Group 1 - The core viewpoint of the news is the performance of the CES100 index, which reflects the overall performance of eligible securities under the "Shanghai-Hong Kong Stock Connect" and "Shenzhen-Hong Kong Stock Connect" [1][2] - The CES100 index experienced a decline of 0.38% on June 17, closing at 5169.93 points, with a trading volume of 67.847 billion yuan [1] - Over the past month, the CES100 index has increased by 3.00%, by 0.20% over the last three months, and has risen by 22.29% year-to-date [1] Group 2 - The top ten holdings of the CES100 index include Tencent Holdings (10.02%), HSBC Holdings (9.93%), Alibaba-W (9.89%), Xiaomi Group-W (7.73%), Meituan-W (6.65%), AIA Group (5.77%), Hong Kong Exchanges and Clearing (4.13%), Standard Chartered (2.31%), Prudential (1.94%), and Pop Mart (1.64%) [2] - The index's holdings are entirely composed of securities from the Hong Kong Stock Exchange, with a sector breakdown showing 27.96% in consumer discretionary, 27.80% in financials, 13.72% in communication services, 9.70% in information technology, 5.56% in real estate, 4.32% in healthcare, 4.10% in utilities, 3.21% in consumer staples, 3.15% in industrials, and 0.48% in materials [2] - 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 - The Hong Kong IPO market is experiencing a resurgence, with an increasing number of Chinese companies considering returning to Hong Kong for listing amid geopolitical tensions between China and the U.S. [1][2] Group 1: Market Dynamics - Since the reform of the Hong Kong Stock Exchange listing system in 2018, 33 Chinese companies have listed in Hong Kong, accounting for over 70% of the total market capitalization of Chinese companies listed in the U.S. [1] - In the first five months of 2025, the Hong Kong stock market saw 27 IPOs raising a total of HKD 77.346 billion, nearing the total amount raised in the previous year [2][3]. - The average daily trading volume in the Hong Kong securities market for the first five months of 2025 was HKD 2.423 billion, more than double the amount from the same period last year [2]. Group 2: Regulatory Environment - The Hong Kong Stock Exchange is considering relaxing the market capitalization threshold and dual-class share structure restrictions for Chinese companies returning to Hong Kong [1][20]. - The introduction of the "FINI" system aims to shorten the settlement period for new shares from T+5 to T+2, enhancing capital turnover efficiency and attracting more international investors [3]. Group 3: Investment Trends - The return of large Chinese companies to Hong Kong is expected to inject new vitality into the capital market, with concerns about trading activity and stock price suppression being addressed by the exchange's leadership [2][21]. - The trend of "de-dollarization" is driving international capital into the Hong Kong stock market, with a year-to-date increase of over 20% in the Hang Seng Index, leading global major stock markets [7][8]. Group 4: A+H Listing Model - The A+H listing model is gaining traction among Chinese companies seeking overseas financing platforms to support international expansion plans [23]. - The China Securities Regulatory Commission has introduced measures to facilitate the overseas listing process for mainland companies, reducing compliance costs and time [4][5]. Group 5: Future Outlook - The Hong Kong Stock Exchange is committed to continuously reviewing its listing rules to better serve the needs of companies and adapt to market demands [19][20]. - The exchange's leadership emphasizes the importance of maintaining liquidity and attracting quality companies to ensure a robust market environment [21][22].

智通财经6月17日电，香港交易所信息显示，LAV Asset Management (Hong Kong) Limited在信达生物的 持股比例于06月12日从5.00%降至3.09%。 ...

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].