Core Viewpoint - The Hong Kong Stock Exchange (HKEX) is considering shortening the settlement cycle for the cash market from "T+2" to "T+1", aligning with global trends to enhance market efficiency and competitiveness [1][2]. Group 1: Market Trends - The HKEX has maintained a "T+2" settlement cycle since 1992, while many international markets have transitioned to "T+1" or shorter cycles over the past 20 years [1]. - By the end of 2027, it is projected that 88% of global stock market transactions will adopt "T+1" or "T+0" settlement cycles [1]. Group 2: Impact on Brokers - Internet brokers may not experience significant changes with the transition to "T+1", as they typically require clients to pre-fund accounts, effectively operating under a "T+0" model [1]. - Traditional brokers, however, may face challenges as they often extend credit to clients, which could lead to financial risks if clients do not adapt to the new settlement timeline [1][2]. Group 3: System Upgrades and Costs - Upgrading the relevant settlement systems is not expected to incur additional costs for brokers, as the systems can be categorized into in-house developed systems and those provided by external vendors [2]. - The transition to "T+1" will require synchronization with mainland regulatory bodies, particularly for the southbound trading under the Stock Connect program, which may complicate operations due to simultaneous reforms [2]. Group 4: Future Outlook - The shortening of the settlement cycle is seen as an inevitable trend, with expectations that it may eventually move to "T+0" in the future, particularly as trading hours expand [3].

Group 1 - The article presents the market capitalization rankings of the top 50 Chinese technology and internet companies as of July 17, 2025 [1] - Alibaba leads the list with a market capitalization of $2760.32 billion, followed by Xiaomi Group at $1871.42 billion and Pinduoduo at $1492.47 billion [3][4] - Meituan ranks sixth with a market capitalization of $978.45 billion, indicating strong performance among major players in the sector [4] Group 2 - Other notable companies include Oriental Fortune at $515.59 billion, SMIC at $466.49 billion, and JD.com at $456.09 billion, showcasing a diverse range of businesses within the top rankings [4][5] - Kuaishou ranks 11th with a market capitalization of $376.96 billion, while Tencent Music and Li Auto follow closely with $332.09 billion and $314.71 billion respectively [4][5] - The list also features companies like Xpeng Motors at $170.92 billion and iFlytek at $151.19 billion, reflecting the growing influence of electric vehicles and AI technology in the market [4][5]

Group 1 - As of July 16, 2025, the Hong Kong Stock Connect Non-Bank ETF (513750) reached a record size of 7.451 billion, with a year-to-date growth of 844.35% [1] - The ETF's latest share count is 4.840 billion, also a record high since its inception [1] - The index tracking the non-bank financial theme (931024) experienced a decline of 0.82% on the same date, with mixed performance among constituent stocks [1] Group 2 - The Hong Kong Stock Connect Non-Bank ETF has seen a net asset value increase of 74.06% over the past year, ranking 57 out of 2915 index stock funds, placing it in the top 1.96% [2] - The ETF's highest monthly return since inception was 31.47%, with the longest consecutive monthly gain being 4 months and a total increase of 38.25% [2] - The top ten weighted stocks in the index account for 77.92%, with major holdings including China Ping An, AIA, and Hong Kong Exchanges and Clearing [2] Group 3 - Recent policies aimed at enhancing financial market construction and expanding high-level financial openness are expected to create significant business opportunities for non-bank financial institutions [3] - The insurance sector is anticipated to benefit from new regulations promoting long-term investments, while brokerage firms are expected to maintain high trading activity levels [3] - The Hong Kong Stock Connect Non-Bank ETF is the first and only ETF tracking the non-bank index, with over 60% of its composition in insurance stocks [3]

Investment Rating - The report maintains a "Buy" rating for the company [2][6]. Core Insights - As of the end of June, the company's PE ratio stands at 37.51x, which is at the 55th percentile historically since 2016, indicating a certain level of investment value. It is expected that with the continued enhancement of the mutual access policy in the Hong Kong capital market, liquidity in the Hong Kong stock market will continue to rise, leading to an increase in overall market activity and valuation. The company is projected to achieve revenues and other income of HKD 27.4 billion, 29.9 billion, and 32.4 billion for 2025-2027, with net profits attributable to shareholders of HKD 16.8 billion, 17.6 billion, and 19.4 billion, corresponding to PE valuations of 32.2x, 30.8x, and 27.9x respectively [2][48]. Market Environment - The Hong Kong stock market continued its upward trend in June, driven by domestic policy support, with the Hang Seng Index and Hang Seng Tech Index rising by 20.0% and 18.7% respectively compared to the end of 2024. The average daily trading volume (ADT) for the Hong Kong Stock Exchange in June was HKD 230.2 billion, reflecting a month-on-month increase of 9.4% and a year-on-year increase of 106.9% [11][17]. - The IPO scale in June saw 15 new stocks listed, totaling HKD 27.9 billion, which is a significant year-on-year increase of 606% despite a month-on-month decrease of 51% [27][28]. Business Segments - **Spot Market**: The overall Hong Kong stock market showed high trading activity, with the ADT for the Hong Kong stock market reaching HKD 230.2 billion in June, up 9.4% month-on-month and 106.9% year-on-year. Northbound trading ADT was HKD 162.9 billion, and southbound trading ADT was HKD 120.8 billion, reflecting increases of 7.5% and 27.9% month-on-month respectively [8][17]. - **Derivatives Market**: In June, the average daily volume (ADV) for futures was 57.3 million contracts, down 2.4% month-on-month and 8.4% year-on-year, while the ADV for options was 82.0 million contracts, up 1.9% month-on-month and 9.7% year-on-year [21]. - **Commodity Market**: The LME daily average trading volume in June was 749,000 contracts, reflecting increases of 6.0% month-on-month and 11.2% year-on-year [24]. - **Primary Market**: The number of new listings in the Hong Kong stock market for the first half of 2025 reached 43, with a total scale of HKD 1,067 billion, representing a year-on-year increase of 688.6% [27]. Investment Income - As of the end of June, the HIBOR rates for 6 months, 1 month, and overnight were 2.38%, 0.73%, and 0.03% respectively, showing a month-on-month increase while year-on-year rates have decreased [36].

Group 1: Hong Kong Stock Exchange Developments - Hong Kong Stock Exchange (HKEX) has released a discussion paper regarding the potential transition to a T+1 settlement cycle for the secondary stock market, which aims to reduce capital occupation and enhance market liquidity [1][2] - The discussion paper indicates that the transition to T+1 settlement presents both benefits and challenges, with the goal of improving the efficiency of the trading environment for investors [1] Group 2: Market Financing Activities - In the first half of the year, the Hong Kong stock market has seen a total refinancing amount of HKD 173.8 billion, representing a year-on-year increase of 227%, surpassing the total refinancing amounts of the previous three years [2] - Initial Public Offerings (IPOs) in the same period raised HKD 105.5 billion, indicating that refinancing activities were nearly two-thirds higher than IPO fundraising [2] - Placement has emerged as the primary method for refinancing, accounting for HKD 135.8 billion or 78% of the total refinancing amount [2] Group 3: Company Listings - Xilei Co., Ltd. plans to issue H-shares and list on the HKEX to enhance its international brand image and competitiveness as part of its global strategy [3] - Dahua Technology has announced the intention to spin off its subsidiary, Zhejiang Huirui Technology, for a listing on the Hong Kong Stock Exchange, focusing on machine vision and mobile robotics [4] - This move is expected to broaden the financing channels for Huirui Technology and strengthen its international brand presence [4] Group 4: Market Performance - As of July 16, the Hang Seng Index closed at 24,517.76, reflecting a decrease of 0.29% [5] - The Hang Seng Tech Index and the National Enterprises Index also experienced slight declines of 0.24% and 0.18%, respectively [5]

Group 1 - The Hong Kong Stock Exchange (HKEX) has published a discussion paper on shortening the settlement cycle for the stock cash market from T+2 to T+1, which has been the standard since 1992 [1] - The transition to T+1 is expected to enhance market efficiency, reduce systemic risk, and align Hong Kong's market more closely with other international markets [1] - Challenges include addressing time zone differences, foreign exchange conversions, and the need for market participants to upgrade systems and automate processes to maintain operational efficiency [1] Group 2 - Goldman Sachs identified five key priorities for HKEX management this year, including narrowing the bid-ask spread for small and large stocks, with an expected reduction of about 50% for half of the stocks based on average daily trading volume [2] - The potential transition to a T+1 settlement cycle is technically feasible by the end of the year, but the market ecosystem needs to be adequately prepared [2] - Other priorities include reviewing new stock rules, developing a derivatives platform set to launch in 2028, and exploring related businesses that complement existing market advantages, such as data platforms and integrated fund platforms [2]

Core Points - The Chuanghua Trading Service Hong Kong Stock Connect Selected 100 Index (CES100) experienced a decline of 0.47%, closing at 5303.57 points with a trading volume of 96.677 billion yuan [1] - Over the past month, the CES100 index has increased by 3.56%, by 16.52% over the last three months, and by 25.56% year-to-date [1] Index Composition - The top ten holdings of the CES100 index are: HSBC Holdings (10.21%), Tencent Holdings (9.83%), Alibaba-W (9.56%), Xiaomi Group-W (7.99%), Meituan-W (5.82%), AIA Group (5.55%), Hong Kong Exchanges and Clearing (4.13%), Standard Chartered Group (2.51%), Prudential (1.93%), and Kuaishou-W (1.61%) [2] - The index is fully composed of securities from the Hong Kong Stock Exchange [2] Sector Allocation - The sector allocation of the CES100 index includes: Financials (27.78%), Consumer Discretionary (26.88%), Communication Services (13.71%), Information Technology (10.34%), Real Estate (5.45%), Health Care (4.84%), Utilities (3.96%), Industrials (3.34%), Consumer Staples (3.17%), and Materials (0.53%) [2] Fund Tracking - Public funds tracking the CES100 index include: Huaan CES Hong Kong Stock Connect Selected 100 ETF Link A, Huaan CES Hong Kong Stock Connect Selected 100 ETF Link C, and Huaan CES Hong Kong Stock Connect Selected 100 ETF [2]

Core Viewpoint - Hong Kong Stock Exchange (HKEX) is considering shortening the settlement cycle for its stock cash market from T+2 to T+1 or even T+0, aligning with global trends where 88% of stock markets are expected to adopt T+1 or T+0 by the end of 2027 [1][2] Group 1 - The HKEX has maintained a T+2 settlement cycle since 1992, while other international markets have gradually moved to T+2 over the past 20 years [1] - HKEX CEO Charles Li emphasized the need for continuous optimization of Hong Kong's financial market infrastructure to keep pace with global developments [1] - The transition to T+1 is expected to enhance market efficiency, reduce systemic risk, and better integrate Hong Kong's market with international markets [1] Group 2 - Challenges of moving to T+1 include addressing time zone differences, foreign exchange conversions, and the need for market participants to upgrade systems and automate processes [2] - Goldman Sachs identified five key priorities for HKEX management, including narrowing the bid-ask spread for small and large stocks, preparing for T+1 settlement, reviewing new stock rules, developing derivative platforms, and exploring complementary businesses [2] - The discussion on the settlement cycle pertains only to the secondary market for stock cash transactions and does not include primary market transactions such as IPO subscriptions [2]

Core Viewpoint - Hong Kong Stock Exchange is proposing to shorten the stock settlement cycle from T+2 to T+1, aiming to enhance the efficiency of the financial market and align with global trends [1]. Group 1: Market Context - The current settlement cycle in Hong Kong has been T+2 since 1992, while many international markets have transitioned to T+1 or shorter cycles over the past 20 years [1]. - According to the World Federation of Exchanges and International Exchanges statistics, it is projected that by the end of 2027, 88% of global stock market transactions will adopt T+1 or T+0 settlement cycles [1]. Group 2: Leadership Statements - The CEO of Hong Kong Stock Exchange, Charles Li, emphasized the importance of optimizing the financial market infrastructure to keep the financial ecosystem robust and up-to-date [1]. - He called for collaboration within the Hong Kong financial community to implement necessary optimization measures and encouraged market participants to actively engage in discussions regarding the transition [1].

Core Viewpoint - Hong Kong Stock Exchange (HKEX) is initiating discussions to shorten the settlement cycle for the stock cash market, currently at T+2, to align with global trends and enhance market efficiency [2][4][5] Group 1: Settlement Cycle Changes - HKEX has released a discussion paper regarding the shortening of the settlement cycle for the stock cash market, which has been T+2 since 1992 [2][3] - The global trend shows a shift towards shorter settlement cycles, with 88% of global stock transactions expected to adopt T+1 or T+0/T+1 cycles within the next two years [3] - HKEX emphasizes the need for timely discussions on when and how to implement changes to the settlement cycle, rather than hesitating on the decision to change [4][5] Group 2: IPO and Listing Reforms - In the first half of the year, Hong Kong's market saw 42 IPOs raising over HKD 107 billion, a 22% increase compared to the previous year, making it the leading market globally [8] - HKEX and the Securities and Futures Commission are reviewing the listing system to enhance competitiveness and attract more quality companies to list in Hong Kong [8][9] - The exchange has simplified listing requirements for overseas issuers and expanded the list of recognized stock exchanges, now including 20 exchanges, to facilitate compliance and second listings [8][9]