Core Viewpoint - CICC predicts that by 2026, the Trump administration will shift towards a dual approach of fiscal and monetary easing, which will benefit both US and Chinese stock markets as well as gold, silver, and copper [1] Group 1: Economic Environment - The Federal Reserve is expected to normalize its balance sheet expansion, releasing liquidity to alleviate three major issues in the US economy: confidence disturbances, stagnation in small business expansion, and weakness in the real estate sector [1] - A loose monetary environment is favorable for the technology, industrial, and resource sectors, while also promoting a trend of dollar depreciation [1] Group 2: Currency and Market Impact - During a weak dollar cycle, there is potential for the renminbi to appreciate, leading to a global rebalancing of funds that will boost A-shares and Hong Kong stocks [1] - New economy sectors are expected to continue leading the market, while the consumer demand sector is likely to experience a rebound [1] Group 3: Inflation-Linked Assets - Assets such as gold, silver, and copper are anticipated to benefit from inflationary trends [1]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The secondary - market prices of publicly - offered REITs in China continued the downward trend in December 2025. The performance of REITs was weaker compared to other mainstream asset classes. The primary market had new product applications and acceptances, and the policy environment was optimized with the expansion of the REITs issuance scope and the introduction of relevant development promotion policies [1][2][40] 3. Summary by Directory 3.1 Primary Market 3.1.1 Listed Projects - As of December 31, 2025, there were 78 publicly - offered REITs in China, with a total issuance scale of 201.749 billion yuan (excluding expansion). The traffic infrastructure category had the largest issuance scale at 68.771 billion yuan, followed by the park infrastructure category at 32.933 billion yuan. In December 2025, one new REIT, Huaxia Anbo Warehouse REIT, was listed, with an issuance scale of 2.448 billion yuan and an asset type of warehousing and logistics [11]. 3.1.2 Pending - Listing Projects - As of December 31, 2025, there were 19 REITs pending listing, including 16 initial - offering REITs and 3 REITs pending expansion. During the month, the project status of several REITs was updated, such as "accepted", "feedback received", "declared", and "approved" [14]. 3.2 Secondary - Market Performance 3.2.1 Price Trends - **At the level of major asset classes**: In December 2025, the secondary - market prices of publicly - offered REITs continued the downward trend. The returns of China's publicly - offered REITs were - 2.51%, ranking behind A - shares, convertible bonds, gold, pure bonds, and US stocks, and ahead of crude oil [16]. - **At the underlying asset level**: Both equity - type and franchise - type REITs' prices declined, with franchise - type REITs having a larger decline. Among different underlying asset types, new infrastructure - type REITs had the largest increase, and new infrastructure and affordable housing - type REITs had better returns at 1.24% and 0.05% respectively [20][22]. - **At the single - REIT level**: In December 2025, 23 REITs rose and 55 fell. The top three in terms of increase were Huatai Nanjing Jianye REIT, CICC Chongqing Liangjiang REIT, and Huaxia Fund China Resources Youchao REIT [24]. 3.2.2 Trading Volume and Turnover Rate - **At the underlying asset level**: In December 2025, the trading volume of publicly - offered REITs decreased compared to the previous month. The water conservancy facilities - type REITs had the highest average daily turnover rate. The top three in terms of trading volume were traffic infrastructure, consumer infrastructure, and park infrastructure categories. The top three in terms of average daily turnover rate were water conservancy facilities, municipal facilities, and new infrastructure categories [26]. - **At the single - REIT level**: The trading volume and turnover rate of single REITs continued to show differentiation. The top three in terms of trading volume were CICC Puluosi REIT, Huaxia China Communications Construction REIT, and Huaxia Fund China Resources Youchao REIT. The top three in terms of trading amount were Huaxia China Resources Commercial REIT, Huaxia China Communications Construction REIT, and Zheshang HuHangYong REIT. The top three in terms of turnover rate were Huaxia Anbo Warehouse REIT, CITIC Construction Shenyang International Software Park REIT, and ICBC Inner Mongolia Energy Clean Energy REIT [27]. 3.2.3 Main - Force Net Inflow and Block Trading - **Main - force net inflow situation**: In December 2025, the total main - force net inflow was 119.71 million yuan, indicating an increase in market trading enthusiasm compared to the previous month. The top three underlying asset types in terms of main - force net inflow were traffic infrastructure, consumer infrastructure, and warehousing and logistics. The top three single REITs in terms of main - force net inflow were Huaxia China Resources Commercial REIT, Huaxia Anbo Warehouse REIT, and China Merchants Expressway REIT [30]. - **Block trading situation**: In December 2025, the total block - trading amount was 1.29 billion yuan, a decrease compared to the previous month. There were block trades on 19 trading days. December 29 had the highest single - day block - trading amount. The top three single REITs in terms of block - trading amount were Huaxia Shouchuang Outlet Mall REIT, China Merchants Expressway REIT, and Southern Runze Technology Data Center REIT [35]. 3.3 Related Policies - On December 1, the National Development and Reform Commission issued the "List of Industry Scope for Infrastructure Real Estate Investment Trust Fund (REITs) Projects (2025 Edition)", expanding the issuance scope of infrastructure REITs to 15 industries, mainly adding commercial office facilities and urban renewal facilities. On December 31, the China Securities Regulatory Commission issued the "Notice on Promoting the High - Quality Development of the Real Estate Investment Trust Fund (REITs) Market" and the "Announcement on Launching the Pilot Program of Commercial Real Estate Investment Trust Funds". The Shanghai and Shenzhen Stock Exchanges also revised and issued the business rules for publicly - offered REITs [40].

Core Insights - In 2025, a total of 116 companies were listed on the A-share market, representing a 16% increase from 100 companies in the same period last year [1] - The net fundraising amount for these 116 newly listed companies reached 122.025 billion yuan, a significant increase of 104.25% compared to 59.743 billion yuan in the previous year [1] - The total fees charged by IPO intermediaries for these companies amounted to 9.156 billion yuan, with underwriting and sponsorship fees accounting for 6.704 billion yuan, legal fees for 0.821 billion yuan, and audit fees for 1.631 billion yuan [1] Segment Analysis Underwriting and Sponsorship Fees - The total underwriting and sponsorship fees ranked by board are as follows: Sci-Tech Innovation Board (21.54 billion yuan), Shanghai Main Board (15.37 billion yuan), Growth Enterprise Market (15.11 billion yuan), Shenzhen Main Board (9.24 billion yuan), and Beijing Stock Exchange (5.78 billion yuan) [2][3] - The average underwriting fee is highest for the Sci-Tech Innovation Board at 11.337 million yuan, while the lowest is for the Beijing Stock Exchange at 2.222 million yuan [4] Legal Fees - The total legal fees ranked by firms are led by Shanghai Jintiancheng (1.14 billion yuan), followed by Beijing Zhonglun (1.05 billion yuan), and Zhejiang Tiance (0.57 billion yuan) [7][8] - The average legal fee is highest for the Sci-Tech Innovation Board at 832.01 thousand yuan, and lowest for the Beijing Stock Exchange at 364.62 thousand yuan [4] Audit Fees - The top three audit firms by total fees are Rongcheng (4.17 billion yuan), Tianjian (2.86 billion yuan), and Lixin (2.19 billion yuan) [10][11] - The average audit fee is highest for the Shanghai Main Board at 1.8518 million yuan, and lowest for the Beijing Stock Exchange at 632.39 thousand yuan [4]

Group 1: Company Overview - China International Capital Corporation (CICC) is headquartered in Beijing and was established on July 31, 1995, with its listing date on November 2, 2020 [2] - The company operates through six main divisions: Investment Banking, Equity Sales and Trading, Fixed Income, Wealth Management, Investment Management, and Other Services [2] - The revenue composition of CICC includes Wealth Management (32.58%), Equity Business (25.78%), Fixed Income (13.38%), Investment Banking (11.26%), Other (8.87%), Asset Management (4.21%), and Private Equity (3.91%) [2] Group 2: Financial Performance - As of September 30, 2025, CICC reported a total revenue of 20.76 billion yuan, representing a year-on-year growth of 54.36% [3] - The net profit attributable to shareholders for the same period was 6.57 billion yuan, showing a significant increase of 129.75% year-on-year [3] - CICC has distributed a total of 5.36 billion yuan in dividends since its A-share listing, with 3.04 billion yuan distributed over the past three years [3] Group 3: Shareholder and Market Activity - As of September 30, 2025, CICC had 118,900 shareholders, a decrease of 4.10% from the previous period, while the average circulating shares per person increased by 4.28% to 24,662 shares [3] - On December 31, CICC's stock price decreased by 0.54%, with a trading volume of 825 million yuan [1] - The financing buy-in amount on December 31 was 123 million yuan, while the financing repayment was 168 million yuan, resulting in a net financing buy of -45.08 million yuan [1]

Core Viewpoint - The report from Guotai Junan highlights the increasing importance of the derivatives business for brokerage firms, emphasizing its role in the differentiation of proprietary trading operations as the industry evolves. Group 1: Development of Derivatives Business - The brokerage derivatives business experienced rapid growth from 2018 to 2022, with the nominal principal of over-the-counter derivatives increasing from 346.7 billion to 2,086.8 billion, achieving a CAGR of 57% [1] - During the same period, the contribution of derivatives business to brokerage firms' performance also rose significantly, exemplified by CITIC Securities, whose equity derivatives revenue grew from 0.89 billion to 5.62 billion, with a CAGR of 58%, increasing its share of total revenue from 7% to 22% [1] - The development of the domestic OTC derivatives market has gone through four significant phases since its inception in 2012, with regulatory policies and changes in capital market conditions being the two key factors influencing its growth [1] Group 2: Differentiation Among Brokerages - The evolution of brokerage proprietary trading models has led to a critical differentiation based on the growth certainty provided by derivatives business, contrasting with the previous model of simple expansion in fixed income and stagnation in equity trading [2] - In the current environment, where there is a contraction in proprietary trading and uncertainty in returns, brokerages that can rely on derivatives for stable expansion will have stronger growth certainty and more robust investment returns, marking a key factor in the profitability differentiation among brokerages [2] Group 3: Long-term Outlook for Derivatives Business - The regulation of derivatives business in China is becoming more standardized, with the recent "14th Five-Year Plan" advocating for the steady development of futures, derivatives, and asset securitization, indicating a long-term positive trend for the derivatives business [3] - Both domestic and international experiences show that the derivatives business benefits from market activity and exhibits stable models with strong scale effects, leading to a preference for top-tier brokerages that can leverage client bases, first-mover advantages, and professional capabilities to create competitive barriers [3]

Core Insights - The "2026 Most Anticipated IPO Stars" list was announced on January 4, highlighting top investment firms in the industry [1] Group 1: Award Winners - A total of 30 investment firms received the "Top Investment Star" award, including notable names such as CICC, Guotai Junan, Hillhouse Capital, and Sequoia China [1][2] - Other recognized firms include IDG Capital, ZhenFund, and Shunwei Capital, showcasing a diverse range of investment strategies and focuses [1][3]

Group 1 - Chengdu Xingtou Microelectronics Technology Co., Ltd. has filed for guidance record registration with the Sichuan Securities Regulatory Bureau on January 5, 2026 [1] - The guiding institution for this registration is China International Capital Corporation [1]

Group 1 - The core viewpoint is that the restructuring of the international order and China's industrial innovation will resonate in 2026, supporting the performance of A-shares [1] - The market is expected to show a pattern of rising initially and then stabilizing, with increased volatility and valuation uplift in the context of active capital [1] - Three main lines of focus are suggested: 1) Growth sectors such as AI, which is expected to enter the application realization phase, with opportunities in computing power, optical modules, and cloud computing infrastructure, leaning towards domestic directions; application areas include robotics, consumer electronics, intelligent driving, and software applications [1] 2) External demand breakout, focusing on sectors like home appliances, construction machinery, commercial buses, power grid equipment, gaming, and globally priced resources like non-ferrous metals, in line with the trend of going abroad and exposure to the US [1] 3) Cyclical reversal, with attention to sectors nearing improvement inflection points or supported by policies, such as chemicals, aquaculture, and new energy [1] Group 2 - There is an expectation for capital market policies to further promote a "long-term" and "steady" market [2] - The restructuring of the international monetary system and global capital reallocation could further drive the opening of capital markets, such as expanding the range of foreign investment and encouraging the internationalization of Chinese securities firms [2] - The focus is on supporting financing for innovative enterprises and enhancing market inclusivity while optimizing mechanisms for medium- and long-term capital entry, thereby increasing market stability and resilience [2]

Group 1 - The core viewpoint of the articles indicates a positive outlook for the Chinese stock market in 2026, driven by factors such as AI innovation, supportive policies for private enterprises, and improved corporate earnings [1][4][5] - The Shanghai Composite Index achieved an 18.41% increase in 2025, marking its best annual performance since 2020, with the Shenzhen Component Index and ChiNext Index rising by 29.87% and 49.57% respectively [1] - Domestic and foreign institutions are increasingly optimistic about Chinese assets, particularly in the technology sector, which is expected to be a key growth driver in 2026 [2][4][6] Group 2 - Domestic securities firms, such as CITIC Securities, emphasize a shift from valuation-driven gains to performance-driven earnings, suggesting that investors should focus on companies' earnings rather than expecting further valuation increases [2][3] - International investment banks, including UBS and Morgan Stanley, predict a favorable environment for Chinese stocks, citing ongoing support for innovation and the resilience of corporate earnings in a complex trade environment [4][5] - The AI sector is highlighted as a critical area for investment, with expectations for new applications and growth in related industries such as semiconductors and advanced manufacturing [6][7] Group 3 - The overall sentiment among foreign institutions is that structural improvements in the Chinese market will support a broader upward trend, with predictions of significant earnings growth for Chinese companies in 2026 and 2027 [4][5] - The focus on AI and technology is expected to enhance the profitability of the Chinese stock market, with a notable increase in R&D investments driving the digital economy's contribution to GDP [6][7] - Asset allocation strategies suggest an overweight position in Chinese stocks and gold, with a cautious approach to gold due to its current high valuation [7]

Core Viewpoint - Suplay has submitted a listing application to the Hong Kong Stock Exchange, with CICC and JPMorgan as joint sponsors, positioning itself as a leading player in the global IP collectibles and consumer products market [1] Group 1: Company Overview - Suplay integrates globally recognized IP into its products and aims to introduce Chinese culture through carefully selected offerings [1] - The flagship brand "Kaka Wo" holds a pioneering and leadership position in China's collectible card market, being the first domestic brand to receive comprehensive certification from top global rating agencies such as PSA, CGC, BGS, and SGC [1] Group 2: Product Lines - The company operates two independent product lines: collectibles, which are high-end and limited edition based on IP, and consumer products, which include trendy toys, IP derivatives, and retail cards [1] Group 3: Market Position - Suplay ranks first in China's collectible non-battle card market, holding a market share of 3.2%, which exceeds the combined market share of the second and third-ranked competitors [1] - In the global non-battle collectible card market, Suplay is the only Chinese brand to be among the top five [1] Group 4: IP Collaborations - The company has its own IPs (such as Rabbit KIKI, OHO Uncle, and Water Wave Egg) and has secured partnerships with 22 IP licensors, including exclusive agreements with Kong Shan Ji and the Chinese National Snow Sports Team, as of September 30, 2025 [1]