China Securities Co., Ltd.: China's core assets are becoming more attractive, foreign capital is increasing allocation to Chinese assets, and the willingness to invest in Chinese assets is increasing.

China Securities Co., Ltd. released a research report stating that in the second half of the year, external situation tends to ease, the attractiveness of China's core assets is rising, Hong Kong stocks lead the global market, and technology stocks are becoming the focus of China's innovation. Policy advantages, low valuations, and high dividend assets enhance the market's appeal. Ultra-long-term special national bonds will support the "two major" construction, and efforts will be made to implement the "two new" policies, with emerging industries such as high-end equipment and smart manufacturing maintaining rapid expansion, becoming the new engine of China's economic growth. Consumption is shifting from "necessities" to "wants", with service consumption, personalized consumption, self-indulgent consumption, and experiential consumption becoming the growth highlights in the consumption sector. Overseas environment: The US interest rate cut cycle may accelerate, with stable CPI and increasing fiscal pressure highlighting the need for the Federal Reserve to cut rates to offset demand-side pressures. The stabilization of the renminbi exchange rate and the increased willingness of foreign investors to allocate assets in China. Financial support: With fiscal policy becoming a key support under pressure from external demand, the rapid issuance of ultra-long-term special national bonds and special bonds will anchor growth and industrial upgrading. Technological breakthroughs: Accelerated localization of AI, commercial breakthroughs in quantum computing, and policy support promoting the deep integration of AI chips, low-altitude economy, and other emerging fields. Chinese elements: Prosperity in the outbound and inbound tourism markets with the promotion of visa-free policies for foreigners to enter, global sales of cultural and creative products, and the acceleration of "national trend" brands going global. Policy support: Precision and continuous efforts in demand-side policies to cultivate demand potential and capabilities. Monetary policy remains stable and slightly accommodating, with the China Investment Corporation assisting in the market's rebound; the trade-in-old-for-new policy stimulates consumption. Foreign affairs and trade: Upgrading institutional openness, completion of negotiations for the China-ASEAN Free Trade Area 3.0, deepening regional supply chain cooperation, and reshaping global impressions with the overseas expansion of military equipment. The Chinese path: With guiding principles such as new productive forces and a human community with a shared future, China is walking on a road that requires strategic patience but also presents numerous highlights. China will continue to focus on its own development, adhere to free trade, and build a new global cycle.