Group 1 - JPMorgan's stake in Alibaba-W decreased from 6.26% to 5.94% as of June 11 [1] - The average share price for this transaction was HKD 118.4452 [1]

Group 1 - Hong Kong Stock Exchange (HKEX) plans to attract companies listed in Southeast Asia and the Middle East for secondary listings to enhance its global influence [1] - HKEX will establish an office in Riyadh, Saudi Arabia, to strengthen ties with the Saudi Stock Exchange [1] - Saudi Arabia is increasing efforts to promote trading activities with Hong Kong, aiming to attract Chinese investors as part of its Vision 2030 initiative [1] Group 2 - HKEX is working to attract companies from around the world for initial public offerings (IPOs) as investor interest shifts away from US assets [2] - In the past 12 months, three Singaporean companies have listed in Hong Kong, and a Thai company is expected to follow soon [2] - HKEX has recognized the Thailand Stock Exchange as its 20th approved exchange, facilitating Thai companies like PTT and CP All for secondary listings [2] Group 3 - The Financial Secretary of Hong Kong anticipates that the city will become the largest cross-border asset management center globally within two to three years [3] - HKEX aims to include more foreign stock exchanges in its approved list to promote Hong Kong as an international financing hub [3]

Core Viewpoint - The "Hong Kong Dollar-Renminbi Dual Counter Model" has been successfully implemented since June 19, 2023, with a total transaction volume of 49.051 billion RMB for 24 selected stocks, indicating a growing interest in RMB-denominated trading in the Hong Kong market [1][2][4]. Group 1: Market Performance - The top five stocks in the dual counter model by transaction volume are China Mobile-R, Ping An-R, Tencent Holdings-R, Hong Kong Exchanges-R, and Alibaba-WR, with total transaction volumes of 6.117 billion RMB, 5.775 billion RMB, 5.687 billion RMB, 5.356 billion RMB, and 4.872 billion RMB respectively over the past two years [1][3]. - The transaction volume for Tencent Holdings-R has seen significant growth, with multiple trading days exceeding 50 million RMB this year, and Hong Kong Exchanges-R achieving a daily transaction volume of over 200 million RMB on certain days [5][6]. Group 2: Regulatory Developments - The Hong Kong Securities and Futures Commission is actively promoting the inclusion of RMB counters in the Stock Connect program, which is expected to launch by the end of the year, enhancing the accessibility of RMB assets for investors [2][6]. - The dual counter model is anticipated to facilitate the use of RMB in Hong Kong stock trading, potentially expanding to more stocks and products in the future, thereby supporting the internationalization of the RMB [4]. Group 3: Investor Behavior - The dual counter model allows investors holding offshore RMB to directly invest in Hong Kong stocks, helping to mitigate exchange rate risk and increasing market demand for RMB-denominated assets [3][5]. - Despite the growth in transaction volumes, the average turnover rate for RMB-denominated stocks remains low, primarily due to the large market capitalization of the stocks involved and the preference of institutional investors for holding rather than frequent trading [6].

Group 1 - The central government has allowed Greater Bay Area companies listed in Hong Kong to also list on the Shenzhen Stock Exchange, which could enhance investor access and increase share liquidity and valuation [1] - Hong Kong Exchanges and Clearing CEO, Charles Li, highlighted that both "A first then H" and "H first then A" listing strategies can benefit companies, citing the example of Contemporary Amperex Technology Co., Limited (CATL) which saw increased A-share liquidity post its Hong Kong listing [1] - Currently, Hong Kong is processing over 160 listing applications, with nearly 20 companies aiming to raise over $1 billion [1] Group 2 - Recent trends show at least three Singaporean companies have listed in Hong Kong in the past year, and one Thai company is set to do so, indicating a growing interest from Southeast Asian firms [2] - The CEO reiterated plans to release a white paper on the "T+1" settlement cycle this year, aligning with global trends to shorten stock settlement periods, which could enhance market efficiency but also increase operational risks [2] - Discussions are ongoing regarding the potential change of the minimum trading unit from "per board lot" to "per share," which would require system adjustments and careful evaluation due to increased operational load [2]

Investment Rating - The report maintains a "Buy" rating for the company [2][6][44] Core Views - The company's PE ratio as of the end of May is 35.45x, positioned at the 44th percentile historically since 2016, indicating a certain level of cost-effectiveness for allocation. It is expected that with the continuous 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 overall increase in market activity and valuation. The company is projected to achieve revenues and other income of 29.8 billion, 31.0 billion, and 32.5 billion HKD for 2025, 2026, and 2027 respectively, with corresponding net profits of 17.9 billion, 18.6 billion, and 19.6 billion HKD, resulting in PE valuations of 29.2, 28.0, and 26.6 times respectively [2][44]. Summary by Sections Market Performance - The Hong Kong stock market has shown a significant increase, with the Hang Seng Index and Hang Seng Tech Index rising by 16.1% and 15.7% respectively compared to the end of 2024. The average daily trading (ADT) for the Hong Kong stock market in May was 210.3 billion HKD, reflecting a year-on-year increase of 50.4% but a month-on-month decrease of 23.4% [7][10][15]. IPO Market - The IPO market in Hong Kong has experienced substantial growth, with 10 new stocks listed in May, raising a total of 55.8 billion HKD, which is a remarkable increase of 3150.6% year-on-year and 1830.4% month-on-month. For the first five months of 2025, a total of 28 new companies were listed, with a cumulative scale of 77.4 billion HKD, representing a year-on-year increase of 707.2% [25][27][28]. Revenue and Profit Forecast - The company is expected to generate revenues and other income of 29.8 billion, 31.0 billion, and 32.5 billion HKD for 2025, 2026, and 2027 respectively, with net profits projected at 17.9 billion, 18.6 billion, and 19.6 billion HKD. The corresponding PE ratios are estimated to be 29.2, 28.0, and 26.6 times [2][44][46]. Investment Income - As of the end of May, the relevant interest rates for investment income have decreased compared to the previous month. The 6-month HIBOR was 2.16%, the 1-month HIBOR was 0.59%, and the overnight HIBOR was 0.03% [23][31][44]. Macro Environment - The domestic economic climate has shown signs of recovery, with the manufacturing PMI for May at 49.50%, indicating a slight improvement. Meanwhile, overseas liquidity has tightened due to the postponement of interest rate cuts by the Federal Reserve, which is expected to maintain the federal funds rate at 4.25%-4.50% [32][36].

Investment Rating - The report maintains a "Positive" investment rating for the non-bank financial sector, highlighting the attractiveness of quality stocks in this area [7]. Core Insights - The second quarter shows a stable improvement in policy and market trading trends, suggesting that high-quality non-bank stocks remain a good investment choice based on profitability and dividend stability [2][4]. - Recommended stocks include Jiangsu Jinzheng, China Ping An, and China Pacific Insurance for their stable earnings and high dividend yields. Additionally, stocks like New China Life, China Life, Hong Kong Exchanges, CITIC Securities, Dongfang Wealth, Tonghuashun, and Jiufang Zhitu Holdings are recommended based on their earnings elasticity and valuation levels [2][4]. Summary by Sections Market Performance - The non-bank financial index increased by 1.2%, outperforming the CSI 300 by 1.4% this week, ranking 6th out of 31 sectors. Year-to-date, the non-bank financial index is down 4.2%, underperforming the CSI 300 by 2.4%, ranking 25th out of 31 [5]. Policy and Regulatory Updates - The Ministry of Finance issued a notice to further implement the new insurance contract accounting standards, which is expected to increase the demand for equity assets among some insurance companies during the transition [4][61]. Company Announcements - Guosen Securities announced a cash dividend of 3.50 yuan per 10 shares, totaling 3.364 billion yuan [6]. Insurance Sector Insights - In April 2025, the cumulative insurance premium income reached 259.54 billion yuan, a year-on-year increase of 2.25%. Property insurance income was 64.86 billion yuan, up 5.19%, while life insurance income was 194.69 billion yuan, up 1.31% [22][23]. Investment Business Trends - The report notes a recovery in market activity, with average daily trading volume reaching 1.3717 trillion yuan, up 13.47% week-on-week. The margin financing balance also increased to 1.82 trillion yuan, up 0.53% [40][47]. Financing Activities - In May 2025, equity financing decreased to 16.795 billion yuan, down 32.2% month-on-month, while bond financing was 72.7 billion yuan, down 7.3% [49][51].

Investment Rating - The report maintains a positive investment rating for the non-bank financial sector, highlighting potential growth opportunities due to regulatory changes and market dynamics [4][37]. Core Insights - Ant Group is expected to apply for stablecoin issuance qualifications, which could expand the participation of non-bank financial institutions in various financial services, including custody, cross-border payments, and supply chain finance [1]. - China Pacific Insurance and New China Life Insurance reported robust premium growth in the life insurance sector, with China Pacific's life insurance premiums increasing by 10.2% year-on-year to CNY 134.79 billion in the first five months of 2025 [2]. - The monetary data for May shows that M1 and M2 growth rates remain high, indicating a potential economic recovery that could support stable capital market operations [3]. Summary by Sections Market Review - Major indices experienced fluctuations, with the non-bank financial index showing a gain of 1.16% [7]. - Key stocks in the brokerage and insurance sectors, such as China Galaxy and New China Life, saw positive performance, with increases of 2.22% and 2.80% respectively [7]. Securities Sector - The total trading volume in the A-share market reached CNY 7.85 trillion, with a daily average of CNY 1.31 trillion, reflecting a significant year-on-year increase of 76.18% [14]. - The IPO underwriting scale for the year reached CNY 338.80 billion, while refinancing underwriting totaled CNY 2,478.79 billion [14]. Insurance Sector - China Pacific Insurance reported a total premium income of CNY 2,271.69 billion for the first five months, up 6.0% year-on-year, while New China Life's premiums surged by 26.1% to CNY 990.86 billion [2][35]. - The life insurance sector continues to show strong growth, with both companies maintaining a positive outlook for the remainder of the year [2]. Liquidity Tracking - The central bank's operations included a net withdrawal of CNY 727 billion, with various interest rates showing mixed trends [27]. - Government bond yields decreased, indicating a supportive environment for capital market stability [27]. Investment Recommendations - The report suggests focusing on key insurance companies such as China Pacific, New China Life, and major brokerages like China Galaxy and CITIC Securities for potential investment opportunities [4][38]. - Non-bank financial institutions are expected to benefit from the implementation of stablecoin regulations, with companies like ZhongAn Online and Hong Kong Exchanges being highlighted as potential investment targets [4][38].

Core Viewpoint - Bank of America has reduced its stake in Bilibili Inc. from 7.01% to 6.72% as of June 10 [1] Company Summary - The reduction in Bank of America's holding indicates a shift in investment strategy or sentiment towards Bilibili Inc. [1]

6月12日，在亚洲交易员论坛年度会议暨股票交易峰会2025上，香港证监会主席黄天祐表示，香港证监 会与香港交易所合作，自2025年年中开始，将分两阶段将适用证券的最低上落价位下调50%至60%，从 而降低整体交易成本及提升流动性。从中长期看，香港证监会正在研究调整每手交易股数相关方案，从 而提升高价股、碎股交易的便捷性，进一步提升市场流动性；香港证监会还与香港交易所合作，研究优 化首次公开募股(IPO)的价格发现流程。(上海证券报) ...

Core Viewpoint - The new policy allows companies listed on the Hong Kong Stock Exchange from the Guangdong-Hong Kong-Macao Greater Bay Area to list on the Shenzhen Stock Exchange, enhancing the international competitiveness of the Shenzhen Stock Exchange and providing new financing channels for Hong Kong-listed companies [1][4][14]. Group 1: Policy Implications - The policy aims to strengthen the financial market integration within the Greater Bay Area, but it does not imply a relaxation of A-share IPO standards, which will continue to emphasize high-quality listings [8][14]. - The introduction of the "H+A" listing model is seen as a way to attract high-quality companies back to the A-share market, potentially leading to higher valuations and increased fundraising opportunities [11][12]. Group 2: Market Statistics - As of June 10, 2025, there are 250 Hong Kong-listed companies registered in the Greater Bay Area, with 30 already listed on A-shares and 220 yet to do so [5]. - The top three companies by market capitalization among those not yet listed on A-shares are AIA Group (740.87 billion HKD), Hong Kong Exchanges and Clearing (525.90 billion HKD), and Bank of China (Hong Kong) (367.93 billion HKD) [5]. Group 3: Company Structures - Companies listed in Hong Kong typically operate under two structures: red-chip and H-share. The red-chip structure involves a complex arrangement to allow mainland companies to list abroad, while H-shares are directly registered in mainland China [15]. - The new policy is expected to accelerate the second listing of red-chip companies on the Shenzhen Stock Exchange, enhancing the market's attractiveness [14][15].