CMSC has released a comprehensive report analyzing the outlook following the recent market rebound. The analysis covers multiple sectors, including the US July non-farm payroll data, market strategy, fixed income, and banking.

Understanding the US July Non-Farm Payroll Data The July non-farm payroll data came in significantly below expectations, with the largest disruption coming from local government layoffs. Service sector job additions declined, driven by weakness in leisure and hospitality, as well as education and health services. Data for May and June was also substantially revised downward. The unemployment rate fell to 4.1%, primarily due to a contraction in labor supply. The key question is what caused this labor supply contraction. The median new non-farm payrolls in 2025-2026 has clearly shifted lower. While the US unemployment rate rose through November 2025, consistent with the non-farm data, the two have diverged since late last year: new non-farm payrolls remain low, even turning negative multiple times, while the unemployment rate has continued to fall. It is confirmed that since December 2025, the US labor force participation rate has dropped by 1.1%, which explains the paradox of falling job openings and new non-farm payrolls alongside a declining unemployment rate. A plausible explanation is that global large language models have entered the application phase, significantly lowering the barrier to personal entrepreneurship. Furthermore, the World Bank reported in April that the 2022 US college enrollment rate plunged by 5.5 percentage points to 79.4% from 2021. While this appears to be a pandemic shock, it may be related to AI development, as the last such sharp decline occurred during the 1996-2000 internet boom. There is a concern that if US AI development falters and US stocks face risks, the AI entrepreneurship wave could trigger a wave of unemployment.

Following the data release, market expectations for the Fed to hold rates steady in September rose to 56%, but the market still fully prices in a 25bp rate hike for the year. The reaction of various assets indicates that the market has largely adapted to the rhythm of economic data releases, tending to bet on short-term data performance while avoiding excessive pricing of medium-term policy direction. Since the May non-farm payroll data had a significant impact on various assets, the June employment, inflation, and Q2 GDP data have all helped improve risk appetite. The market has become accustomed to the short-term positive data releases from statistical agencies. Notably, with the Wednesday ADP employment data coming in below expectations, assets had already priced in a weaker-than-expected July payroll report and a cooling of September rate hike expectations before its release. However, looking at July, short-term positive data has not been able to change the subsequent upward trend in interest rates. Until economic data completely eliminates the possibility of rate hikes, the market has turned cautious after data releases. The downward revisions to non-farm data have created a cooling trend in the labor market but have not made the future monetary policy path clearer. The significant downward revisions to May and June data show a continuous and sharp cooling trend in non-farm payrolls since February. However, the consecutive decline in the unemployment rate and the inflation rate remaining above the target range make it difficult for the Fed to pivot to easing. The rate hikes by central banks outside the US have prevented the Fed from cutting rates. If Fed Chair Warsh continues to hold steady, the high-interest-rate environment for US Treasuries will persist until economic data provides a turning signal or the Warsh working group provides a basis for subsequent policy paths. On the asset side, the outlook for US stocks to reach new highs during the midterm elections remains, with close observation of AI industry trends. If AI sends new positive signals, a reassessment of the Nasdaq's future gains may be necessary. However, if no new AI industry signals emerge, global capital expenditure growth may peak in Q3, requiring extreme caution in Q4.

Market Outlook After the Rebound Since 2018, the US has imposed multiple restrictions on technology products from China or other non-US countries. The trading rhythm from historical samples shows that disputes generally follow a three-step path: "short-term risk concentration release," "mutual game and bottoming out," and "return to fundamental pricing." In the short term, sentiment drives oversold conditions, with the impact intensity diminishing as information transparency increases. At this stage, extreme oversold conditions provide a window for left-side observation, but a sentiment bottom does not equal a fundamental bottom. In the medium term, buffer mechanisms determine the depth of the impact, with policy games and corporate responses jointly building a bottom. There is a risk of a secondary downturn from policy tightening in the medium term, but the marginal impact is diminishing. The core judgment factors are order migration, earnings downgrades, and industry景气 changes. In the long term, earnings growth will digest risk premiums, and industrial resilience will reshape the pricing logic. Ultimately, stock prices will return to fundamentals, and sustained earnings growth is the fundamental way to digest risk premiums. Last weekend, Trump signaled a hardline stance on Iran but then postponed a new round of strikes and signaled negotiations, as expected. The market re-priced conflict de-escalation expectations, leading to a significant drop in oil prices and boosting global risk appetite this week. The unexpectedly cold employment data released on Friday further cooled market rate hike expectations. The Trump pressure index, which had been at a high level, has now retreated somewhat. The risk of a full-scale war between the US and Iran in the short term has decreased compared to late July, but a stable ceasefire framework has not yet been formed. The next phase of the situation will focus on three aspects: first, whether Iran and Oman can form a formal agreement on navigation arrangements in the Strait of Hormuz, clarifying Iran's control authority and specific implementation rules; second, whether the actual throughput of the Strait can continue to recover and whether the risk of attacks on commercial vessels and US military facilities can decrease; third, whether the US will gradually lift the port blockade and related sanctions based on Iran's compliance. From a liquidity perspective, comparing ETF and margin funds, they often operate in opposite directions, especially near market turning points, where the divergence reverses. Currently, margin fund activity is increasing again, with the guarantee ratio rising and risk appetite improving, leading to marginal net inflows of leveraged funds. Meanwhile, equity ETFs have gradually turned to net outflows as the market improves. Looking ahead, market sentiment is expected to gradually warm up and resume its upward trend, with margin fund activity likely to continue to increase. After the sharp adjustment in July, the A-share rebound window has opened. In terms of style, growth indices such as the ChiNext, STAR 50, and CSI 1000 are recommended. For sector direction, based on industry trends, the focus is on overseas computing power, domestic computing power, and gold recovery opportunities. For industries, a balanced allocation across three main lines is recommended: "technological innovation, corporate overseas expansion, and traditional low-valuation rebalancing." Specifically, the technology sector remains the main focus. The overseas expansion direction should focus on batteries, grid equipment, machinery, shipping ports, and pharmaceuticals. Additionally, in the low-valuation rebalancing direction, securities, non-ferrous metals, and coal all have strong cost-performance ratios for allocation. Based on comprehensive景气, earnings, valuation, and fund flows, the recommended industries are electronics (semiconductors, electronic chemicals), power equipment (batteries, grid equipment), chemical pharmaceuticals, non-ferrous metals, coal, and non-bank finance. The Hong Kong tech sector, after earlier fund outflows and valuation suppression, is now experiencing a dual recovery in fundamentals and fund flows. On one hand, with southbound funds returning to net inflows and easing institutional selling pressure, the liquidity environment for Hong Kong tech is gradually improving. On the other hand, overseas cloud company earnings reports confirm that AI capital expenditure is accelerating its conversion into cloud revenue growth and profit improvement. The industry trend is shifting from hardware investment-driven to value release from cloud infrastructure and application ecosystems. Meanwhile, the rapid development of open-source models is driving a redistribution of profits in the AI industry. Cloud companies, with their advantages in computing power resources, model deployment, and application entry points, are poised to become significant beneficiaries of the next phase of the AI value chain. Looking ahead, as AI commercialization deepens, Hong Kong-listed cloud companies like Tencent and Alibaba have the dual drivers of earnings improvement and valuation reassessment, making their allocation value increasingly prominent.

August Bond Market Outlook The bond market showed a narrow range, strong performance this week. The overall bond market traded in a narrow range with a strong bias. The long end of the curve engaged in repeated games around key levels, with the ultra-long end performing relatively better. After the month-end, funding rates quickly fell, and the short-to-medium end saw light trading but with stable-to-declining yields. The 10-year government bond yield fluctuated around the key level of 1.7%, repeatedly breaking through but then rebounding due to profit-taking, the equity-bond seesaw effect from the stock market recovery, and psychological constraints at the key level. This reflects the significant divergence in market views at the current level. In contrast, the ultra-long end continued to see strong demand, outperforming the long end with institutional buying support. The 30-year government bond yield remained below 2.20%. The weaker export data on Friday further boosted risk aversion. Combined with the buying power of securities and insurance companies, which formed a consensus for long positions, this pushed long-term bond yields down again. The 10-year government bond yield finally settled below 1.70%, and the 30-year government bond yield hit a new low for the period. Liquidity conditions shifted from tight to loose after the month-end, with DR001 and DR007 stabilizing below the policy rate from Tuesday onwards. The central bank conducted only small-scale reverse repos this week, which did not cause significant disruption. Combined with the increased volume of outright reverse repos, this "shortening and lengthening" is more likely to be a passive reduction in the context of ample liquidity, continuing the previous precise adjustment approach rather than a tightening. From mid-to-late August, government bonds will enter a concentrated issuance window, gradually increasing the impact of payment settlements, and the liquidity gap may reach its peak for the year. The probability of a short-term rate cut is low, but the central bank's stance on maintaining stability is clear, and liquidity is expected to remain loose. Institutional behavior continues to diverge, with funds continuing to tilt towards longer-term government bonds, but the space for increasing ultra-long bond holdings is diminishing. Against the backdrop of an asset shortage and loose liquidity, funds still prefer bonds with maturities over 7 years,博奕 on term spread compression. However, as the previous duration extension has been sustained, the focus of allocation is marginally shifting from the ultra-long end to the 10-year tenor, and the trading rhythm is volatile, reflecting ongoing debate about whether the 10-year government bond yield can effectively break through the 1.7% threshold. Banks are showing a "buy short, sell long" pattern. Large banks may be managing their assets and liabilities and freeing up duration for upcoming government bond supply, while smaller banks are continuing to take profits on long-term bonds, which is expected to maintain a certain degree of contrarian trading in the short term. Wealth management product allocations are relatively stable, continuing to increase holdings of certificates of deposit, credit bonds, and bank perpetual bonds. Insurance companies remain an important support force for the long end, continuing to increase holdings of ultra-long bonds. However, given the current low yields on the ultra-long end, their willingness to chase yields is relatively limited, while local government bond allocations still provide strong support. Overall, institutional allocation provides support for the bond market, but divergence among traders is increasing near key levels. The focus will be on policy implementation, the pace of government bond supply, and the impact of special government bond issuance on institutional allocation behavior. In the short term, bullish factors for the bond market still slightly outweigh bearish ones, with an overall judgment of a volatile but upward bias. On one hand, inflation pressure is easing, and liquidity is expected to remain balanced with a loose bias. With the central bank's support, the probability of further monetary policy tightening is low, and the asset shortage and allocation demand continue to support the bond market. On the other hand, the 10-year government bond yield has already fallen to around 1.7%, and the market has priced in some easing expectations. If incremental policies like rate cuts are not implemented, the room for further yield declines will be constrained. The recovery of the equity market may also periodically divert funds from the bond market. Therefore, the short-term market is more likely to experience low-level volatility, with the 10-year government bond yield repeatedly testing the 1.7% level. The ultra-long end will be relatively stronger, supported by allocation demand. The concentrated issuance of government bonds in mid-to-late August is a periodic disturbance to watch, as increased supply may suppress the performance of the long end. Simultaneously, if pro-growth policies are gradually implemented and lead to marginal improvements in the economy, it could also trigger a correction in market expectations. The strategy is to maintain a volatile but bullish stance and use a band trading approach. The 10-year government bond yield should be watched to see if it can hold below 1.7%. The implementation of accommodative policies could open up room for further declines. The 30-year bond still has a relative advantage before the true release of supply pressure, and trading opportunities around the rollover of the new bond can be explored.

Can the US-Japan Joint Intervention Change the Trend? Following the US-Japan joint intervention in the yen exchange rate, US Treasury Secretary Bessent expressed support for expanding the use of the Foreign and International Monetary Authorities Repo Facility (FIMA repo facility), sparking speculation in overseas markets that this tool could lead to a passive expansion of the Fed's balance sheet. The context for this joint intervention is that Japan's conventional measures to influence the yen have become ineffective. On July 17, Japanese Finance Minister Satoshi Katayama issued a strong verbal warning on the yen, but the currency showed little movement, rendering the intervention ineffective. Around the same time, she also expressed support for the repatriation of funds by the Government Pension Investment Fund (GPIF). However, given that the fund's allocation to the Japanese government bond market is capped at 25% ± 6%, and without a revision of the asset allocation rules, with the fund's primary goal being the best returns for its beneficiaries, this did not provide substantial support for the weak yen. As conventional yen intervention measures failed and Japanese government bond yields have a significant spillover effect on developed bond markets, the US and Japan conducted a joint intervention in the yen exchange rate on July 30-31, leading to the dollar-yen rate appreciating from 164 to around 157. The FIMA repo facility has certain usage limitations, but there is room to enhance its effectiveness. The FIMA repo facility was initially introduced by the Fed on March 31, 2020, as a temporary dollar liquidity tool, and was made permanent on July 28, 2021. Previously, as the "dollar lender of last resort" for the global financial system, the Fed had established central bank standing swap lines with major developed economy central banks, including the Bank of Japan. To address the balance of payments shocks for emerging economies following the COVID-19 pandemic, the Fed further introduced the FIMA repo facility to buffer pressures in the global dollar funding market. The FIMA repo facility has the following usage limitations: 1) Counterparty limit. The total daily outstanding amount for a single FIMA account holder cannot exceed $60 billion. 2) Transaction cost. The maturity of the FIMA repo facility is overnight or 7 days. The overnight rate is the top of the range at 3.75%, and the 7-day repo rate is the Overnight Indexed Swap (OIS) rate plus 25 basis points. This rate is higher than repo rates in an efficient market, reflecting its policy purpose of being used only during periods of abnormal liquidity stress. FIMA account holders still receive the coupon payments on the collateral, so the actual cost is the difference between the yield on the US Treasury collateral and the FIMA repo rate. Treasury Secretary Bessent recently expressed support for expanding the usage limit of the FIMA repo facility, which has some feasibility. If the $60 billion counterparty limit for FIMA accounts needs to be increased, the Fed's Foreign Exchange Subcommittee has the authority to approve the adjustment. Currently, the Foreign Exchange Subcommittee consists of Fed Chair Warsh, New York Fed President Williams, and Board Vice Chair Jefferson. Since the use of FIMA accounts leads to a temporary passive expansion of the Fed's balance sheet, and given Fed Chair Warsh's inclination towards balance sheet reduction, the Fed's Foreign Exchange Subcommittee is expected to oppose the normalized use of FIMA accounts. However, in tail scenarios of liquidity shocks in the dollar funding or US Treasury market, the usage limit of the FIMA repo facility could be quickly raised as a financial stability tool. In the past three weeks (July 15 to August 5), the balance of the Fed's FIMA account has remained at zero, while Foreign Official and International Accounts Reverse Repurchase Agreements have decreased by $36.21 billion. This suggests that Japan's Ministry of Finance still has dollar liquidity for FX intervention and has not yet needed to use the FIMA repo facility for dollar funding. Nevertheless, Treasury Secretary Bessent's statement on strengthening the FIMA repo facility helps to establish market credibility for the US-Japan joint FX intervention while stabilizing the US Treasury market. Looking ahead, the fundamental issue of Japan's fiscal imbalance remains unresolved. The US-Japan joint intervention can only provide a temporary floor. If the Bank of Japan fails to raise rates in September or establish a credible path for rate hikes, the downward pressure on the yen will persist. The Bank of Japan may eventually activate the FIMA repo facility, leading to a marginal easing of dollar funding conditions. This would help alleviate the external pressure on the yields of developed bond markets like US Treasuries and would also be a tailwind for international gold prices.

Domestic ESG Trends The first ESG highlight is the State Council's issuance of the "15th Five-Year Plan" Carbon Peak Action Plan on July 9, which systematically outlines the work for achieving the carbon peak from 2026 to 2030. The Plan sets a target for China's carbon dioxide emissions per unit of GDP to be 17% lower than the 2025 level by 2030, with non-fossil energy consumption reaching 25%, ensuring the carbon peak target is met on schedule. As the last complete five-year action plan before the carbon peak, the document further breaks down the overall targets into areas such as energy, industry, construction, transportation, public institutions, and market mechanisms. It also requires provinces to formulate their own provincial action plans, with enforcement strengthened through comprehensive evaluation and assessment, as well as tracking and monitoring. The adjustment of the energy structure remains the core of this round of action. The policy focus has extended from expanding new energy installed capacity to inter-regional power transmission, direct green electricity supply, long-duration energy storage, virtual power plants, and demand-side response. This reflects the more systematic demands that the high proportion of new energy development is placing on the power system's absorption and regulation capabilities. The document also proposes to reasonably control the scale and generation of coal power, promoting its transition to a supporting and regulating power source, and to steadily advance the peak of coal and oil consumption. On the industrial side, the emphasis is on parallel development of existing stock transformation and new low-carbon carriers. Key industries like steel, cement, and petrochemicals will continue to strengthen energy-saving and carbon-reduction reviews, phase out inefficient capacity, and upgrade processes and equipment. Simultaneously, the plan is to build approximately 100 national-level zero-carbon industrial parks and 500 zero-carbon factories nationwide, promoting industrial green microgrids, digital energy-carbon management centers, direct green electricity connections, and zero-carbon computing power infrastructure. The construction and transportation sectors also have relatively specific implementation pathways. Direct carbon emissions per unit of building area should be reduced by 3% during the "15th Five-Year Plan" period, through existing building renovation, building-integrated photovoltaics, clean heating, and green construction. The transportation sector will continue to increase the use of new energy in public vehicles, heavy-duty trucks, and non-road mobile machinery, building zero-carbon road transport corridors and promoting electric, green methanol, and bio-diesel powered vessels. Market and funding mechanisms are another key focus of this plan. The policy proposes the establishment of a national low-carbon transition fund to support the green transformation of traditional industries and resource-based regions. The national carbon market will gradually cover industries such as petrochemicals and chemicals, implementing total quota control first for industries with relatively stable total emissions, and steadily advancing a quota allocation that combines free allocation with paid allocation. The policy also proposes expanding the application scenarios for green certificates, improving the medium-to-long-term green certificate and green electricity trading system, and strengthening the linkage between market-based mechanisms like the carbon market, green certificates, and green electricity. The low-carbon transition thus forms an implementation framework involving fiscal funds, industrial funds, market pricing, and corporate capital expenditure. Overall, the Action Plan further clarifies the targets and implementation pathways for the last five years before the carbon peak. The focus for new energy development has shifted from expanding installed capacity to effective absorption. Industrial carbon reduction has expanded from individual energy-saving retrofits to industrial parks, factories, and supply chains. The carbon market and the low-carbon transition fund provide market constraints and financial support, respectively. For key energy-consuming enterprises, energy structure, production processes, carbon emission data, and low-carbon capital expenditure will be more closely integrated into their operations and management. The policy will also create clearer demand in areas such as power grids, energy storage, energy-saving equipment, green fuels, and energy-carbon management. The second ESG highlight is the State Council's public release of the "15th Five-Year Plan" for the Construction of a Beautiful China on July 3. This is the first national five-year plan named "Beautiful China," providing an overall arrangement for improving the ecological environment quality, pollution control, ecological protection, and governance capacity building before 2030. The plan proposes a comprehensive improvement in the ecological environment quality by 2030, with the basic formation of green production and lifestyles, the timely achievement of the carbon peak target, a continuous reduction in the total discharge of major pollutants, and a significant enhancement in the comprehensive management of solid waste. By 2035, the ecological environment should see a fundamental improvement, with the Beautiful China target basically achieved. The average national concentration of fine particulate matter (PM2.5) should fall below 25 micrograms per cubic meter, and net greenhouse gas emissions across the entire economy should be reduced by 7% to 10% from the peak, with efforts to do better. Pollution control remains a fundamental task of the plan, but the scope of control has been further extended to source control and multi-pollutant synergies. The management of solid waste and new pollutants is a relatively prominent aspect of this plan. The policy will strengthen the full-chain management of industrial solid waste, construction waste, hazardous waste, and household waste, promote a gradual dynamic balance between the generation and comprehensive absorption of solid waste in key industries, and improve the comprehensive utilization of retired new energy equipment. The plan also integrates pollution reduction, carbon reduction, green expansion, and growth into a single governance framework, proposing to advance the carbon peak, proactively adapt to climate change, develop the national carbon market, and enhance the basic capacity for carbon emission accounting. From the enterprise perspective, the policy impact will be transmitted mainly through channels such as pollutant emission standards, environmental performance evaluation, project construction access, full-chain solid waste regulation, and the mandatory disclosure of environmental information. Industries such as steel, building materials, chemicals, waste treatment, resource recycling, and ecological restoration will face more systematic technological transformation and compliance requirements. This will also generate corresponding demand for environmental monitoring, pollution control, resource utilization, and digital environmental management. The third ESG highlight is the fifth anniversary of the launch of the national carbon emissions trading market on July 16, 2026. As of July 14, the cumulative trading volume of carbon emission allowances in the national carbon market reached 920 million tons, with a cumulative turnover exceeding 62.2 billion yuan. The coverage has expanded from the power generation industry to include power generation, steel, cement, and aluminum smelting, covering over 60% of the national total carbon emissions. After five years of operation, the national carbon market has formed a basic institutional framework covering emission accounting, allowance allocation, market trading, and compliance fulfillment. Trading volume has expanded significantly in the last two years. At the end of 2021, the cumulative trading volume of the national carbon market was 180 million tons, with a turnover of 7.66 billion yuan. By the end of 2025, these figures had reached 870 million tons and 57.66 billion yuan. In 2025, the annual allowance trading volume was 235 million tons, a year-on-year increase of about 24%, with an average trading price of 62.36 yuan per ton. Entering 2026, as of July 14, the cumulative trading volume and turnover increased by approximately 59 million tons and 4.5 billion yuan, respectively, compared to the end of 2025. The closing price of allowances on July 14 was 87.89 yuan per ton. Market expansion has been the most significant structural change in the past year. In 2025, the national carbon market included 3,378 key emitting entities, covering about 8 billion tons of emissions. The newly included steel, cement, and aluminum smelting industries are gradually entering the processes of accounting, allowance allocation, and compliance. The allowance arrangement is also transitioning from an initial year of equal allocation based on verified actual emissions to an allocation method based on carbon emission intensity, reflecting differences in emission reduction levels among enterprises. The compliance constraint of the national carbon market remains strong, with the compliance rate for the 2024 allowances at approximately 99.99%. However, trading is still heavily concentrated around the compliance period, and the carbon price is sensitive to changes in allowance allocation, carry-over rules, and industry supply and demand. As the newly included industries enter normal compliance cycles, carbon emission accounting, emission reduction project evaluation, and carbon asset management will become more deeply integrated into corporate business decisions. Market expansion will also gradually translate into a price expression of the cost differences in emission reduction.

Industry and Style Rotation Model Views Last week, the market showed a recovery, with the CSI All-Share index rising 5.23%. Large-cap growth rose 4.31%, small-cap growth rose 6.96%, large-cap value fell 3.06%, and small-cap value rose 0.24%. According to model data, the latest large-cap score is -0.34, the small-cap score is 0.48, the growth score is -0.39, and the value score is 0.32. Therefore, the latest market cap view is small-cap, and the valuation view is value. In terms of style, similarity indicators point to small-cap/growth, but trend indicators still point to value. The comprehensive view is small-cap + value. Looking ahead to the next week, the current view is similar to last week, that the model has passed its most pessimistic period and there should be a short-term recovery. However, the risk of bottoming is still present, and it is advisable to trade in conjunction with market movements. 1. Style odds data: As previously verified, the relative valuation level of a market style is a key factor influencing its expected odds, and the two should show a negative correlation. Due to this linear relationship, based on the latest valuation percentile differential, the estimated odds for value relative to growth are 1.23, and the estimated odds for large-cap relative to small-cap are 1.42. 2. Style win rate view: The current win rate for the growth style is 37.50%, and for the value style is 62.50%. The win rate for the large-cap style is 21.43%, and for the small-cap style is 78.57%. 3. Style score: According to the formula, the investment weight score = (win rate * odds - (1 - win rate)) / odds. Based on model data, the latest large-cap score is -0.34, the small-cap score is 0.48, the growth score is -0.39, and the value score is 0.32. Therefore, the latest style rotation model recommends the small-cap + value style. 4. DTW Timing Signal: The principle of the DTW similarity timing strategy is based on a similarity approach. It examines the similarity between the current market index trend and historical trends, selects several historical trend segments with high similarity as references, and calculates the weighted average change and weighted standard deviation of these segments over the next 1 or 5 days (weights are the inverse of the distance). Trading signals are generated based on the average and standard deviation of future changes. Risk warnings: (1) Macro: Overseas policy. (2) Strategy: Economic data missing expectations, incomplete understanding of policy, overseas policy tightening exceeding expectations. (3) Fixed Income: Economic fundamentals exceeding expectations, government bond supply pace exceeding expectations, pro-growth policy exceeding expectations. (4) Banking: Slow improvement in economic fundamentals; policy intensity below expectations; intensified deposit competition and term deposit trends. (5) ESG: This report is based on publicly available information, for reference only, and does not constitute investment advice. ESG-related policies are still being refined, and standard systems and market reactions are uncertain. Related investment products may face risks such as valuation volatility, insufficient liquidity, and thematic deviation. Investors should exercise prudent judgment. (6) Quantitative: This report's results are based on historical data statistics, modeling, and calculations. The model may fail under changes in policy and market environment. The stocks or funds mentioned in this report only indicate a certain correlation with the related theme and do not constitute investment advice.