Core Insights - The Apple supply chain experienced significant gains, with stocks such as Universal Scientific Industrial hitting the daily limit, Luxshare Precision rising over 8%, and a trading volume exceeding 11 billion yuan [1][2]. Group 1: Stock Performance - Universal Scientific Industrial's stock price reached 21.29 yuan, with a rise of 10.03% [2]. - Luxshare Precision's stock price was 61.98 yuan, increasing by 8.45% [2]. - Lens Technology and Xinwei Communication saw their stock prices rise by over 7%, reaching 29.54 yuan and 30.10 yuan respectively [2][3]. Group 2: Hong Kong Market Performance - In the Hong Kong market, Apple-related stocks also saw upward movement, with GoerTek rising over 7% to 34.44 HKD [4]. - Other notable gains included Cowell e Holdings at 15.20 HKD (up 6.22%) and BYD Electronics at 40.92 HKD (up 5.57%) [4].

Group 1 - The non-ferrous cobalt concept is showing strong performance across the board, while the consumption electronics sector is active, and the robotics and oil & gas sectors are experiencing declines [1][3] - The A-share Apple supply chain is active at the opening, with Luxshare Precision hitting the daily limit, and several other stocks such as GoerTek, Darui Electronics, Lens Technology, and others opening high [1] - The Hong Kong stock market opened with the Hang Seng Index down 0.32% and the Hang Seng Tech Index down 0.68%, with notable declines in Kuaishou and Anta Sports [4] Group 2 - The A-share market opened with all three major indices rising slightly, with the Shanghai Composite Index up 0.05%, the Shenzhen Component Index up 0.37%, and the ChiNext Index up 0.10% [2][3] - The People's Bank of China conducted a 240.5 billion yuan 7-day reverse repurchase operation at an interest rate of 1.40%, along with a 300 billion yuan 14-day reverse repurchase operation [5]

Market Overview - On May 12, both A-share and Hong Kong markets experienced a significant rebound, with the Shanghai Composite Index rising nearly 1% and the ChiNext Index increasing over 2% [1][2] - The total trading volume in the A-share market reached 1.34 trillion yuan, marking an increase of 118.5 billion yuan from the previous trading day [2] - The Hong Kong market also saw a substantial increase, with the Hang Seng Index rising nearly 3% and the Hang Seng Technology Index up over 5% [1][3] Sector Performance - In the A-share market, sectors such as military industry, Apple supply chain, and robotics showed strong performance, with the defense industry leading with a 4.80% increase [2][4] - Notable stocks in the defense sector included AVIC Chengfei, Morningstar Aviation, and Aerospace South Lake, all reaching the daily limit of 20% increase [2] - In the Hong Kong market, non-essential consumer goods, industrials, and information technology sectors were among the top performers [3] Fund Flow - On May 12, net inflow of main funds in the A-share market exceeded 13 billion yuan, with 2,400 stocks experiencing net inflows [3][4] - The top sectors for net inflow included electric power equipment, defense industry, and electronics, with inflows of 2.998 billion yuan, 2.673 billion yuan, and 2.550 billion yuan respectively [4] - In the Hong Kong market, companies actively repurchased shares, with a total repurchase amount exceeding 2.7 billion Hong Kong dollars in May [3][4] Valuation and Investment Outlook - The rolling P/E ratio for the entire A-share market was reported at 19.10 times, while the Hang Seng Index stood at 10.25 times, indicating attractive valuations for both markets [4] - Analysts express optimism about the potential for gradual upward movement in the A-share market amid a stabilizing environment, with a focus on sectors like AI applications, innovative pharmaceuticals, and new consumption [5][6] - The Hong Kong market is expected to benefit from recent monetary easing policies, with analysts suggesting a focus on consumer and technology sectors, as well as high dividend yield sectors [6]

Group 1 - The report highlights a significant reduction in tariffs between China and the US, with tariffs on Chinese goods dropping from 145% to 30%, which is much lower than the market's expectation of 50-60% [2] - The reduction in tariffs is expected to improve economic fundamentals, particularly by alleviating concerns over export declines and enhancing growth expectations [2][3] - The report anticipates that the A-share market may experience a strong upward trend due to improved market sentiment and economic conditions, driven by the tariff reductions and supportive domestic policies [3] Group 2 - The technology sector is identified as a primary investment focus, with companies in the Apple, Nvidia, and Tesla supply chains expected to benefit from the tariff reductions [4][5] - Core assets are also seen as having potential for increased allocation, as the improved economic outlook may lead to higher foreign and domestic institutional investments [5] - The report suggests a focus on sectors such as consumer electronics, AI, and military products, which are expected to benefit from both policy support and industry trends [5]

Market Performance - The three major A-share indices collectively rose today, with the Shanghai Composite Index up by 0.82%, the Shenzhen Component Index up by 1.72%, the ChiNext Index up by 2.63%, and the North Star 50 Index up by 2.89% [1] - The total market turnover reached 1.34 trillion yuan, an increase of 118.5 billion yuan compared to the previous day [1] - Over 4,100 stocks in the market experienced gains [1] Sector Performance - The military industry, robotics, Apple supply chain, rail transit equipment, photovoltaic equipment, and solid-state battery sectors saw the largest gains [1] - Conversely, the precious metals, agriculture, innovative pharmaceuticals, electricity, and beverage manufacturing sectors experienced declines [1] Notable Stocks - Military stocks surged again, with over 20 stocks hitting the daily limit, including Qifeng Precision, Kunshan Intelligent, AVIC Chengfei, Morningstar Aviation, and Aerospace Nanhu [1] - Stocks in the Apple supply chain rebounded collectively due to favorable news from US-China negotiations, with Blue Technology, Luxshare Precision, and GoerTek leading the gains [1] - The robotics sector was also active, with TOSYDA hitting the daily limit, and Efort rising over 10%, along with Sanfeng Intelligent, Yijiahe, and Estun following suit [1] - Innovative pharmaceutical stocks weakened, with Maiwei Biotech down over 10%, BeiGene down over 9%, and other companies like Shutai Pharmaceutical, Xinlitai, and Hengrui Medicine also declining [1] - Gold stocks underperformed, with Western Gold, Sichuan Gold, and Xiaocheng Technology among those with the largest declines [1]