Silver is once again at the center of global financial markets, with prices moving in the range of $80 to $90 per troy ounce. For many investors, this already sounds extreme. However, while the majority of investors focus primarily on price and charts, professional investors are looking at something entirely different: the structure of the market.

Artificial intelligence has once again captured traders' attention. Although Nvidia's performance exceeded expectations, its stock price remained sluggish throughout the day, ultimately closing down more than 5%, dampening market sentiment. Influenced by the weak performance of the U.S. semiconductor sector, benchmark index contracts in Japan and South Korea, where technology stocks hold a relatively high weight, declined, while contracts in Australia and Hong Kong saw slight gains. These fluctuations further indicate the market's high sensitivity to AI-related news, as participants strive to comprehend the long-term implications of this rapidly advancing technology. According to Hardika Singh, an analyst at Fundstrat Global Advisors, the market's mediocre reaction to Nvidia's better-than-expected earnings report is partly because investors now take such exceptional performance for granted.

From June 4 to 5, Huatai Securities' 2025 Mid-Year Investment Summit was held in Shanghai. Themed "Seeking Certainty Amidst Order Reconstruction," the summit delved into the new logic of global order reconstruction and the revaluation of Chinese assets. The two-day event comprised a main forum and 11 industry sub-forums, focusing on growth opportunities in sectors such as New Consumption 2, AI+, humanoid robots, and energy transition. Nearly 500 publicly listed firms were invited to participate in closed-door exchanges, attracting over 2,500 professional investors and institutional clients from public funds, private funds, banks, insurance companies, and publicly listed firms to register for the event. Notably, the summit featured a special "China + Southeast Asia" sub-forum, exploring industrial breakthrough strategies and capital empowerment pathways amidst the reconstruction of trade order from an international perspective. Experts such as Liu Yuanchun, President of Shanghai University of Finance and Economics, former Vice President of Renmin University of China, and co-founder of the China Macroeconomic Forum (CMF); Wu Xinbo, Dean of the Institute of International Studies at Fudan University, Director of the Fudan University US Research Center (a key humanities and social sciences research base under the Ministry of Education), and member of the Foreign Ministry's Foreign Policy Advisory Committee; Wei Shaojun, Professor at Tsinghua University, member of the National Advisory Committee for the Development of the Integrated Circuit Industry, Vice Chairman of the China Semiconductor Industry Association, and Chairman of the China JSTC of the World Semiconductor Council; and Siregar, Chief Economist of Indonesia's sovereign wealth fund Danantara, delivered keynote speeches on hot topics such as AI technological development, new logic in China's economy, and new policy approaches. Exploring Certainty Opportunities Amidst Order Reconstruction in the Macro Context In her opening remarks, Liang Hong, Chair of Huatai Securities' Institutional Business Committee, stated that in the face of prolonged trade conflicts, investors are eager to see how China will formulate new economic development strategies, promote broader and deeper economic reforms, and thereby increase residents' incomes and consumption willingness, as part of their expectations for the "15th Five-Year Plan." Liang Hong suggested that investors should adopt a longer-term perspective to explore certainty opportunities amidst order reconstruction within macro contexts such as global order reconstruction, supply chain reorganization, and new directions in capital flows. This also represents the core logic for global investors to reevaluate the value of the RMB and RMB-denominated assets, particularly in China's competitive industries and high-quality enterprises. The Huatai Research Macro Team conducted a roundtable discussion on current macroeconomic and market concerns. Maintaining the Forecast of 5% Real GDP Growth in 2025 Amidst external disruptions, Huatai Securities' Macro Team maintains its forecast of 5% real GDP growth for this year. What policy and external environment assumptions underpin this forecast?What is the logical basis for the expectation of RMB appreciation? Yi Huan, Chief Macroeconomist at Huatai Securities, stated that since April, the US tariff policy has been full of twists and turns, with uncertainties still remaining. However, on the whole, the impact of tariffs is relatively small compared to expectations at the end of last year. Domestically, China's macro policies have shown notable highlights. The growth in fiscal expenditure for the entire year is expected to exceed the nominal GDP growth rate, surpassing market expectations. The accelerated development of the technology cycle, with new quality productive forces such as AI+ emerging as new highlights, has also alleviated the drag on the economy from the downturn in the real estate sector. In addition, the depreciation of the US dollar has provided a boost to the development of emerging economies. From the perspectives of economic fundamentals and the repatriation of de-dollarization funds, the RMB has the momentum for appreciation, while the RMB's movement against a basket of currencies has remained basically stable. Under the trend of de-dollarization, RMB assets and the offshore RMB capital market will face structural opportunities for revaluation and expansion. Asset allocation should abandon bear market thinking and emphasize trading and left-side positioning. What are the key points for asset allocation in the second half of this year? The bond market is expected to maintain a fluctuating trend. What are the operational suggestions? Zhang Jiqiang, Director of Huatai Securities Research Institute and Chief Fixed Income Analyst, stated that this year is a significant year for the macro cycle, with event-driven market trends being prominent and investors' allocations becoming more diversified and decentralized. In terms of asset allocation, investors should abandon bear market thinking, emphasize trading and left-side positioning, and focus on investment odds. In bond investment, the core contradiction in the bond market in the second half of the year is the "lack of certainty" amidst multiple intersecting variables. It is highly likely to continue exhibiting characteristics of a fluctuating market, with many disturbances and difficulties in judging the rhythm. The 10-year Treasury bond rate is expected to fluctuate between 1.5% and 1.8%. Strategically, it is necessary to emphasize swing trading, duration adjustment, and selection of bond types. The US stock market may face a concurrent downturn in three cycles. Lin Xiaoming, Chief Financial Engineering Analyst at Huatai Securities Research Institute, conducted research and judgment on asset allocation and the style of the A-share market in the second half of the year from the perspective of quantitative models. Lin Xiaoming pointed out that in the second half of the year, the global Kitchin cycle will enter a downturn phase, and the US stock market may face a concurrent downturn in the Kitchin, Juglar, and Kondratieff cycles. Against this backdrop, how to seek safe-haven assets amidst a liquidity crisis has become the key to asset allocation in the second half of the year. Unlike previous cycle downturns where safe-haven assets performed well, in this cycle downturn, it is possible that shorts in risky assets will outperform longs in safe-haven assets. Due to the constraints of US fiscal issues on US Treasuries, they may not be ideal safe-haven assets during this downturn period. Against the backdrop of increasingly unclear global trade and fiscal prospects, the long-term allocation value of gold will become more prominent. In the equity market, A-shares are likely to outperform overseas markets. It is recommended to adopt a barbell allocation strategy combining dividends and growth, and to pay attention to policy negotiation opportunities in the consumer sector. The revaluation process of Chinese assets has just begun. From a strategic perspective, given the expectation of RMB appreciation and the global de-dollarization process, will the pricing logic of A-shares change? What investment themes are worth paying attention to in H2? He Kang, Chief Strategist and Co-Head of Financial Engineering at Huatai Securities Research Institute, stated that in the long run, the revaluation process of Chinese assets has just started. Against the backdrop of RMB appreciation and global de-dollarization, the expectation of foreign capital inflows has strengthened, and their preferences may dominate the pricing power of A-shares. Index-weighted stocks and companies with excellent fundamentals are likely to benefit, corresponding to the finance, consumer, pharmaceutical sectors, and industry leaders. He Kang believes that multiple investment themes in the A-share market in H2 can be summarized as follows: After the trough of the real estate cycle, overlooked consumer demand and overlooked productivity improvements, especially capital expenditures in the high-tech sector, may gradually surface. H-shares show greater resilience amid the revaluation of RMB assets. This year, several top-tier enterprises have completed their H-share listings, injecting new vitality into the H-share market. Li Yujie, a strategy researcher at Huatai Securities, believes that factors such as Chinese enterprises going global, global reallocation driven by de-dollarization, and the internationalization of the RMB are highlighting the importance of the H-share market. In the medium and long-term, the expansion of the H-share market implies a need for increased capital allocation. It is recommended to pay attention to two trend changes: First, the technology sector corresponding to improved growth prospects. Global capital is more overweight in US technology stocks but remains underweight in Chinese ones. Second, with improved liquidity, the AH premium is expected to narrow. Scarcity plays in industry leaders, large-cap stocks, and active stocks under the Stock Connect scheme are worth noting. In the short term, external market disturbances may affect the performance of H-shares, but there are differences between Hong Kong and the US in terms of economic cycles and market positions. Moreover, H-shares show greater resilience amid the revaluation of RMB assets. The main driver of H-share performance in H2 may come from a "U"-shaped recovery in earnings.

The latest strategic viewpoints from the top ten securities firms have just been released, as detailed below: Soochow Securities: June may mark the starting point of a new round of "East Rising, West Declining" trades The US dollar cycle is pivotal to the "East Rising, West Declining" trade. Historical experience shows that during periods of global liquidity easing and a weakening US dollar, non-US assets tend to strengthen, and the Chinese market will also benefit. Looking ahead, a weak US dollar remains the baseline assumption. Due to multiple factors such as ongoing disruptions from Trump's policies, the US government's debt pressure, and potential risks in the fundamentals, the US dollar is expected to trend weaker. Since the US dollar index turned down again in mid-May, it has once again fallen below the 100 mark. It is judged that the US dollar will continue to decline in June, possibly breaking below the previous low. The liquidity spillover driven by a weak US dollar will lead the A-share market to embark on a new round of "East Rising, West Declining" trades. In recent years, the value/growth style of the A-share market has been increasingly influenced by the US dollar cycle, specifically showing that growth stocks tend to outperform during periods of a weak US dollar. As June approaches, the technology sector will witness a series of catalytic events, and its prospects are expected to remain robust. Meanwhile, the valuations and liquidity of growth stocks will also benefit from a weak US dollar environment, potentially exhibiting better resilience. In terms of specific allocation directions, the main themes and industrial trends to focus on include: AI edge devices (including AI phones, AI glasses), AI large models, humanoid robots, controllable nuclear fusion, deep-sea technology, and autonomous driving. Zhongtai Securities: Maintaining the "switch from high to low" viewpoint at the current juncture The current market is at a critical period marked by the interplay of domestic and foreign policy variables. Domestically, the "15th Five-Year Plan" sets the tone, and reforms in public funds may reshape the market. Externally, intensifying tariff disputes between Europe and the US, as well as increased policy uncertainty within the US, will all have complex impacts on the market. At the current juncture, the "switch from high to low" viewpoint is still maintained, with a relatively optimistic stance on the technology sector. The overall market is expected to continue rotating rapidly among various hot topics in Q2. Investors should avoid chasing highs and instead focus on bottom-fishing opportunities, with this allocation logic remaining unchanged. 1) While maintaining a base portfolio of stable assets such as dividend stocks, gold, long-term bonds, and blue chips, focus on opportunities to bottom-fish in safety-related assets and technology stocks; 2) The high growth momentum in upstream AI computing power, servers, etc., as seen from Q1 earnings reports, is expected to continue into H2. Moreover, the update of the new version of DeepSeek may trigger investors' risk appetite for the technology sector; 3) The Trump administration has recently intensified technology restrictions on industries such as chips, coupled with China's increased emphasis on technology at the policy level. Among these, the direction of domestic substitution, represented by semiconductors, will also present certain opportunities. Overall, in Q2, the fundamentals of core city real estate and other endogenous momentum are gradually showing a "turning point," but total data may remain resilient under the "rush to switch exports." Current overall policies still maintain strong determination, but there is a high level of attention on the capital market, which may provide some support to the market. Hua Jin Securities: June Continues to Fluctuate Upward with Technology and Consumption Remaining the Main Themes In June, A-shares may continue to fluctuate upward. (1) Policies in June may be more proactive, with some uncertainty regarding external events. First, positive policies in June may accelerate implementation. Second, external events such as Sino-US tariff negotiations in June face some uncertainty. (2) The fundamentals in June may continue to improve. First, economic data in June may continue to show strength: firstly, the Dragon Boat Festival holiday and the "618" shopping season may keep consumption growth at a high level; secondly, overseas restocking may lead to a rebound in export growth in June; finally, accelerated policy implementation may maintain high growth in manufacturing and infrastructure investment in June, although real estate investment growth remains weak. Second, profit growth in June may continue to be in a recovery cycle. (3) Liquidity in June may remain loose. First, repeated expectations of interest rate cuts overseas have limited impact on domestic easing. Second, the inflow of funds into the stock market in June may improve; historically, foreign and margin financing flows tend to increase in June; after the holiday, margin financing and foreign capital may also return. Technology and consumption remain the main themes, with some core assets and cyclical sectors possibly offering investment opportunities. First, new consumption is likely to generate excess returns in June; second, policy encouragement points to TMT and consumption, with high-growth industries mainly concentrated in non-ferrous metals, TMT, and machinery. It is recommended to continue to allocate on dips: first, sectors with upward policy and industry trends such as computer (domestic software, autonomous driving), robotics, military, media (AI applications, gaming), electronics (semiconductors), and communications (computing power); second, sectors where fundamental expectations may marginally improve, including innovative drugs, electric vehicles, food, social services, trade retail, non-ferrous metals, and chemicals. China Galaxy: Technology Will Remain the Medium and Long-Term Investment Theme Recently, the sector rotation speed has increased, and the market's volatile pattern has not changed, with no significant increase in trading volume, still dominated by existing players. There is considerable uncertainty in the external market. On May 29, the US Federal Circuit Court of Appeals granted the Trump administration's request to temporarily suspend the previous ruling by the US International Trade Court. Although a phased tariff agreement between China and the US has been reached, temporarily alleviating trade pressure, the Trump administration's policies remain unpredictable. In the short term, the market may continue to maintain a fluctuating trend. Attention should be paid to changes in external tariffs and the pace of domestic policy implementation. With the support of a series of domestic policies, the market's adjustment space is limited. Meanwhile, several major financial policies are expected to be announced during the Lujiazui Forum from June 18 to 19, which are likely to support market expectations. It is recommended to focus on structural opportunities. In the long term, the trend of the A-share market will still reflect the principle of "taking our own path as the main focus". As the Central Huijin Investment Ltd. effectively plays the role of a "stabilization fund" and policies vigorously promote the entry of medium and long-term funds into the market, the A-share market will have a more solid foundation for stable operation. Allocation opportunities across three main themes: First, assets with a relatively high safety margin. Against the backdrop of significantly increased uncertainty in the external environment, the dividend sector, which has relatively strong earnings certainty and overall stable dividend returns, possesses defensive attributes. Second, the logic of the "technology narrative" in the A-share market is clear. The revised restructuring measures will help promote the participation of early-stage technology innovation enterprises in mergers and acquisitions. Technology will remain the main theme for medium and long-term allocation, with short-term focus on sub-sectors with lower valuations. Third, the big consumption sector boosted by policies. Economic data for April shows that the trade-in policy for consumer goods continues to be effective. Recently, the concept of new consumption has been repeatedly active. As uncertainty in the external environment increases, expanding domestic demand has become a long-term strategic move, highlighting the importance of boosting consumption. Dongguan Securities: The market's overall risk appetite is expected to receive systematic support. From the perspective of the market environment in June, overseas, the US tariff policy has been fluctuating, and the subsequent path of interest rate cuts by the US Fed will highly depend on subsequent economic data and tariff negotiation progress. Domestically, with the easing of Sino-US trade disputes, the implementation of a series of incremental policies by the "one bank, one bureau, one commission", and the concerted efforts of all parties to promote the effective implementation of established policies and accelerate the strengthening of incremental policy reserves, all these provide strong support for the domestic economic fundamentals. In the capital market, the current concerted efforts to stabilize the capital market have injected key momentum into boosting investor confidence. Looking ahead to June, as Sino-US trade relations tend to ease, quasi-stabilization funds have played a crucial supporting role in hedging tail risks in the market. With the concerted efforts of all parties to promote the effective implementation of established policies, accelerate the strengthening of incremental policy reserves, and the continuous entry of medium and long-term funds into the market, it is expected to continuously improve the market's microstructure and enhance investor confidence. Against the backdrop of the combined forces of policies and funding, the market's overall risk appetite is expected to receive systematic support. However, considering that there may be certain selling pressure above, the market may continue to fluctuate in the short term. In the medium term, supported by the economy's resilience and the accumulation of policy tools, the broader market still has upward momentum. Sector Allocation: Overweight financials, utilities, non-ferrous metals, and TMT. BOC Securities: Exports May Exceed Expectations This Year From overseas industry inventory perspectives, most sectors are in the mid-stage of restocking except midstream industries like automobiles, machinery equipment, and transportation equipment. Downstream consumer goods-related sectors show more pronounced restocking, reflecting resilient overseas demand. Leading indicators suggest short-term overseas restocking demand will likely persist, with potential for exports to surpass expectations this year. Market-wise, since May, sectors tied to external demand have outperformed. The Geneva agreement between China and the U.S. temporarily boosted market sentiment, while April's stronger-than-expected exports corrected overly pessimistic expectations. Subsequent uncertainties around export and external demand strength remain the market's focus. Unlike 2018, tariff policies now pose significantly reduced impacts on domestic fundamentals and markets. Fundamentally, ample policy buffers mitigate economic downside risks, with domestic demand data and tariff progress influencing policy expectations. Market-wise, upside room depends on economic recovery strength, while "quasi-stabilization funds" contain downside risks. Uncertainty from Trump-era trade policies may prolong "diversion trade," with resilient demand potentially driving exports above expectations and strengthening external demand chains. GF Securities: China-U.S. Relations, Fiscal Stimulus, and DeepSeek's Tech Breakthrough May Trigger A-Share Market Breakout After April's oversold rebound, A-shares fluctuated rangebound near pre-reciprocal tariff levels, with only innovative drugs showing sectoral trends amid mostly thematic rotations. Looking ahead, China-U.S. relations, fiscal stimulus, and DeepSeek's tech milestone could serve as key triggers to escape this tight range. Absent domestic fiscal or bilateral progress, tech sector developments may prove pivotal. After three months of adjustment, tech stocks—especially AI-related segments—now meet prerequisites for a rebound: 1) TMT turnover ratios hover at the lower bound of 2023's AI narrative range, signaling potential momentum; 2) Since April's reciprocal-tariff rebound, margin balances stagnated at yearly lows, leaving room for incremental funding. Thus, June's concentrated tech giant product launches may prove decisive. Ping An Securities: New Quality Momentum Gathers Strength, Tech Growth Breaks Through Overseas, the US tariff policy faces multiple uncertainties from domestic judicial rulings and external negotiations, while Nvidia's Q1 results exceeded expectations again. Domestically, the manufacturing sector's prosperity margin rebounded in May, with high-tech industry profits showing positive trends; expectations for financial policies have increased. Overall, the current changes in the external environment still carry uncertainties, and the importance of self-reliance and controllability in domestic technology and the resilience of domestic demand continue to rise. Domestic policy support and the positive development of industries towards innovation are expected to continue to support the medium-term upward potential of the equity market. Structurally, attention should be paid to two main lines: First, the growth style represented by domestic technology and high-end manufacturing, such as the defense and military industry with upward industry prospects, and the direction of self-reliance and controllability in technology represented by semiconductors; second, high-quality consumer assets (new consumption/pharmaceutical and biological, etc.) that benefit from policies supporting the expansion of domestic demand. Huaxi Securities: A-shares in June Still in a Window Period for Market Recovery A-shares in June remain in a window period for market recovery. Recently, market trading sentiment has pulled back, mainly due to the repeated changes in the US tariff policy overseas. In addition, the slow pace of Sino-US trade negotiations may partly be due to tactical considerations in negotiations. Subsequent Phase II Sino-US consultations will remain a key influencing factor for market risk appetite. On the other hand, the strength of domestic medium and long-term patient capital is growing. By promoting the construction of long-term market stabilization mechanisms and signaling regular "market support," regulators will strongly support the bottom range of A-shares. ·In terms of industry allocation, maintain a moderately balanced allocation. Attention should be paid to precious metals, public utilities, new consumption, AI applications (software, hardware), etc. In terms of themes, attention should be paid to: military industry, self-reliance and controllability, mergers and acquisitions, etc. Everbright Securities: Consumption is Expected to Remain One of the Key Momentums for Economic Recovery The most severe period of short-term external risk disturbances may have passed, but vigilance is still needed regarding potential reversals in Trump's subsequent policies. Recently, domestic policies have remained actively implemented, and it is expected that subsequent policies will continue to be rolled out. With the US and China hitting the "pause" button on "reciprocal tariffs" for 90 days, exports may maintain high growth in the short term, and consumption is expected to remain one of the key momentums for economic recovery. Amidst the interplay of internal and external factors, it is expected that the index will remain volatile overall in June. Definite Main Lines: 1) Domestic consumption. Expanding domestic demand has been a key focus of recent domestic policies, and it is expected to continue to receive policy catalysts in the future. In addition, the overall performance of the consumer industry is more resilient. Attention should be paid to industries such as household goods, food processing, professional services, and leisure food. 2) Domestic substitution. Attention should be paid to two clues: performance certainty and thematic investment. The former focuses on industries with a high proportion of imports from the US and strong domestic supply capabilities, including publishing, decoration materials, etc. The latter focuses on industries with a high proportion of imports from the US but with domestic supply capabilities expected to improve, such as aviation equipment, medical devices, animal health, and chemical pharmaceuticals. 3) Underallocated sectors by funds: The "Action Plan for Promoting the High-Quality Development of Public Funds" may have a profound impact on the asset allocation of the fund industry. Some sectors that are underallocated by funds are worth paying attention to in the medium and long-term, including banking, non-banking financial services, utilities, transportation, and other industries. However, in the short-term, it is necessary to be cautious about the potential expectation deviations that may arise from over-interpretation.

Macro News 1. The plenary session of the Expert Advisory Group of the Anti-Monopoly and Anti-Unfair Competition Commission of the State Council was held in Beijing. The meeting emphasized the need to closely align with the Commission's work plans, focusing on key tasks such as accelerating the construction of a unified national market, comprehensively addressing "cut-throat competition", and strengthening competition regulation and enforcement. The Group was urged to take proactive measures and fulfill its responsibilities as an expert advisory body, contributing wisdom and strength to enhancing fair competition governance capabilities and maintaining a fair and competitive market order. 2. China Chengtong held its 2025 Financial and Fund Work Conference to promote the Group's financial and fund businesses in serving national strategies with a higher perspective and to usher in a new phase of high-quality development. Xi Zhengping, Secretary of the Party Committee and Chairman of the Group, pointed out that as a state-owned capital operating company, the Group has fully played its role as a "national team" in safeguarding capital market stability and supporting national strategic tasks such as scientific and technological innovation. 3. The 2025 Lujiazui Forum will be held in Shanghai from June 18 to 19, 2025. It is a high-level economic and financial forum jointly hosted by the Shanghai Municipal People's Government, the People's Bank of China, the National Financial Regulatory Administration, and the China Securities Regulatory Commission. Industry News 1. Li Yunze, Secretary of the Party Committee and Director of the National Financial Regulatory Administration, emphasized during a special exchange event and concluding speech the need to accelerate the digital and intelligent transformation of regulation, steadily promote the application of artificial intelligence in the financial sector, and effectively prevent and respond to the risks and challenges brought about by the development of artificial intelligence. 2. The Ministry of Industry and Information Technology, the National Development and Reform Commission (NDRC), and the National Data Administration jointly issued the "Implementation Plan for the Digital Transformation of the Electronic Information Manufacturing Industry". The plan proposes that by 2027, the new information infrastructure for the digital transformation and intelligent upgrading of the electronic information manufacturing industry will be basically completed, with the CNC rate of key processes in electronic information manufacturing enterprises above designated size exceeding 85%. It also proposes strengthening the construction of new information infrastructure and accelerating the large-scale application of advanced computing, 5G-A, gigabit optical networks, industrial internet, and artificial intelligence in the electronic information manufacturing industry. 3. Zhang Yuzhuo, Director of the State-owned Assets Supervision and Administration Commission of the State Council, conducted a survey at China General Technology (Group) Holding Co., Ltd. on May 27, emphasizing the need to effectively strengthen and optimize the machine tool industry, seize the upward cycle of machine tool replacement and upgrading, strengthen mutually beneficial cooperation with universities, research institutes, and upstream and downstream enterprises in the industry chain, and accelerate intelligent transformation and digital transformation using artificial intelligence technology. 4. Data released by the European Automobile Manufacturers' Association on the 27th showed that the number of new vehicles registered in Europe in April by US EV manufacturer Tesla was 5,475 units, a decrease of 52.6% YoY. Data shows that Tesla's new vehicle registrations dropped by approximately 46% in the first four months of this year. 5. In response to the controversy surrounding the internship program of Industrial Bank's Private Banking Department, the bank expressed deep regret for the misunderstandings caused by incomplete promotional statements. Given the disputes, the program has been suspended after careful evaluation. 6. The Shanghai Municipal Development and Reform Commission, along with other departments, issued the "Three-Year Action Plan for Accelerating the Development of Rehabilitation Assistive Devices Industry in Shanghai (2025-2027)." It proposes supporting integrated application research of technologies such as artificial intelligence, smart sensing, information communication, and brain-computer interfaces in the field of rehabilitation assistive devices. By 2027, the plan aims to implement 10 key industrial technology (product) R&D projects and support over 5 elderly care technology products. 7. According to the latest public fund market data released by the Asset Management Association of China, China's total public fund scale reached 33.12 trillion yuan by the end of April 2025. This marks the first time China's public fund scale has exceeded 33 trillion yuan and the seventh record high since early 2024. 8. Liu Peifeng, spokesperson and office director of the State Tobacco Monopoly Administration, stated that e-cigarette regulation has entered a critical phase, facing more complex and severe challenges. The administration remains committed to improving the regulatory system, enforcing strict supervision, and advancing regulatory legalization, industrial standardization, and team professionalism. Company News 1. You-A Co., Ltd. announced plans to acquire 100% equity of Shenzhen Sunyantong for 1.58 billion yuan, entering the power semiconductor sector. 2. Kuaishou Technology reported Q1 revenue of 32.61 billion yuan, up 10.9% YoY, with adjusted net profit of 4.58 billion yuan, up 4.4% YoY. 3. China Merchants Energy Shipping announced the termination of its subsidiary's spin-off and restructuring for listing. 4. Wufangzhai announced gifting zongzi gift boxes to shareholders and soliciting feedback. 5. Zhongcheng Co., Ltd. announced plans to acquire 100% equity of Zhongji Jiangsu, with stock trading resuming. 6. Xiaomi Group reported Q1 revenue of 111.293 billion yuan, a record high with 47.4% YoY growth, and adjusted net profit of 10.7 billion yuan, also a record high with 64.5% YoY growth. 7. Kuaijishan announced no significant volatility in production costs or sales. 8. Pinduoduo reported Q1 revenue of 95.67 billion yuan, up 10% YoY, with adjusted net profit of 16.92 billion yuan, down 45% YoY. 9. *ST Dongyuan announced that after resuming trading on May 29, it would remove the delisting risk warning and other risk warnings, and the stock's short name would be changed to "Orient Landscape". 10. Leshan Electric Power announced that its shareholder, Tianjin Bohai, reduced its shareholding in the company by 6.9 million shares from May 6 to May 27. 11. *ST Dongjing announced that its shareholders were planning changes to the company's control rights, and the stock was suspended from trading. 12. Xiechuang Data announced that it planned to purchase servers worth no more than 4 billion yuan to provide computing power rental services. 13. Luoping Zinc & Electricity announced that its controlling shareholder was planning changes to the company's control rights, and the stock was suspended from trading. Global Markets 1. The three major U.S. stock indices closed higher collectively, with the Dow Jones Industrial Average rising 1.78%, the Nasdaq Composite Index rising 2.47%, and the S&P 500 Index rising 2.05%. Large-cap technology stocks generally rose, with Tesla surging nearly 7%. The Nasdaq Golden Dragon China Index fell 0.28%, and most popular Chinese ADRs declined. 2. WTI crude oil futures closed down 1.04% at $60.89 per barrel; Brent crude oil futures closed down 1% at $64.09 per barrel. 3. COMEX gold futures closed down 1.96% at $3,299.7 per ounce, and COMEX silver futures closed down 0.67% at $33.385 per ounce. Investment Opportunities Reference 1. China Academy of Information and Communications Technology, Huawei, and Others Release Standard for Software Development Agents According to media reports, the China Academy of Information and Communications Technology (CAICT), Industrial and Commercial Bank of China, Beijing Xingyun Digital Technology Co., Ltd., and Beijing Baidu Netcom Science & Technology Co., Ltd., along with over 20 top-tier enterprises including Agricultural Bank of China, Postal Savings Bank of China, iFLYTEK, Tencent, Alibaba, and Huawei, jointly compiled and released the "Technical and Application Requirements for Software Engineering Agents - Part 1: Development Agents" (standard number AIIA/T 0219-2025). This standard outlines the capability construction and application requirements for development agents across two major dimensions: technical capabilities and service capabilities. A report released by Research and Markets predicts that the market size of AI agents will grow from $5.1 billion in 2024 to $47.1 billion in 2030 (an increase of approximately $42 billion over five years), with a compound annual growth rate (CAGR) of 44.8% from 2024 to 2030. Kaiyuan Securities expressed continued optimism about the rise of the AI agent industry in 2025, with policy catalysts accelerating the implementation of major industry players. 2. Arm Officially Certifies: Xuanjie O1 Chip Independently Developed by Xiaomi Recently, Arm's official website republished a press release, revising the previous description of "CustomSilicon" to confirm that the Xuanjie O1 chip was independently developed by Xiaomi. In a press release, Arm stated that Xiaomi's newly self-developed chip adopts the Arm architecture, marking a milestone in the 15-year collaboration between the two parties. The Xuanjie O1 chip is crafted by Xiaomi's Xuanjie chip team, utilizing the latest Armv9.2 Cortex CPU cluster IP, Immortalis GPU IP, and CoreLink system interconnect IP, fully supporting the advanced 3nm process technology. The electronic team of Xiangcai Securities believes that as the first 3nm chip in China, Xuanjie, following Apple's A18 series, Qualcomm's Snapdragon 8 Elite, and MediaTek's Dimensity 9400 series, is the fourth 3nm process chip to enter mass production, signifying a significant advancement in domestic chip design capabilities. Xuanjie is expected to drive the reshaping of the global smartphone SOC landscape and exert a "catfish" effect, promoting innovation and progress in domestic semiconductor industry chain technologies. 3. ByteDance-affiliated VC leads investment in a Suzhou robotics company Recently, Lexiang Intelligence announced the completion of a 100 million yuan Angel+ round of financing, led by Jinqiu Fund, with continued over-subscription investments from existing shareholders Matrix Partners China, Oasis Capital, and Monolith, as well as follow-on investment from Lighthouse Capital, which served as the exclusive financial advisor. Jinqiu Fund is an affiliated fund of ByteDance, with its core team mostly originating from ByteDance's investment system. This round of financing will primarily be used for team building and the mass production development of product platforms, achieving full self-development of core parts. This is the second round of financing completed by Lexiang Technology within three months, with the total amount of the Angel round financing reaching nearly 300 million yuan. Upon securing the new round of financing, Lexiang Technology officially announced its product direction to the public - a small, general-purpose embodied intelligent robot for home use. Embodied intelligent robots are standing at the critical point of technology and commercialization. Their development not only embodies the integration of AI technologies but also serves as the core driving force for the global manufacturing upgrade and social governance transformation. Leveraging policy dividends, market potential, and technological breakthroughs, China is expected to dominate the global embodied intelligent industry landscape by 2030. According to the "2025 Humanoid Robot and Embodied Intelligence Industry Research Report," the global embodied intelligent market size is projected to reach 232.63 billion yuan by 2030, with a compound annual growth rate (CAGR) as high as 64.18%. China has become the core growth engine of the global embodied intelligent market. By 2030, China's embodied intelligent market size is expected to reach 103.752 billion yuan, accounting for 44.6% of the global market. 4. The commercialization process of solid-state batteries is expected to continue accelerating Institutions point out that the commercialization process of solid-state batteries is expected to continue accelerating in 2025. Leveraging core advantages such as high energy density, superior safety, and wide temperature range adaptability, solid-state batteries not only have the potential to gradually replace existing liquid lithium batteries in applications such as new energy vehicles and energy storage but also hold promise for exploring emerging markets such as low-altitude aviation, robotics, and data centers. Industrial Securities pointed out that recently, the China Society of Automotive Engineers (SAE-China) issued the group standard "Determination Method for All-Solid-State Batteries," which, for the first time, clarified the definition of all-solid-state batteries, addressing issues such as vague industry definitions and the lack of testing methods. The release of industry standards for all-solid-state batteries marks a new stage of standardized development for solid-state batteries, which will have a profound impact on technological R&D, industrial ecosystems, and market order. In the next two years, the solid-state battery industry will enter a crucial stage of establishing a competitive landscape for materials, and it is recommended to focus on investment opportunities arising from changes in the industry landscape.

On Wednesday (May 14), the three major U.S. stock indices had mixed performances. The Dow Jones Industrial Average declined, the S&P 500 struggled to break a three-day winning streak, while the Nasdaq extended its gains for a sixth consecutive day. By the closing bell, the S&P 500 turned positive in the final minutes of trading, closing up 0.1% at 5,892.58 points, marking its third straight day of gains, after recovering all its losses for the year the previous day. The Nasdaq Composite Index rose 0.72% to close at 19,146.81 points, extending its winning streak to six days. The Dow Jones Industrial Average fell 0.21% to close at 42,051.06 points. Among its components, Merck & Co. (-4.12%) and Amgen (-3.02%) led the declines, weighing on the index's performance. Since Trump signed an executive order to lower drug prices, multinational pharmaceutical companies have underperformed the broader market. Similar to the previous day's trading, technology stocks remained the primary driver of the broader market. Nvidia extended its gains, closing up 4.16%, with its market capitalization returning to $3.3 trillion. The previous day, Jensen Huang announced in Riyadh that Nvidia would sell over 18,000 artificial intelligence chips to Saudi Arabia-based company Humain. Nvidia's rival, AMD, rose 4.68% after the company also reached a $10 billion strategic cooperation agreement with Humain. Before today's market open, AMD's board of directors also approved a new $6 billion share repurchase program. Driven by these developments, the Philadelphia Semiconductor Index closed up 0.6%, narrowing its year-to-date loss to 0.39%. The Nasdaq 100 Index rose 0.57%, accumulating a 3.27% gain over the past three trading days this week and a 1.46% increase year-to-date. Earlier this week, high-level economic and trade talks between China and the United States reached important consensus and made substantive progress, directly reflected in a significant reduction in bilateral tariff levels. Financial markets responded positively, and risk appetite in the U.S. stock market also increased. Adam Turnquist, Chief Technical Strategist at LPL Financial, commented, "Macro policy uncertainty has become higher, with many unknowns remaining, but 'for now, investors have accepted the backdrop of trade easing.'" Mark Hackett, Chief Market Strategist at Nationwide, said that investors are returning to fundamentals, but they may not be pleased with the current situation, as "the market has surged from oversold to overbought in record time." Hackett added, "Unless we see a significant acceleration in economic growth, this will limit upside potential in the near term." Performance of Popular Stocks Large-cap technology stocks had mixed performances. (Ranked by market capitalization) Microsoft rose 0.85%, Nvidia rose 4.16%, Apple fell 0.28%, Amazon fell 0.53%, Alphabet Class C rose 3.68%, Meta rose 0.51%, and Broadcom fell 0.13%. Tesla rose by 4.07%, and Elon Musk held talks with the Governor of Qatar Central Bank and the Chairman of Qatar Investment Authority. Additionally, data showed that Tesla's Shanghai Gigafactory exported nearly 30,000 Model 3 and Model Y car models in April this year, hitting a new high in nearly a year. Among Chinese ADRs, the Nasdaq Golden Dragon China Index rose by 1.17%, outperforming the broader US stock market. Most popular Chinese ADRs rose, with Tencent Music Entertainment Group up by 15.66%, Li Auto up by 2.72%, New Oriental Education & Technology Group up by 2.45%, Alibaba Group Holding up by 1.82%, TAL Education Group up by 1.7%, Baidu up by 1.55%, XPeng Motors up by 0.67%, and NIO up by 0.24%. Pinduoduo fell by 0.47%, JD.com fell by 4.08%, and Legend Biotech fell by 10.55%. Corporate News [US and Qatar Sign Economic and Military Cooperation Agreements Worth Over $243.5 Billion] The US White House issued a statement on the 14th, saying that the US and Qatar signed multiple agreements worth over $243.5 billion on the same day, including projects such as Qatar's purchase of Boeing passenger planes and armed drones from the US. The statement said that Qatar Airways signed contracts worth $96 billion with US-based Boeing and GE Aerospace to purchase up to 210 Boeing 787 Dreamliners and Boeing 777X aircraft. In the military field, the two sides signed multiple defense cooperation agreements, including Qatar's purchase of MQ-9B armed drones worth nearly $2 billion and anti-drone weapon systems worth about $1 billion from the US. In addition, US and Qatari companies also signed multiple cooperation agreements involving energy infrastructure and high-tech development. [Apple Reportedly Plans to Add Eye-Tracking Scroll Function to Vision Pro Headset] Apple is developing a new feature for the Vision Pro headset that allows users to browse content by rolling their eyes, aiming to further enhance the device's interactive experience. According to people familiar with the matter, this eye-tracking scroll function is being tested in visionOS 3, the latest version of the upcoming operating system for the Vision Pro headset. The sources said that Apple hopes to leverage the existing eye-tracking hardware and software of the Vision Pro to further advance the system. Apple plans to unveil the new Vision Pro operating system at its annual developers' conference starting on June 9. [Ford Recalls Approximately 274,000 SUVs Due to Safety Concerns] Ford Motor Company announced that it is recalling approximately 274,000 Expedition and Lincoln Navigator SUVs across the US due to issues that may cause the vehicles to lose braking function while driving, increasing the risk of collisions. [AMD Announces New $6 Billion Share Repurchase Program] AMD announced today that its board of directors has approved a new $6 billion share repurchase program. The new authorization supplements the remaining balance of approximately $4 billion under its existing share repurchase program as of March 29, 2025, bringing the total current repurchase authorization to approximately $10 billion. [Roche Warns of Reconsidering US Investments Due to Trump's Drug Pricing Order] Swiss pharmaceutical company Roche stated that if US President Trump implements an executive order to reduce prescription drug costs, the company will need to reconsider its planned investments in the US. Roche announced last month that it plans to invest $50 billion in the US pharmaceutical and diagnostics sectors over the next five years, creating over 12,000 job opportunities. Roche expects the executive order to have no impact on its business this year but stated that it will undermine the US's position as the world's leading pharmaceutical and healthcare ecosystem, stifle US economic growth, and lead to job losses. [Alibaba Open-Sources Tongyi Wanxiang Wan2.1-VACE, a Video Generation and Editing Model] Alibaba has officially open-sourced Tongyi Wanxiang Wan2.1-VACE, a model that supports video generation and editing. A single model can simultaneously support a full range of basic generation and editing capabilities, including text-to-video generation, image-referenced video generation, video inpainting, local video editing, video background extension, and video duration extension. A reporter from the Science and Technology Innovation Board Daily learned that two versions, 1.3B and 14B, have been open-sourced, with the 1.3B version capable of running on consumer-grade graphics cards. [Cisco Reports Q3 Revenue of $14.15 Billion, Exceeding Market Expectations] Cisco reported Q3 revenue of $14.15 billion, compared to analysts' expectations of $14.05 billion. The company expects full-year revenue to be in the range of $56.5 billion to $56.7 billion, up from its original forecast of $56 billion to $56.5 billion. It expects Q4 adjusted EPS to be in the range of $0.96 to $0.98, compared to analysts' expectations of $0.95. The quarterly dividend remains unchanged at 41¢, in line with analysts' expectations. [CoreWeave Reports Net Loss of Over $300 Million in Q1, Shares Rise 6% After Hours] CoreWeave released its first earnings report since its US IPO. Q1 revenue was $981.6 million. Q1 net loss was $314.6 million, with an adjusted net loss of $149.6 million. The Q1 adjusted EBITDA margin was 62%, and the loss per share was $1.49. The company's shares rose over 6% in after-hours trading on the US stock market. [Bridgewater Buys Alibaba Aggressively in Q1, Establishes Positions in JD.com and Gold ETFs] Bridgewater Associates has released its Q1 holdings report (13F) as of March 31 this year. In terms of increasing holdings, Bridgewater bought over 5.4 million shares of Alibaba, with a staggering 21-fold increase MoM, directly catapulting it to become the fourth-largest holding. Additionally, it purchased 1.88 million shares of Baidu (a 956% increase), 320,000 shares of Apple, 400,000 shares of Amazon, nearly 500,000 shares of Pinduoduo, and 1.3 million units of the Core MSCI Emerging Markets ETF-iShares, among others. In terms of establishing new positions, Bridgewater bought 1.1 million units of the SPDR Gold Shares ETF in Q1, making it the sixth-largest holding, and newly acquired 2.78 million shares of JD.com. In terms of reducing holdings, Bridgewater cut its largest holding, the SPDR S&P 500 ETF Trust (SPY), by nearly 60%, reduced its holdings in Nvidia by 18.74% (650,000 shares), Meta by 31.47% (195,000 shares), and Google by 16% (578,000 shares), significantly slashed its position in Robinhood by 80%, and fully liquidated its positions in Lyft and Rivian, among others. As of March 31 this year, Bridgewater's total assets under management stood at $21.6 billion, up 1.47% QoQ.