Investment Rating - The report indicates a focus on the service consumption sector, with potential investment opportunities in companies listed on the Beijing Stock Exchange related to this industry [1]. Core Insights - The report highlights that several policy measures aimed at expanding service consumption are expected to be introduced in September 2025, which could significantly enhance the supply of high-quality services and stimulate new consumption scenarios [2][5][12]. - In 2024, China's service retail sales are projected to grow by 6.2% year-on-year, outpacing the growth of goods retail sales by 3 percentage points, indicating a robust demand for service consumption [6][8]. - The report identifies a substantial growth potential in service consumption in China, particularly in areas such as culture, leisure, tourism, and healthcare, as the country transitions towards a service-oriented economy [6][12]. Summary by Sections Policy Measures - The Ministry of Commerce plans to introduce new policies to boost service consumption, focusing on enhancing service supply and promoting investment in sectors like internet services, culture, and healthcare [2][5][12]. - Specific measures include encouraging foreign investment in sectors such as camping, homestays, and "Internet + healthcare" [2][5]. Market Performance - The median price change for companies in the service consumption sector on the Beijing Stock Exchange was -3.12% from September 8 to September 12, 2025, with 9 companies (23%) experiencing gains [15][16]. - The total market capitalization of the service consumption sector decreased from 132.17 billion to 128.91 billion yuan, with the median market capitalization dropping from 2.35 billion to 2.29 billion yuan [22][24]. Valuation Metrics - The median price-to-earnings (P/E) ratio for companies in the service consumption sector decreased from 57.9X to 52.5X [18][19]. - The broader consumer sector's median P/E ratio fell from 66.9X to 61.3X, indicating a general decline in valuations across the sector [28][29]. Company Analysis - The report lists several companies in the service consumption sector, including those in sports, tourism, healthcare, and education, highlighting their revenue and profit metrics for 2024 [13][14]. - Notable companies include Meizhigao, Guoyi Tendering, and Jinbo Biological, which showed significant price increases during the reporting period [25][26].

Export Performance - In H1 2025, China's export value reached $180.90 billion, a year-on-year increase of 5.94%, with a growing trade surplus[3] - The export value of electronic components, engineering machinery, and automobiles grew by 11%, 9%, and 10% respectively[7] - The total export of electronic components was $80.81 billion, with a trade surplus of $45.67 billion, marking a 21.36% increase year-on-year[8] Import Trends - In H1 2025, China's import value was $122.31 billion, a decrease of 3.85% year-on-year[3] - The import of electronic components slightly declined, totaling $35.14 billion, with only six product categories showing growth[12] Industry Insights - Among 61 companies listed on the Beijing Stock Exchange, 2024 foreign income accounted for over 30% of their total revenue, with over 80% for companies like Hengtai Lighting and Hongzhi Technology[30] - The median P/E ratio for the machinery industry decreased from 66.7X to 65.7X, while the electronic equipment industry saw a drop from 62.5X to 60.1X[3] Market Performance - The median price change for technology growth stocks on the Beijing Stock Exchange was -3.22% from July 28 to August 1, 2025, with only 19 companies (13%) experiencing an increase[3] - The total market value of the electronic equipment industry fell to $138.4 billion, while the machinery industry’s market value decreased to $114.8 billion[3]