Core Insights - The report highlights the steady expansion of the wealth management market amid declining interest rates and the migration of deposits, with a total of 194 banks and 32 wealth management companies offering 41,800 products as of June 2025, marking a 3.78% increase from the beginning of the year and a 4.54% year-on-year increase [6][8] - The total assets under management reached 30.67 trillion yuan, reflecting a 2.38% increase from the start of the year and a 7.53% year-on-year growth [6][8] - The average annualized yield of wealth management products fell to 2.12% in the first half of 2025, down 68 basis points from 2.80% in the first half of 2024 and 53 basis points from 2.65% at the end of 2024 [6][8] Product Structure - Cash management products continue to shrink, with open-ended wealth management products accounting for 80.93% of the total, slightly up by 0.13 percentage points from the beginning of the year and up 1.06 percentage points year-on-year [7] - The scale of cash management products within open-ended products was 6.40 trillion yuan, representing 25.79% of open-ended products, a decline of 14.55% compared to the same period last year [7] Asset Allocation - As of June 2025, the total investment assets of wealth management products reached 32.97 trillion yuan, with bond assets (including bonds and interbank certificates of deposit) being the largest category at 18.33 trillion yuan, accounting for 55.60% of total investment assets [8] - The scale of credit bonds was 12.79 trillion yuan, making up 38.79% of total investment assets, a decrease of 2.34 percentage points year-on-year [8] - The proportion of cash and bank deposits increased from 23.9% at the end of 2024 to 24.8% in mid-2025, while equity assets continued to decline, accounting for 2.40% of total investment assets [9]

Report Industry Investment Rating - The industry is rated as "Overweight", indicating an expected increase of over 10% compared to the benchmark index in the next 6 - 12 months [67] Core View of the Report - In 2025, the market is driven by incremental funds from institutional liability - side changes, expected to bring 3 trillion yuan in incremental funds. The upward trend of A - shares will continue in the second half of the year. Active equity products will enter a new golden age, and mid - to high - volatility products are likely to attract incremental funds [5][15] Summary According to the Directory 1. Three Rounds of Market Review Driven by Funds: Individual Stock Era, Group - Holding Era, and Active Management Era - From 2014 - 2015, it was the individual stock era driven by retail investors and leverage. Policy encouraged capital market development, with IPO restart, Shanghai - Hong Kong Stock Connect launch, and liquidity release. Leverage and retail investors drove up market turnover and margin trading. Individual stocks and the index outperformed active equity funds [16][20] - From 2019 - 2021, it was the group - holding era of public funds. Core assets like Maotai Index and Ningzuohe aligned with industrial trends. Public funds had a positive feedback loop of new issuance, pricing power, and performance. Active equity funds outperformed the index, and non - heavy - held stocks by public funds performed the weakest [16][25] - In 2025, it is the active management era. Driven by institutional allocation, active equity funds are emerging, with their median returns comparable to individual stocks and outperforming the index [16] 2. The Rise of Active Management: Difficulty in Achieving Excess Returns through Heavy - Holding and Group - Holding, and Alpha Creation through Stock - Picking Ability - In this round of the market, heavy - held stocks by funds have not obtained significant excess returns. As of July 24, 2025, the top 5 heavy - held stocks by institutions only had a 3% excess return, compared to 75% in 2015 and 84% in 2020 [30][31] - The proportion of A - shares held by funds and the concentration of fund holdings are at a low level in the past five years. The proportion of fund - held market value decreased from 14% in 2021 to 7% - 8% in Q1 2025, and the concentration indicators such as CR100 and CR50 have also declined [34] - Fund heavy - held companies are shifting towards small - and medium - market - capitalization enterprises. The proportion of companies below 30 billion yuan in fund holdings increased from 8% in Q4 2020 to 14% in Q2 2025 [35] 3. Three Factors Resonate to Push up the Bottom Central System of A - shares - In terms of funds, major institutional types in 2025 are expected to bring 3 trillion yuan in incremental funds into the market, including 816.2 billion yuan from insurance, 326.8 - 584.8 billion yuan from wealth management, 939.1 billion yuan from public funds, and 583.3 billion yuan from trusts [42][44] - From the perspective of stock - bond ratio, non - bank funds prefer equity assets. With the decline of broad - spectrum interest rates, the 10 - year Treasury yield cannot meet the return requirements of liabilities. Since the beginning of this year, the scale of fixed - income + funds has expanded significantly, indicating strong demand for equity - like asset allocation [45] - A - share earnings are at the bottom. As of Q1 2025, the year - on - year growth rate of the net profit attributable to the parent of all A - shares (ex - finance) turned positive, mainly due to the low - base effect and cost management. Structural improvement is more worthy of attention [51] 4. Taking Fixed - Income + as an Example, What are the Institutional Preferences? - In terms of strategy selection, in bear markets, low - volatility products have a higher probability of achieving excellent performance, while in bull markets, high - volatility products have a higher probability of achieving excellent performance. In the current market, high - volatility products among the top 20% in performance ranking account for over 60% [54][59] - In terms of fund flow, during the 2019 - 2021 bull market, high - volatility products with excellent performance had a higher probability of net subscriptions. In 2025, funds are still in the transition from bear - market thinking to bull - market thinking, similar to 2019. Mid - to high - volatility products are likely to attract incremental funds [54][59]

Investment Rating - The industry investment rating is maintained at "Overweight" [6][11]. Core Insights - The report highlights a seasonal increase in inventory and slight fluctuations in the prices of base metals, with a focus on the ongoing macroeconomic environment and its impact on supply and demand dynamics [6][11]. - The report suggests that the long-term supply-demand structure is being reshaped, indicating limited downside potential for base metal prices and encouraging investors to seek new entry points, particularly for rigid supply varieties like aluminum and copper [6][11]. Summary by Sections Market Overview - The report notes that the domestic industrial metal prices have shown slight fluctuations, with the non-ferrous metal index outperforming the market. The weekly price changes for LME copper, aluminum, lead, and zinc were 0.0%, -0.3%, 0.4%, and 0.2%, respectively, while SHFE prices were 1.1%, 1.2%, 0.8%, and 2.6% [6][20][21]. Macroeconomic Factors - The report tracks three macroeconomic factors: 1. China's June export value increased by 6% year-on-year, with total exports amounting to $325.2 billion [6][27]. 2. U.S. inflation showed an uptick, with the June CPI rising by 2.7% year-on-year [6][33]. 3. The European economic sentiment index continued to rise, with the Eurozone manufacturing PMI at 49.5 [6][36]. Base Metals Analysis - For electrolytic aluminum, the macro environment remains strong, but market sentiment has cooled, leading to a price retreat. The operating capacity of the electrolytic aluminum industry increased by 10,000 tons, reaching 43.975 million tons, with production at 843,400 tons, a slight increase of 0.02% [6][40][41]. - The report indicates that the aluminum processing sector's operating rate decreased by 0.1%, averaging 58.7% as of July 24, 2025 [6][43]. - In terms of inventory, domestic aluminum ingot inventory rose by 36,000 tons to 577,000 tons, while global inventory increased by 42,300 tons to 1.2921 million tons [6][43][44]. Profitability Metrics - The report states that the immediate profit per ton for the aluminum industry remains above 3,500 yuan, with the current spot aluminum price at 20,800 yuan per ton, reflecting a 0.19% increase [6][43].

Market Overview - The market is expected to continue rising in August, driven by liquidity conditions[5] - As of July 28, the Wind All A Index surpassed its peak from October 8 of the previous year, indicating a bullish market sentiment[5] Market Drivers - The upward market movement is attributed to ample incremental capital and improved supply-demand dynamics, particularly in cyclical stocks[7] - Recent trends show a significant increase in public and retail investor participation, with new fund issuance in June reaching nearly 30 billion, the highest monthly level since 2022[8] Investment Strategy - The report recommends focusing on large financial and technology assets, highlighting the potential for banks and insurance companies to benefit from reduced economic risks and lower liability costs[9] - Technology assets are suggested for contrarian trading due to their low trading congestion, with historical performance showing a strong correlation with trading dynamics[9] Key Stock Recommendations - The August stock selection includes: Hong Kong Tech 50 ETF, Fuda Co., Su Neng Co. (automotive), Zhujiang Co., Core International (trading), Wanhua Chemical, Dongcai Technology (chemicals), and others[17] - The report emphasizes the importance of sectors like steel and pharmaceuticals, which are expected to perform well due to demand recovery and policy support[9] Risks - Potential risks include unexpected economic downturns and insufficient policy support, which could impact market performance[18]

Core Insights - The report emphasizes the significant progress in technology and supportive policies, which are shaping the main narrative of a bull market in Hong Kong's tech sector. The revaluation of Chinese AI assets and the ongoing technological revolution are boosting future growth confidence, with the Hang Seng Tech Index showing substantial growth since the beginning of the year, outperforming the Nasdaq Index [6][7]. - The Hong Kong stock market is experiencing a strong recovery, led by the tech sector, with the Hang Seng Index showing remarkable performance. The Hang Seng Tech Index has increased by approximately 49.19% over the past year, significantly outpacing the overall Hang Seng Index, which rose by 35.86% [7]. - The report highlights the long-term investment value of Hong Kong's tech sector, noting that leading tech companies possess strong competitive advantages and a significant valuation upside. The current price-to-earnings (PE) ratio of around 20 times is considered to be at a historical low, indicating substantial potential for valuation recovery [7][9]. Summary by Sections Section 1: Technological Breakthroughs and Policy Support - The report discusses the dual drivers of technological innovation and favorable policies that are expected to enhance the future potential of the tech sector. The "14th Five-Year Plan" prioritizes technological innovation, with R&D investment intensity surpassing the EU average [6]. - The government's emphasis on innovation-driven development and the recent issuance of the "Digital China Construction 2025 Action Plan" are expected to channel resources into the tech sector, leading to significant outputs [6]. Section 2: Hong Kong Stock Market Recovery - The tech sector is leading the market rally, with the Hang Seng Index showing a clear bullish trend characterized by a "low base consolidation + high point breakout" pattern. The tech sector's performance has attracted global capital, contributing to a notable increase in the market [7]. - The report notes that the tech sector's overall profitability is stabilizing and improving, with a positive outlook for the second half of the year as companies enter a performance realization phase [7]. Section 3: Investment Value of the Hang Seng Tech Theme Index - The Hang Seng Tech Theme Index is highlighted for its concentrated exposure to leading TMT and internet companies, with the top ten constituents accounting for over 75% of the index's weight. This concentration allows for precise capture of industry core dividends [8]. - The index has shown a remarkable increase of 57.26% over the past year, outperforming both the Hang Seng Index and the Hang Seng Tech Index, indicating its strong growth potential and valuation recovery opportunities [9]. Section 4: Product Introduction - The report introduces the Huaan Hang Seng Tech Theme ETF, which aims to closely track the performance of the Hang Seng Tech Theme Index, providing investors with a tool to invest in leading tech companies in Hong Kong [11].

Investment Rating - The report maintains a "Buy" rating for key companies in the paper and nylon industries, including Baiya Co., Taihua New Materials, Huali Group, and Sun Paper [3][8]. Core Insights - The report emphasizes the potential opportunities in the paper and nylon sectors due to the "anti-involution" trend, which is expected to drive a gradual recovery in pulp prices. It highlights the performance of various paper products and suggests specific companies to watch for growth [8][10]. - The report also points out the high growth potential in new consumer sectors, particularly in IP toys and domestic brands, recommending companies like Pop Mart and Morning Glory [8][10]. Summary by Sections Paper Industry - The average price of broadleaf pulp is 4,118 CNY/ton, with a week-on-week increase of 0.89% but a year-on-year decrease of 18.53%. The average price of needle pulp is 5,874 CNY/ton, with a week-on-week increase of 0.65% and a year-on-year decrease of 3.59% [8][57]. - The report recommends Sun Paper for its integrated advantages in cultural paper and pulp, and suggests focusing on companies like Xianhe Co. and Bohui Paper for their growth potential in specific segments [8][10]. Nylon Industry - Since the second half of 2024, nylon filament prices have been under pressure due to new capacity expectations, but there has been a slight rebound in mid-June. The demand from the downstream sportswear sector remains strong, indicating a potential recovery in profitability [8][10]. - Companies such as Taihua New Materials and Huading Co. are highlighted as key players to watch in the nylon sector [8][10]. New Consumer Trends - The report suggests a focus on high-growth new consumer sectors, particularly in IP toys and domestic brands, recommending companies like Pop Mart and Morning Glory for investment opportunities [8][10].

Market Overview - The major market indices mostly rose last week, with the STAR Market 50 index showing the largest weekly increase of 4.63%[20] - The average daily trading volume of the Wind All A index increased to 18,486.97 billion yuan, up from 15,462.51 billion yuan, indicating a high trading activity level[33] - As of July 25, 2025, the Wind All A valuation (PE TTM) was 20.73, an increase of 0.31 from the previous week, reflecting a recovery in valuations across sectors[40] Sector Performance - Among 30 major sectors, 27 sectors experienced gains, with the materials sector leading with an increase of 5.26%, followed by the energy sector at 4.38%[24] - Notable performers included construction materials (up 8.20%), coal (up 7.98%), and steel (up 7.67%), while banking, telecommunications, and utilities sectors saw declines of 2.87%, 0.77%, and 0.27% respectively[30] Policy and Economic Outlook - Recent policies are not indicative of immediate expansion in cyclical commodities, as the current "anti-involution" policies resemble last year's "trade-in" initiatives rather than comprehensive supply-side reforms[12] - The central urban work conference did not introduce additional macroeconomic stimulus policies, suggesting a tightening of fiscal, monetary, and regulatory policies in the future[12] - The geopolitical implications of the Yarlung Tsangpo River hydropower project are emphasized, indicating a focus on energy security and sustainable regional development rather than traditional infrastructure expansion[12] Investment Recommendations - It is advised to focus on technology and military sectors, as well as dividend assets outside the banking system, to navigate the current market conditions[18]

Report Title - "Structural Transformation under the Expansion of Wealth Management Scale - Review of the Semi - annual Report of Wealth Management in 2025" [1] Core Viewpoints - In the context of falling deposit rates and deposit migration, the wealth management market has steadily expanded. As of the end of June 2025, there were 194 bank institutions and 32 wealth management companies with outstanding wealth management products, with a total of 41,800 products, a 3.78% increase from the beginning of the year and a 4.54% increase year - on - year. The outstanding scale reached 30.67 trillion yuan, a 2.38% increase from the beginning of the year and a 7.53% increase year - on - year. The wealth management company's outstanding scale accounted for 89.61% of the total market, with a year - on - year growth of 12.98%, while the bank institution's outstanding scale decreased by 24.04% year - on - year [9]. - The product yield has significantly declined. In the first half of 2025, the average annualized yield of wealth management products was 2.12%, a 68 - basis - point decline from 2.80% in the first half of 2024 and a 53 - basis - point decline from 2.65% at the end of 2024 [9]. - In terms of product structure, the scale of cash - management products has continued to shrink. As of the end of June 2025, the outstanding scale of open - ended wealth management products was 24.82 trillion yuan, accounting for 80.93%, a slight increase of 0.13 percentage points from the beginning of the year. The outstanding scale of cash - management products was 6.40 trillion yuan, accounting for 25.79% of open - ended products, a 14.55% decline from the same period last year [6][9]. - The proportion of credit bonds has slightly declined, and there is active allocation of assets such as science and technology innovation bond ETFs. As of the end of June 2025, the total investment assets of wealth management products were 32.97 trillion yuan. Bond - related assets (including bonds and inter - bank certificates of deposit) were the largest allocation category, with a scale of 18.33 trillion yuan, accounting for 55.60% of total investment assets. The scale of held credit bonds was 12.79 trillion yuan, accounting for 38.79% of total investment assets, a 2.34 - percentage - point decline from the same period last year. Since July, many wealth management products have actively participated in the subscription of science and technology innovation bond ETF products, and the proportion of wealth management products among the top ten holders of 10 science and technology innovation bond ETF products has reached 3.57% [10]. - From a time - series perspective, the proportion of cash and non - standard assets has been continuously compressed, and the proportion of bond allocation has stabilized. The proportion of cash and bank deposits has increased from 23.9% at the end of 2024 to 24.8% in the middle of 2025. The proportion of equity assets has continued the downward trend, accounting for 2.40% of total investment assets in the middle of 2025. The proportion of bonds and inter - bank certificates of deposit has stabilized at 55.60% in the middle of 2025 after gradually adjusting from the high point of 68.39% at the end of 2021 [10]. Industry Investment Rating - The document does not mention the industry investment rating. Summary by Related Catalogs Product Scale and Structure - As of the end of June 2025, there were 194 bank institutions and 32 wealth management companies with outstanding wealth management products, with 41,800 products, a 3.78% increase from the beginning of the year and a 4.54% increase year - on - year. The outstanding scale was 30.67 trillion yuan, a 2.38% increase from the beginning of the year and a 7.53% increase year - on - year [9]. - The wealth management company's outstanding scale was 27.48 trillion yuan, accounting for 89.61% of the total market, with a year - on - year growth of 12.98%, while the bank institution's outstanding scale was 3.19 trillion yuan, a 24.04% decline year - on - year [9]. - Open - ended wealth management products had an outstanding scale of 24.82 trillion yuan, accounting for 80.93%, a slight increase of 0.13 percentage points from the beginning of the year. Closed - ended products had a scale of 5.85 trillion yuan, accounting for 19.07% [6][9]. - The outstanding scale of cash - management products was 6.40 trillion yuan, accounting for 25.79% of open - ended products, a 14.55% decline from the same period last year [6]. Product Yield - In the first half of 2025, the average annualized yield of wealth management products was 2.12%, a 68 - basis - point decline from 2.80% in the first half of 2024 and a 53 - basis - point decline from 2.65% at the end of 2024 [9]. Asset Allocation - As of the end of June 2025, the total investment assets of wealth management products were 32.97 trillion yuan. Bond - related assets (including bonds and inter - bank certificates of deposit) were the largest allocation category, with a scale of 18.33 trillion yuan, accounting for 55.60% of total investment assets [10]. - The scale of held credit bonds was 12.79 trillion yuan, accounting for 38.79% of total investment assets, a 2.34 - percentage - point decline from the same period last year. The scale of interest - rate bonds was 0.99 trillion yuan, accounting for 3.01% of total investment assets [10]. - Other assets included cash and bank deposits (24.8%), inter - bank lending and bond repurchase (6.6%), and public funds (4.2%) [10]. - Since July, many wealth management products have actively participated in the subscription of science and technology innovation bond ETF products, and the proportion of wealth management products among the top ten holders of 10 science and technology innovation bond ETF products has reached 3.57% [10]. Long - term Trend - The proportion of cash and bank deposits has increased from 23.9% at the end of 2024 to 24.8% in the middle of 2025. The proportion of equity assets has continued the downward trend, accounting for 2.40% of total investment assets in the middle of 2025 [10]. - The proportion of bonds and inter - bank certificates of deposit has stabilized at 55.60% in the middle of 2025 after gradually adjusting from the high point of 68.39% at the end of 2021 [10].

Group 1 - The report highlights the significant progress in technology and supportive policies that are shaping a bullish market trend, particularly in the technology sector [11][14][19] - The AI revolution is expected to enhance future growth prospects, with Chinese technology companies like DeepSeek leading innovations that are reshaping market valuations [5][12][16] - The report notes that the Hang Seng Technology Index has outperformed the broader Hang Seng Index, with a year-on-year increase of approximately 49.19% compared to 35.86% for the Hang Seng Index [20][22] Group 2 - The report emphasizes the strong recovery of the Hong Kong stock market, driven by technology, which has attracted global investment [20][24] - Leading technology companies in Hong Kong, such as Tencent and Alibaba, have established significant competitive advantages, contributing to the sector's long-term investment value [22][24] - The report indicates that the current valuation of the Hong Kong technology sector is at a historical low, with a price-to-earnings ratio (PE) around 20 times, suggesting substantial room for valuation recovery [24][35] Group 3 - The report discusses the characteristics of the Hang Seng Hong Kong Stock Connect Technology Theme Index, noting its high concentration of leading technology firms, which enhances its defensive attributes [27][28] - The index has shown strong growth potential, with a one-year increase of 57.26%, outperforming both the Hang Seng Index and the Hang Seng Technology Index [35] - The report highlights that the index's current valuation is relatively low at around 22 times, indicating potential for significant valuation recovery if market confidence in the technology sector continues to improve [35][36] Group 4 - The report introduces the Huaan Hang Seng Hong Kong Stock Connect Technology Theme ETF, which aims to closely track the performance of the Hang Seng Hong Kong Stock Connect Technology Theme Index [4][37] - The ETF is designed to provide investors with a tool for easy exposure to leading technology companies in the Hong Kong market, with a focus on minimizing tracking error [37][38] - The fund manager, Wang Chao, has extensive experience in the fund industry, which adds credibility to the management of the ETF [39][40]

Group 1 - The report highlights a significant recovery in the Hong Kong stock market, driven by the technology sector, which continues to boost market confidence [4][15]. - The technology sector is characterized by breakthrough innovations and supportive policies, marking a bullish market trend [4][11]. - The Hang Seng Technology Index has outperformed the broader Hang Seng Index, with a year-on-year increase of approximately 49.19%, compared to 35.86% for the Hang Seng Index [19][20]. Group 2 - The report emphasizes the long-term investment value of the Hong Kong technology sector, noting that leading technology companies possess strong competitive advantages and deep moats [20]. - The current valuation of the Hong Kong technology sector is at a historical low, with a price-to-earnings (PE) ratio around 20 times, indicating significant potential for valuation recovery [20][29]. - The report identifies the Hang Seng Hong Kong Stock Connect Technology Theme Index as a concentrated index with over 75% of its weight in the top ten constituents, enhancing its ability to capture core industry benefits [22][26]. Group 3 - The report introduces the Huaan Hang Seng Hong Kong Stock Connect Technology Theme ETF, which aims to closely track the performance of the Hang Seng Hong Kong Stock Connect Technology Theme Index [30]. - The ETF is managed by Huaan Fund Management, which has a strong track record in managing a variety of funds, including ETFs [32]. - The proposed fund manager, Wang Chao, has over 11 years of experience in the fund industry, enhancing the credibility of the fund management [33].