Securities Morning Meeting Highlights: The expansion of consumption in the 15th Five-Year Plan is expected to stimulate the vitality of medium and long-term growth.

Yesterday, the market experienced a volatile adjustment, with all three major indices collectively falling. The turnover in the Shanghai and Shenzhen markets was 2.82 trillion. In terms of sectors, the medical, banking, and electronic special gas sectors were active. On the downside, the optical fiber, storage chip, MLCC and other sectors fluctuated and fell. At the close, the Shanghai Composite Index fell by 2.06%, the Shenzhen Component Index fell by 3.48%, and the ChiNext Index fell by 3.1%. At the morning meeting of securities firms today, Huatai believes that the expansion of consumption in the "14th Five-Year Plan" is expected to stimulate medium- to long-term growth vitality; China Securities Co., Ltd. believes that in the diamond industry, applications for encapsulated cover plates and cold plates/microchannels are expected to lead in volume; CICC believes that with market volatility rising, it is advisable to increase allocation to liquidity-sensitive assets. Huatai: Expansion of consumption in the "14th Five-Year Plan" is expected to stimulate medium- to long-term growth vitality On July 13, the "Expanding Consumption '14th Five-Year Plan'" (hereinafter referred to as the "Plan") was issued in the form of a national letter, focusing on 28 key tasks in six areas, including improving service consumption quality and benefiting the people, expanding and upgrading goods consumption, cultivating new formats, new models, and new scenarios in consumption, enhancing consumption capacity, optimizing the consumption environment, and building long-term mechanisms. With the gradual implementation of consumption-boosting policies, the fundamentals of the consumer sector are expected to gradually improve, along with a revaluation of leading valuations. Three main investment themes are recommended: 1) AI technology consumption; 2) emotional and experiential consumption; 3) the rise of domestic brands and globalization. China Securities Co., Ltd.: Applications for encapsulated cover plates and cold plates/microchannels in the diamond industry are expected to lead in volume Diamond composites, with their ultra-high thermal conductivity (up to 2000W/mK) and low thermal expansion coefficient, have already been applied in high-performance consumer electronics and AI servers. Looking ahead, in the short term, diamond copper composites (600-800W, with a cost only 10%-20% of pure diamond, according to industry research) have mature technology and outstanding industrial cost performance, suitable for encapsulated cover plates and cold plates/microchannels, and are expected to lead in volume; in the medium term, polycrystalline diamond heat sink sheets bonded to chips, the key breakthrough lies in surface smoothness and curl control, which are expected to further mature in the next 1-3 years; in the long term, single-crystal diamond wafer-level bonding straight to chip substrates is still in the early stages of technical exploration due to size and cost constraints. In terms of future industry value over the next few years, the core of the sector's opportunities lies in the ability to produce 8-inch polycrystalline diamond MPCVD equipment and bonding equipment for end-users advancing diamond heat dissipation solutions. CICC: Market volatility is increasing; it is advisable to increase allocation to liquidity-sensitive assets As the fundamentals of non-AI sectors of the Chinese and American economies have not yet significantly changed, as long as the trend in the AI industry remains clear, AI technology may still be a medium- to long-term market theme. However, given the high expectations, valuations, and crowdedness of Chinese and American technology stocks, short-term volatility may increase. In addition to maintaining the allocation of AI assets, there may be a growing need to increase allocation to liquidity-sensitive assets (such as gold, metals, etc.). China's liquidity structure is shifting from traditional credit expansion to forex derivatives, indicating that Chinese assets are becoming more sensitive to USD liquidity. The three main variables in overseas liquidity in the second half of the year - geopolitical conflict, inflation, and policy - are all "false risks," with the real opportunities in the global market in the second half of the year lying in easing geopolitical tensions, declining inflation, and a more accommodative monetary policy from the Federal Reserve. This article is reproduced from "", GMTEight editor: Liu Jiayin.