Market Overview - US stock markets experienced a collective decline, with the Dow Jones down 0.25%, Nasdaq down 0.83%, and S&P 500 down 0.53%. Notably, Tesla's stock plummeted 14.26%, resulting in a market value loss exceeding $152.5 billion (approximately ¥1.09 trillion) [2] - International oil prices saw an increase, with WTI crude oil rising 0.64% to $63.25 per barrel and Brent crude oil up 0.66% to $65.29 per barrel [3] - European stock indices showed mixed results, with Germany's DAX up 0.19%, France's CAC40 down 0.18%, and the UK's FTSE 100 up 0.11% [5] Corporate Developments - Circle, a major player in the stablecoin market, saw its stock surge 168.48% on its first day of trading, closing at $83.23, with a market capitalization exceeding $18 billion [15] - Huawei announced the launch of its Pura 80 series smartphones, which have garnered significant consumer interest, with over 40,000 reservations within hours of opening [16][17] - Canada Goose appointed Celine Xie as the new president for its China operations, aiming to enhance its market presence in the region [22][23] Regulatory and Policy Updates - The Chinese Ministry of Commerce criticized the US for raising tariffs on steel and aluminum products from 25% to 50%, labeling it as unilateralism and protectionism [8] - The Chinese government announced plans to conduct the fourth national agricultural census in 2026, as part of its statistical and agricultural development efforts [7] Industry Insights - The Chinese government is establishing ten national data element comprehensive pilot zones to promote the integration of the real economy and digital economy [8] - The National Medical Insurance Administration is revising the credit evaluation system for drug pricing and procurement to combat corruption and improve market integrity [10] Stock Market Movements - Notable stock movements included a significant drop in Tesla's stock price, while several Chinese concept stocks saw gains, with the Nasdaq China Golden Dragon Index up 0.54% [2][29] - The latest data showed that the Chinese yuan's exchange rate against the US dollar was 7.1865, reflecting a decrease of 21 basis points [31]

Core Viewpoint - The recent surge in the Hong Kong stock market has led to increased attention on the ability of mainland investors to open accounts with online brokers like Futu Holdings and Tiger International, with both companies adjusting their policies in response to regulatory changes [1][5][6]. Group 1: Company Policies - Futu Holdings has completely stopped allowing new account openings for mainland users, only permitting those who live or work abroad to open accounts, requiring both a mainland ID and proof of residence or employment abroad [1][3]. - Tiger International still allows existing customers to open accounts if they had previously opened accounts with other overseas brokers before May 19, 2023, but does not accept new mainland investors [2][3]. Group 2: Regulatory Environment - The regulatory scrutiny of online brokers like Futu and Tiger began in October 2021, with the China Securities Regulatory Commission (CSRC) declaring their cross-border securities operations as non-compliant with existing laws [2]. - In December 2022, the CSRC formally classified the cross-border operations of these brokers as "illegal" and mandated them to cease new business activities while allowing existing clients to continue trading [2]. Group 3: Market Conditions - The Hong Kong stock market has shown significant recovery, with the Hang Seng Index rebounding from a drop of over 13% in early April to reach a new closing high since March 2025 by June 5, 2023 [5]. - The interest in Hong Kong stocks has been further fueled by successful IPOs of major mainland companies, such as CATL and Heng Rui Pharmaceutical, which saw substantial first-day gains [6]. Group 4: Investment Channels - Mainland investors can access Hong Kong stocks primarily through two channels: the Stock Connect program and Hong Kong-listed ETFs, with different eligibility criteria [7]. - The Stock Connect requires a minimum average asset of 500,000 RMB in the investor's securities and funds accounts over the previous 20 trading days, while the ETF route has no such financial threshold, making it more accessible for retail investors [7].

Core Viewpoint - Futu Securities has completely stopped allowing mainland users to open accounts using proof of existing holdings, now restricting account openings to those who actually work or live abroad [1] Group 1 - Futu Securities no longer accepts account openings based on existing proof for mainland clients [1] - Only clients who can provide a valid mainland ID and recent proof of work or residence in Hong Kong or Macau are eligible to open accounts [1]

Investment Rating - The report maintains a positive outlook on the Hong Kong stock market, particularly in the areas of virtual assets and Web3.0 development, suggesting a strong investment opportunity in these sectors [2][9]. Core Insights - The report emphasizes the importance of monitoring global tariff negotiations, particularly the recent developments in U.S.-China trade relations and their potential impact on market dynamics [9]. - There is a notable increase in the quality and risk appetite of Hong Kong assets, with a focus on asset trading platforms as valuable investment opportunities [9]. - The report highlights the active performance of virtual asset-related stocks in Hong Kong, driven by stablecoin policies, and anticipates further regulatory developments in this area [2][9]. Summary by Sections 1. Industry Situation Tracking 1.1 Education - The K12 education sector shows strong growth, with leading institutions reporting over 20% revenue growth for winter training sessions [4]. - Recent product launches in AI education indicate ongoing innovation in the sector [4][17]. 1.2 Luxury Goods - The luxury goods sector is experiencing disruptions due to U.S.-EU tariff policies, with cautious price increases observed among brands [4][19]. - LVMH expresses confidence in the Chinese market despite recent consumption declines, indicating a long-term positive outlook [21]. 1.3 Coffee and Beverage Chains - Coffee and tea remain key categories for delivery platforms, with recent subsidies from platforms like JD.com [4]. - Coffee futures have seen a significant decline, which may alleviate cost pressures for companies like Luckin Coffee [4][27]. 1.4 E-commerce - Major players like Alibaba and JD.com continue to compete aggressively in the delivery and retail sectors, impacting short-term profitability [4]. - The report notes strong performance in the "618" shopping festival, with significant growth in various product categories [32]. 2. Platform & Technology 2.1 Streaming Platforms - The streaming sector shows resilience, with Tencent Music and other platforms benefiting from scale effects [4][33]. - Recent transactions, such as HYBE's sale of SM Entertainment shares to Tencent Music, highlight strategic movements within the industry [34]. 2.2 Virtual Assets & Internet Brokers - The global cryptocurrency market capitalization is reported at $337.44 billion, reflecting a 4% decline [38]. - The introduction of the Stablecoin Regulation in Hong Kong marks a significant step in regulating digital asset activities [41].

Summary of Futu Holdings 1Q25 Earnings Call Company Overview - **Company**: Futu Holdings - **Industry**: Banks & Financial Services Key Positive Highlights - **Revenue and Profit Growth**: Futu's revenue increased by 81% year-over-year (y/y) and profit rose by 107% y/y in 1Q25, surpassing J.P. Morgan and consensus estimates by 2% and 0% for revenue, and 8% and 6% for profit respectively [1][10] - **Client Growth**: The company added 261.8k new paying clients in 1Q25, representing a 22% quarter-over-quarter (q/q) increase and a 48% y/y increase, exceeding J.P. Morgan's estimate by 5% [7][10] - **Assets Under Management (AUM)**: Client AUM grew by 12% q/q to HK$790 billion, with wealth management AUM increasing by 26% q/q and 118% y/y to HK$139.2 billion [7][10] - **Trading Volume**: A record high quarterly trading turnover of HK$3.22 trillion was achieved, up 11% q/q, driven by growth in both Hong Kong and US trading volumes [7][10] - **Cost Management**: Client acquisition costs decreased from HK$2,161 in 4Q24 to HK$1,743 in 1Q25, better than management's guidance. Operating expenses contracted by 13% q/q, leading to an improved net margin of 45.7% [7][10] Key Concerns and Risks - **Interest Income Impact**: The decline in the 1-month Hong Kong Interbank Offered Rate (Hibor) by approximately 340 basis points to 0.59% may raise concerns regarding Futu's interest income in upcoming quarters, as around 40% of this income is sensitive to interest rate changes [3][8][10] - **Market Reaction**: The share price reaction to the 1Q results is expected to be muted, as the strong earnings were largely anticipated by investors [11][10] Future Outlook - **Management Guidance**: Management maintained its FY25 guidance for new paying clients at 800k, indicating confidence in continued growth [7][10] - **Potential Risks**: Downside risks include weakness in China tech stocks, regulatory risks, and the impact of declining Hibor on interest income. Upside risks involve higher-than-expected growth in paying clients and trading volumes, as well as the launch of a crypto business in August 2024 [20][21][10] Valuation and Price Target - **Price Target**: J.P. Morgan has set a price target of $145.00 for Futu, based on a PEG valuation methodology reflecting a 17% EPS CAGR from 2025 to 2027 [19][10] Conclusion Futu Holdings demonstrated strong performance in 1Q25 with significant revenue and profit growth, robust client acquisition, and effective cost management. However, potential risks related to interest income and market conditions warrant close monitoring as the company navigates its growth trajectory in the financial services sector.

另据美国商务部最新公布的数据，美联储最青睐的通胀指标——4月核心PCE物价指数同比上涨2.5%，符合预 期，为四年多来最小涨幅。数据发布后，交易员仍押注美联储将在9月降息。 号称"美联储传声筒"的《华尔街日报》记者NickTimiraos警告称，预测人士估计，随着关税政策的影响显现， 预计今年5月，尤其是6月，美国商品价格涨幅将会加快。美股开盘后，三大指数呈现窄幅震荡格局，美股大型 科技股多数走弱。 美国关税政策的扰动仍在持续。 重磅数据出炉 受关税政策影响，美国贸易数据出现史诗级波动。今晚，美国普查局发布的《经济指标预览》报告显示，4月 份美国商品进口额从3月的3444.70亿美元下降至2760.97亿美元，环比暴跌19.8%，创有记录以来的最大降幅。 北京时间5月30日晚间，美国商务部普查局表示，随着关税政策实施前进口抢跑带来的推动作用消退，美国4月 商品贸易逆差大幅收窄。 据最新发布的《经济指标预览》报告，美国4月份商品贸易逆差收窄至876亿美元，市场预估为逆差1430亿美 元，前值为逆差1632亿美元。 报告显示，4月份美国商品进口额从3月的3444.70亿美元下降至2760.97亿美元，环比大幅下降 ...

Investment Rating - The report maintains a "Buy" rating for the company, Futu Holdings (FUTU US), with a target price of $135.00, indicating a potential upside of 25.7% from the current price of $107.36 [1][6][12]. Core Insights - The company's earnings exceeded market expectations, with a year-on-year net profit growth of 107.0% and a quarter-on-quarter growth of 14.6%. Non-GAAP net profit also showed significant growth of 97.7% year-on-year and 13.6% quarter-on-quarter, outperforming Bloomberg consensus by 6% [2][6]. - The strong profit growth is primarily driven by a 140.1% increase in trading volume, which significantly boosted brokerage commission income by 114%. The average commission rate was 7.17 basis points, down 1.15 basis points year-on-year but stable quarter-on-quarter [2][6]. - The company has seen a robust increase in customer acquisition, with 262,000 new asset-holding customers added in Q1, representing a year-on-year growth of 47.8% and a quarter-on-quarter growth of 21.9% [6][8]. - Wealth management assets grew by 117.7% year-on-year and 25.6% quarter-on-quarter, with wealth management products held by 29% of asset-holding customers, up 1 percentage point from the previous quarter [6][8]. Financial Overview - Revenue projections for the company are as follows: HKD 10,008 million in 2023, HKD 13,590 million in 2024, and HKD 16,778 million in 2025, with a year-on-year growth rate of 48.7% for 2023 and 27.0% for 2024 [5][15]. - The net profit is expected to reach HKD 4,279 million in 2023, HKD 5,433 million in 2024, and HKD 7,203 million in 2025, reflecting a year-on-year growth of 46% for 2023 and 27% for 2024 [5][15]. - The company’s price-to-earnings ratio is projected to decrease from 27.5 in 2023 to 16.3 in 2025, indicating an attractive valuation compared to peers in the U.S. internet brokerage sector [5][15]. Customer and Market Dynamics - The total number of asset-holding customers reached nearly 2.7 million, with a quarter-on-quarter growth of 10.9%. The company has already achieved one-third of its target to add 800,000 new asset-holding customers by 2025 [6][8]. - The average customer acquisition cost was HKD 1,754, showing a year-on-year increase of 6% but a quarter-on-quarter decrease of 19% [2][6]. - The trading volume is expected to continue its upward trend, with projections of HKD 3,220 billion in Q1 2025, reflecting a year-on-year growth of 140% [7][8].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of $159.87 per ADS [8][9]. Core Insights - The company reported a significant increase in Q1 2025 performance, with revenue of HKD 4.7 billion, up 81% year-over-year, and net profit of HKD 2.1 billion, up 107% year-over-year, driven by accelerated overseas customer acquisition and increased trading volumes in the Hong Kong and US stock markets [1][5]. - The company has achieved one-third of its annual customer acquisition target in Q1 2025, adding 260,000 new funded accounts, a 48% increase year-over-year [2]. - The trading activity in the Hong Kong and US markets remains robust, with total trading volume reaching HKD 3.22 trillion, a 140% increase year-over-year [3]. - Continuous innovation in products and services, including AI-driven investment assistants and new trading options, is strengthening the company's brand and product capabilities [4]. Summary by Sections Financial Performance - For 2025-2027, the company expects net profits of HKD 7.5 billion, HKD 8.4 billion, and HKD 9.2 billion respectively, reflecting an upward revision of 20%-26% from previous estimates [5][7]. - The estimated EPS for 2025 is HKD 6.52, with a projected PE ratio of 24x [5][7]. Customer Acquisition - The company has seen a strong influx of new customers, particularly from Hong Kong, Japan, the US, and Malaysia, with significant participation in recent IPOs [2]. Trading Activity - The trading environment is favorable, with a notable increase in trading volumes and customer asset turnover rates, indicating high market engagement [3]. Innovation and Product Development - The company is actively enhancing its service offerings, including the introduction of new trading products and platforms, which are crucial for attracting overseas customers [4].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of $159.87 per ADS [8][9]. Core Insights - The company reported a significant increase in Q1 2025 performance, with revenue of HKD 4.7 billion, up 81% year-over-year, and net profit of HKD 2.1 billion, up 107% year-over-year, driven by accelerated overseas customer acquisition and increased trading volumes in the Hong Kong and US stock markets [1][5]. - The company has achieved one-third of its annual customer acquisition target in Q1 2025, adding 260,000 new funded accounts, a 48% increase year-over-year [2]. - The trading activity in the Hong Kong and US markets remains robust, with total trading volume reaching HKD 3.22 trillion, a 140% increase year-over-year [3]. - Continuous innovation in products and services, including AI-driven investment assistants and new trading options, is strengthening the company's brand and product capabilities [4]. Summary by Sections Financial Performance - For 2025, the company expects to achieve net profits of HKD 7.45 billion, with an EPS of HKD 6.52, reflecting a 20% to 26% upward revision in profit forecasts for 2025-2027 [5][7]. - The projected revenue for 2025 is HKD 18.02 billion, with a year-over-year growth rate of 32.62% [7]. Customer Acquisition - The company has successfully expanded its customer base, with Hong Kong remaining the primary source of new customers, supported by a rebound in the stock market and IPO activities [2]. Trading Activity - The trading environment is favorable, with a significant increase in trading volumes and customer asset turnover rates, indicating strong market engagement [3]. Innovation and Product Development - The company is focused on enhancing its service offerings, including the introduction of new trading products in various markets, which is crucial for attracting overseas customers [4].

Company Participants - The conference call included key participants such as Daniel Yuan (Chief of Staff to CEO, Head of Strategy and IR), Leaf Li (Chairman and CEO), Arthur Chen (CFO), and Robin Xu (Senior Vice President) [1][3]. Conference Call Overview - The call was organized to discuss Futu Holdings' first quarter 2025 earnings results, with a structured format including prepared remarks followed by a question-and-answer session [1][2]. Forward-Looking Statements - The company provided a reminder that the call may include forward-looking statements, which are inherently uncertain and subject to various risks that could lead to actual results differing from those projected [4].