Core Viewpoint - Unisplendour Corporation Limited (紫光股份) has submitted a prospectus to list on the Hong Kong Stock Exchange, marking its second attempt after a previous application lapsed in May 2025. The company is a leading provider of digital and AI solutions, with a market capitalization of approximately RMB 70.96 billion as of December 3, 2025 [2][16]. Business Overview - Established in 1999 and listed on the Shenzhen Stock Exchange, Unisplendour is recognized as one of the three companies in China providing comprehensive digital solutions. It offers a full-stack intelligent ICT infrastructure, software, and cloud services primarily for AI training and big data processing [3][18]. - The company's main business segments include (i) digital solutions and (ii) ICT product distribution. Digital solutions support clients' digital transformation and AI applications, while ICT product distribution involves selling a wide range of products sourced from well-known domestic and international brands [4][18]. Financial Performance - For the fiscal years ending December 31, 2022, 2023, and 2024, and the first half of 2025, Unisplendour reported revenues of RMB 73.75 billion, RMB 77.54 billion, RMB 79.02 billion, and RMB 47.42 billion, respectively. Corresponding net profits were RMB 3.74 billion, RMB 3.68 billion, RMB 1.98 billion, and RMB 1.28 billion [13][28]. - The revenue breakdown for 2024 indicates that digital solutions accounted for 70.5% of total revenue, while ICT product distribution contributed 29.3% [19][22]. Market Position - According to Frost & Sullivan, Unisplendour ranks third in China's digital infrastructure market with an 8.6% market share as of 2024. It holds the second position in the network market with a 12.8% share and is also second in the computing infrastructure market with an 8.2% share. In the storage infrastructure market, it ranks fifth with a 3.1% share [7][20]. Shareholder Structure - Prior to its listing in Hong Kong, the major shareholder of Unisplendour is Tibet Unisplendour Communication, which holds approximately 28% of the company. This entity is fully owned by Beijing Unisplendour Communication, which in turn is wholly owned by New Unisplendour Group [23][24]. Management Team - The board of directors consists of nine members, including two executive directors: Yu Yingtao (Chairman) and Wang Hongtao (President). There are three non-executive directors and four independent non-executive directors, ensuring a diverse governance structure [11][26].

Core Viewpoint - Shenzhen SDMC Technology Co., Ltd. (referred to as "SDMC Technology") has submitted a prospectus for an IPO on the Hong Kong Stock Exchange, marking its second attempt after a previous application lapsed in May 2025 [2]. Company Overview - SDMC Technology was established in 2003 and specializes in smart home solutions for enterprise clients, developing and selling digital video and network communication devices [5]. - The company was the eighth largest provider of smart home solutions globally and the third largest in China as of 2024, according to Frost & Sullivan [5]. - Initially focused on the development and sales of encryption chips, SDMC Technology expanded its business to include digital TV modules and sticks, and became a leading supplier of Android TV smart terminals by 2023 [5]. Business Model and Revenue Sources - The company offers a comprehensive smart home solution that integrates software platforms, hardware devices, and an open ecosystem, providing AI-driven services [6]. - Major revenue sources include hardware and software solutions, with specific platforms such as XMediaTV and XHome contributing to income [7]. Financial Performance - SDMC Technology's revenue for the years 2022, 2023, 2024, and the first half of 2025 was RMB 2.53 billion, RMB 2.37 billion, RMB 2.54 billion, and RMB 1.54 billion respectively, with corresponding net profits of RMB 250 million, RMB 191 million, RMB 137 million, and RMB 103 million [15][16]. - The sales of digital video equipment accounted for 70.3% of revenue in 2024, while network communication devices contributed 20.8% [8]. Shareholder Structure - Prior to the IPO, the major shareholder is Mr. Li Bo, holding approximately 36.61% of the shares, with other shareholders including various investment platforms [11]. Board of Directors - The board consists of seven members, including four executive directors and three independent non-executive directors, with Mr. Li Bo serving as the chairman and general manager [13][14].

Group 1 - FTSE Russell announced the quarterly review results for the FTSE China Index Series, effective from December 22, 2025 [1] - The FTSE China A50 Index added two constituents: Luoyang Molybdenum and Sunshine Energy, while removing SF Express and Jiangsu Bank [1] - The FTSE China 50 Index added three constituents: China Hongqiao, CATL, and Heng Rui Medicine, while removing CITIC Securities, Great Wall Motors, and Li Auto [1] - The next quarterly review for the FTSE China Index will be announced in March [1]

Core Viewpoint - Industrial software is a cornerstone of intelligent manufacturing, experiencing steady market growth driven by policy support and technological advancements, while integrating with new technologies like AI to promote the intelligent transformation and upgrading of the manufacturing sector [1] Policy Perspective - Intelligent manufacturing has been elevated to a national strategy, transitioning from pilot demonstrations during the "13th Five-Year Plan" to systematic planning in the "14th Five-Year Plan" [1] Market Perspective - The market size of China's industrial software is projected to reach 354.14 billion yuan in 2024, representing a year-on-year growth of 11.2%, although high-end sectors remain dominated by foreign companies, indicating a vast potential for domestic manufacturers to capture the replacement market [1] Technological Perspective - The deep integration of AI with industrial software is leading to intelligent generation and optimization in CAD/CAE applications, with industrial large models and intelligent agents being implemented in scenarios such as quality inspection and energy consumption management, while physical AI further enhances multi-industry simulation and decision-making upgrades [1] Future Trends - The future of industrial software will focus on key technology autonomy, the implementation of large models and intelligent agents in vertical fields, and the factorization of industrial data, supporting the achievement of China's manufacturing goals for 2035 [1]

Group 1 - A-shares opened slightly higher with the Shanghai Composite Index up 0.04%, Shenzhen Component Index up 0.02%, and ChiNext Index up 0.01% [1] - Sectors such as robotics and non-ferrous metals showed strong performance [1] Group 2 - CITIC Securities highlighted strong investment enthusiasm in energy storage, with planned investment projects in Inner Mongolia expected to double compared to this year [2] - The demand for energy storage is expected to continue growing due to high load growth and the ongoing development of renewable energy [2] - Battery materials, including cathodes, anodes, electrolytes, and separators, are anticipated to see sustained price increases, with a positive outlook for battery and integration segments [2] Group 3 - Tianfeng Securities noted strong bottom-line support for the cement industry, with over 85% of clinker lines in northern provinces currently offline due to winter production restrictions [3] - The cement industry is expected to see a significant reduction in production capacity, with a total of 5,250 million tons of new capacity being added and 8,359 million tons of capacity being exited by November [3] - The effects of production capacity governance in the cement sector are expected to become evident by 2026 [3] Group 4 - Huatai Securities projected a steady recovery in domestic demand, driven by ongoing consumption policies and structural growth opportunities in the consumer sector [4] - The report emphasized four key investment themes for 2026: the rise of domestic brands, technology-driven consumption, emotional consumption, and undervalued high-dividend blue-chip leaders [4] - New consumer segments such as trendy toys, beauty and personal care, and ready-to-drink beverages are expected to emerge as strong growth areas [4]

Group 1 - The core performance of banks is expected to recover and grow in 2026, marking the first year of the 14th Five-Year Plan, with a focus on a "new momentum combination" for bank stocks [2] - The investment strategy for bank stocks will be discussed, including the outlook on fundamentals and the value of bank stock investments [2] - The investment perspective on the banking sector and stock selection strategies will be highlighted [2] Group 2 - The investment strategy for 2026 will focus on three main investment lines, targeting new opportunities in the Beijing Stock Exchange, particularly in technology growth, high-end manufacturing, and new materials [5] - The valuation levels of the Beijing Stock Exchange are expected to recover, with a decrease in discount rates, aligning with national strategic emerging industry development directions [5] - The Beijing Stock Exchange is home to a number of high-quality enterprises that are technically solid and leading in niche fields, providing investors with opportunities to capture long-term value [5] Group 3 - The potential for AI and intelligent control to ignite a new wave in the computer industry will be explored, along with the prospects for the "rare metals" cycle and the energy sector's transition to a zero-carbon era [7] - East Guangdong Securities will focus on the technological, resource, and energy transformations as the main investment lines for 2026 [7] Group 4 - The potential for innovative drugs to expand internationally and the expected turnaround in biotechnology will be examined, alongside the performance improvements in the medical device sector [9] - Structural opportunities in consumer healthcare and biological products will be discussed, aiming to reshape the investment logic in the pharmaceutical sector for 2026 [9]

Group 1 - The core viewpoint indicates a decline in the expected return on equity (ROE) for the Wande All A and Wande All A non-financial indices, with forecasts for Q4 2025 at 7.50% and 6.60% respectively, down from previous estimates [2][3][37] - The sentiment indices for A-shares and Hong Kong stocks have decreased from historical highs, suggesting a shift in market sentiment [2][3][4] - The A-share market shows a preference for large-cap and value styles, with positive relative returns expected in sectors such as home appliances, electricity and utilities, defense and military, electronics, computers, and insurance [2][4] Group 2 - The global multi-asset allocation strategies have shown negative returns in November, with the low-risk portfolio returning -0.16% and the medium-high risk portfolio returning -1.04% [2][3] - The A-share industry and style rotation index has also experienced a decline, with a November return of -2.94%, although the year-to-date return remains strong at 27.88% [2][3] - The analysis indicates a divergence in valuations among industries, with coal, non-ferrous metals, machinery, electric power equipment and new energy, defense and military, automotive, electronics, and computers showing PB percentiles above 50% [4] Group 3 - The forecast for gold priced in US dollars is expected to strengthen, driven by factors such as declining real interest rates, weak economic conditions, increased market volatility, and geopolitical tensions [3][53] - The analysis of the economic cycles indicates that the US and Japan are entering a downward GDP cycle, while the Eurozone is predicted to peak in Q3 2025 [3][41][44] - The sentiment indicators for both A-shares and Hong Kong stocks reflect a decrease in trading activity, with recent trends showing a decline in new A-share account openings and the establishment of new equity funds [4][68][75]

Core Viewpoint - FTSE Russell announced adjustments to several indices, including the FTSE China 50 Index, FTSE China A50 Index, FTSE China A150 Index, FTSE China A200 Index, and FTSE China A400 Index, effective after the market close on December 19, 2025 [1][17]. Group 1: Index Adjustments - The FTSE China A50 Index will include Luoyang Molybdenum and Sungrow Power, while removing Jiangsu Bank and SF Holding [3][19]. - The FTSE China 50 Index will add China Hongqiao, CATL, and Heng Rui Medicine, and remove CITIC Securities, Great Wall Motors, and Li Auto [5][21]. - The FTSE China A150 Index will add Ying Shi Innovation, Jiangsu Bank, Huadian New Energy, SF Holding, Jiangbolong, and Huayou Cobalt, while removing Luoyang Molybdenum, Desay SV, Longi Green Energy, Baoxin Software, Shanghai Pharmaceuticals, and Sungrow Power [9][25]. - The FTSE China A200 Index will include Ying Shi Innovation, Huadian New Energy, Jiangbolong, and Huayou Cobalt, and exclude Desay SV, Longi Green Energy, Baoxin Software, and Shanghai Pharmaceuticals [11][27]. - The FTSE China A400 Index will see a broader adjustment, adding Anji Technology, Baiyin Nonferrous Metals, Yitang Co., and BlueFocus, while removing Chipbond Technology, Yipin Hong, Guanghuan Xin, and Huaxi Biological [12][28]. Group 2: Investment Implications - The adjustments by FTSE Russell are expected to attract passive fund allocations to the included stocks and increase overseas interest in Chinese assets [15][31]. - In the first ten months of 2025, foreign capital inflow into the Chinese stock market reached $50.6 billion, significantly surpassing the $11.4 billion for the entire year of 2024, marking an increase of over three times [15][31]. - UBS forecasts that the A-share market will see an increase in earnings growth from 6% this year to 8% next year, driven by improved nominal GDP growth and a narrowing of PPI declines [16][32]. - Morgan Stanley has set a target for the CSI 300 Index at 4,840 points by December 2026, indicating a stable outlook for Chinese stocks amid moderate earnings growth and higher valuation levels [16][32].

Core Insights - The report from CITIC Securities indicates a significant increase in investment enthusiasm for energy storage, with planned investment projects in Inner Mongolia's eastern and western regions expected to more than double compared to this year [1] - The capacity compensation policy is expected to be sustainable, supporting the ongoing demand for energy storage driven by high load growth and the continuous development of renewable energy [1] - Currently, battery components are identified as a tight link in the supply chain, with various lithium battery materials showing potential for continued price increases [1] Industry Summary - Energy storage investment is projected to see substantial growth, particularly in Inner Mongolia, with planned projects more than doubling year-on-year [1] - The demand for energy storage is confirmed by high growth rates in load and the ongoing development of renewable energy sources [1] - Key materials such as cathodes, anodes, electrolytes, separators, copper and aluminum foils, as well as additives like 6F and VC are expected to experience price increases, indicating a positive outlook for the battery and integration sectors [1] - The AIDC (Automated Intelligent Data Center) with energy storage is anticipated to provide certainty for high growth in overseas markets [1]

Group 1 - FTSE Russell announced the new candidate stocks for the FTSE China 50 Index, which include China Aluminum (601600)(02600), Hansoh Pharmaceutical (03692), Huatai Securities (601688)(06886), JD Health (06618), and New China Life Insurance (601336)(01336) [1] - On December 3, FTSE Russell announced adjustments to the FTSE China 50 Index, FTSE China A50 Index, FTSE China A150 Index, FTSE China A200 Index, and FTSE China A400 Index, effective after the market close on December 19, 2025 [2] - The adjustments will include the addition of China Hongqiao (01378), CATL (300750)(03750), and Heng Rui Medicine (600276)(01276) to the FTSE China 50 Index, while removing CITIC Securities H-share (06066), Great Wall Motor H-share (02333), and Li Auto-W (02015) [2]