Core Insights - The Hong Kong Stock Exchange's OTC Clearing Company, in collaboration with the China Foreign Exchange Trade System and the Shanghai Clearing House, has launched interest rate swap contracts referencing the one-year Loan Prime Rate (LPR1Y) under the Northbound Swap Connect [1][2] - On the launch day, 31 domestic and foreign institutions participated, executing 53 trades with a nominal principal amount of 6.46 billion RMB, indicating strong market interest and operational efficiency [1] - The introduction of LPR interest rate swaps enhances the risk management tools available to foreign investors, supporting the internationalization of the RMB [1] Group 1 - The Northbound Swap Connect provides a convenient, efficient, and secure channel for domestic and foreign investors to participate in the financial derivatives market while maintaining regulatory and market structure integrity [2] - Since its launch on May 15, 2023, the Northbound Swap Connect has seen increasing trading activity, with 82 foreign financial institutions from 15 countries and regions executing over 15,000 RMB interest rate swap transactions totaling approximately 8.15 trillion RMB by the end of August 2025 [2] - The Hong Kong OTC Clearing Company has extended the maximum term of the existing CNY NDIRS contracts from 5.5 years to 11 years to better assist foreign investors in managing interest rate risks [2] Group 2 - The three-party infrastructure will continue to collaborate closely with market participants under the guidance of regulatory authorities to enrich the product offerings of the Northbound Swap Connect and enhance the risk management framework [2] - The initiative aims to promote the joint development of the financial markets in mainland China and Hong Kong, contributing to a high-standard opening of China's financial market [2]

香港联交所最新资料显示，9月18日，董事会主席唐家成增持香港交易所(00388)0.2万股，每股均价 452.6港元，总金额为90.52万港元。增持后最新持股数目为0.5万股。 ...

Core Viewpoint - The chairman of Hong Kong Exchanges and Clearing Limited, Tang Ka-cheng, has increased his shareholding in the company, indicating confidence in its future performance [1] Group 1 - On September 18, the chairman acquired 200 shares of Hong Kong Exchanges and Clearing at an average price of HKD 452.6 per share, totaling HKD 905,200 [1] - Following this purchase, the chairman's total shareholding in the company has risen to 500 shares [1]

Core Viewpoint - The introduction of interest rate swap contracts based on the one-year Loan Prime Rate (LPR1Y) under the "Northbound Swap Connect" aims to enhance risk management tools for overseas investors and meet their diverse interest rate risk management needs [1][2]. Group 1: Market Development - Since its launch on May 15, 2023, the "Swap Connect" has been operating smoothly, becoming an important channel for overseas institutional investors to manage RMB interest rate risk [2]. - As of the end of August 2025, 82 overseas financial institutions from 15 countries and regions have conducted over 15,000 RMB interest rate swap transactions, totaling a nominal principal of approximately 8.15 trillion RMB [2]. Group 2: Infrastructure and Operations - The collaboration between the China Foreign Exchange Trading Center, Shanghai Clearing House, and Hong Kong's OTC Clearing Limited has facilitated the seamless execution and clearing of transactions under the "Northbound Swap Connect" [1][2]. - The dual Central Counterparty (CCP) interconnection and single resource pool arrangement have reduced participation complexity for domestic and foreign investors while effectively managing systemic risks [2]. Group 3: Future Outlook - The three-party infrastructure will continue to work closely with market participants under the guidance of regulatory authorities to enrich "Swap Connect" products and enhance the risk management framework [3].

Core Viewpoint - The Hong Kong Securities and Futures Commission (SFC) is consulting on the implementation of an investor identification code system for the derivatives market to enhance the integrity and sustainable development of Hong Kong's capital markets [1] Group 1: Investor Identification Code System - The proposed investor identification code system for the derivatives market will cover futures contracts, options contracts, and stock options traded through the Hong Kong Futures Exchange [1] - This system will follow a similar model to the one successfully implemented in the securities market since March 2023 [1] - Licensed corporations and registered institutions providing brokerage services or engaging in proprietary trading will be required to submit client names and identity information to a central database [1] Group 2: Market Integrity and Investor Protection - The SFC aims to enhance its ability to detect violations and strengthen investor protection by expanding the investor identification code system to the derivatives market [1] - The implementation of this system is seen as a significant advancement in improving cross-market surveillance capabilities, which is crucial for maintaining market integrity and boosting investor confidence [1] - These factors are essential for consolidating Hong Kong's position as a sustainable international financial center [1]

Core Viewpoint - Hong Kong Exchanges and Clearing Limited (HKEX) is closely monitoring the impending super typhoon "Haikui" and prioritizing the safety of employees, market participants, and the investing public [1] Group 1: HKEX's Response to Typhoon - HKEX is in constant communication with regulatory bodies and market participants regarding the situation [1] - The exchange has implemented a "no market closure during typhoons" policy since September last year, allowing trading to continue during severe weather conditions [1] - Despite the ongoing operations, listing ceremonies will be postponed during adverse weather [1] Group 2: Typhoon Characteristics and Risks - Typhoon "Haikui" is characterized by rapid movement and strong intensity, with peak strength expected to be close to Typhoon "Mojiah" [1] - The typhoon is predicted to make landfall in South China at strong or super typhoon levels, posing high disaster risks, particularly in the densely populated and industrialized Pearl River Delta region [1] - Several areas in Guangdong Province have already announced or forecasted the implementation of "five stoppages" measures [1]

Investment Rating - The report maintains a "Positive" investment rating for the industry [7] Core Insights - Recent market activity remains high, with Q3 performance expected to continue the trend of significant growth, suggesting a focus on leading companies and high-performing stocks within the sector [2][4] - In the insurance sector, the report confirms the logic of deposit migration, increased equity allocation, and improved new policy costs, enhancing the certainty of long-term ROE improvement and potential valuation recovery [2][4] - Recommendations include Jiangsu Jinzhong for stable profit growth and dividend rates, China Ping An for stable dividends and high yield, and China Pacific Insurance for its strong business model and market position [2][4] Market Performance - The non-bank financial index decreased by 3.7% this week, with a year-to-date increase of 4.2%, ranking low in the industry [5] - The average daily trading volume in the market increased to 25,178.46 billion, up 8.23% week-on-week, indicating a recovery in market activity [5][37] Insurance Sector Overview - In July 2025, the cumulative insurance premium income reached 42,085 billion, a year-on-year increase of 6.75%, with life insurance contributing 31,153 billion and non-life insurance 10,933 billion [21][22] - The total assets of the insurance industry as of July 2025 were 39.59 trillion, with life insurance companies holding 34.69 trillion [26][27] Brokerage and Investment Business - The report highlights a recovery in trading activity, with the average daily turnover in the two markets showing an increase, and the margin financing balance rising to 2.40 trillion, up 2.65% [38][45] - The equity market remains volatile, with the CSI 300 index down 0.44% and the ChiNext index up 2.34% [42] Recommendations - The report recommends focusing on high-performing stocks such as New China Life, China Life, Hong Kong Exchanges, CITIC Securities, Dongfang Wealth, Tonghuashun, and Jiufang Zhitu Holdings based on performance elasticity and valuation levels [2][4]

Investment Rating - The report maintains a positive outlook on the non-bank financial sector, indicating an "Overweight" investment rating for the industry [2][3]. Core Insights - The brokerage sector has experienced a recent adjustment, with the Shenwan Brokerage II Index declining by 3.51%, underperforming the CSI 300 Index by 3.07 percentage points. However, the sector is expected to maintain double-digit year-on-year profit growth in Q3 2025, supported by ongoing capital inflows [3][6]. - The insurance sector has seen a decline of 4.76% in the Shenwan Insurance II Index, with significant movements such as Ping An Life increasing its stake in China Pacific Insurance to over 10%. This reflects a strong positive outlook from insurance capital towards the sector [3][8]. - The report highlights the upcoming National New Conference on September 22, which is anticipated to bring new policies that could positively impact market sentiment [3][15]. Summary by Sections Market Review - The CSI 300 Index closed at 4501.92 with a slight decline of 0.44%. The non-bank index reported a drop of 3.66%, with the brokerage, insurance, and diversified financial sectors showing declines of 3.51%, 4.76%, and 0.50% respectively [6][8]. Non-Bank Industry Key Data - As of September 19, 2025, the 10-year government bond yield was 1.88%, with a slight increase of 0.65 basis points. The average daily stock trading volume reached 25,181.36 billion yuan, reflecting an increase of 8.23% week-on-week [11][14]. Non-Bank Industry News and Key Announcements - The report notes that the property insurance sector achieved a record high in underwriting profits in the first half of 2025, with premium growth of 4.2% [16]. - Ping An Life's recent acquisition of shares in China Pacific Insurance is seen as a strong signal of confidence in the insurance sector's investment value [19]. - China Pacific Insurance announced the completion of a convertible bond issuance, which is expected to enhance its capital position [20]. Investment Recommendations - For brokerages, the report recommends focusing on leading firms benefiting from improved competitive dynamics, such as GF Securities, Guotai Junan, and CITIC Securities. It also suggests considering firms with strong international business capabilities like China Galaxy and CICC [3][8]. - In the insurance sector, the report recommends China Life, China Pacific, New China Life, and Ping An, among others, due to their favorable valuation and growth prospects [3][8].

Group 1 - Goldman Sachs has raised its cash ADT and earnings per share forecasts for Hong Kong Exchanges and Clearing (00388) by 3% to 4% for the years 2025 to 2027, maintaining a price-to-earnings ratio of 40 times for 2026 and increasing the 12-month target price from HKD 524 to HKD 544 [1] - The bank expects the investment income for the third quarter to be approximately half of the first half of the year, influenced by the decline in HIBOR from May to August, a reduction in external investment portfolios, and revisions to margin funding interest-sharing agreements [1] - Southbound trading is estimated to account for a 30% to 40% year-on-year increase in overall average daily turnover (ADT), which will be a key determinant of short-term stock price movements [1] Group 2 - Goldman Sachs predicts that the ADT for the period from October to December 2025 will be around HKD 260 billion, aligning closely with consensus earnings per share estimates [1] - The bank views southbound trading as a unique factor contributing significantly to the overall ADT during this upward cycle, despite market uncertainties regarding future capital flows [1] - The firm remains confident that the flow and participation in southbound trading will structurally increase due to the diverse offerings, unique stocks, and valuation discounts (higher yields) available in the southbound market [1]

Group 1 - HSBC maintains a hold rating on SenseTime (00020.HK) and raises the target price to HKD 3.1, citing the company's "1+X" strategic transformation and improved market sentiment, but warns of potential supply bottlenecks in AI chip resources [1] - Goldman Sachs maintains a buy rating on Hong Kong Exchanges and Clearing (00388.HK) and raises the target price to HKD 544, expecting structural increases in southbound capital flow and participation due to the company's diversified offerings [1] - Citic Lyon reiterates a market outperform rating on CATL (03750.HK) and raises the H-share target price to HKD 670, driven by strong demand in the electric vehicle and ESS markets, with a projected 10% increase in battery shipments from 2026 to 2027 [1] Group 2 - Morgan Stanley maintains an overweight rating on Ping An Insurance (02318.HK) and raises the target price to HKD 70, adjusting earnings forecasts for 2025 to 2027 upwards by 1.9%, 0.4%, and 0.6% respectively [2] - Morgan Stanley gives China Life Insurance (02628.HK) an overweight rating and raises the H-share target price to HKD 25.7, with earnings forecasts for 2025 to 2027 increased by 13.1%, 1%, and 1.9% respectively, benefiting from a rising stock market and stable sales growth [3] Group 3 - Goldman Sachs reiterates a buy rating on Baidu (09888.HK) and raises the target price to HKD 150, highlighting the rapid growth of non-search businesses and the acceleration of AI value release [4] - Guotai Junan maintains an overweight rating on Boss Zhipin (02076.HK) with a target price of HKD 109.66, noting a 30.9% year-on-year growth in adjusted net profit and steady progress in AI commercialization in recruitment scenarios [4] - Guotai Junan maintains an overweight rating on Super盈 International Holdings (02111.HK) with a target price of HKD 4.42, emphasizing the company's strong position in the elastic fabric sector and consistent high dividend yield [5]