China Securities Co.,Ltd.: Last week, small-cap growth was relatively dominant, and pharmaceutical sector funds performed well overall.

China Securities Co.,Ltd. released a research report stating that this week (20260914-20260918), as of market close, the CSI 300 Index fell 0.06%, the Hang Seng Tech Index rose 1.97%, and small-cap growth was relatively dominant. In terms of sectors, electronics led performance this week with a gain of approximately 6.09%; telecommunications, machinery, and pharmaceuticals also performed relatively well, while coal, agriculture, forestry, animal husbandry and fishery, and petroleum and petrochemicals lagged relatively. Pharmaceutical sector funds performed well overall, with an average gain of 5.34% over the past week; fund positions declined overall this week, standing at a medium level over the past year. In terms of style, funds increased allocations more to large-cap growth, and at the sector level increased allocations to home appliances, among others. The main views of China Securities Co.,Ltd. are as follows: The largest fund sales institution's non-monetary fund scale exceeds 2 trillion According to semi-annual top 100 fund sales institution data disclosed by the Asset Management Association of China, as of June 2026, Ant Fund's non-monetary fund custody scale reached 2.21 trillion yuan, marking the first time a single fund sales institution's non-monetary fund custody scale has exceeded 2 trillion yuan. From the perspective of individual institutions, the top 3 institutions by non-monetary fund custody scale still grew faster than the industry overall in the first half, and custody scale concentration further increased. By channel type, third-party institutions further narrowed the custody scale gap with bank channels amid high growth in the first half, securities firm channels grew steadily, and bank channel growth slowed. From the perspective of incremental equity business, the share of stock index business further increased, reflecting that index-based investing is becoming an important battleground for layout and competition in the fund sales industry. This week (20260914-20260918), as of market close, the CSI 300 Index fell 0.06%, the Hang Seng Tech Index rose 1.97%, and small-cap growth was relatively dominant. In terms of sectors, electronics led performance this week with a gain of approximately 6.09%; telecommunications, machinery, and pharmaceuticals also performed relatively well, while coal, agriculture, forestry, animal husbandry and fishery, and petroleum and petrochemicals lagged relatively. Pharmaceutical sector funds performed well overall, with an average gain of 5.34% over the past week; fund positions declined overall this week, standing at a medium level over the past year. In terms of style, funds increased allocations more to large-cap growth, and at the sector level increased allocations to home appliances, among others. Payment governance, central-local integration, and strategic resource restructuring The marginal changes in state-owned and central enterprise reform this week were concentrated at both ends: constraints on operating behavior and innovation in capital linkages. Around the difficulty small and medium-sized enterprises face in receiving payments, SASAC required central enterprises to pay promptly, issue fewer bills and pay more in cash, and strengthen management of long-term notes and certificates, extending regulatory focus from capital layout further to industrial chain transaction behavior. On the capital operations side, GAC and FAW Group signed a letter of intent to acquire part of the equity of a vehicle joint venture through share issuance; China Minmetals and Guangxi Key Metal Group signed a framework agreement to obtain a controlling stake and integrate Guangxi Huaxi Nonferrous Metal, respectively presenting paths of central-local equity cooperation and strategic resource concentration. At the local level, the merger of Pudong venture capital platforms, the consolidation of Sichuan state-owned assets, and Chongqing's deliberation of a mid-term reform plan show that the focus of reform is gradually shifting from building platforms to clarifying core businesses and post-restructuring operations. The Ministry of Housing and Urban-Rural Development sets the tone that real estate has entered the stock era, and new housing provident fund policies are implemented The Ministry of Housing and Urban-Rural Development made clear at a State Council Information Office press conference that China's real estate has entered the stock era, second-hand housing transactions now account for more than 50%, and the relationship between market supply and demand has undergone major changes. During the "15th Five-Year Plan," the construction of a new model for real estate development will be accelerated, with focus on three systems: the project company system, the lead bank system, and the completed housing sales system, systematically advancing the construction of "good houses" and urban renewal, and broadening the scope for housing provident fund withdrawals and use, with withdrawal scenarios increasing from 6 to 9. Funds may be withdrawn for home decoration and property management fees, supporting renting, purchasing, renovating, and maintaining homes. At the local level, Tianjin, Wuhan, and Changzhou simultaneously issued new housing provident fund withdrawal policies, and the scope of housing provident fund support for housing consumption continued to expand. The dairy industry inflection point has emerged, pay attention to opportunities in low-position sectors Baijiu: This week the baijiu industry showed moderate overall recovery and continued structural divergence. National Bureau of Statistics data showed that from January to August, tobacco and liquor retail sales grew 12.4% year on year, and baijiu output in August rebounded slightly year on year. Overall industry demand improved marginally, but the price index weakened slightly, with the market showing a pattern of firm high-end products, pressure on sub-high-end products, and a recovery in mass-market rigid demand. Holiday stocking for the two festivals entered the sprint stage, with overall channel stocking progress at 80%, stable high-end wholesale prices, and smooth payments, while inventory pressure in the 300-800 yuan sub-high-end segment was relatively high, with distributors cautiously controlling inventory and emphasizing real sell-through. Mass consumer goods: Continue to grasp the three main lines of mass consumer goods. 1) Pay attention to channel transformation opportunities such as new retail store formats and customized supermarket offerings. 2) Health-oriented tracks and functionalized blockbuster products. 3) Strongly call the dairy industry reversal year and watch opportunities in emerging raw materials. In September, loose milk prices rose significantly in many places in northwest and north China, and the resonance between meat and milk pushed the raw milk cycle upward. El Nino pushed feed prices higher, which is also conducive to continued industry clearing and to improvement in the competitive landscape of leading liquid milk players. Continued increases in cattle prices drove profit recovery at upstream pastures, and with milk prices stabilizing, pasture profit elasticity is greater. As of August 2026, total inventory was 5.759 million head, down 726,000 head from the February 2024 high, and imports of live cattle fell from a peak of 361,000 head in 2021 to 15,300 head since the beginning of the year. This cycle has culled a total of about 500,000 replacement cattle, and the share of adult cows rose from 50.8% in 2023 to the current 53.8%. It is expected that around 2027-2028, affected by the concentrated culling of adult cows from the previous expansion period and limited replacement cattle replenishment, raw milk supply will be relatively tight, and total output is expected to decline. Zhuque-2 + Gravity-1 network launch, building China's commercial rocket multi-series echelon On September 15, Blue Arrow Aerospace's Zhuque-2 Y7 modified carrier rocket lifted off from the Dongfeng Commercial Aerospace Innovation Test Zone, successfully sending 10 satellites from the Qianfan polar orbit Group 19 into the planned orbit; on the 16th, Orienspace's Gravity-1 Y3 completed a sea launch in the East China Sea, sending 8 Qianfan network satellites and 1 EUHT technology test satellite into orbit. Within 24 hours, two private rocket companies consecutively carried out large low-orbit broadband internet constellation networking missions, marking that China's private commercial aerospace has officially moved from "test payload carrier" into a new stage as a "large constellation networking service provider," and the collaborative construction pattern of state-owned plus private players is accelerating. Recommendations: 1) Rocket segment: high-barrier areas such as engines and rocket body structures; 2) Satellite segment: payloads, antennas, and laser communication terminals; 3) Ground equipment: civil terminals and direct-to-handset technology; 4) Operating services: companies with scarce license qualifications.