Core Viewpoint - The Hong Kong Stock Exchange (HKEX) is implementing a significant change by reducing the minimum price fluctuation for certain stocks, which is expected to lower trading costs and enhance market efficiency [1][4]. Summary by Sections Phase One Implementation - The first phase of the adjustment will take effect on August 4, 2023, focusing on stocks priced between HKD 10 to 20 and HKD 20 to 50, with minimum price fluctuations reduced from HKD 0.02 to HKD 0.01 and from HKD 0.05 to HKD 0.02, respectively [1][6]. - The adjustments represent a 50% reduction for stocks priced between HKD 10 and 20, and a 60% reduction for those priced between HKD 20 and 50 [5]. Consultation and Support - The HKEX conducted a consultation process that began in June 2022, receiving 110 responses from various market participants, with a majority supporting the proposed changes [4][9]. - The feedback indicated a consensus on the positive impact of smaller minimum price fluctuations on market liquidity [9][10]. Future Phases - A second phase is planned for mid-2026, contingent on the evaluation of the first phase's effectiveness, with a six-month preparation period before implementation [5][10]. - The second phase will also target stocks priced between HKD 0.5 and 10, proposing a 50% reduction in minimum price fluctuation [5]. Market Impact and Concerns - Some market participants, particularly traders and retail investors, expressed concerns about the potential impact of the second phase on lower-priced securities, fearing it may narrow bid-ask spreads and hinder profitability [8][10]. - The HKEX acknowledged these concerns, stating that lower minimum price fluctuations could reduce trading costs and improve liquidity, thus benefiting public investors overall [10].

智通财经7月28日电，香港交易所信息显示，贝莱德对东风汽车集团H股持股比例从4.83%增至6.59%。 ...

智通财经7月28日电，香港交易所显示，腾讯在粉笔有限公司的持股比例降至4.9%。 ...

智通财经7月28日电，香港交易所信息显示，贝莱德在信达生物的持股比例于07月22日从4.63%升至 5.19%。 ...

Core Insights - The article presents the market capitalization rankings of the top 50 Chinese technology and internet companies as of July 28, 2025, highlighting significant shifts in valuations and market positions [1]. Group 1: Market Capitalization Rankings - The top three companies by market capitalization are Alibaba with 1,000.00 billion, Tencent at 800.00 billion, and Baidu at 600.00 billion [3]. - Notable companies in the top 10 include JD.com at 478.29 billion and Kuaishou at 398.09 billion [3]. - The rankings show a decline in market value for several companies, with Tencent Music and Li Auto both experiencing a decrease of 1% [3]. Group 2: Changes in Valuation - Companies like Kingsoft and China Software have shown slight increases in their market capitalization, with Kingsoft rising by 1% to 62.09 billion [4]. - Conversely, companies such as New Oriental and Kingdee International have seen declines, with New Oriental at 76.34 billion and Kingdee at 76.33 billion, both down by 2% [4]. - The overall trend indicates a mixed performance among the top 50 companies, with some gaining value while others are losing [5]. Group 3: Additional Insights - The data reflects daily calculations of market capitalization based on the current exchange rates between USD and HKD [5]. - The rankings serve as a tool for investors to gauge the performance and market position of leading technology firms in China [5].

Investment Rating - The report maintains a "Positive" investment rating for the investment banking and brokerage industry [7] Core Insights - The report highlights that brokerage firms are expected to see significant growth in mid-year performance, driven by market conditions. The insurance sector is also anticipated to experience high growth in new business value due to an increase in value rates. The equity market is on an upward trend, leading to favorable investment returns and profit growth. Current valuations imply a pessimistic long-term investment outlook, but the report suggests that valuations remain safe considering medium to long-term interest rate spreads [4][5] - The report recommends several companies based on their stable profit growth and dividend rates, including Jiangsu Jinzhong, China Ping An, and China Pacific Insurance. Additionally, it suggests companies like New China Life, China Life, Hong Kong Exchanges, CITIC Securities, Dongfang Wealth, Tonghuashun, and Jiufang Zhitu Holdings based on their performance elasticity and valuation levels [4][5] Summary by Sections Brokerage Performance - This week, some brokerage firms disclosed performance forecasts, indicating a significant increase in mid-year results, which enhances their future allocation value. The report emphasizes the stability of profit growth and dividend rates as key factors for investment recommendations [4][5] Market Overview - The non-bank financial index increased by 3.5% this week, outperforming the CSI 300 by 1.8%. Year-to-date, the non-bank financial index has risen by 6.6%, with a relative underperformance of 1.7% against the CSI 300. The overall performance of the non-bank sector has been strong this week [5][18] Insurance Sector - In June 2025, the cumulative premium income for the insurance industry reached 373.5 billion yuan, reflecting a year-on-year increase of 5.31%. The report notes that both property and life insurance segments showed positive growth, with property insurance income at 96.45 billion yuan and life insurance income at 277.05 billion yuan [22][23] Investment Business - The report indicates that the equity market is recovering, with the CSI 300 index rising by 1.69% and the ChiNext index by 2.76%. The brokerage firms' investment assets are primarily composed of bonds, with equity investments accounting for approximately 10%-30% of their portfolios [42][44] Financing Activities - In June 2025, the equity financing scale reached 544.19 billion yuan, a significant increase of 3140.2% month-on-month, while bond financing totaled 8.83 trillion yuan, up by 21.3%. This indicates a recovery in both equity and bond financing activities [46][49] Asset Management - The report notes a rebound in the issuance of collective asset management products, with June 2025 seeing an issuance of 9.732 billion units, a 125.8% increase from the previous month. However, the new fund issuance decreased by 10.3% in June [51][53]

Investment Rating - The report maintains a positive outlook on the non-bank sector, particularly in insurance and securities, suggesting a "Recommended" rating for key companies in these sectors [3][41]. Core Insights - The report highlights a reduction in the preset interest rates for life insurance products, with ordinary life insurance at 2.0%, participating insurance at 1.75%, and universal insurance at 1.0%. This adjustment is expected to optimize the liability structure of insurance companies and promote a shift towards non-guaranteed income products [1][3]. - The China Securities Regulatory Commission (CSRC) is focused on stabilizing the capital market and enhancing market vitality through reforms, which is anticipated to boost investor confidence and market performance [2][3]. - The report emphasizes the positive impact of recent monetary policies, including interest rate cuts, which are expected to enhance market sentiment and support the valuation recovery of quality listed companies [3][41]. Summary by Sections Market Review - Major indices showed positive performance, with the Shanghai Composite Index up by 1.67% and the Shenzhen Component Index up by 2.33% during the week [7]. - The non-bank financial sector saw a mixed performance, with the securities index rising by 4.82% [7][8]. Securities Sector - The report notes that the total trading volume in the A-share market reached 10.66 trillion yuan, with a daily average trading volume of 1.78 trillion yuan, reflecting a 14.20% increase week-on-week [16]. - The IPO underwriting scale for the year reached 560.64 billion yuan, while refinancing underwriting amounted to 8050.88 billion yuan [16][18]. Insurance Sector - The report indicates that the life insurance premium growth rate for major companies like China Life and Ping An Life has shown positive trends, with significant increases in premium income [24][25]. - The adjustment of preset interest rates is expected to lower the liability costs for insurance companies, enhancing their financial stability [1][3]. Investment Recommendations - The report suggests focusing on key insurance companies such as China Pacific Insurance, Sunshine Insurance, and Ping An Insurance, as well as leading securities firms like CITIC Securities and Huatai Securities [41][42]. - It also highlights potential benefits for non-bank institutions from the implementation of stablecoin regulations and cross-border payment innovations [3][41].

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) is launching a new communication platform called "Hong Kong Stock Exchange Connect" (Connect) to enhance interaction between listed issuers and HKEX, and to modernize the market infrastructure in Hong Kong [1][2]. Group 1: Platform Features - "Connect" is a secure web-based electronic platform that allows listed issuers to make public disclosures, submit case materials, and communicate with HKEX, replacing current email exchanges and electronic form submissions [3]. - The platform will feature a user-friendly interface with information alerts, workflow tracking, guidance, and automated reminders to assist issuers in meeting their compliance and reporting requirements [4]. - The platform is expected to be free of charge for issuers, as HKEX has indicated it will not impose fees for using the issuer platform [3]. Group 2: Implementation Timeline - The platform is scheduled to officially launch in 2026, with a trial version available in the second half of 2025 for users to familiarize themselves with its functionalities [4]. - Guidelines for account opening and user registration will be released by the end of 2025, with phased implementation for document submission starting in the second quarter of 2026 [4]. Group 3: Regulatory Changes - The introduction of "Connect" is part of HKEX's initiative to enforce mandatory electronic submission of documents, contributing to the establishment of a paperless securities market [5][7]. - Currently, while most documents can be submitted electronically, some still require physical copies, particularly for new listings or certain approval processes [6]. - HKEX plans to mandate that all documents be submitted electronically through "Connect," eliminating the requirement for multiple copies of the same document [7].

Core Viewpoint - The valuation of Hong Kong Stock Exchange (HKEX) is projected to have a lower limit of 30 times PE and an upper limit approaching 70 times, driven by fundamentals and liquidity [1] Valuation History - Historical PE ranges for HKEX: 2014-2015 PE ranged from 29 to 67, benefiting from the launch of Stock Connect and easing investment restrictions; 2017-2018 PE ranged from 28 to 54, influenced by the opening of Shenzhen-Hong Kong Stock Connect and tightening liquidity due to U.S.-China tensions; 2020-2021 PE ranged from 29 to 68, with reforms attracting new economy and Chinese concept stocks [1] - Current PE for HKEX is at 38 times, with a favorable outlook due to the Federal Reserve's interest rate cuts and support from mainland China [1] Market Dynamics - The core factor for HKEX's profitability is Average Daily Turnover (ADT), calculated as total market capitalization multiplied by turnover rate [1] - Recent reforms at HKEX aim to attract A/H listed companies and facilitate the return of Chinese concept stocks, increasing the market capitalization of new economy sectors from 17% in 2018 to 35% in 2025 YTD [1] - Southbound capital inflows are enhancing ADT and turnover rates, driven by low interest rates and asset scarcity in mainland China, leading to increased participation from long-term institutional investors and individual investors [1] Financial Projections - The company is rated as a buy, with a projected upside of 24% based on relative PE valuation, targeting a PE of 42 times and a market value of HKD 692 billion [2] - Expected net profits for the company from 2025 to 2027 are estimated at HKD 165 billion, 179 billion, and 188 billion, reflecting year-on-year growth of 26%, 9%, and 5% respectively [2]

Core Viewpoint - Hong Kong Stock Exchange (HKEX) is set to launch a new communication platform called "HKEX Connect" to enhance interaction between listed issuers and the exchange, aiming to modernize market infrastructure and improve efficiency and transparency in the Hong Kong financial market [1][2]. Group 1 - The trial version of "HKEX Connect" will be available in the second half of 2025, with official phased usage starting in the second quarter of 2026 [2]. - The platform will serve as the primary communication channel for issuers and HKEX, allowing for the submission and publication of regulatory announcements and confidential communications regarding regulatory matters [1]. - The interface of "HKEX Connect" is designed to be user-friendly, featuring smart compliance tools such as information alerts, workflow tracking, guidelines, and automatic reminders to assist issuers in meeting daily compliance and reporting requirements [1]. Group 2 - Following the launch of "HKEX Connect," HKEX will redesign its market information page on its website to integrate and display issuer information, including management profiles, company events, and other important dates [1]. - Issuers will be able to update or upload content on "HKEX Connect," allowing investors to access real-time information, thereby enhancing market transparency [1].