CSC Financial: Production shows resilience, demand awaits verification.

CSC Financial released a research report noting that August's macro picture presented a combination of "weak recovery, strong divergence, and credit contraction." The production side was divergent, demand was strong externally but weak domestically, and the credit side was the weakest, with the transmission from monetary easing to credit expansion lagging. Industrial profits maintained growth but were concentrated in electronics and upstream sectors such as nonferrous metals, coal, and chemicals, while rising inventories and accounts receivable suggest that earnings quality still needs to be tested. In September, A-shares generally pulled back and trading volume contracted, and a single-day rebound at month-end was not enough to confirm a reversal in risk appetite. For October, adopt a structure of "a base position in cash flow and dividend plays + AI hardware with order fulfillment + cyclical goods with clear supply constraints"; banks and utilities are for defensive observation. For consumption, focus on companies with rising market share, stable cash flow, and relatively low valuations; for real estate, focus on valuation repair as the sector's attribute shifts from property to construction.