Securities morning meeting highlights | Strategically focusing on "two highs" and "two news" investment opportunities

Market hit a bottom yesterday and rebounded, with the Growth Enterprise Board Index leading the gains. The total trading volume of the Shanghai and Shenzhen stock markets was 2.01 trillion, a decrease of 541.5 billion compared to the previous trading day. Overall, the number of stocks that rose and fell was basically equal. In terms of sectors, Shanghai state-owned enterprise reform, SORA concept, TikTok concept, solid-state battery and other sectors were among the top gainers, while tourism, gas, CRO, pharmaceutical business and other sectors were among the top decliners. By the end of trading yesterday, the Shanghai Composite Index rose by 0.51%, the Shenzhen Component Index rose by 0.4%, and the Growth Enterprise Board Index rose by 1.11%. At today's morning meeting of securities firms, CICC believes that the timely implementation of tax optimization policies may boost housing transaction volume; Guotai Junan stated that the pet economy is thriving and it is worth paying attention to the breakthrough of domestic pet industry leaders' products; China Securities Co., Ltd. pointed out the strategic importance of "two heavy" and "two new" investment opportunities. CICC: The timely implementation of tax optimization policies may boost housing transaction volume CICC stated that the Ministry of Finance, the State Taxation Administration, and the Ministry of Housing and Urban-Rural Development issued the Announcement on Related Tax Policies to Promote the Stable and Healthy Development of the Real Estate Market, adjusting deed tax, value-added tax, and land value-added tax. This adjustment of deed tax and value-added tax mainly benefits housing transaction volume in first-tier cities, which can stimulate the improvement of the group to a certain extent, boost total demand, but may also change sellers' expectations and increase the volume of sales, leading to an overall increase in transaction volume (may be more significant in first-tier cities under the double policy boost), but price trends still need to be observed further based on changes in supply and demand. At the same time, the adjustment of land value-added tax may help relieve the pre-payment tax burden of real estate companies, contributing to improving short-term cash flow pressures. Leading enterprises with development investment restoration potential, deep core city cultivation, and long-term market share expansion potential can prioritize their focus on configuration; and if future policy measures exceed expectations, they can choose higher elastic targets at the right time. Guotai Junan: The pet economy is thriving, the breakthrough of domestic pet industry leaders' products is worth attention Guotai Junan stated that the development of China's pet industry is relatively late compared to countries like Europe and the United States, and it is currently in a rapid development stage. Young people are the main group of pet owners in China, driving the continuous growth of pet numbers and the increase in per capita consumption. In the context of foreign brands dominating the market, leading domestic brands continuously innovate by responding to the needs of young pet owners, thereby increasing their market share. Looking ahead, solving the health problems of pets through research and promoting product innovation is the core of brand longevity. The scientific understanding of raising pets by pet owners is deepening, and pets are also facing problems such as aging. Solving the health problems of pets is the future direction of product innovation. Referring to the long-lasting pet food companies in foreign countries, the core competitiveness lies in product innovation focused on pet health. Domestic leading companies focus on research and development, and the breakthrough of products is worth attention. China Securities Co., Ltd.: Strategically focus on "two heavy" and "two new" investment opportunities China Securities Co., Ltd. stated that "two heavy" and "two new" are highlights of this year's policies, and after comprehensive assessment, it is expected to be an important focus of future efforts to boost domestic demand. At the press conference of the State Council Information Office in October, it was announced that in the next 25 years, ultra-long-term special national bonds will continue to be issued and investment targets will be optimized to support the construction of "two heavy", with new urbanization likely being a key direction; as for "two new", the scope and scale of support are expected to expand further, and consumer electronics may be an incremental growth area, while equipment upgrades are expected to promote high-end, intelligent, and green transformation in various fields as a policy focus. This article is reprinted from "CaiLian News", GMTEight Editor: Liu Jiayin.