Group 1: Fiscal Policy Outlook - The fiscal policy in 2025 has shown significant expansion without improving fixed asset investment growth, which declined by 1.7% from January to October due to resources being allocated to debt repayment and other non-immediate projects [2] - For 2026, a more proactive fiscal policy is anticipated, with a projected fiscal deficit rate of around 4% and an increase in special bond issuance to approximately 5 trillion [2] Group 2: Aerospace and Defense Industry - The military's "14th Five-Year Plan" aims for modernization and includes a new structure of "4 military branches + 4 combat arms," focusing on mechanization, information technology, and intelligence [4] - In 2024, the revenue of 119 listed defense companies reached 419.43 billion, a 25.24% increase from 2020, with a compound annual growth rate of 5.79% [4] - By Q3 2025, these companies reported a total revenue of 280.18 billion, reflecting a year-on-year growth of 3.23% [4] Group 3: Internet Industry - NetEase - NetEase's game "Yanyun" launched overseas on November 15 and quickly reached the top 4 on Steam's bestseller list, with expected revenue contributions of 2 to 3 billion in 2026 [5] - The game "Dream of Fantasy" is projected to generate an additional 4 to 6 billion in revenue in 2025, indicating strong market performance [5] - Current valuations for NetEase remain low, with expectations for revenue and profit growth in the second half of the year [5] Group 4: Financial Services - Lexin - Lexin reported a net profit of 510 million in Q3 2025, a year-on-year increase of 68% [6] - The net profit take rate improved to 2.0%, attributed to reduced marketing expenses following a decrease in loan issuance [6] - The company is facing potential challenges in Q4 2025 due to tightening liquidity in the lending market, which may impact loan quality and profitability [6][7]

Core Viewpoint - The gaming industry is experiencing a surge in new game releases during the summer of 2025, driven by the availability of university students and major events like ChinaJoy, which encourages companies to showcase their new titles [3][5]. Game Releases - In June, 20 new games were launched in China, with July seeing over 20 additional titles set to release, including Tencent's "Star Resonance" and NetEase's "Unowned Star Abyss" [4][6]. - Notable games include "Limitless Machine" by Xishanju and "Carbon Island" by Tencent, both released on July 2, marking the start of the summer gaming season [4]. Market Dynamics - The gaming stock market has shown volatility, with significant gains on July 8, as companies like Iceberg Network and Giant Network saw increases of over 10% and 5% respectively [3][8]. - The approval of 757 game licenses in the first half of the year, including a record 158 in June, indicates a stable trend in the gaming industry [8]. Nostalgia and Updates - Established games are also seeing updates and new versions, such as the nostalgic version of "Fantasy Westward Journey," which has attracted significant player interest, leading to server congestion [6][7]. - The strategy of updating older games helps maintain player engagement and ensures stable revenue for gaming companies [7]. Policy Support - Various local governments have introduced supportive policies for the gaming industry, focusing on promoting game exports and integrating AI technology [8]. - The trend of regular game license approvals is expected to continue, fostering a more robust gaming environment [8]. Industry Trends - The gaming industry is witnessing a diversification of genres, with companies exploring new gameplay mechanics and AI integration [9]. - The emergence of party games like "Goose Duck" is expected to intensify competition among major players like NetEase and Tencent [9].