Macro News 1. On the afternoon of June 12, Premier Li Qiang met with European Central Bank President Christine Lagarde at the Great Hall of the People in Beijing. Li Qiang pointed out that China and Europe have strong economic complementarity, with China possessing a super-sized market advantage and continuously unleashing market potential. There is significant cooperation potential between China and Europe in many fields. China is willing to strengthen market connectivity and industrial synergy with Europe to add more momentum to their respective development. Lagarde stated that under the current international situation full of uncertainties, maintaining high-level exchanges and dialogue cooperation between Europe and China is crucial. Tariff wars and trade wars only lead to lose-lose outcomes, while adhering to multilateralism and strengthening open cooperation is the right choice. 2. On the afternoon of June 12, the Ministry of Commerce held a regular press conference. A reporter inquired about the first meeting of the China-US economic and trade consultation mechanism. Ministry of Commerce spokesperson He Yadong stated that from June 9 to 10 local time, the China-US economic and trade teams held the first meeting of the consultation mechanism in London, UK. The two sides reached a principled consensus on implementing the important consensus of the June 5 phone call between the two heads of state and the framework of measures to consolidate the outcomes of the Geneva economic and trade talks, making new progress in addressing each other's economic and trade concerns. Regarding the rare earth issue, as a responsible major country, China fully considers the reasonable needs and concerns of various countries in the private sector, reviews applications for export licenses of rare earth-related items in accordance with laws and regulations, has approved a certain number of compliant applications according to law, and will continue to strengthen the approval of compliant applications. 3. On June 11, People's Bank of China Governor Pan Gongsheng held the first annual meeting with European Central Bank President Christine Lagarde. The two sides exchanged in-depth views on topics including the economic and financial situations of China and Europe, reform of the international monetary system, global financial regulation, and key areas of cooperation between the two central banks. After the meeting, the two sides signed the Memorandum of Understanding on Cooperation between the People's Bank of China and the European Central Bank. 4. A passenger plane crashed at Ahmedabad Airport in Gujarat, India, on June 12. According to reports, all 242 people on board were killed. CCTV News learned that local police found one survivor in the Indian plane crash. 5. Foreign Ministry spokesperson Lin Jian presided over the regular press conference yesterday. A foreign media reporter asked about US President Trump's post on his social media platform, claiming that an agreement had been reached with China, such as China providing rare earth magnets. Lin Jian stated that China always honors its words with actions. Since a consensus has been reached, both sides should abide by it, and China hopes the US will work with China to implement the important consensus reached in the phone call between the two heads of state. Industry News 2. Recently, the People's Bank of China and the State Administration of Foreign Exchange jointly issued the "Several Measures on Financial Support for Fujian to Explore a New Path for Cross-Strait Integrated Development and Build a Demonstration Zone for Cross-Strait Integrated Development." TheThe "Several Measures" proposes 12 policy measures in four aspects: optimizing the financial ecosystem of the cross-strait shared "living circle", serving the construction of the first home for Taiwan compatriots and Taiwan-funded enterprises to land on the mainland, supporting the pilot program for high-level opening-up of cross-border trade in Fuzhou, Xiamen, and Quanzhou, supporting the facilitation of cross-border investment and financing under the capital account, comprehensively strengthening financial supervision, and effectively preventing and defusing financial risks. These measures are of great significance for continuously deepening the construction of a demonstration zone for cross-strait integrated development and promoting high-level financial opening-up. The People's Bank of China and the State Administration of Foreign Exchange will promote the detailed implementation of various policy measures outlined in the "Several Measures", further intensify financial support for the integrated development across the Taiwan Strait, and provide strong financial support for the construction of the demonstration zone for cross-strait integrated development. 3. At the Annual Meeting of the Asia Traders Forum & Stock Trading Summit 2025, Tim LUI, Chairman of the Securities and Futures Commission of Hong Kong, stated that the SFC is studying plans to adjust the number of shares per trading lot, thereby enhancing the convenience of trading high-priced stocks and odd lots, and further improving market liquidity. 4. The General Office of the People's Government of the Guangxi Zhuang Autonomous Region recently issued the "Implementation Plan for Special Actions to Boost Consumption in Guangxi". It mentions expanding support for trade-in policies for automobiles, home appliances, home improvement, kitchen and bathroom products, and e-bikes, as well as subsidies for purchasing new 3C digital products. 5. In 2025, Urumqi plans to develop 82 cultural and tourism projects with a total investment of 44.815 billion yuan and an annual planned investment of 5.4116 billion yuan, representing increases of 76%, 181%, and 170% respectively compared to 2024. The focus will be on introducing a batch of high-end hotel cluster projects, creating a number of major construction projects, and building a comprehensive cultural and tourism space integrating cultural experiences, commercial consumption, and leisure and entertainment. 6. With the "Suzhou Super League" gaining widespread popularity, some netizens have called on Sichuan to host similar football events through the "Ask the Government Sichuan" platform. In response, the Sichuan Provincial Sports Bureau stated that the "Bashu Xiongqi Cup" Sichuan Super League will learn from the healthy development experience of the "Suzhou Super League", improve the event system, strengthen supervision, promote fair competition, mobilize social forces to participate, facilitate the development of mass football and campus football, and support nationwide fitness. Company News 1. New China Life Insurance announced its intention to subscribe for private equity fund shares with an investment not exceeding 15 billion yuan. 2. China Vanke Co., Ltd. announced that it sold a total of 72.96 million A-share treasury shares from June 10 to June 12, which will help supplement the company's working capital. 3. *ST Gongzhi announced that the Shenzhen Stock Exchange has decided to terminate the listing of the company's shares. 4. Yidian Technology stated on an interactive platform that POP MART is an important client of the company. 5. ST Jinyi announced that the other risk warnings for the company's shares have been revoked, and trading will resume from June 16. 6. Xiaofang Pharmaceutical announced a collaboration with Shanghai Dermatology Hospital to develop Compound Platycladi Tincture, a Class 1.1 traditional Chinese medicine for treating hair loss. 7. PowerChina secured a 10.77 billion yuan offshore wind power EPC turnkey project. 8. Qingmu Technology clarified that it currently only provides e-commerce agency operation services for Pop Mart's Tmall flagship store. 9. Taiji Co., Ltd. disclosed that its controlling shareholder and actual controller are planning matters related to changes in company control, leading to a trading suspension. 10. Hengbao Co., Ltd. announced that director and vice president Gao Qiang plans to sell no more than 197,500 shares. 11. Jingjin Equipment reported that its actual controller, chairman, and general manager has been placed under retention. 12. Feiliner completed verification work, with its shares resuming trading on June 13. Global Markets US and European stocks showed mixed performance, with both the S&P 500 and Dow Jones hitting at least three-month closing highs. US stocks opened lower but closed higher, with all three major indices posting slight gains. The S&P 500 rose 0.38%, the Dow gained 0.24%, and the Nasdaq advanced 0.24%. The S&P 500 reached its highest closing level since late February, while the Dow achieved its best close since early March. Oracle surged over 13% to a record high after exceeding Q4 earnings expectations. US fintech firm Chime jumped over 37% on its debut. Boeing fell nearly 5% following an Air India Boeing 787 crash. European indices closed mixed, with Germany's DAX30 down 0.48%. International crude oil futures settled slightly lower. WTI July crude dropped 0.16%, while Brent August crude declined 0.59%. COMEX gold futures rose 0.84% to $3,406.8/oz, and silver futures gained 0.41% to $36.41/oz. Investment Opportunities 1. Pop Mart Expanded Capacity Early This Year, But Demand Far Exceeds Supply Chain Response Media reports indicate that since Chinese New Year, Pop Mart has urgently recalled workers and expanded capacity to meet surging demand driven by rising IP popularity. An insider described this as a "sweet trouble" where market demand vastly outpaces supply chain responsiveness, noting "even overworked sewing machines can't keep up." The core appeal of IP collectibles lies in instant emotional gratification. Labubu's distinctive features meet specific demands, amplified through social media. Current supply shortages and product scarcity further elevate circulation premiums, significantly boosting visibility. Zhongtai Securities released a research report stating that it is optimistic about the investment value of the IP industry and anticipates the growth and commercialization of major IPs. Three directions are worth noting: (1) Leading companies in the IP2C model for trendy toys that possess a high-quality IP matrix, strong operational capabilities, and channel strength; (2) Content producers with strong content creation capabilities; (3) IP operators in the IP2B2C model that possess high-quality IPs and B-end customer resources. 2. German nuclear fusion startup ProximaFusion secures record-breaking funding On Wednesday local time, German nuclear fusion startup ProximaFusion announced that it had raised €130 million (equivalent to $148 million) in a record-breaking funding round. Investors have high hopes that the company will be the first to build the world's first commercial nuclear fusion power plant. ProximaFusion's Series A funding round was co-led by CherryVentures and BaldertonCapital, marking the largest private nuclear fusion investment round in Europe to date. In recent years, market interest in nuclear fusion technology has continued to grow. Founder Securities' machinery equipment team is optimistic that the timeline for global nuclear fusion could be advanced. Currently, the European Commission (EC) has officially launched a four-week consultation period, which will help the EU establish a leading position in global nuclear fusion development and accelerate the commercialization of fusion energy. 3. Cumulative financing exceeds 1 billion yuan in the first half of the year; experts say commercial space is experiencing unprecedented development opportunities Media reports indicate that China's commercial space industry in 2025 is accelerating at an unprecedented pace towards industrialization. One of the most telling signs is the "real money" coming from the capital market. According to incomplete statistics by reporters, in the first five months of this year alone, the publicly disclosed and estimable financing amounts in China's commercial space sector have cumulatively exceeded 1 billion yuan. Recently, there have been continuous developments in the commercial space sector. LandSpace Technology Corporation's independently developed ZQ-2 Modification 2 remote sensing launch vehicle successfully started production and lifted off; Beijing CAS Space Technology Co., Ltd.'s KQ-1 remote sensing 7 launch vehicle was successfully launched; and the "Tada Hu Yang No. 1" satellite was successfully launched by the KQ-1 remote sensing 7 launch vehicle. Experts interviewed stated that after several years of cultivation, China's commercial space industry is flourishing, with enterprises in commercial satellites, commercial rockets, commercial monitoring and control, and other sectors emerging like bamboo shoots after a spring rain. The commercialization of the entire industry chain is being prioritized, and the industry chain ecosystem is continuously improving. With the synergy of policies, technology, and the market, commercial space is experiencing unprecedented development opportunities. 4. AI development brings significant changes to the industry, continuously expanding the space for the industry chain Institutions have pointed out that switching networks are the "blood vessels" of AIDC. Since entering the era of large models, as the scale of clusters has accelerated its expansion, the interconnection requirements between computing cards have rapidly increased. As the hardware core supporting the interconnection network, the industry chain space for switches has been continuously expanding. Guojin Securities believes that domestic large models are rapidly advancing from a scale of hundreds of billions of parameters to trillion and ten trillion parameters, and 800G switches will become an important driver for the rapid growth of the industry. Dell'Oro Group predicts that by 2025, the adoption rate of 800G switch ports is expected to exceed that of 400G data center switch ports, accounting for more than 25% of data center switch ports. The development of the AI industry has brought about significant changes to the switch industry. Along with the development of the domestic AI industry, domestic high-speed switches for training-side applications and domestic medium-speed switches for inference-side applications are on the verge of mass production. CPO, OCS, white-box switches, etc., are expected to become strategic highlands in the domestic switch industry, and enterprises with relevant layouts are worthy of close attention.

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.