Group 1: Industry Growth Potential - The global agricultural machinery market is expected to continue its moderate growth, driven by the mechanization of agriculture in the Asia-Pacific region, particularly in China [2] - The Asia-Pacific region holds the largest share of the global agricultural machinery market, with significant development potential due to its large population and expanding agricultural mechanization needs [2] - China's agricultural machinery market is projected to reach 585.7 billion yuan in 2023, reflecting a year-on-year growth of 4%, with a compound annual growth rate (CAGR) of 7.0% from 2018 to 2022, outpacing the global CAGR by 1.5 percentage points [2] Group 2: Mechanization Rate and Labor Dynamics - China's comprehensive mechanization rate for farming has steadily increased to 74% in 2023, up from 31% in 2000, although the mechanization rates for sowing and harvesting remain significantly lower [3][7] - The mechanization rates for major crops like wheat are high, but economic crops such as rapeseed and potatoes have much lower mechanization rates of 66% and 53%, respectively [3][7] - Labor shortages and rising labor costs are accelerating the shift towards mechanization, as the aging population and urban migration lead to a decrease in rural labor availability [7] Group 3: Policy and Subsidy Impact - Government subsidies have significantly stimulated demand for agricultural machinery, with a notable increase in financial support from 0.8 million yuan in 2004 to 23.8 billion yuan in 2014 [13] - The transition to the "National IV" emission standards has increased production costs and affected market demand, but this impact is expected to diminish in the coming years [14] - The introduction of new policies to support equipment upgrades and replacements is anticipated to further boost the agricultural machinery market [17] Group 4: Price Correlation and Export Growth - There is a strong positive correlation between grain prices and agricultural machinery sales, as rising grain prices enhance farmers' purchasing power [15][18] - Agricultural machinery exports have rebounded significantly in 2024, with a year-on-year growth of 38% in Q1 2025, driven by stabilizing international grain prices and increased competitiveness [19][24] - The average export price of tractors has been on the rise, reflecting a growing share of high-powered tractors in exports, indicating improvements in the industry’s competitive position [24]

Group 1 - The core event was a basketball friendly match held in Shanghai between Nomura Information Technology (Shanghai) and Nomura Orient International Securities, aimed at enriching employees' cultural life [1] - The match showcased the players' competitive spirit and teamwork, with an intense and exciting atmosphere that garnered applause and cheers from the audience [3] - The event not only provided a platform for employees to improve their basketball skills but also fostered understanding and camaraderie among staff in a relaxed environment, creating a harmonious atmosphere for collaboration [9]

Core Viewpoint - The article discusses the new regulations regarding the investor suitability requirements for participating in the Sci-Tech Innovation Board's Growth Layer, emphasizing that there are no new trading thresholds for individual investors [2][3]. Summary by Sections - **Investor Participation Requirements** Individual investors can participate in the trading of stocks or depositary receipts in the Sci-Tech Innovation Board's Growth Layer without additional trading thresholds, provided they meet the basic suitability requirements, which include having an average daily asset of no less than RMB 500,000 in their securities and funds accounts over the past 20 trading days, excluding funds and securities borrowed through margin trading, and having at least 24 months of trading experience [3]. - **Risk Disclosure for New Unprofitable Tech Companies** Ordinary investors must sign a specific risk disclosure document before investing in newly registered unprofitable tech companies within the Growth Layer. This includes signing the "Sci-Tech Innovation Board Stock Investor Risk Disclosure" for first-time applicants and the "Growth Layer Investment Risk Disclosure" for those wishing to trade stocks of newly registered companies [5][6]. - **Existing Investors and Risk Disclosure** Existing investors who have already opened trading permissions for the Sci-Tech Innovation Board must sign the "Growth Layer Risk Disclosure" before participating in the trading of newly registered stocks in the Growth Layer [6]. - **Investment in Existing Unprofitable Companies** Investors looking to invest in existing unprofitable companies listed on the Sci-Tech Innovation Board prior to the issuance of the Growth Layer guidelines do not need to sign the "Growth Layer Risk Disclosure." However, they must have opened trading permissions for the Sci-Tech Innovation Board [8].

Core Viewpoint - The Japanese beverage industry is experiencing a phase of simultaneous growth in both volume and price, with a compound annual growth rate (CAGR) of 1.8% from 2010 to 2023 according to the Japan Soft Drink Association [1]. Production Side: Diversified Iterative Development - The Japanese beverage industry has undergone three distinct phases: - Rapid development period (1945-1979) focused on carbonated drinks and juices - Maturity period (1980-1999) marked by the rapid growth of tea and coffee - Current phase (2000-present) dominated by tea and mineral water [1]. Consumption Side: Stage-wise Evolution of Consumer Characteristics - The consumption characteristics in the Japanese beverage market have evolved in stages, reflecting changing consumer preferences and trends [1].

Core Insights - The Japanese active equity fund market is experiencing growth, with its share in the public equity fund market at 58.1% as of the end of 2024, despite the rapid rise of passive funds [3][5][4]. Group 1: Market Trends - The Japanese ETF market has grown significantly since 2010, reaching 89.4 trillion yen by the end of 2024, accounting for 38.8% of the public equity fund market [4][5]. - Active equity funds have shown a compound annual growth rate of 5.3% from 2013 to 2024, indicating a sustained increase in their scale [5][3]. - The proportion of passive index funds in the public equity fund market has surged from 8.3% to 32.1% between 2013 and 2024, reflecting a shift in investor preference [4][5]. Group 2: Challenges Facing Active Funds - The active equity fund market faces challenges such as a dominant presence of foreign capital and products, high outsourcing costs, and a decline in the perceived value of local fund managers [3][7][10]. - The profitability of asset management companies is under pressure due to price competition in the passive fund sector and high costs associated with outsourced management in the active fund sector [10][9]. - The demand for Japanese stocks is low, leading to a reliance on foreign investment strategies, which further complicates the landscape for domestic active funds [8][9]. Group 3: Opportunities for Active Funds - There is potential for growth in the active fund market, particularly in emerging markets where active funds have historically outperformed [11]. - Independent asset management firms in Japan are showing superior performance compared to those under financial groups, indicating a potential shift in market dynamics [15][14]. - The focus on alternative investments is becoming a new trend among asset management firms in both Japan and the US, which could enhance the sources of excess returns [3][11]. Group 4: Fee Structures and Market Dynamics - The average management fee for active funds in Japan has decreased to 1.10%, while passive funds average 0.35%, highlighting the competitive pricing environment [24][23]. - The structure of fees in Japan is designed to encourage long-term holding of funds, which places higher demands on the capabilities of active fund managers [23][22]. - The transparency of product management is a significant issue, with many funds not disclosing the names of their managers, which can impact investor trust and fund performance [20][19].

Core Viewpoint - The article discusses the newly released "Self-Regulatory Guidelines for the Science and Technology Innovation Board Listed Companies - Guideline No. 5: Science and Technology Innovation Growth Tier," which aims to support technology companies that are in the pre-profit stage but have significant technological breakthroughs and commercial potential [3]. Summary by Sections Definition of Science and Technology Innovation Growth Tier - The Science and Technology Innovation Growth Tier is designed for technology companies that have made significant technological breakthroughs, possess broad commercial prospects, and have substantial ongoing R&D investments, while still being in a pre-profit stage at the time of listing [4]. Applicability of Growth Tier Companies - The guidelines apply to both existing listed companies that have not yet turned a profit (referred to as "existing companies") and newly registered companies that are also unprofitable at the time of listing (referred to as "incremental companies"). Existing companies will be included in the growth tier from the date of the guideline's release, while incremental companies will be included from their listing date [5]. Criteria for Removal from Growth Tier - The removal criteria for companies from the growth tier are based on a "new and old distinction." To encourage incremental companies to accelerate technological development and market expansion, the removal conditions are aligned with the first set of listing standards for the Science and Technology Innovation Board. Companies will be removed if they meet one of the following conditions: (1) both net profits in the last two years are positive and cumulative net profit is not less than 50 million yuan, or (2) net profit is positive in the last year and operating revenue is not less than 100 million yuan [6]. Investor Awareness of Removal from Growth Tier - Investors can monitor company annual reports, which will disclose any companies that meet the criteria for removal from the growth tier. The Shanghai Stock Exchange will promptly announce the removal of companies from the growth tier. Additionally, investors can check if the stock or depositary receipt's name has removed the special identifier "U," which indicates its growth tier status [10][11]. Participation Considerations for Investors - Investors participating in trading of newly registered growth tier stocks must sign a special risk disclosure document. However, existing stocks or depositary receipts on the Science and Technology Innovation Board prior to the reform are not affected [13]. Information Disclosure Requirements - Companies in the growth tier are subject to stricter information disclosure requirements compared to other listed companies on the Science and Technology Innovation Board. They must adequately disclose the reasons for not being profitable and the impact on the company in their annual reports, along with a risk warning prominently displayed [15]. Additionally, the sponsoring institutions responsible for ongoing supervision must fulfill their duties as per the listing rules and report any significant adverse impacts on the company's technological innovation, R&D capabilities, growth prospects, or profit improvement [16].

Core Viewpoint - The article suggests that asset revaluation pricing is more suitable for the Chinese stock market as it enters a period of macroeconomic stability, shifting focus from net profit growth to asset revaluation growth, particularly in a low-growth environment [2][3]. Group 1: Effectiveness of Asset Revaluation Strategy - In 2024, the explanatory power of asset revaluation growth on industry performance is expected to increase, making it a more effective fundamental indicator than net profit and net asset growth [3]. - Among the top five industries in terms of growth, only the electronics sector has an asset revaluation growth rate below the median level, indicating a selective effectiveness of this strategy [3]. Group 2: Drivers of Asset Revaluation Strategy - The effectiveness of the asset revaluation strategy will be driven by several factors: 1) The rapid decline in opportunity costs in a low-interest-rate environment, making asset revaluation growth more favorable for investment decisions [4]. 2) The need for ROE optimization, where industry leaders focus on cash cycle efficiency, as seen in the improvement of the asset revaluation of the CSI 300 index due to reduced cash cycles [4]. 3) Continuous CAPEX investment is essential for future growth, with the total CAPEX of the CSI 300 index increasing over the past three years, supporting technological advancements and international competitiveness [4]. Group 3: Investment Opportunities under Asset Revaluation Pricing - Based on the asset revaluation pricing approach, three investment directions are recommended: 1) Financial sector: The asset revaluation growth rate in the financial industry exceeds the overall market average, indicating potential for revaluation beyond just banks [5]. 2) Large-cap stocks: The value of large-cap stocks is expected to recover over a longer time frame, with recent weakness in this style potentially leading to accumulated excess returns [5]. 3) CAPEX advantage: Companies with strong CAPEX investment and cash recovery capabilities should be prioritized for maintaining or enhancing international competitiveness [5].

Group 1 - The article is a reprint from the Shenzhen Stock Exchange Interactive Easy WeChat video account [1] - The content does not constitute any investment advice or promotion from Nomura Orient International Securities [2] - Nomura Orient International Securities has not independently verified the content of the reprinted article [2]

Group 1 - The core viewpoint of the article is that the A-share market is in the early stages of a transition from a bear to a bull market, supported by low valuations and policy backing, with significant long-term growth potential driven by new economic transformations and long-term capital inflows [2][4][6] Group 2 - A-shares are currently at historically low valuations, with the CSI 300 index PE at 13 times and PB at 1.3 times, indicating a favorable price-performance ratio compared to other asset classes [4][5] - The market is positioned similarly to the 2013-2014 period, where significant adjustments have occurred, and both policy support and investor sentiment are improving, laying the groundwork for a bull market [5][6] Group 3 - The Chinese government is focusing on expanding domestic demand through a combination of supply-side policies and demand-side stimulus, addressing the core obstacle of weak income growth expectations [8] - The structural differences between the Chinese and Japanese markets highlight that China is less likely to experience a balance sheet recession, with the current phase being characterized by the rise of new economies such as renewable energy and AI [9] Group 4 - Policy measures are enhancing the capital market's functionality, with long-term capital and stabilization funds entering the market, improving supply-demand dynamics [11] - The market structure is shifting towards new economies, with sectors like renewable energy and AI gaining traction, while consumer spending is transitioning from material to emotional consumption [12] Group 5 - Long-term investment strategies emphasize pricing, allocation, and professional management, advocating for a focus on reasonable valuations and avoiding short-term speculative trading [14] - The overall trend for A-shares is upward, supported by low valuations and policy benefits, encouraging investors to adopt a contrarian and long-term perspective to capitalize on new economic opportunities [14]

Core Viewpoint - The article discusses the growth and evolution of the card economy in Japan, highlighting its increasing popularity among consumers, particularly in China, and providing insights into the historical development of the card market [3][8]. Group 1: Market Overview - The Japanese card market reached a scale of 2,774 billion yen in 2023, indicating significant growth and consumer interest [3]. - The card industry has transitioned from physical products to digital formats, with collectible card games gaining traction during the pandemic [4]. Group 2: Historical Development - The collectible card industry began in the 1950s to 1990s with "food toys" as the primary sales format [4]. - From 1993 to 2010, major card games such as "Pokémon," "Yu-Gi-Oh!," and "Duel Masters" were launched, marking a significant shift in the market [4]. - The period from 2010 to 2020 saw the digitalization of card games, further expanding their reach and appeal [4]. Group 3: Recent Trends - Since 2020, the popularity of unboxing videos during the pandemic has led to increased attention on the value of card collecting [4].