**Market Overview**

After persistent lows, both mainland and Hong Kong markets finally staged a major counterattack. A-shares decisively broke through the 3,800-point barrier, while the Hang Seng Index gapped up and maintained steady upward momentum, closing up 1.43%. Today's recovery demonstrates that the "bull" market remains intact. The rationale is straightforward: despite the absence of regulatory clarification, market-supporting measures were evident. On September 4, the People's Bank of China announced that on September 5, it would conduct RMB 1 trillion in outright reverse repo operations through fixed-quantity, rate-tender, and multiple-price bidding methods, with a 3-month (91-day) maturity. This timely liquidity injection clearly signaled the authorities' stance.

Looking back, three consecutive days of decline can be viewed as normal adjustment, especially given the absence of major negative catalysts. As previously mentioned, "the positive boost from the military parade will not disappear, and the market will eventually come to its senses - it's just a matter of timing."

**Energy Storage and Solid-State Battery Surge**

The mutual reinforcement between energy storage and solid-state technologies sparked today's solid-state battery rally, triggered by Leading Intelligence Equipment's (300450.SH) response on an investor interaction platform. On September 4, the company stated that in the solid-state battery field, as a solution provider with complete proprietary intellectual property for solid-state battery production lines, it has successfully established the entire production process chain for mass production of solid-state batteries.

With the lithium battery peak season approaching and September production schedules looking favorable, industry feedback indicates third-quarter overall production planning has increased 15%-20% quarter-over-quarter, particularly in energy storage segments. The frequently mentioned CALB (03931) surged over 18% again, while other picks including September gold stock Tianneng Power (00819) and Longpan Technology (02465) both gained over 12%.

Lithium battery materials are all rising in price. August monthly hexafluoroethane production hit a historical high, with September showing over 5% month-over-month growth and production schedules continuing to rise from September through December, creating short-term supply-demand tightness. Upstream lithium salts were directly activated, with Ganfeng Lithium (01772) and Tianqi Lithium (09696) both gaining over 12%.

**Polysilicon Momentum Continues**

Yesterday's polysilicon theme continued to ferment. On September 5, domestic commodity futures mostly closed higher with polysilicon hitting the daily limit up 9%. Silicon material leader GCL Technology (03800) surged over 12%. Yesterday's mentioned stocks Flat Glass (06865) and September gold stock Xinyi Solar (00968) both gained over 8%.

The above lithium battery and solar developments are fundamentally results of anti-involution efforts.

**Semiconductor Materials Revolution**

NVIDIA officially announced its next-generation Rubin chip, planning to introduce 12-inch silicon carbide substrates into new-generation GPU packaging before 2027. Abandoning silicon for silicon carbide represents not merely technical iteration but a materials revolution. SiCC (02631), the global silicon carbide substrate leader, has formed a 6/8/12-inch silicon carbide substrate product matrix, including 12-inch high-purity semi-insulating, conductive P-type and N-type silicon carbide substrates. The stock surged over 18% today.

**Innovative Drug BD Activity**

Another BD deal emerged in innovative drugs. Hengrui Medicine (01276) announced reaching an exclusive licensing agreement with US-based Braveheart Bio for its self-developed myosin small molecule inhibitor HRS-1893 project. This BD transaction operates under a NewCo model with an upfront payment of $75 million. Hengrui's three BD transactions this year have exceeded $15 billion in total. The stock gained nearly 6% today.

Related stocks also actively followed suit. Pharmaron (03759) announced that Zhongkang Cheng's shareholding reduction plan has been completed, with cumulative disposal of 26.6729 million shares. With the reduction completed, the company can operate with a lighter load, gaining over 8% today.

**Management Increases and Corporate Updates**

According to the latest equity disclosure from the Stock Exchange, on September 4, 2025, Shiyao Group (02005) saw its executive director, chairman, and CEO Qu Jiguang increase holdings by 880,000 shares at an average price of HK$2.9652 per share on-market, involving approximately HK$2.6094 million. Post-increase, the shareholding ratio rose from 39.61% to 39.64%. The company has obtained production registration certificates for Urapidil Extended-Release Capsules (30mg), Nicardipine Hydrochloride and Sodium Chloride Injection (200ml), and Drotaverine Hydrochloride Injection (2ml). The stock gained nearly 10% today.

**Service Trade Fair Catalyst**

The 2025 China International Fair for Trade in Services will be held grandly at Shougang Park from September 10-14. The repeatedly mentioned First Ship Lease (00697) will showcase cutting-edge technology products at this conference, opening a robot experience store at Shougang Park to display multiple frontier technology achievements, demonstrating First Ship's unique industrial charm and technological strength. The experience store will reportedly exhibit various innovative products including Cute Friend Technology's latest pet robots and Particle Technology's intelligent swimming goggles. The stock gained over 7% today.

**Oil Market and Shipping**

Eight OPEC+ countries will hold an online meeting to decide October oil production. If further production increase plans are approved, OPEC+ will begin withdrawing approximately 1.65 million barrels per day of production cuts, equivalent to 1.6% of global demand, more than a year ahead of the original schedule. With OPEC+ production increases accelerating consecutively, oil shipping market sentiment is expected to improve significantly in Q4 2025. Yesterday's mentioned oil shipping leader COSCO SHIPPING Energy (01138) directly gained over 6% again.

**Tobacco Monopoly Expansion**

The exclusive monopoly power of China Tobacco International (06055) is showing its strength. The company signed two new exclusive cigar distribution agreements, expanding the exclusive distribution scope of "Yellow Crane Tower" and "Taishan" cigars from the original duty-free markets in Thailand, Singapore, Hong Kong and Macau, and China's domestic duty-free market to the global market. The company's tobacco import-export main business continues steady growth, while emerging businesses like cigarettes and e-cigarettes are expected to contribute incremental performance. As China Tobacco International's capital operation platform for acquiring and integrating supply chain assets, this is also an important expectation. The stock gained over 5% today.

**US Employment Data Preview**

The US Bureau of Labor Statistics will release the August non-farm employment report on Friday evening Beijing time, serving as an important reference for investors to judge the US economy and Federal Reserve rate cut prospects. Economists expect August US job additions of 75,000. Currently, money markets have fully priced in a 25 basis point Fed rate cut this month and expect at least two rate cuts by year-end. For a 50 basis point cut, according to Standard Chartered Bank analysis, non-farm employment would need to be below 40,000 with unemployment reaching or exceeding 4.4%. Most likely will be "not good, not bad" data, as either too strong or too weak wouldn't be favorable. Regardless, a minimum 25 basis point rate cut is guaranteed.

Gold stocks remain attractive. According to Zijin Mining (02899)'s official WeChat, on the afternoon of September 3, Zijin Mining Chairman Chen Jinghe met with visiting Serbian President Vučić in Beijing. President Vučić stated that Zijin Mining's major investment projects in Serbia have powerfully driven the recovery and upgrade of Serbia's mining industry, serving as an important pillar for sustained economic growth in Serbia's eastern region and nationwide. The stock gained nearly 6% today.

**Sector Focus: Russia-China Visa-Free Policy**

Russian President Putin mentioned at the Eastern Economic Forum plenary session that in response to China's friendly visa-free policy measure for Russian citizens, Russia will correspondingly implement reciprocal visa-free policy for China. OTA platform data shows flight search volume to Moscow and St. Petersburg destinations doubled year-over-year. Beijing to Moscow flight searches were highest, with average tax-inclusive prices at RMB 1,482.

Russia has numerous world-famous tourist destinations. Platform analysis suggests that with this visa-free policy boost, travelers to Russia during this year's National Day holiday are expected to increase significantly. Russia is expected to become a popular tourist destination, with main beneficiaries being: Trip.com Group (09961) with relatively stronger international business advantages; for Russians traveling to China, mainly benefits TONGCHENGTRAVEL (00780) with stronger domestic tourism; other beneficiaries include duty-free operator CTG DUTY-FREE (01880).

**Individual Stock Spotlight: CIRRUS (02507) - Revenue and Profit Double Explosion, Full-Year Delivery Volume Expected to Exceed Expectations**

The company achieved H1 revenue of $594 million (+25.1% YoY) and net profit attributable to shareholders of $64.966 million (+82.5% YoY), with net margin jumping from 7.48% in the same period last year to 10.93%, showing significant profit elasticity.

Commentary: The company's recent adjustment was due to CIRRUS being removed from the Hang Seng Composite Index, but fundamentals remain strong with H1 revenue and profit double explosion. Delivery data exceeded expectations. As the world's best-selling high-performance single-engine piston aircraft manufacturer and among the first globally to adopt Safe Return emergency automatic landing systems, the company has equipped over 600 "Vision" jets with this system.

Orders and deliveries mutually confirm strength. Delivered 350 aircraft (+22% YoY), including 305 SR2X series and 43 Vision jets; Q2 delivered 200 aircraft, up 33% QoQ. New orders totaled 241 aircraft, with order backlog reaching 1,056 aircraft as of end-June (including 827 SR2X and 229 Vision jets), supporting 1.5 years of production with strong earnings certainty.

Product matrix covers mid-to-high-end markets: SR2X series targets mass private aviation (average price $1.14 million), Vision jets target high-end demand (average price $3.48 million), with the SRG7+ launched in May 2025 further enhancing safety and intelligent configurations.

On the production side, CIRRUS belongs to high-end manufacturing with high barriers in aviation manufacturing, capturing nearly half of the top three market share in 2024. On the sales side, it operates as high-end consumer goods, deeply cultivating the private aircraft field primarily for C-end customers, with products continuously raising prices in recent years. In 2024 compared to 2021, SR2X series pricing increased 26% and Vision jets increased 24%, showing typical high-end consumer goods characteristics.

The company's core SR2X series has been the world's best-selling single-engine piston aircraft for 22 consecutive years, while Vision jets have topped best-selling business jet rankings for six consecutive years. With increasing high-net-worth individuals, regional market expansion, technological innovations enhancing flight experience, and policy support promoting industry development, the private aviation market is poised for rapid growth. The company's profitability continues to optimize.