Core Viewpoint - The transformation of Tongchuan from a "coal city" to an "industrial new city" reflects its alignment with the times, showcasing a journey of 15 years marked by significant development and recognition as a demonstration zone for inclusive financial development supported by the central government [1]. Industrial Development - Tongchuan has prioritized industrial development as the main driver of economic growth, focusing on enhancing project construction and integrating development with safety, livelihood, protection, and ecology [2]. - The city has implemented a comprehensive green transformation strategy, with traditional industries undergoing digital and technological upgrades to support sustainable development [3]. Traditional Industry Upgrades - The cement industry in Tongchuan has adopted a smart production line with a capacity of 10,000 tons per day, achieving energy consumption below national standards by 9.41 kg of standard coal per ton of cement [3]. - The city has completed 91 energy-saving and emission-reduction demonstration projects, with all clinker enterprises finishing desulfurization and denitrification upgrades [3]. Aluminum Industry Growth - Tongchuan has developed a unique aluminum industry chain, projected to achieve an output value of 18 billion yuan in 2024, making it the largest aluminum processing base in the province [4]. - The city has introduced policies to support high-quality development in the aluminum sector, including the establishment of the Shaanxi Aluminum and Aluminum Processing Standardization Committee [4]. Emerging Industries - The semiconductor industry is represented by companies like Yinjie Semiconductor, which has developed proprietary technology for indium phosphide materials, addressing supply chain security issues [6]. - The optical electronics industry has seen significant growth, with over 30 companies forming a complete supply chain from materials to end products [7]. New Material Innovations - Companies in Tongchuan are advancing in new materials, including high-purity precious metal catalysts and asphalt-based carbon fibers, indicating strong potential for future growth [9]. - The city is also focusing on low-altitude economy development, with initiatives to promote drone technology and applications [9]. Cultural and Ecological Integration - Tongchuan is integrating cultural heritage with industrial development, promoting red culture and ecological tourism, which enhances the city's attractiveness and livability [10]. - The city has made strides in ecological transformation, achieving significant improvements in air quality and urban green coverage [16]. Economic and Social Development - The per capita disposable income in Tongchuan reached 15,167 yuan in the first half of 2025, reflecting a year-on-year growth of 5.5%, with rural incomes growing faster than urban ones [17]. - The city has invested in education and healthcare, enhancing the quality of life for residents and supporting sustainable community development [18]. Future Outlook - Tongchuan aims to strengthen its industrial base and continue its high-quality transformation, contributing to the broader goals of modernization in China [19].

Core Viewpoint - The Chinese government aims to "recreate a high-tech industry" over the next decade, which will significantly enhance the scale, value-added, and GDP contribution of the high-tech sector, injecting new momentum into the economy and high-quality development [1][2][3][4] Group 1: Emerging and Future Industries - The strategy involves nurturing emerging industries that already have a foundation and are rapidly expanding, including sectors like new energy, new materials, aerospace, and low-altitude economy, which are expected to create several trillion-level markets [1][2] - Long-term strategies focus on future industries such as quantum technology, biomanufacturing, hydrogen energy, nuclear fusion, brain-computer interfaces, embodied intelligence, and sixth-generation mobile communication, which will become new economic growth points [1][2] Group 2: Economic Growth and Modernization - The recreation of the high-tech industry is essential for achieving the goal of modernizing socialism and reaching a per capita GDP level of a moderately developed country by 2035, requiring sustained economic growth primarily driven by high-tech industries [2][3] - Traditional industries currently account for about 80% of the value added in manufacturing, and upgrading these industries is expected to create an additional market space of approximately 10 trillion yuan over the next five years [2] Group 3: Technological Innovation and Global Competitiveness - The initiative to recreate the high-tech industry is a response to the new round of technological revolution and industrial transformation, aiming to seize the high ground in technological development and continuously generate new productive forces [3][4] - The integration of technological innovation and industrial innovation is crucial for establishing a virtuous cycle between technology, industry, and market, ensuring that innovations are supported by market and industrial foundations [3][4] Group 4: Strategic Goals and Confidence - The strategic goal of recreating the high-tech industry is not only about scaling up but also about achieving a qualitative leap in the industry, providing strong momentum for high-quality economic development and laying a solid foundation for socialist modernization [4] - During the "14th Five-Year Plan" period, there is a need to focus on building a modern industrial system centered around advanced manufacturing and enhancing technological self-reliance to maintain strategic determination and confidence [4]

本报北京10月25日电 聚焦低空经济产业生态化发展核心需求，亚洲消费电子展（CES Asia）低空经济展今日正式 启动筹备工作。展会以"超越单一产品展示，构建全域空域生态"为核心定位，凭借全球化平台资源与全维度服务 能力，打破传统展会的功能局限，凸显在产业协同中的宏大格局与核心价值，成为推动全球低空经济从"技术单点 突破"向"生态系统构建"升级的关键力量。 随着低空经济成为全球产业创新热点，相关展会数量持续增长，但多数平台仍受限于"重展示、轻生态"的运营逻 辑，仅能为企业提供产品曝光渠道，缺乏对产业生态所需的技术协同、市场对接、标准共建等核心资源的整合能 力。这种模式不仅难以满足企业深层次发展需求，也制约了产业整体协同效率，亟需具备全球化视野与生态整合 能力的高端平台破局。 业内人士表示，CES Asia低空经济展以"生态构建"为核心的战略定位，彰显了平台的全球化视野与产业担当。其 超越传统展示功能的价值体系，不仅为企业提供了更高质量的资源对接与发展机遇，更将推动全球低空经济产业 向规范化、协同化、生态化方向加速迈进。 2. 服务延伸：从"展会周期"到"全生命周期" 为打破传统展会"展期结束即服务终止"的局限 ...

Investment Rating - The report maintains a positive investment rating for the engineering machinery industry, indicating a favorable outlook for growth [6]. Core Insights - The low-altitude economy is steadily developing, supported by various government policies aimed at enhancing infrastructure and safety in the sector [2][3]. - The engineering machinery sector is expected to continue its steady growth, with significant increases in both imports and exports, reflecting strong competitive advantages for domestic leading enterprises [3]. - The report highlights a robust performance in the mechanical equipment sector, with a notable increase in the Shanghai Composite Index and specific sub-sectors outperforming the broader market [11][12]. Summary by Sections Weekly Market Review - From October 20 to October 24, 2025, the Shanghai Composite Index rose by 2.88%, while the Shenzhen Component Index and the ChiNext Index increased by 4.73% and 8.05%, respectively. The Shenwan Mechanical Equipment Index rose by 4.71%, outperforming the CSI 300 Index by 1.47 percentage points, ranking 4th among 31 Shenwan first-level industries [11][12]. - Sub-sectors such as general equipment, specialized equipment, and engineering machinery saw increases of 4.99%, 5.48%, and 3.07%, respectively [11]. Key Sector Tracking - The report emphasizes the low-altitude economy, with the Civil Aviation Administration of China releasing regulations to support general aviation and low-altitude economic applications. The Guangdong provincial government has also introduced measures to promote high-quality development in this sector [2]. - In the mechanical equipment sector, China's engineering machinery import and export trade reached USD 5.505 billion in September 2025, marking a year-on-year increase of 29.1%, with exports growing by 29.6% [3]. Investment Recommendations - For the low-altitude economy, recommended companies include Deep City Transportation, Sujiao Science and Technology, and Wan Feng Ao Wei. In the complete machine segment, companies like Yihang Intelligent and Zongheng Co. are highlighted. Key component manufacturers include Zongshen Power and Wolong Electric Drive [4]. - In the mechanical equipment sector, recommended companies include Sany Heavy Industry, XCMG, and Anhui Heli for engineering machinery, and companies like Huazhong CNC and Kede CNC for industrial mother machines [4].

Investment Rating - The industry rating is "Outperform the Market" indicating that the overall return of the industry is expected to exceed the market benchmark index by more than 5% in the next 6 months [57]. Core Insights - The report emphasizes the importance of national security and the goals set for the military by the 20th Central Committee, highlighting the need for modernization in defense and military capabilities [41][42]. - The report identifies significant growth opportunities in emerging industries such as aerospace, new energy, and low-altitude economy, which are expected to drive economic growth over the next decade [41][42]. - The military industry is anticipated to experience strong demand recovery from 2025 to 2026, supported by various catalysts including the "14th Five-Year Plan" and the "100-Year Military Goal" [42]. Summary by Sections 1. Industry Performance Review - The military industry index (801740) increased by 2.81% from October 20 to October 24, while the CSI 300 index rose by 3.24%, resulting in an underperformance of 0.43 percentage points [15][17]. - Since the beginning of 2025, the military index has risen by 16.47%, compared to an 18.44% increase in the CSI 300 index, indicating a relative underperformance of 1.98 percentage points [17]. 2. Market and Valuation - As of October 24, the military industry index has a TTM price-to-earnings ratio of 74.63, placing it in the 96.86 percentile, suggesting a high valuation relative to historical levels [42][27]. - The report notes a slight net outflow of passive funds, with expectations of a recovery in demand leading to a positive outlook for future fund inflows [42][27]. 3. Key Investment Opportunities - The report suggests focusing on specific companies within various segments of the military industry, including land equipment, stealth materials, deep-sea technology, engines, unmanned systems, AI, and nuclear fusion [44]. - Notable companies to watch include Tianqin Equipment, Gaode Infrared, and Aerospace Technology among others [44]. 4. Important News and Announcements - The report highlights recent successful launches in the aerospace sector, including the successful deployment of satellites by the Li Jian No. 1 rocket [45]. - It also discusses advancements in nuclear fusion technology and the establishment of new policies to support the low-altitude economy [46][49].

Core Viewpoint - The stock of Xirui (02507) has increased nearly 6%, currently trading at 54.05 HKD with a transaction volume of 21.1299 million HKD, driven by supportive government policies for the low-altitude economy and the company's strong market position [1]. Group 1: Industry Developments - The Central Committee of the Communist Party of China has proposed to develop emerging pillar industries and accelerate the growth of strategic emerging industry clusters, including the low-altitude economy [1]. - Recent policies from Anhui and Henan provinces, as well as multiple support policies from Guangdong, aim to bolster the low-altitude economy [1]. Group 2: Company Performance - Western Securities has indicated that the long-term competitive landscape of the industry remains stable, with Xirui's brand and manufacturing advantages being significant [1]. - Xirui is expected to maintain its market share advantage, contributing to its long-term steady growth potential [1]. - The company is gradually expanding its production capacity and service network, which is anticipated to enhance its delivery capabilities and product matrix, leading to accelerated performance in the future [1].

Market Overview - The A-share market showed a fluctuating upward trend last week, with a significant increase in market risk appetite. The Shanghai Composite Index briefly surpassed 3950 points, reaching a ten-year high, while the ChiNext Index performed particularly well [1] - The easing of China-US trade tensions, with both sides agreeing to hold new economic consultations, has boosted market sentiment. President Trump is expected to meet with Chinese leaders at the end of the month [1] - The average daily trading volume in the A-share market fell to 1.8 trillion yuan, but structural capital activity remained high. The overall market style was characterized by growth outperforming financials, cyclicals, and consumption [1] Sector Analysis - The "14th Five-Year Plan" emphasizes the development of strategic emerging industries such as new energy, commercial aerospace, and low-altitude economy, which is expected to create a trillion-yuan market and drive sector valuations and performance expectations upward [1] - The financial sector, particularly the securities segment, benefited from deepening capital market reforms and improved trading activity, leading to a noticeable improvement in sentiment. Several small and medium-sized banks have lowered deposit rates, alleviating interest margin pressure and enhancing profit expectations [1] - The coal sector is experiencing production constraints, coupled with increased demand expectations due to colder weather across many regions, which has positively influenced sector sentiment [1] - Within the consumption sector, there is a divergence in performance, with discretionary consumption outperforming staples. Essential consumption sectors like food and beverage and agriculture are showing weaker performance due to sluggish sales [1] Investment Strategy - The investment strategy suggests a balanced approach to cope with funding pressures throughout the year, with a long-term focus on the technology sector. The emphasis on technological productivity in the "14th Five-Year Plan" aligns with market expectations, while military industry mentions may lead to short-term performance [3] - There has been no significant shift towards domestic consumption policies, indicating that market styles may not pivot towards domestic demand consumption [3] - The technology sector is currently undergoing a phase of digesting funding pressures, with a focus on performance-supported areas such as overseas computing, storage, consumer electronics, and wind energy storage. The necessity for reallocation among certain tech stocks may be limited, with expectations of entering a range trading phase [3] - Value investment choices are driven more by industry and individual stock logic, with attention on non-bank financials (brokerage/insurance/financial IT), export chains (non-ferrous metals/grid equipment/construction machinery), and high-dividend consumer blue chips [3]

Core Viewpoint - The article emphasizes that China's modernization relies on technological modernization, supported by reforms in the scientific and technological system, which are crucial for enhancing innovation capabilities and achieving self-reliance in high-level technology [2][7]. Group 1: Technological Modernization - The "14th Five-Year Plan" period has seen a significant leap in China's technological strength, with the national comprehensive innovation capability ranking improving from 14th in 2020 to 10th in 2024 [2]. - By 2024, total R&D investment in society is expected to exceed 3.6 trillion yuan, representing a 48% increase from 2020 [2]. Group 2: Strategic Emerging Industries - The development of strategic emerging industries such as new energy, new materials, aerospace, and low-altitude economy is highlighted, with the potential to create several trillion-yuan markets [3]. - The emphasis is placed on original innovation and tackling key core technologies, particularly in integrated circuits and high-end instruments [4]. Group 3: Reforming the Scientific and Technological System - The article discusses the need for further reforms to clarify key directions and enhance original innovation, focusing on critical core technology breakthroughs [4]. - It stresses the importance of a talent evaluation system that prioritizes innovation capability and contribution, particularly for young talents [5]. Group 4: Social Investment in Innovation - The article calls for a collaborative approach to innovation, encouraging enterprises to take the lead in forming innovation consortia and undertaking national technology tasks [6]. - The "Private Economy Promotion Law" aims to guide private enterprises in strengthening foundational and cutting-edge research, fostering the integration of technological and industrial innovation [7].

Core Insights - The article discusses the implementation opinions released by seven ministries in China regarding the integration of artificial intelligence in the transportation sector, aiming to enhance innovation and application in this field [1] Group 1: Government Initiatives - The seven ministries aim to drive technological innovation and application in transportation through a comprehensive mechanism that includes innovation chains, industry chains, funding chains, and talent chains [1] - Key areas of focus include increasing the supply of critical technologies, accelerating innovation in application scenarios, strengthening core element guarantees, and optimizing the industrial development ecosystem [1] Group 2: Emerging Industries - The article highlights the rapid development of emerging strategic industries such as low-altitude economy, autonomous driving, new energy vehicles, smart driving, and aerospace, which collectively shape the future of transportation [1] Group 3: Upcoming Forum - The "Future Mobility: Global Development" forum will take place on November 7, 2025, at the National Exhibition and Convention Center in Shanghai, focusing on low-altitude economy, new energy vehicles, smart driving, and trends in future mobility [1][2] - The forum will feature discussions on various topics, including the establishment of an agile regulatory framework for rapid technological iteration and the strategic positioning of different players in the future mobility landscape [3] Group 4: Industry Participation - Nearly a hundred industry leaders from companies such as Toyota, Mercedes-Benz, Volkswagen, General Motors, Tesla, and others will participate in the forum, showcasing their innovations and strategies in the automotive and smart mobility sectors [3][4]

Group 1 - The China Securities Regulatory Commission (CSRC) aims to enhance the resilience and risk resistance capabilities of the capital market [1] - The People's Bank of China emphasizes maintaining stability in the stock, bond, and foreign exchange markets [1] - The Ministry of Commerce plans to introduce more detailed measures to boost consumption and steadily expand institutional openness [1] Group 2 - The Financial Regulatory Bureau stresses the importance of risk prevention and the need to improve the system for identifying and mitigating risks in key areas [1] - The Guangdong Province has issued measures to support the high-quality development of the low-altitude economy [1] - In the first nine months of the year, China attracted foreign investment amounting to 573.75 billion yuan [1]