Market Performance - On August 21, A-shares showed mixed performance with the Shanghai Composite Index slightly up by 0.13%, while the Shenzhen Component Index fell by 0.06% and the ChiNext Index decreased by 0.47% [1] - The total trading volume in the Shanghai and Shenzhen markets reached 24,241 billion RMB, showing a slight increase compared to the previous trading day [2] Index Performance - The China A50 Index rose by 0.77% with a year-to-date increase of 5.91% [2] - The CSI 300 Index increased by 0.39% year-to-date, showing an 8.98% rise [2] - The ChiNext Index has a year-to-date decline of 21.19% [2] Sector Performance - The Agriculture, Forestry, Animal Husbandry, and Fishery sector led with a rise of 1.50%, followed by the Oil and Petrochemical sector at 1.39% and Beauty and Personal Care at 0.98% [7] - The Machinery Equipment sector saw a decline of 1.08%, while the Electrical Equipment sector fell by 0.98% [7] Public Utilities - The implementation of the "Price Law Amendment Draft" aims to break the "loss-subsidy" cycle, with market-oriented pricing for gas and electricity entering the implementation phase [8] - The performance and valuation of public utility companies are expected to improve as subsidy and pricing policies are set to be concentrated in 2025 [8] Chemical Sector - Significant capital inflow was observed in the chemical sector, with the largest chemical ETF (159870) seeing a net subscription of 1.23 billion units, bringing its total size to 6.5 billion RMB [9] - Two potential paths for the chemical sector's anti-involution were identified: proactive industry self-discipline and passive policy-driven improvements [10] Investment Opportunities - The report suggests focusing on high-quality green electricity operators and premium offshore wind projects as the new energy sector fully enters the market [8] - The chemical sector's leading companies are expected to have strong bottom configuration value due to their sensitivity to policy changes [10]

Group 1 - The core viewpoint indicates that the public utility sector is experiencing a positive trend, with the China Securities Index for Public Utilities (000995) rising by 0.98% as of August 21, 2025, and several key stocks such as Shanghai Electric (600021) and Yingfeng Environment (000967) showing significant gains [1] - The highest electricity load in the country has set records multiple times this year, with the State Grid also reaching new highs, particularly in provinces like Jiangsu, Shandong, Guangdong, and Henan [1] - According to GF Securities, there is an expectation of improvement in coal, silicon, and electricity prices, which could enhance the profitability and growth outlook for power stocks [1] Group 2 - The top ten weighted stocks in the China Securities Index for Public Utilities (000995) include Changjiang Electric (600900), China Nuclear Power (601985), and others, collectively accounting for 57.07% of the index [2] - The Public Utility ETF (560190) closely tracks the China Securities Index for Public Utilities, reflecting the performance of representative and investable listed companies in the sector [1][3]

Core Viewpoint - The recent policy developments and market movements indicate a positive outlook for the public utility sector, particularly in renewable energy, as new regulations aim to stabilize returns for existing and new projects [1][2]. Group 1: Market Performance - As of May 19, 2025, the CSI All Share Utilities Index (000995) increased by 0.35%, with notable gains from companies such as Huadian International (600027) up 1.53% and Guotou Power (600886) up 1.17% [1]. - The Public Utility ETF (560190) rose by 0.51%, with the latest price at 0.98 yuan [1]. Group 2: Policy Developments - The Central Committee of the Communist Party and the State Council issued opinions to enhance urban wastewater collection, treatment, and recycling facilities, aiming to improve infrastructure in the public utility sector [1]. - Guangdong Province released supporting details for Document No. 136, which includes a cap on the declared mechanism electricity ratio not exceeding 90% for existing projects [1][2]. Group 3: Renewable Energy Outlook - Longjiang Securities suggests that the gradual implementation of Document No. 136 will lead to a revaluation of green electricity, with a focus on ensuring reasonable returns for renewable energy projects [2]. - The ongoing expansion of green electricity consumption is expected to benefit green energy companies, leading to potential value reassessment [2]. Group 4: Index Composition - As of April 30, 2025, the top ten weighted stocks in the CSI All Share Utilities Index (000995) include Changjiang Electric Power (600900) and China Nuclear Power (601985), collectively accounting for 58.58% of the index [2].

Group 1 - The China Securities Index reported a strong increase in the CSI All Share Utilities Index (000995), rising by 1.04% as of April 3, 2025, with significant gains in constituent stocks such as Longyuan Power (001289) up 5.93% and Xingrong Environment (000598) up 4.36% [1] - The Utilities ETF (560190) also rose by 1.04%, with a trading volume of 1.0125 million yuan, leading among similar products, and has rebounded over 4% since the technology sector's decline on March 12, highlighting its defensive attributes [1] - The latest price-to-earnings ratio (PE-TTM) for the Utilities ETF is 15.85, indicating it is at a historical low, being below 84.19% of the time over the past year [1] Group 2 - Shanghai Future Industry Fund announced a strategic investment in China Fusion Energy Co., marking its first direct investment project since its establishment in 2023, injecting significant capital into the controllable nuclear fusion technology sector [2] - Recent reports indicate rapid progress in China's controllable nuclear fusion projects, with significant developments in experimental reactors and environmental assessments for commercial projects expected to accelerate in 2024 [2] - The top ten weighted stocks in the CSI All Share Utilities Index as of March 31, 2025, include major players like China National Nuclear Power (601985) and Huaneng International (600011), collectively accounting for 57.95% of the index [2]