1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In 2026, the macro - economy will consolidate its bottom. It will be a year of weak recovery, featuring export support, stable investment, and weak consumption. Policy will remain positive, with fiscal policy staying active and a low - interest - rate environment continuing. In terms of asset allocation, stocks are preferred over commodities, and commodities over bonds [83]. - The Chinese economy is entering a new cycle from 2026, led by artificial intelligence, with new technologies evolving and being transformed into product advantages through China's industrial chain [84]. 3. Summary by Directory 3.1 Macro - economic Fundamentals - **Industrial Production**: Except for automobiles, the growth rate of major industrial products remains low. The increase in automobile production this year supports the growth of industrial added value. Next year, the growth rate of domestic automobile sales may decline, but the overall automobile industry will be supported by exports, and the growth rate of automobile industrial added value is likely to fall but not decline [6]. - **Fixed - asset Investment**: The decline in fixed - asset investment growth has accelerated, and it turned negative from January to September. In 2026, more powerful policies will be introduced to boost investment, and many projects postponed this year will start construction [9]. - **Consumption**: The growth rate of total retail sales of consumer goods has declined, and consumer confidence is hovering at a low level. The reasons include weak income and income expectations, high household leverage, imperfect social security, and a low proportion of household disposable income in GDP [14]. - **Inflation**: The inflation situation will remain weak for a long time. Downstream commodity consumption is poor, while service consumption such as tourism performs better. PPI faces downward pressure on production material prices, and the overall manufacturing scale keeps industrial product prices under long - term pressure [20]. - **Employment**: Unemployment has seasonally increased with the entry of college graduates into the labor market. The cumulative year - on - year growth of newly - added urban employment has flattened, and creating new jobs is becoming more difficult [26]. - **Manufacturing PMI**: Manufacturing PMI has been continuously weak. In the PMI sub - items, the sub - item of the purchase price of major raw materials is above the boom - bust line, and the sub - item of purchase volume fluctuates with the production sub - item, with a larger fluctuation range. Other sub - items are below the boom - bust line [30]. - **Inventory**: Production is significantly stronger than consumption, finished - product inventory is rising, and downstream demand is weaker [34]. - **Construction and Service Industry PMI**: The PMI of the construction industry and its important sub - items are at a low level in recent years, indicating the industry's downturn [38]. - **Foreign Trade**: The growth rate of imports and exports is better than expected. Exports are resilient, and China's share in global exports is increasing. New "new three items" (robots, artificial intelligence, and innovative drugs) are becoming new drivers of industrial upgrading and foreign trade growth [41][44]. - **Chip Industry**: The effect of chip import substitution has emerged in recent years. The growth rate of chip exports is much higher than that of imports, and a complete Chinese chip industry chain independent of the US is rising. It is expected to become a net exporter in 5 - 10 years [46]. 3.2 Macro - economic Highlights - **Automobile Industry**: Automobile production, sales, and exports will reach new highs this year. Although the growth rate of domestic sales may face pressure due to the withdrawal of subsidies, it may be maintained with the launch of new technologies and models. This year's automobile exports are expected to reach 750 - 800 million vehicles, with a year - on - year growth of about 18%, and the growth rate of overseas exports is expected to remain at a good level next year [51]. - **Industrial Enterprise Profits**: The profit growth rate of industrial enterprises above a designated size has rebounded. From January to August, the cumulative year - on - year growth rate of total profits of industrial enterprises above a designated size turned positive, and the year - on - year growth rate in August was 20%. With the implementation of "anti - involution" policies and interest - rate cuts, enterprise profits are expected to improve [54]. - **Stock Market and Economy**: When the M1 - M2 spread turns positive, PPI may also turn positive, indicating a possible bull market in both stocks and commodities. "Anti - involution" may end the decline of PPI. The growth rate of M1 is basically synchronous with the rise of the stock market [57]. - **Real Estate**: The data reflecting the scale of ongoing real estate projects has returned to the level of 2005, and housing prices are still falling month - on - month. The real estate market is in the process of bottom - building. The new housing start - up area may gradually stabilize, and there is a possibility of a retaliatory rise in housing prices in the future [60]. - **Stock Market and Asset Allocation**: There is still room for "deposit migration". The ratio of the total market value of the stock market to household deposits is low, and the trend of households allocating more assets to the stock market has just begun. A bull market can stimulate economic growth, assist economic transformation, improve the corporate financing environment, relieve debt pressure, and enhance international competitiveness [63][64]. - **Technological Progress and Stock Market**: Technologies such as artificial intelligence and robots are likely to be first applied in China. The chip industry is the last major short - board before China becomes a technological superpower. Technological innovation and manufacturing are the core of the "14th Five - Year Plan", and new technologies will promote productivity and expand industrial chain advantages [65]. 3.3 Policy Outlook for 2026 - **Fiscal Policy**: The government's leverage ratio is relatively low and there is room for further leverage. Loose fiscal policy is expected to last for a long time. Consumption subsidies are likely to continue in some form for 2 - 3 years, and other measures such as increasing the deficit scale and transfer payment intensity will also be taken [69]. - **Monetary Policy**: The 7 - day reverse repurchase rate has remained low for a long time, and the money supply will remain loose with room for further decline in interest rates. The Fed's interest - rate cuts provide space for China's central bank to cut interest rates, and domestic commercial banks have already lowered deposit rates [71][82]. - **Exchange Rate Policy**: The US dollar has opened up a downward space, and bank settlement and sales of foreign exchange have turned into a surplus. Overseas hot money is flowing into China, causing the RMB to face more appreciation pressure than depreciation pressure. The RMB's share in international trade is increasing [77][79]. 3.4 Main Conclusions and Suggestions - **Economic Outlook**: In 2026, the macro - economy will be in a weak recovery. Real estate investment will gradually stabilize, infrastructure investment growth will pick up, and exports will maintain a high growth rate. Policy will remain positive, and consumption will be a lagging variable [83]. - **Economic Cycle**: The Chinese economy is entering a new cycle, with artificial intelligence leading the way, and new technologies being transformed into product advantages [84]. - **Risk Analysis**: In 2026, there may be new Sino - US trade frictions, the risk of the bursting of the US artificial intelligence bubble and its spill - over effects, and the risk of a significant correction in the Chinese stock market due to high valuations [85].

分项数据显示，服务业增长0.2%，建筑业微升0.1%，而生产部门则收缩0.5%。其中，9月单月实际GDP 环比下降0.1%，扭转了8月持平的表现。 工业领域表现尤为疲弱。9月工业产出环比骤降2.0%，逆转前月修正后的0.3%增幅，创下自2021年1月 以来最大单月跌幅。制造业产出下降1.7%，机动车、拖车和半挂车制造产出更是大幅下滑28.6%。此 外，电力、燃气、蒸汽和空调供应下降3.4%，采矿和采石业同样下降3.4%，供水、排污及废物管理活 动下降0.7%。工业产出同比降幅扩大至2.5%，远超市场预期的1.2%。 贸易方面，9月商品贸易逆差收窄至10.9亿英镑，为今年1月以来最小水平，前值经下修后为12.8亿英 镑。出口额环比下降0.9%至772.1亿英镑，为三个月低点；进口额下降1.1%至783亿英镑，创八个月新 低。对欧盟出口下降2.7%，主要受燃料出口减少拖累，包括对丹麦和德国的原油出口下滑；对非欧盟 国家出口下降8.0%，其中对美商品出口下降11.4%，降至2022年1月以来最低水平，主因大宗商品出口 减少。服务出口亦下降0.7%至459.9亿英镑，为五个月低点；商品进口下降2.0%至501亿英镑， ...

Core Insights - The article emphasizes the significant role of the Beijing Stock Exchange (BSE) in empowering innovative small and medium-sized enterprises (SMEs) amidst a backdrop of policy benefits and accelerated innovation [1] - The BSE has become a core window for observing the growth of Chinese SMEs and the deepening of capital market reforms, with nearly 950,000 qualified investors and various institutional funds creating a diverse ecosystem [1] Investment Opportunities - The BSE 50 Index, consisting of 50 representative stocks, is highlighted as a key investment direction, providing precise coverage of innovative SMEs and including many "hidden champions" in niche markets [1][4] - As of mid-2025, 40% of the BSE 50 constituents are specialized and innovative enterprises, and 88% are high-tech companies, indicating a strong focus on growth potential [1] Performance Metrics - The BSE 50 Index has shown a nearly 50% increase in 2025, outperforming major A-share indices and attracting significant investor attention [4][6] - The trading volume of the BSE 50 Index reached 44 times that of its initial establishment in 2022, indicating a substantial increase in liquidity [3][11] Policy Support - Continuous policy support is identified as a core driving force behind the BSE 50 Index's strength, with various reforms aimed at enhancing market ecology and efficiency [7] - The introduction of a new ETF for the BSE 50 is expected to inject over 20 billion yuan into the market, boosting investor confidence [7] Sector Focus - The BSE 50 Index primarily invests in strategic emerging industries such as power equipment, machinery, and electronics, which are crucial for traditional industry transformation and economic growth [8] - The focus on "hard tech" sectors like AI and renewable energy is expected to unlock growth potential in response to policy and market demand [8] Institutional Participation - Institutional funds have accelerated their investment in the BSE, with public funds holding over 10 billion yuan in BSE market capitalization by the end of Q3 2025, reflecting a significant year-on-year increase [9] - The diverse ecosystem formed by nearly 950,000 qualified investors and institutional funds has significantly enhanced market liquidity [9] Investment Strategies - The article discusses the introduction of the Zhongjia BSE 50 Enhanced Index Fund, which aims to balance risk and return through a dual strategy of passive tracking and active enhancement [17] - The fund employs a quantitative model that combines human expertise and AI to optimize stock selection and reduce volatility, catering to both conservative and aggressive investors [18][20]

Group 1 - Huafeng Chemical (SZ 002064) announced that on November 12, 2025, it will accept investor research from Dongfang Securities and others, with the company’s board secretary and securities affairs specialist participating in the reception and answering investor questions [1] - For the first half of 2025, Huafeng Chemical's revenue composition was 99.44% from industrial operations and 0.56% from logistics services [1] Group 2 - Despite a decline in exports to the US reaching a seven-year low, China's total export volume has reached a historical high, indicating a shift in export dynamics with the emergence of new categories [1]

Company Overview - Wanma Co., Ltd. (SZ 002276) announced the convening of its 42nd meeting of the sixth board of directors on November 12, 2025, via remote voting, which included the review of the proposal for the election of independent directors [1] - As of the report, Wanma Co., Ltd. has a market capitalization of 17.6 billion yuan [1] Financial Performance - For the first half of 2025, Wanma Co., Ltd.'s revenue composition was 99.39% from industrial operations and 0.61% from other businesses [1]

Group 1 - The Hang Seng High Dividend Low Volatility Index increased by 1.1%, while the CSI Dividend Low Volatility Index rose by 0.8%, and the CSI Dividend Value Index grew by 0.6% [1][9] - The Hang Seng Dividend Low Volatility ETF (159545) saw a net subscription of over 150 million units throughout the day, with a total net inflow of 270 million yuan and 580 million yuan for the past week in the Hang Seng Dividend Low Volatility ETF (159545) and the Dividend Low Volatility ETF (563020) respectively [1][2] - The Hang Seng Dividend Low Volatility ETF (159545) announced its fourth dividend distribution of the year, with a dividend of 0.1 yuan per 10 fund shares, with the record date on November 11 and the cash distribution date on November 14 [1] Group 2 - The index consists of 50 stocks with good liquidity, continuous dividends, moderate dividend payout ratios, positive growth in earnings per share, and low volatility, reflecting the overall performance of A-share listed companies with high dividend levels and low volatility, with banking, transportation, and construction industries accounting for over 65% [3] - The index tracks stocks within the Hong Kong Stock Connect that have good liquidity, continuous dividends, moderate dividend payout ratios, and low volatility, reflecting the overall performance of listed companies in the Hong Kong Stock Connect, with finance, industry, and energy sectors making up over 65% [7]

Core Points - Chengdu government has issued the "Implementation Plan for National Carbon Peak Pilot (Chengdu)" to effectively promote carbon peak initiatives before 2030 [1][2] - The overall goal is to reduce energy consumption and carbon emissions per unit of GDP, enhance the competitiveness of green low-carbon industries, and establish a robust policy framework for green low-carbon development by 2030 [1] Group 1: Key Areas of Focus - The plan outlines eight key areas of work, including promoting clean and efficient energy use and optimizing industrial structure [2] - Specific initiatives include the construction of low-carbon and zero-carbon parks, enhancing green building standards, and implementing energy consumption limits for public buildings [2] Group 2: Policy Innovations - The plan proposes the exploration of a dual control system for carbon emissions and the establishment of a product carbon footprint management system [2] - Tasks include developing a rapid reporting system for carbon emissions in industrial enterprises and creating a carbon budget management system [2]

Core Insights - The overall shareholding ratio of southbound funds in Hong Kong Stock Connect stocks is 19.22%, with 239 stocks having a shareholding ratio exceeding 20% [1] - Southbound funds hold a total of 4,856.80 million shares, accounting for 19.22% of the total share capital of the stocks, with a market value of 63,652.24 billion HKD, representing 14.58% of the total market value [1] - The highest shareholding ratio by southbound funds is in China Telecom (601728) at 71.95%, followed by Green Power Environmental and COSCO Shipping Energy (600026) at 69.48% and 69.03% respectively [1] Group 1: Southbound Fund Holdings - 239 stocks have a shareholding ratio of over 20%, while 132 stocks are in the 10%-20% range, 95 stocks in the 5%-10% range, 83 stocks in the 1%-5% range, and 17 stocks below 1% [1] - Among the stocks with over 20% shareholding by southbound funds, 128 are AH concept stocks, making up 53.56% of that group [1] Group 2: Industry Concentration - Southbound fund holdings exceeding 20% are primarily concentrated in the healthcare, industrial, and financial sectors, with 56, 35, and 34 stocks respectively [2] - The table lists several stocks with high southbound fund holdings, including China Telecom (71.95%), Green Power Environmental (69.48%), and COSCO Shipping Energy (69.03%), among others [2][3]

Core Insights - Twin Disc, Incorporated (TWIN) reported a narrower net loss of 4 cents per share for Q1 fiscal 2026, compared to a loss of 20 cents per share in the same period last year, indicating improved financial performance [1][3] - The company's net sales increased by 9.7% to $80 million, driven by the acquisition of Kobelt and strong performance in the Marine and Propulsion Systems segment [2][4] - Gross profit rose to $22.9 million, an 18.7% increase year-over-year, with gross margin expanding by 220 basis points to 28.7% due to higher volumes and operational improvements [3][10] Financial Performance - EBITDA surged to $4.7 million, reflecting a 172.3% increase from the previous year, supported by higher sales and improved margins [3][9] - The company reported a six-month backlog of $163.3 million, up from $150.5 million in the previous quarter, indicating strong demand in propulsion and defense applications [7][8] - Total debt increased by 46.7% year-over-year to $43.7 million, while cash decreased by 14.8% to $14.2 million, resulting in a net debt of $29.5 million primarily due to the Kobelt acquisition [7] Business Segment Performance - The Marine and Propulsion Systems segment achieved sales of $48.2 million, a 14.6% year-over-year increase, driven by record new-unit bookings and demand for autonomous-vessel applications [4] - Land-Based Transmissions saw a modest sales increase of 1.6% to $17.6 million, with positive signs in North American oil and gas demand despite challenges in China [5] - The Industrial segment recorded a 13.2% increase in sales to $10.4 million, attributed to a recovery in demand and a favorable product mix [6] Management Commentary - The President and CEO emphasized the quarter as a solid start to the fiscal year, highlighting top-line growth and improved margins, along with strong defense orders [8] - The CFO noted that the year-over-year improvement in EBITDA was due to higher sales and improved margins, despite increased operating expenses [9] Factors Influencing Results - Gross margin expansion was a key highlight, driven by incremental volume and successful margin-enhancement initiatives [10] - A reduction in currency-related losses contributed to the narrower net loss, while marketing, engineering, and administrative expenses increased by 6.2% to $20.7 million due to the integration of Kobelt and inflationary pressures [11][12] Other Developments - The integration of the Kobelt acquisition has expanded Twin Disc's market presence in hybrid and electric applications, positively impacting sales growth [13]

Core Insights - The "Foshan Ring Xijiang - Beijiang District Town and Village High-Quality Development Pilot Zone Overall Plan" was officially implemented on November 10, outlining strategic goals for the region [1] - The plan aims to establish the area as a leading zone for cultural tourism integration, a hub for strategic emerging industries, and a showcase for "Colorful Foshan" by the end of 2030 [1] - By 2035, the plan envisions a comprehensive formation of high-quality urban-rural integration and the realization of socialist modernization [1] Group 1 - The strategic positioning of the Ring Xijiang - Beijiang Pilot Zone includes three key areas: urban-rural coordinated development, green economic growth, and high-quality tourism [1] - The plan identifies six core towns and six surrounding towns for development, aiming to create a new regional development pattern with eastern leadership, central rise, and western and northern catch-up [1][2] - The future spatial layout will consist of "one core, one circle, two corridors, three districts, and four groups," focusing on a comprehensive development nucleus centered around Xiqiao Mountain [2] Group 2 - The plan emphasizes six key areas for systematic advancement, including the establishment of a modern industrial system, the creation of a cultural tourism integration framework, and the enhancement of transportation and public service facilities [2] - The development will focus on four new urban town groups: Southwest, Danzao - Bainai, Xiqiao, and Jiujing - Longjiang [2] - The initiative aims to integrate agricultural, industrial, and cultural tourism sectors into the development strategy [2]