1. Report Industry Investment Rating - No information provided 2. Core Viewpoints of the Report - A-shares are mainly speculating on the "anti-involution" policy and the beneficiary sectors of the Yarlung Zangbo River project. The news of the official launch of the full - island customs closure of Hainan Free Trade Port on December 18 this year has driven the strength of relevant beneficiary sectors. With overall positive domestic and overseas factors, A - share liquidity and market sentiment are strong, and stock index is expected to run strongly. The strategy is mainly to adjust and go long [5] 3. Summary by Relevant Catalogs 3.1 Money Market - DR001 rose more than 28bp to 1.65%, and DR007 rose 9.33bp to 1.58%. GC001 fell 48.50bp to 1.09%, and GC007 rose 1.50bp to 1.58%. SHBOR 3M rose 0.20bp to 1.55%, and LPR 5 - year remained unchanged at 3.50%. The yield of 1 - year treasury bond rose to 1.39, 5 - year treasury bond rose to 1.59, 10 - year treasury bond rose to 1.74, and 10 - year US bond rose 5.00bp to 4.40% [3] - The central bank conducted 331 billion yuan of 7 - day reverse repurchase operations with an operating rate of 1.40% yesterday. With 450.5 billion yuan of reverse repurchases maturing on the same day, the net withdrawal was 119.5 billion yuan. There are 1726.8 billion yuan of reverse repurchases maturing in the central bank's open market this week, and 200 billion yuan of MLF will mature on July 25 [3] 3.2 Stock Index Futures Market - At the close yesterday, CSI 300 rose 0.71% to 4149, SSE 50 rose 0.4% to 2812.4, CSI 500 rose 1.56% to 6293.6, and CSI 1000 rose 1.42% to 6701.1. The trading volume of the Shanghai and Shenzhen stock markets was 1844.7 billion yuan, a slight contraction of 19.9 billion yuan from the previous day. Most industry sectors rose, with only the precious metals and banking sectors falling [4] - The trading volume of IF decreased by 12.9%, and the position increased by 0.9%; the trading volume of IH decreased by 19.5%, and the position increased by 0.1%; the trading volume of IC decreased by 9.3%, and the position increased by 0.7%; the trading volume of IM decreased by 3.1%, and the position remained unchanged [4] 3.3 Stock Index Futures Basis Situation - The basis rates of IF for the current - month, next - month, current - quarter, and next - quarter contracts are 0.81%, 0.00%, 0.01%, and 2.42% respectively; those of IH are - 1.74%, - 0.95%, - 0.49%, and - 0.30% respectively; those of IC are 6.33%, 6.88%, 7.41%, and 7.18% respectively; those of IM are 6.27%, 7.89%, 9.78%, and 9.75% respectively [6]

Market Overview - The three major A-share indices collectively rose, with the Shanghai Composite Index up 0.72% closing at 3559 points, marking a new high for the year [1] - The Shenzhen Component Index increased by 0.86%, and the ChiNext Index rose by 0.87%, both also reaching new yearly highs [1] - Total trading volume for the day was 1.73 trillion yuan, an increase of 133.9 billion yuan compared to the previous trading day, with over 4000 stocks rising and more than 100 stocks hitting the daily limit [1] Sector Performance - The hydropower sector surged following the commencement of the Yarlung Tsangpo River downstream hydropower project, with multiple stocks like China Power Construction hitting the daily limit [2][4] - Other sectors that saw gains included civil explosives, cement materials, engineering machinery, and steel, with notable performances from Ba Yi Steel and Ankao Zhidian [2] - The cross-border payment sector declined, with Sifang Jingchuang dropping nearly 8%, while the digital currency sector also fell, led by Yuxin Technology [2] Notable Stocks - Stocks in the hydropower sector experienced significant increases, with companies like Jikang Technology and Wuxin Tunnel Equipment both rising by 29.99% [5] - The rare earth permanent magnet sector remained strong, with Shenghe Resources and Huahong Technology hitting the daily limit, and other companies like Dongfang Zircon and AVIC Taiyuan also seeing gains [6][7] - Pork-related stocks also showed volatility, with Bangji Technology hitting the daily limit and Shennong Group rising over 9% [8][9] Banking Sector - The banking sector faced declines, with Xiamen Bank dropping over 3% and several other banks following suit [11] - Recent reports indicated that 42 A-share listed banks collectively released their Q1 2025 performance reports, revealing challenges in net interest margin trends and varying revenue growth among banks [11] Future Outlook - Analysts suggest that the A-share market is showing signs of strong performance, with a potential shift towards large-cap growth stocks [12][14] - There is a focus on sectors with recovery potential, such as aviation equipment, wind power, and storage, as well as "anti-involution" industries like certain chemicals and batteries [14]

Group 1 - The Yarlung Tsangpo River downstream hydropower project has officially commenced with a total investment of approximately 1.2 trillion yuan, aiming to build five tiered power stations primarily for electricity transmission and local consumption in Tibet [1] - The Ministry of Industry and Information Technology (MIIT) plans to accelerate the development of biomanufacturing and low-altitude industries, while promoting innovation in future industries such as humanoid robots and brain-computer interfaces [2][3] - The MIIT and the National Development and Reform Commission (NDRC) are set to issue work plans to stabilize growth in key industries including steel, non-ferrous metals, petrochemicals, and building materials [2][3] Group 2 - The U.S. Department of Commerce has imposed a preliminary anti-dumping duty of 93.5% on Chinese imported anode-grade graphite, citing unfair subsidies [5] - The State Administration for Market Regulation has urged major platform companies like Ele.me, Meituan, and JD.com to standardize promotional activities and foster a healthy competitive environment in the food service industry [6] - A meeting was held to discuss the regulation of the new energy vehicle industry, focusing on enhancing supervision and monitoring product prices and quality [8] Group 3 - The China Iron and Steel Association has proposed a new mechanism for capacity governance to prevent overcapacity risks in the steel industry and to eliminate irrational competition [10] - Yu Shu Technology has initiated its listing guidance, with its controlling shareholder holding approximately 34.76% of the company's shares [11] - Multiple provinces are planning to establish companies to develop local cultural creative Moutai liquor, with participation from distributors based on their allocation of Moutai products [12] Group 4 - As of July 18, 1551 A-share listed companies have released performance forecasts for the first half of 2025, with 26 companies expecting a net profit increase of over 1000% year-on-year [14] - Longhua Automobile reported a net profit of 6.337 billion yuan for the first half of the year, reflecting a year-on-year decline of 10.22% [19] - The major shareholder of Hongbaoli plans to reduce its stake by up to 2% [20]

Report Summary 1. Report Industry Investment Rating The report does not explicitly mention the industry investment rating. 2. Core Views of the Report - "Anti - involution" may be Supply - side Reform 2.0, potentially driving a significant rebound in PPI and impacting the bond market [2]. - The stock market is rising steadily, with a notable increase in risk appetite. This may attract funds into the stock market, putting pressure on the bond market [2]. - China's export resilience is prominent. There is a possibility of a further reduction in US tariffs on China, which could promote export growth [2]. - The commencement of the Yarlung Zangbo River downstream hydropower project may boost infrastructure investment growth and drive up related stock prices [2]. - The bond market is expected to fluctuate narrowly in the short term. Attention should be paid to the progress of "anti - involution". The report recommends long - duration sinking of urban investment bonds, capital bonds, and insurance sub - bonds, and suggests paying attention to investment opportunities in certain capital bonds and Hong Kong - listed bank stocks [2]. 3. Summary by Related Aspects Macroeconomic Policy Impact - In 2015, supply - side reform and shantytown renovation promoted a significant rebound in PPI and nominal GDP growth, causing the bond market to decline. In 2025, "anti - involution" has become the focus of economic policy and may have a similar impact [2]. Stock and Bond Market Relationship - Since the Spring Festival in 2025, the stock market has been rising steadily, ending the negative economic cycle from 2022 - 2024. The wealth effect of the stock market promotes consumption, and the inflow of funds into the stock market may put pressure on the bond market [2]. Export Situation - China's total export value has grown rapidly in the past year. The resilience of exports is not only due to "rush - to - export" but also reflects the global competitiveness of many industries. A reduction in US tariffs on China could further boost exports [2]. Infrastructure Investment - The Yarlung Zangbo River downstream hydropower project, with a total investment of about 1.2 trillion yuan, may drive the stabilization of infrastructure investment growth and the rise of related stocks [2]. Bond Market Outlook - The bond market's trading volume is overly concentrated in ultra - long - term interest - rate bonds. If the "anti - involution" efforts are strong, it may lead to the collapse of the ultra - long - term bond concentration and a 10 - 20BP adjustment in the bond market. The 10 - year Treasury yield may need a new round of interest rate cuts to reach a new low. In the short term, the bond market will fluctuate narrowly, and attention should be paid to the progress of "anti - involution" [2].

Core Viewpoint - Insurance funds are long-term capital that can effectively support the real economy through various investment forms, enhancing the quality and efficiency of service to the economy [1][4]. Group 1: Role of Insurance Funds - Insurance funds play a crucial role in financing large infrastructure projects, such as the Longyangxia Hydropower Station, which has an average annual power generation of 6 billion kilowatt-hours and significantly improves irrigation guarantee rates [3][4]. - The advantages of insurance funds include large scale, stable sources, and long duration, making them suitable for matching the investment needs of clean energy projects [3][4]. Group 2: Investment Examples - China Life invested 8 billion yuan in 2017 and 9 billion yuan in 2019 in equity investments for the Qinghai Yellow River Company, demonstrating the commitment to supporting major projects [4]. - Major projects supported by insurance funds include the Qingdao Jiaozhou Bay Bridge, Anjiang Expressway, and Xinjiang Hami Photovoltaic Power Station [4]. Group 3: Investment Strategies - Insurance funds support the real economy through fixed investments, equity investments, and alternative investments, including bonds, stocks, and asset management products [6]. - Alternative investments allow for more flexible and customized approaches to directly invest in enterprises and projects, particularly in emerging industries and green initiatives [6][7]. Group 4: Market Environment and Challenges - The current low interest rate environment poses challenges for insurance investments, necessitating a shift from liability-driven to equity-driven investment strategies [7]. - Insurance companies are encouraged to enhance their research and investment capabilities to better navigate economic cycles and identify suitable investment opportunities [7][8]. Group 5: Risk Management - To address funding security and liquidity constraints, insurance companies must improve their investment risk prevention capabilities through financial technology and better risk management practices [8].