Group 1 - The core viewpoint is that state-owned enterprises (SOEs) in China have demonstrated robust value creation capabilities, with an annualized ROE of 8.67% before the third quarter of 2025, surpassing the overall level of A-shares [1] - By industry, the non-ferrous metals, public utilities, and transportation sectors have shown outstanding performance, with annualized ROE reaching 15.8%, 11.6%, and 10.3% respectively [1] - Six industries, including environmental protection and machinery equipment, have experienced profit growth exceeding 5% [1] Group 2 - SOEs are continuously optimizing their layout in areas such as industry leadership, with the assessment system emphasizing differentiated guidance through "one industry, one policy" [1] - The Central Enterprise Win-Win ETF (517090) tracks the FTSE China State-Owned Enterprises Open Win-Win Index, which selects state-owned enterprises from the market, focusing on companies engaged in global operations and sustainable development [1] - The index primarily covers industries such as oil and petrochemicals, and construction decoration, reflecting a large-cap value style and aiming to comprehensively represent the overall market performance of Chinese SOEs under the theme of open win-win [1]

Market Overview - The market rebounded today with major indices closing in the green. The Shanghai and Shenzhen stock exchanges had a total trading volume of 1.64 trillion yuan, a decrease of 23.9 billion yuan compared to the previous trading day. The Shanghai Composite Index rose by 0.22%, the Shenzhen Component Index increased by 0.22%, and the ChiNext Index gained 0.09% [1] Coal Sector Performance - The coal sector continued to show strength, with the coal ETF opening higher and stabilizing, closing up by 2.46% [3][4] - As of October 17, 2025, the price of Q5500 thermal coal at Qinhuangdao Port was 748 yuan per ton, reflecting a week-on-week increase of 43 yuan per ton [7] Supply Side Analysis - In September, the output of industrial raw coal from large-scale enterprises was 410 million tons, a year-on-year decrease of 1.8% but a month-on-month increase of 5.1%. The average daily output was 13.72 million tons. From January to September, the total output was 3.57 billion tons, a year-on-year increase of 2.0% [5] - The National Energy Administration has initiated a coal mine production inspection in eight key coal-producing provinces to ensure stable coal supply. Since July and August, domestic raw coal production has significantly declined due to various factors [5] - Extreme weather has disrupted production in key areas, with heavy rainfall affecting coal mining and transportation [5] Demand Side Analysis - Since October, high temperatures in southern regions have led to a significant increase in coal demand, while northern areas have experienced rapid cooling [6] - In October, coal imports showed a decline, with the first two weeks seeing a shipment volume of 9.85 million tons, a 14.4% decrease from September and a 43.7% decrease year-on-year [6] Future Outlook - The coal price is expected to remain strong due to ongoing supply disruptions and rising winter demand. The overall fundamentals of the coal industry are stable with potential for improvement [10] - Recent expectations for state-owned enterprise reforms have strengthened, with the Red Dividend State-Owned Enterprise ETF rising by 1.00% and the Central Enterprise Win-Win ETF increasing by 1.15% [10]

Group 1 - The core viewpoint is that the central enterprise assessment system will be further optimized by 2025, emphasizing cash flow management, technological innovation, and market value management, with a goal of achieving "one increase, one stability, and four improvements" [1] - Policy initiatives are promoting market value management, encouraging investor communication, mergers and acquisitions, share buybacks, and dividends to enhance market recognition, along with providing low-cost relending support [1] - The equity incentive system for central enterprises is a crucial measure for deepening state-owned enterprise reform and enhancing corporate value, with a policy framework that binds core talent to corporate interests [1] Group 2 - Incentive tools include stock options and restricted stocks, with performance assessments linked to indicators such as ROE, cash flow, and R&D intensity [1] - A typical case is China Aluminum's setting of "low baseline, high growth" targets, emphasizing compound growth rates of net profit and EOE indicators [1] - The Central Enterprise Win-Win ETF (517090) tracks the FTSE China State-Owned Enterprises Open Win-Win Index, which selects 100 Chinese state-owned enterprises from A-share and Hong Kong markets, focusing on industries like public utilities, construction decoration, and transportation [1]

Core Viewpoint - The article emphasizes the focus of state-owned enterprise (SOE) reform during the "14th Five-Year Plan" period on building a high-level socialist market economy, with key pillars including deepening SOE reform, promoting the development of the private economy, advancing the construction of a unified national market, and facilitating domestic and international dual circulation [1] Group 1: SOE Reform Focus - The direction of SOE reform will concentrate on optimizing functional positioning, enhancing R&D investment, and building innovation capabilities, as well as improving the regulatory system for state assets with Chinese characteristics [1] - Specific measures include a refined classification system for differentiated regulation of competitive, strategic, and public welfare enterprises, and the establishment of a modern corporate governance system that clarifies the responsibilities and boundaries of shareholders, boards, and management [1] Group 2: Market Mechanism and Incentives - The reform will promote market-oriented operational mechanisms, fully implement the professional manager system, and increase incentives for technology-driven enterprises by developing diversified long-term incentive tools [1] - The construction of a unified national market will enhance the supply of regulatory systems, strengthen fair and collaborative market supervision, accelerate infrastructure connectivity reforms, and promote overall regional integration reforms to optimize resource allocation and stimulate market vitality [1] Group 3: ETF and Index Overview - The Central Enterprise Win-Win ETF (517090) tracks the FTSE China SOE Open Win-Win Index (W00553), which selects state-owned enterprise securities with global layout and sustainable development characteristics to reflect the overall performance of Chinese SOEs in an open and win-win context [1] - The index components cover multiple industries and emphasize the long-term stable operating capabilities and social responsibility fulfillment of enterprises [1]