which depends on Alpha returns. Last week, the market's focus was on consumer and technology sectors. The high - tech manufacturing industry is in a capital expenditure expansion cycle, and the consumer sector benefits from policies. In May, the retail of three major white - goods maintained a high year - on - year growth rate (over 60% each), and passenger car retail remained booming (16% year - on - year). There may be a pulse in overseas demand for textile, clothing, and electronic products due to "rush - to - export" [1]. - **Bond Futures**: On June 10, 2025, the 30 - year bond futures main contract rose 0.35%, the 10 - year main contract rose 0.09%, and the 5 - year and 2 - year main contracts were basically stable. The central bank conducted 173.8 billion yuan of 7 - day reverse repurchase operations with a stable interest rate of 1.4%, resulting in a net injection of 173.8 billion yuan. Capital interest rates declined slightly. The bond market's focus has returned to the capital side. Due to large maturing pressure of inter - bank certificates of deposit and increased government bond issuance, there were concerns about capital tightening in June, but after the central bank's operations, the expectation of capital tightening has weakened, and the bond market is expected to oscillate strongly [1]. Daily Price Changes - **Stock Index Futures**: On June 9, 2025, compared with June 6, 2025, IH rose 3.0 points (0.11%), IF rose 12.4 points (0.32%), IC rose 41.0 points (0.72%), and IM rose 67.6 points (1.11%) [4]. - **Stock Indexes**: The Shanghai Composite 50 Index fell 2.0 points (- 0.08%), the CSI 300 Index rose 11.3 points (0.29%), the CSI 500 Index rose 43.6 points (0.76%), and the CSI 1000 Index rose 66.1 points (1.07%) [4]. - **Bond Futures**: TS remained unchanged (0.00%), TF fell 0.015 points (- 0.01%), T rose 0.075 points (0.07%), and TL rose 0.36 points (0.30%) [4]. Market News - In May 2025, China's exports denominated in US dollars increased 4.8% year - on - year (previous value: 8.1%), and imports decreased 3.4% year - on - year (previous value: - 0.2%) [5]. - In May 2025, the national consumer price index decreased 0.1% year - on - year. From January to May, the average national consumer price index decreased 0.1% compared with the same period last year [5]. Chart Analysis - **Stock Index Futures**: There are charts showing the trends of IH, IF, IM, IC main contracts and their respective basis trends [7][8][11]. - **Bond Futures**: There are charts showing the trends of bond futures main contracts, bond spot yields, basis, inter - period spreads, cross - variety spreads, and capital interest rates [14][16][18]. - **Exchange Rates**: There are charts showing the central parity rates of the US dollar, euro against the RMB, forward US dollar against the RMB for 1M and 3M, forward euro against the RMB for 1M and 3M, US dollar index, euro against the US dollar, pound against the US dollar, and US dollar against the yen [21][22][25].

Group 1 - The core viewpoint of the articles highlights the strong growth in the passenger car market in China, with May retail sales reaching 1.932 million units, a year-on-year increase of 13.3% and a month-on-month increase of 10.1% [1] - Cumulative retail sales for the year reached 8.811 million units, reflecting a year-on-year growth of 9.1% [1] - The retail sales in May surpassed the highest level of 1.81 million units recorded in May 2018, indicating a robust growth trend [1] Group 2 - The new energy vehicle (NEV) market showed significant growth, with a retail penetration rate of 52.9% in May and NEV retail sales reaching 1.021 million units, a year-on-year increase of 28.2% [2] - Cumulative NEV retail sales from January to May totaled 4.351 million units, marking a growth of 34.1% [2] - The penetration rate of domestic brand NEVs reached 68.7%, while luxury NEVs had a penetration rate of 37.5%, and mainstream joint venture brands only achieved 4.3% [2] Group 3 - The export of domestic fuel passenger vehicles decreased by 14% year-on-year to 1.05 million units from January to May, while NEV exports surged by 95% to 640,000 units, accounting for 37.9% of total exports [2] - Despite a decline in exports to Russia, domestic brands maintained a market share of over 55% in that region, indicating potential for recovery in exports [2] - The manufacturing Purchasing Managers' Index (PMI) improved to 49.5% in May, suggesting an expansion in overall economic output [2]