Core Viewpoint - The conversation between the Pakistani Deputy Prime Minister and Foreign Minister Dar and Iranian Foreign Minister Amir-Abdollahian focused on the current situation in Iran and the overall regional dynamics, emphasizing the need for peace and stability in the region [1] Group 1 - The Pakistani Foreign Minister expressed a desire for the region to maintain peace and stability [1] - Both parties agreed on the importance of keeping communication open regarding mutual concerns [1] - The call highlighted the necessity for all involved parties to exercise calm and restraint to prevent further escalation of tensions [1]

Group 1 - Major blue-chip stocks mostly declined, with HSBC Holdings closing at HKD 128.695, up 0.15% from the previous close in Hong Kong; Tencent Holdings closed at HKD 612.833, down 0.76% [2] - Tencent Holdings reported a latest price of HKD 617.500, with a decrease of HKD 4.500 or 0.72%; its ADR price is HKD 612.833, reflecting a decline of HKD 4.667 [3] - HSBC Holdings had a latest price of HKD 128.500, increasing by HKD 0.300 or 0.23%; its ADR price is HKD 128.695, showing a slight increase of HKD 0.195 [3] Group 2 - Other notable stocks include China Construction Bank at HKD 7.830, down 0.25%, and Xiaomi Group at HKD 37.100, down 2.01% [3] - AIA Group saw a decline of HKD 1.300 or 1.53%, closing at HKD 83.550; its ADR price is HKD 83.075, down HKD 0.475 [3] - Meituan-W closed at HKD 100.000, down 0.79%, while JD.com saw a decrease of HKD 1.500 or 1.30%, closing at HKD 113.600 [3]

Core Viewpoint - The report indicates that the Watsons Group, a subsidiary of CK Hutchison, plans to pursue a dual listing in Hong Kong and London, potentially completing this by the second quarter, with an estimated valuation of approximately $30 billion and a fundraising target of $2 billion [1] Group 1 - The dual listing could result in a valuation for Watsons that is significantly higher than the current valuation used by Bank of America for CK Hutchison's net asset value for the fiscal year 2026 [1] - Bank of America maintains a "Buy" rating on CK Hutchison, anticipating stable performance for the fiscal year 2025 and viewing the current valuation as attractive [1] - The target price for CK Hutchison is set at HKD 62, reflecting the company's proactive approach to unlocking value [1]

Group 1 - The core viewpoint of the article is that CK Hutchison is seeking to arrange an IPO for its retail subsidiary, Watsons Group, in Hong Kong and London, aiming for a valuation of $30 billion (approximately HKD 234 billion) [1] - The company is evaluating investor interest in the Watsons Group IPO and aims to complete the dual listing by mid-year, although the specific timeline is not yet confirmed [1] - UBS and Goldman Sachs have been selected to arrange the IPO for Watsons in both Hong Kong and London [1] Group 2 - Temasek, which holds a 25% stake in Watsons Group, is reportedly looking to exit its investment during the IPO phase [1]

Core Viewpoint - CK Hutchison Holdings (00001) is seeking to spin off Watsons Group for a dual listing in Hong Kong and London, targeting a valuation of approximately $30 billion (around HKD 234 billion) [1] Group 1: IPO Plans - CK Hutchison has begun assessing investor interest for Watsons Group's initial public offering (IPO), aiming to complete the dual listing by mid-year, although the exact timeline is not finalized [1] - Previous reports indicated that CK Hutchison had initiated plans for the spin-off in November, with expectations to raise up to $2 billion (approximately HKD 156 billion) [1] - If successful, this IPO could become one of the largest consumer retail IPOs in Hong Kong in recent years [1] Group 2: Shareholding and Stake Exit - Temasek, which holds a 25% stake in Watsons Group, is reportedly looking to exit its investment during the IPO phase [1] - CK Hutchison sold a 25% stake in Watsons Group to Singapore's sovereign wealth fund Temasek for $5.7 billion in 2014, with plans to list the retail division at an appropriate time [1] - The listing has been delayed multiple times due to the pandemic and a weak new stock market, with CK Hutchison currently holding approximately 75% of Watsons Group [1]

Core Viewpoint - CK Hutchison Holdings (长和) is seeking to spin off Watsons Group for a dual listing in Hong Kong and London, targeting a valuation of approximately $30 billion (around HKD 234 billion) [1] Group 1: IPO Plans - CK Hutchison has begun assessing investor interest for Watsons Group's initial public offering (IPO) and aims to complete the dual listing by mid-year, although the specific timeline is not finalized [1] - Last week, it was reported that CK Hutchison has selected Goldman Sachs and UBS to facilitate the IPO of Watsons Group [1] - In November of last year, market rumors indicated that CK Hutchison had initiated plans for the spin-off and dual listing of Watsons Group, with expected fundraising of up to $2 billion (approximately HKD 156 billion) [1] Group 2: Shareholding and Exit Strategy - Temasek, which holds a 25% stake in Watsons Group, is looking to exit its investment during the IPO phase [1] - CK Hutchison sold a 25% stake in Watsons Group to Singapore's sovereign wealth fund Temasek for $5.7 billion in 2014, with plans to list the retail division at an appropriate time, which has been delayed due to the pandemic and weak IPO market [1] - Currently, CK Hutchison retains approximately 75% ownership of Watsons Group [1]

Core Viewpoint - CK Hutchison Holdings (长和) is advancing its plan to spin off its retail subsidiary, Watsons Group, aiming for a dual listing in Hong Kong and London with an estimated valuation of approximately $30 billion [1][2] Group 1: Company Overview - Watsons Group operates over 17,000 stores across 31 markets globally, including chains in mainland China, Hong Kong, the UK (Superdrug), and Germany (Rossmann) [1] - The retail segment of Watsons Group reported total revenue of HKD 98.84 billion (approximately RMB 90.2 billion) for the first half of 2025, reflecting a year-on-year growth of about 8% [1] - However, revenue in China totaled HKD 6.666 billion (approximately RMB 6.1 billion), showing a year-on-year decline of approximately 3% [1] Group 2: Expansion Plans - Watsons Group plans to open around 1,000 new stores in 2026, investing HKD 3.8 billion in store expansion, upgrades, retail technology, and supply chain optimization [2] - The initiative aims to expand its global business network and enhance the integration of online and offline channels through a digital platform [2] Group 3: Market Context and Strategic Considerations - The IPO plan for Watsons Group has faced delays due to the pandemic and a weak new stock market in recent years, but the current market conditions in Hong Kong are favorable for IPOs [2] - The company aims to raise $2 billion through the IPO, which will strengthen its financial foundation and support strategic transformation [3] - For CK Hutchison, promoting the dual listing of Watsons Group is a key strategy to unlock the value of its core quality assets [3]

Core Viewpoint - The company, Deep Kangjia A (000016.SZ), has announced that it expects a negative net profit attributable to shareholders for the fiscal year 2025, indicating an anticipated operational loss for that year [1]. Financial Performance - The company's financial department has conducted preliminary calculations, leading to the expectation of a loss in the annual operating performance for 2025 [1].

Investment Rating - The report maintains an optimistic outlook for global economic growth in 2026, projecting a growth rate of 2.8%, which is above the market consensus of 2.5% [2] Core Insights - The report highlights that the global economic growth in 2026 will benefit from a loose financial environment, reduced policy uncertainty, AI investments, and fiscal stimulus from tax and spending legislation passed in 2025 [1][2] - It emphasizes the resilience of the Indian economy, forecasting a GDP growth rate of 6.7% for 2026, which is higher than global consensus expectations [10] - The report notes that China needs to find new growth engines beyond real estate and expand into emerging markets outside the U.S., with actual export growth expected to remain at 5% to 6% annually [6][14] Summary by Sections Global Economic Outlook - The global economic growth is expected to exceed market consensus, driven by a favorable financial environment and AI investments [1][2] - Inflation pressures in emerging markets are anticipated to ease, aided by falling oil prices and reduced food price pressures [1] U.S. Economic and Policy Outlook - The Federal Reserve is expected to lower interest rates twice in the first half of 2026, supported by fiscal stimulus from the 2025 tax and spending legislation [3][2] Asian Economic Conditions - The report expresses optimism about the overall economic situation in Asia, with median and average growth rates around 5% [4] - It highlights strong performance in AI chip exports from China and India, which is expected to exceed market consensus [4] China’s Economic Transition - China is projected to maintain a 5% to 6% annual growth in actual exports, with a current account surplus expected to rise to 4.2% of GDP [6][14] - The "14th Five-Year Plan" focuses on integrating AI with manufacturing and modern industrial infrastructure, indicating a sustained investment in AI technologies [15] Japan’s Economic Outlook - Japan's growth rate is forecasted at 0.8% for 2026, supported by rising wages and easing inflation [7] - The Bank of Japan may accelerate interest rate hikes, with a potential increase of 25 basis points in July 2026 [7] India’s Economic Trends - India is expected to show strong resilience with a projected GDP growth rate of 6.7% for 2026, driven by rural and urban consumption recovery [10][12] - The Reserve Bank of India has implemented measures to support economic growth, including interest rate cuts and liquidity measures [9]

Group 1 - The core theme of the 30th China Capital Market Forum is "China's Capital Market: History and Future," emphasizing the need for coordinated reforms in financing, investment, and institutional aspects to build a resilient and vibrant capital market ecosystem [1] - The China Securities Regulatory Commission (CSRC) is focused on implementing major decisions from the central government, promoting the "New National Nine Articles" and the "1+N" policy framework to enhance long-term capital market investments and support innovative enterprises [3] - The development of the capital market during the 14th Five-Year Plan period has seen comprehensive improvements in market scale, structural quality, and service functions, with future efforts aimed at deepening multi-level capital market reforms and enhancing investment banking capabilities [4] Group 2 - Experts suggest that to foster capital market growth, three foundational elements are necessary: rule of law, contractual spirit, and transparency, with reforms needed across asset, funding, and institutional dimensions [3] - The 2025 Central Economic Work Conference emphasizes the importance of "continuously deepening comprehensive reforms in capital market financing," highlighting the systemic and multidimensional nature of these reforms [6] - Regulatory bodies are urged to enhance the investment value of listed companies by promoting policies that encourage higher dividend payouts, with A-share companies expected to distribute a record 2.55 trillion yuan in cash dividends in 2025 [7]