china-sector-overview

china-sector-overview

Purpose

Create comprehensive A-share Industry/Sector In-Depth Report covering market dynamics, competitive positioning, regulatory environment, key players, trading multiples, and thematic trends.

Data Sources

Primary: iFind MCP (Tier-1 paid) / AkShare MCP (Tier-2 free alternative)

get_industry_stocks(industry="白酒")     → 板块成分股
get_quote(ticker)                        → 个股行情、估值
get_financials(ticker, "income")         → 财务数据对比
get_index_data("000001")                 → 大盘基准
# News (china-news MCP — separate server)
get_stock_news(ticker="{{TICKER}}")          → 行业新闻
get_market_overview()                    → 涨幅榜/成交额榜

Secondary Sources

Source	Use
East Money industry sectors	Industry classification, sector indices
CNINFO	Company filings for competitive analysis
National Bureau of Statistics / General Administration of Customs	Macro data (industry output, trade)
Industry associations (CAAM, Silicon Industry Branch, etc.)	Sector-specific statistics
Wind / Choice / Hithink RoyalFlush	Comprehensive sector data
Brokerage research reports	Analyst consensus and frameworks

Workflow

Step 1: Define Scope & Angle

Clarify:

• Sector / industry focus (e.g., baijiu, semiconductors, new energy vehicles)
• Angle (e.g., investment theme, competitive analysis, turnaround story)
• Geographic scope (A-share only, or include HK-listed / US-listed Chinese)
• Time horizon (cyclical analysis, secular trends, near-term trade)

Step 2: Market Size & Structure

Industry overview:

Metric	Data	Source
Total market size	Market size (100 million yuan/100 million yuan)	National Bureau of Statistics, industry associations
Growth rate	Year-over-year growth / CAGR	Historical data
Market share	CR5, CR10 concentration	Company filings
Penetration rate	For new industries	Industry reports
Export/import	Import and export data	General Administration of Customs

A-share representation:

• Number of listed companies in sector
• Total market cap (total market cap / free-float market cap)
• Average PE / PB multiples
• Liquidity (average daily turnover)

Step 3: Competitive Landscape

Peer mapping:

# Get all stocks in an industry
get_industry_stocks(industry="白酒")

For each major player, pull:

get_quote(ticker)           → Price, market cap, multiples
get_financials(ticker)      → Revenue, margins, growth
get_stock_info(ticker)      → Business description

Competitive analysis table:

Company	Ticker	Market Cap (100 million)	Revenue (100 million)	YoY Growth	Gross Margin	Net Margin	PE (TTM)	Market Share

Competitive positioning:

• Market share trends (gaining or losing)
• Product positioning (premium, mid-tier, mass market)
• Geographic footprint (national vs regional)
• Distribution strength (channel capability)
• Brand equity (brand power)

Step 4: Trading Multiples & Valuation

Sector multiples:

Metric	Current	1Y High	1Y Low	5Y Average	Historical High	Historical Low
Average PE
Average PB
Average PS
EV/EBITDA

Multiple dispersion:

• Premium names (high multiple vs sector)
• Value names (low multiple vs sector)
• Historical range and where we are in cycle

Step 5: Policy Environment

China-specific policy analysis:

Policy Area	Current Status	Impact
Industrial policy	Supportive/restrictive/neutral	Direct sector impact
Environmental policy	Dual carbon goals	Cost structure impact
Regulatory policy	Centralized procurement/antitrust	Margin / market share impact
Subsidy policy	New energy/semiconductor subsidies	Competitiveness impact
Monetary policy	Loose/neutral/tight	Financing cost impact

Key regulatory bodies:

• NDRC — industrial policy, pricing
• MIIT — manufacturing, tech, telecom
• MEE — environmental compliance
• NHC — healthcare, pharmaceuticals
• CSRC — capital markets
• PBoC — monetary policy

Step 6: Key Drivers & Trends

Secular trends (3-5 year):

• Technology adoption (technology substitution)
• Consumption upgrade/downgrade
• Demographic shifts
• Supply chain localization
• Environmental transition (dual carbon/ESG)

Cyclical factors:

• Inventory cycles
• Capacity utilization
• Pricing trends
• Demand momentum

Step 7: Investment Themes

Thematic angles:

1. Policy-driven: Domestic substitution, new infrastructure, rural revitalization
2. Demand-driven: Consumption upgrade, aging, going global
3. Supply-driven: Capacity clearance, industry consolidation, leader concentration
4. Technology-driven: AI applications, new energy, biopharmaceutical innovation

For each theme:

• Investment thesis
• Key names to express the theme
• Timeline and catalysts
• Risks and headwinds

Step 8: Trading Ideas

Ideas shortlist (from sector overview):

Idea	Ticker	Direction	Thesis	Catalyst	Risk
		Long / Short

Step 9: Report Structure

Standard A-share sector overview format:

【XX证券】[行业] 深度报告：[标题]

一、行业概述
   市场规模、增速、发展阶段

二、竞争格局
   主要玩家、市场份额、竞争要素

三、政策环境
   监管框架、产业政策、影响分析

四、财务分析
   行业盈利能力、ROE、杠杆水平

五、估值分析
   当前 multiples vs 历史 vs 国际对标

六、核心驱动因素
   长期趋势、短期催化、周期位置

七、投资建议
   重点标的、目标价、评级

八、风险提示
   政策风险、需求风险、竞争风险

China-Specific Considerations

A-share Market Structure

Feature	Description	Implication
Price limit	±10% (main), ±20% (ChiNext/STAR Market)	Price discovery slower
High retail investor share	Retail ~60-80% of turnover	More sentiment-driven
Policy-driven	Government announcements move markets	Monitor policy closely
Sector rotation	Sector rotation common	Timing important
Northbound capital	Foreign inflows tracked daily	Sentiment indicator

Industry Classification

Common sector classifications:

• SW Industry — most widely used
• CITIC — alternative
• CSRC industry classification — regulatory standard
• East Money industry — data vendor specific

Use get_industry_stocks(industry="...") with Chinese industry names.

Sector-Specific Metrics

Sector	Key Metrics
Baijiu	Wholesale price, inventory, cash collection, sales momentum, channel inventory
Semiconductors	Capacity utilization, shipments, ASP, inventory days
New energy vehicles	Deliveries, revenue per vehicle, battery cost, penetration rate
Pharmaceuticals	Innovative drug revenue, R&D expense ratio, centralized procurement winning bids
Banks	NIM, NPL ratio, provision coverage ratio, ROE
Securities firms	Brokerage/investment banking/asset management revenue, equity fund trading volume, margin financing balance
Solar	Polysilicon/module prices, production scheduling, overseas shipments
Real estate	Sales, land acquisition, financing cost, destocking cycle
Food and beverage	Sell-through, inventory, pricing power
Internet	DAU/MAU, ARPU, revenue growth, profit margin

Policy Risk Framework

High policy-sensitivity sectors:

1. Pharmaceuticals — centralized procurement (volume-based procurement)
2. Internet — antitrust, data security
3. Education — double reduction (reduced private tutoring)
4. Finance — regulatory cycle, interest rate policy
5. Real estate — three red lines, purchase and loan restrictions
6. New energy — subsidy phase-out, overcapacity

Policy risk assessment:

• Current policy stance (supportive/neutral/restrictive)
• Upcoming regulatory events
• Historical policy impact patterns
• Best/worst case scenarios

Quality Checks

Before delivering:

• Industry definition clear and consistent
• Market size data sourced (Bureau of Statistics or industry association)
• Competitive landscape covers top 5-10 players
• Financials sourced from iFind / AkShare / CNINFO
• Valuation multiples calculated consistently
• Policy environment analyzed
• Investment themes articulated
• Ideas shortlist included (3-5 names)
• Risk factors specific to China market included

Data Source Mode Switch: Set env var IFIND_DATA_SOURCE_MODE to control data source preference.

• ifind-only (strict): Use iFind only, error if unavailable
• ifind-fallback (default): iFind preferred, fallback to AkShare
• akshare-only: Skip iFind, use AkShare only