Sino-U.S. Relations See Positive Momentum; Xiaomi Shares Face Healthy Pullback | Today's Important News Review

0703 ｜Dolphin Research Key Focus:

🐬 Macro/Industry

1. On July 2, 2025, the U.S. government announced the lifting of export restrictions on China's chip design software (EDA) and ethane. Companies like Siemens and Synopsys have been notified and resumed supplying software and technology to Chinese customers. This move indicates a positive step in trade friction between the two sides. EDA software is a critical tool for chip design, and lifting the restrictions allows Chinese chip design companies to regain access to advanced design software and technical support, which is beneficial for enhancing chip design capabilities and accelerating the development of the semiconductor industry.

2. The ADP employment numbers for June decreased by 33,000, marking the largest drop since March 2023, far below the market expectation of an increase of 98,000. This data indicates signs of weakness in the U.S. job market, which may affect consumer confidence and spending, thereby negatively impacting economic growth. Additionally, poor employment data increases the likelihood of adjustments in the Federal Reserve's monetary policy.

3. U.S. President Trump stated that the U.S. has reached a trade agreement with Vietnam and will impose a 20% tariff on goods imported from Vietnam. This adjustment in trade policy may affect the import and export trade of related industries, thereby impacting corporate profitability and market expectations.

🐬 Individual Stocks

1.$XIAOMI-W(01810.HK)

Lei Jun conducted a live broadcast last night, providing further information on the recently released Xiaomi YU7, mainly discussing topics such as the low-cost model, delivery capacity issues, and order volume. Dolphin Research maintains its expectations for Xiaomi Auto unchanged. For detailed commentary and minutes, see "Lei Jun's Seminar: Not 'Competing' in Low-Cost Cars, Preparing to Go Overseas in 2027".

🐬 Leading Sectors

Shanghai and Shenzhen: Agricultural machinery, footwear, motorcycle manufacturers;

Hong Kong stocks: Silver, electronic components, biotechnology;

U.S. stocks: Home appliances, diversified chemicals, kitchenware.

🐬 Focus for Tomorrow

1. None.

Risk Disclosure and Statement of this Article: Dolphin Research Disclaimer and General Disclosure