Group 1 - The China-Central Asia Trade Facilitation Cooperation Platform was officially established during the second China-Central Asia Summit, marking a significant step in enhancing trade relations between Jiangsu and Central Asian countries [1] - Jiangsu has a strong foundation for industrial cooperation with Central Asia, particularly in sectors such as new energy, equipment manufacturing, oil and gas, and modern agriculture, creating a tightly-knit collaboration across the industrial chain [1] - The platform aims to integrate resources and expand its functional boundaries, focusing on high-quality Belt and Road Initiative construction, and will attract enterprises and products from surrounding provinces and Belt and Road countries [2] Group 2 - The platform will promote the import of agricultural products, mineral products, and oil and gas from Central Asia, while exporting daily necessities such as photovoltaic components, new energy vehicles, textiles, and children's products [3] - Cultural exchange initiatives will include signing agreements for joint training of youth talents, establishing vocational training programs, and hosting multicultural events to enhance mutual understanding [3] - The Jiangsu Provincial Department of Commerce emphasizes the importance of leveraging provincial resources to support the platform's operation, aiming to deepen integration into the Belt and Road Initiative and expand international cooperation [3]

Economic Overview - The national economy maintained stable operation in May, supported by more proactive macro policies, with stable production demand and overall employment situation [1] Industrial Performance - The industrial added value above designated size increased by 5.8% year-on-year in May, with a month-on-month growth of 0.61% [2] - The equipment manufacturing industry saw a 9.0% year-on-year increase, while high-tech manufacturing grew by 8.6%, outperforming the overall industrial growth by 3.2 and 2.8 percentage points respectively [2] - Key products such as 3D printing equipment, industrial robots, and new energy vehicles experienced significant production growth of 40.0%, 35.5%, and 31.7% year-on-year [3] - From January to May, the industrial added value increased by 6.3% year-on-year [3] Service Sector - The service production index rose by 6.2% year-on-year in May, accelerating by 0.2 percentage points compared to the previous month [4] - The service sector's business activity index was at 50.2 in May, up by 0.1 percentage points from the previous month, while the business activity expectation index rose to 56.5 [5] - From January to May, the service production index increased by 5.9% year-on-year [5] Consumer Spending - The total retail sales of consumer goods reached 41,326 billion yuan in May, marking a 6.4% year-on-year increase, which is 1.3 percentage points higher than the previous month [6] - Online retail sales amounted to 60,402 billion yuan, growing by 8.5% year-on-year, with physical goods online retail sales at 49,878 billion yuan, a 6.3% increase [6] Investment Trends - Fixed asset investment (excluding rural households) totaled 191,947 billion yuan from January to May, with a year-on-year growth of 3.7% [8] - Infrastructure investment grew by 5.6%, while manufacturing investment increased by 8.5%. However, real estate development investment declined by 10.7% [9] Trade Performance - The total value of goods imports and exports reached 38,098 billion yuan in May, with a year-on-year growth of 2.7% [10] - Exports were 22,767 billion yuan, up by 6.3%, while imports decreased by 2.1% [10] Employment Situation - The urban surveyed unemployment rate was 5.0% in May, a decrease of 0.1 percentage points from the previous month [11][12] - The average urban surveyed unemployment rate from January to May was 5.2% [12] Price Trends - The Consumer Price Index (CPI) fell by 0.1% year-on-year in May, while the core CPI, excluding food and energy, rose by 0.6% [13] - The Producer Price Index (PPI) decreased by 3.3% year-on-year in May [13]

Global Market Overview - The Hang Seng Index closed at 23,980, down 0.34% for the day but up 40.67% year-to-date [1] - The S&P 500 and Nasdaq in the US remained unchanged, with year-to-date increases of 26.48% and 31.24% respectively [1] - The DAX in Germany fell by 1.30%, while the Nikkei 225 in Japan rose by 0.59% [1] Sector Performance in Hong Kong - The Hang Seng Financial Index decreased by 0.70% for the day, but is up 43.08% year-to-date [2] - The Hang Seng Real Estate Index fell by 0.25%, showing a year-to-date decline of 4.70% [2] - The Hang Seng Utilities Index increased slightly by 0.11%, with a year-to-date gain of 11.26% [2] Chinese Stock Market Trends - The Chinese stock market experienced a pullback, with healthcare, energy, and consumer staples sectors leading the decline [3] - A-shares in biopharmaceuticals and media saw significant drops, while coal and utilities sectors rose [3] - The People's Bank of China is expected to reduce its quantitative tightening (QT) measures starting in Q2 of next year, impacting bond yields [3] Oil and Commodity Market Insights - Rising tensions in the Middle East have led to a spike in oil prices, although the medium-term outlook for oil remains pessimistic due to expected oversupply [3] - The International Energy Agency forecasts global oil production to rise to 104.9 million barrels per day by 2025, while demand is projected to decrease to 103.8 million barrels per day [3] Focus Stocks and Investment Recommendations - Geely Automobile (175 HK) is rated as a "Buy" with a target price of 24.00, representing a potential upside of 47% [4] - Luckin Coffee (LKNCY US) is also rated as a "Buy" with a target price of 40.61, indicating an 18% upside [4] - Tencent (700 HK) has a target price of 660.00, suggesting a 29% potential increase from its current price [4]

Group 1 - The second "Belt and Road" Technology Exchange Conference was held in Chengdu, focusing on technology planning, policy alignment, and artificial intelligence [7] - The conference featured over 400 high-tech innovations, including artificial intelligence and humanoid robots, showcasing the achievements of countries involved in the "Belt and Road" initiative [8] - A notable technology presented was a non-medium air suspension device that allows users to interact with a projected interface in mid-air, enhancing privacy and usability in public speaking scenarios [8] Group 2 - The "Artificial Intelligence Empowering Sustainable Development Forum" highlighted ten AI application scenarios, including a medical multimodal model matrix developed by Shanghai Jiao Tong University, aimed at addressing uneven medical resource distribution in "Belt and Road" countries [10][11] - Tencent showcased its AI applications in various fields, including healthcare and agriculture, emphasizing the importance of practical solutions that bridge the digital divide [11] - The conference announced the establishment of the Chengdu-Chongqing "Belt and Road" International Technology Transfer Center, aiming to create over 20 international technology transfer nodes and facilitate more than 100 international cooperation projects within three years [12]

Group 1: Stock Recommendations - Geely Automobile (175 HK) has a target price of 24.00, representing a potential upside of 46% with a P/E ratio of 16.42[5] - XPeng Motors (XPEV US) has a target price of 28.00, indicating a potential upside of 50% with a P/E ratio of 18.65[5] - Sany International (631 HK) has a target price of 8.70, suggesting a potential upside of 28% with a P/E ratio of 6.82[5] - Luckin Coffee (LKNCY US) has a target price of 40.61, indicating a potential upside of 15% with a P/E ratio of 35.30[5] - Tencent (700 HK) has a target price of 660.00, representing a potential upside of 30% with a P/E ratio of 509.50[5] Group 2: Performance Overview - The basket of 23 long positions had an average return of 1.1%, outperforming the MSCI China Index which returned 0.7%[9] - Among the 23 stocks, 7 stocks outperformed the benchmark[9] - The report includes a total of 23 stocks with various sectors such as automotive, technology, and healthcare[5]

Macro Commentary - The economic recovery in China remains unbalanced, with May data showing significant retail sales growth supported by the old-for-new policy, while real estate sales have declined further and industrial output growth has generally slowed [2] - GDP growth is expected to slow from 5.4% in Q1 2025 to 4.9% in Q2 and 4.7% in the second half of the year, potentially facing headwinds from weakening exports and diminishing effects of the old-for-new policy [2] - If a preliminary trade agreement is reached between China and the US, China may focus on economic rebalancing, increasing fiscal expansion and consumer stimulation, and promoting capacity reduction in manufacturing [2] Market Performance - Major global stock indices showed positive performance, with the Hang Seng Index closing at 24,061, up 0.70% year-to-date, while the S&P 500 increased by 0.94% to 6,033 [2] - The Hang Seng Tech Index rose by 1.15% year-to-date, reflecting a strong performance in the technology sector [2] - The performance of various sectors in the Hong Kong market was mixed, with financials and industrials leading gains, while real estate and healthcare sectors faced declines [4] Sector Analysis - The automotive sector is highlighted with companies like Geely Automobile and Xpeng Motors rated as "Buy," with target prices indicating potential upside of 46% and 50% respectively [6] - The equipment manufacturing sector also shows promise, with companies like Zoomlion and Sany Heavy Industry rated as "Buy," suggesting potential price increases of 19% and 24% respectively [6] - In the consumer sector, Luckin Coffee and PepsiCo are rated as "Buy," with expected price increases of 15% and 61% respectively, indicating strong growth potential [6] Credit and Economic Support - China's credit situation remains weak, driven by government financing, while private sector credit demand is still sluggish [5] - The social financing scale growth rate has rebounded due to accelerated government bond issuance, but household confidence is affected by tariff shocks, impacting housing and consumption [5] - More policy support is needed to revitalize private economic recovery, with expectations of a further 10 basis point reduction in LPR by the second half of 2025 [5]

Economic Performance - In May, the national economy maintained stable operation under pressure, with a focus on high-quality development [1] - The industrial production showed steady growth, with the added value of industrial enterprises above designated size increasing by 5.8% year-on-year [3][5] - The added value of the equipment manufacturing industry grew by 9.0%, and high-tech manufacturing increased by 8.6%, both exceeding the overall industrial growth rate [5][17] Service Sector - The service industry production index rose by 6.2% year-on-year in May, accelerating by 0.2 percentage points compared to the previous month [7] - Key sectors such as information transmission, software and IT services, leasing and business services, and wholesale and retail all outpaced the overall service industry growth [7] Consumer Market - The total retail sales of consumer goods reached 41,326 billion yuan in May, marking a year-on-year increase of 6.4%, which is 1.3 percentage points higher than the previous month [10] - The sales of basic living goods and certain upgraded products showed strong growth, supported by the "trade-in" policy [10] Investment Trends - Fixed asset investment continued to expand, with a total of 191,947 billion yuan from January to May, reflecting a year-on-year growth of 3.7% [14] - Rapid growth was observed in investments in information services, aerospace, and computer equipment manufacturing [14] Employment and Economic Policies - The employment situation remained generally stable, with a decrease in the urban survey unemployment rate [15] - Since 2025, more proactive macro policies have been implemented to enhance consumption vitality and promote production growth [15] Technological Advancements - The added value of high-tech manufacturing increased by 8.6%, with digital product manufacturing growing by 9.1%, significantly outpacing overall industrial growth [17][19] - Breakthroughs in cutting-edge technology fields such as artificial intelligence and robotics have positively impacted industrial upgrades [19] Postal and Logistics Sector - The postal industry in China handled over 861 billion items in the first five months, with a year-on-year growth of 17.6% [20] - The number of charging infrastructure units reached 14.4 million, a 45.1% increase year-on-year, supporting the rapid development of new energy vehicles [22][23] New Infrastructure Developments - The Wuhan Hancheng Low-altitude Port officially commenced operations, enhancing short-distance delivery efficiency for high-demand goods [26]

Economic Performance - In May, the national economy showed strong resilience and vitality, with industrial added value increasing by 5.8% year-on-year and retail sales of consumer goods rising by 6.4% [1] - The consumer price index decreased by 0.1% year-on-year, indicating stable demand and supply [1] Industrial Growth - The equipment manufacturing sector saw a significant increase, with added value growing by 9% and contributing 54.3% to industrial production [1] - High-tech manufacturing added value rose by 8.6%, and digital product manufacturing increased by 9.1%, both outpacing overall industrial growth [2] New Energy and Technology - Production of new energy vehicles and solar cells surged by 31.7% and 27.8% respectively, highlighting the rapid growth in these sectors [2] - The production of industrial robots increased by 32% from January to May, and the added value of smart vehicle equipment manufacturing grew by 26.8% [2] Trade Performance - In May, the total value of goods imports and exports increased by 2.7% year-on-year, with exports rising by 6.3% [2] - Despite challenges in the global economy, trade with ASEAN and countries involved in the Belt and Road Initiative continued to grow, showcasing the diversification of China's trade [2] Economic Outlook - The overall economic growth trend remains stable, with no changes in innovation-driven development, green transformation, high-level opening up, and continuous improvement in people's livelihoods [3] - The economy's strong foundation and resilience provide confidence in overcoming various risks and challenges [3]

"中国消费市场的庞大规模以及良好表现，意味着消费者的购买能力和意愿在增强，为松下各类产品的 销售提供了广阔空间。"16日，在中国官方公布5月份国民经济运行情况后，松下控股株式会社全球副总 裁、集团中国东北亚总代表本间哲朗与《国际锐评》交流了体会。 数据显示，5月份，中国社会消费品零售总额41326亿元，同比增长6.4%；全国规模以上工业增加值同 比增长5.8%；货物进出口总额38098亿元，同比增长2.7%，其中出口22767亿元，增长6.3%。"零售额增 速创17个月来最快""外贸展现出韧性""关键指标超出预期"……国际舆论纷纷对中国经济表现作出评 价。在《华尔街日报》等外媒看来，面对美国关税壁垒等严峻挑战，中国经济依然取得超预期增长，实 属不易。 中国人民大学教授王孝松对《国际锐评》指出，从外部看，5月份，中美日内瓦经贸会谈取得实质性进 展、达成重要共识。这有利于中美经贸关系改善，也有利于世界经济发展。从内部看，中国经济基本面 良好、市场广阔、潜力巨大，当外需收缩时，可以通过出口转内销等方式挖掘国内市场潜力。同时，随 着中国科技实力不断提升，各产业加快转型升级，综合竞争力与日俱增，推动中国经济高质量发展。 ...

Economic Overview - In May, the national economy demonstrated resilience, maintaining overall stability and progress, with stable growth in production demand and a generally stable employment situation [1][3] - The combination of policy effects has shown positive results in stabilizing the economy and promoting development [1] Industrial Performance - In May, the industrial added value of enterprises above designated size increased by 5.8% year-on-year, indicating strong resilience and growth potential [2] - The high-end manufacturing sector saw significant growth, with the added value of equipment manufacturing and high-tech manufacturing increasing by 9% and 8.6% respectively [2] - The digital economy's integration has accelerated, with the added value of digital product manufacturing growing by 9.1%, significantly outpacing overall industrial growth [2] - Green production is improving, with production of new energy vehicles and lithium-ion batteries for vehicles increasing by 31.7% and 52.5% respectively [2] Consumer Market - The total retail sales of consumer goods in May increased by 6.4% year-on-year, reflecting enhanced consumer vitality [4] - The "old-for-new" consumption policy has shown continued effectiveness, with significant year-on-year growth in retail sales of home appliances and communication equipment [4] - The tourism sector has also seen a boost, with domestic travel during the "May Day" holiday increasing by 6.4% year-on-year [4] Trade Performance - In May, China's total goods import and export volume grew by 2.7%, with exports increasing by 6.3%, demonstrating resilience in foreign trade [7] - Despite a decline in trade with the US, trade with ASEAN, the EU, and countries involved in the Belt and Road Initiative continued to grow, showcasing the diversification of China's foreign trade [7] - Private foreign trade enterprises have shown strong market adaptability, with their import and export volume increasing by 7% year-on-year in the first five months [7]