Investment Rating - The report maintains a "Buy" rating for Hong Kong Exchanges (0388.HK) with a 12-month target price of HK$455.00, indicating an upside potential of 13.6% from the current price of HK$400.40 [1][2][10]. Core Insights - Despite a year-to-date share price increase of approximately 35%, the stock is considered undervalued relative to strong market activity levels. The listing pipeline is growing, with over 150 companies having submitted applications to list in Hong Kong [1][22][29]. - The introduction of new products, particularly weekly expiries for index options and stock options, is expected to drive growth in average daily volume (ADV) for options. Historical data from the US and India suggests that index options ADV could outperform cash market volumes by 40 to 50 percentage points [2][44][45]. - The report projects a 15% potential upside to cash equity average daily trading (ADT) from A-share companies listing in Hong Kong over the medium term, with adjustments made to FY26-27E ADT estimates [1][23][41]. Summary by Sections Financial Projections - Revenue estimates for FY25E, FY26E, and FY27E are projected at HK$25,721.8 million, HK$26,772.8 million, and HK$28,006.3 million respectively, reflecting an increase from previous estimates [4][10]. - EPS estimates have been raised by 2%, 9%, and 10% for FY25, FY26, and FY27 respectively, driven by higher volume expectations [2][10]. Market Activity - The report notes that HKEX has regained its position among the top five global IPO venues in Q1 2025, with around US$10 billion raised from IPOs year-to-date, nearly double the amounts raised in 2023 and 2024 [22][24]. - A-share companies listing H-shares for global expansion have accounted for over half of the IPO funds raised since 2024, with approximately 630 A-share companies identified as eligible to list H-shares [23][32]. Options Market - The introduction of zero-day-to-expiry (0DTE) options is anticipated to add approximately 10% to overall options ADV, based on successful models in the US and India [44][48]. - Currently, index options represent about 20% of total options ADV at HKEX, and the report suggests that this could lead to a significant increase in overall trading activity [2][44][60].

30 May 2025 | 11:10AM EDT Isabella Rosenberg Weekly Fund Flows Mostly Reallocation, Not Repatriation Global fund flows, week ending May 28 | | | Global Fund Flows Summary | | | | --- | --- | --- | --- | --- | | | Millions USD | | % AUM | | | | 4wk sum | 28-May | 4wk avg | 28-May | | Equity | 13,835 | -9,543 | 0.02 | -0.04 | | Fixed Income | 73,446 | 19,974 | 0.21 | 0.23 | | of which: EM | 6,853 | 2,803 | 0.32 | 0.52 | | Money Markets | 31,550 | -18,879 | 0.08 | -0.19 | | FX Flows* | 64,534 | 14,408 | 0.13 | ...

Investment Rating - The report assigns a "Buy" rating for Alphabet Inc. (GOOGL) with a 12-month price target of $220 [16][22]. Core Insights - Alphabet is strategically positioned to capitalize on the AI era, particularly within its core search business, despite investor concerns regarding potential disintermediation [17][19]. - YouTube is viewed as an underappreciated asset with significant growth potential, projected to reach approximately $99 billion in total revenues by 2029, growing at a ~13% CAGR [2][23]. - The Search & Other segment is expected to grow from approximately $198 billion in 2024 to about $318 billion by 2030, reflecting an ~8% CAGR [19][22]. Segment Analysis - **Google Search & Other Segment**: - Projected revenue growth from ~$198 billion in 2024 to ~$318 billion in 2030, with a ~55% GAAP EBIT margin [19][22]. - Current implied enterprise value for the Search & Other segment is ~$671 billion, indicating a valuation of ~5.3x EV/2026 GAAP EBIT [22][24]. - **YouTube Segment**: - Estimated to grow revenues at a ~13% 5-year CAGR, reaching ~$99 billion by 2029, with YouTube Ads growing at ~11% CAGR and Non-Ads at ~16% CAGR [2][23]. - Current operating margin is estimated at ~10%, with potential improvement to ~15% by 2030 [23][24]. - The enterprise valuation for YouTube is framed at ~$475 billion [3][23]. - **Google Cloud Segment**: - Valued at approximately $710 billion, contributing to Alphabet's overall enterprise value [3][23]. Financial Projections - **Revenue Forecasts**: - Total revenue for GOOGL is projected to increase from $295.1 billion in 2024 to $406.6 billion in 2027 [4][13]. - **Earnings Projections**: - EPS is expected to grow from $8.04 in 2024 to $10.59 in 2027, reflecting a positive growth trajectory [4][13]. - **Valuation Ratios**: - P/E ratio is projected to decrease from 20.4 in 2024 to 16.2 in 2027, indicating a potentially attractive valuation [10][13].

市场洞察 - 重点报道 --- Market Insights - Marque e Market Insights | Markets | Equities 市场洞察 | 市场 | 股票 Thoughts on .. Tech (Mag7, TSM, SPE, Kioxia & Memory) 关于科技（Mag7、TSM、SPE、铠侠及 存储器）的思考 在同事休假期间代为⽀持销售⼯作，如有需要请告知 Backing up for our sales colleague while the y are out of office. Let me know if you need anything . Change of view on Hard data v Soft data . around six weeks ago, there was a conspicuous divergence between (surprisingly strong) hard data and (flagrantly weak) soft data. at that time, most folks (reasonably ...

市场洞察 - 重点报道 --- Market Insights - Marque e Market Insights | Markets | Asia 市场洞察 | 市场 | 亚洲 GS Macro: Five things you need to know ⾼盛宏观：五⼤要点解读 Five things you need to know: 4/ As tari concerns fade, equity investor focus shifts to the 'one big beautiful bill' (US equity analysis) 4/ 随着关税担忧消退，股市投资者关注点转向"那⼀项宏伟法案（" 美国股市分析） 5/ RBI meeting preview (6 June) – 25bps cut expected; and another in Q3. 5/ 印度储备银⾏会议预览（6 ⽉ 6 ⽇）——预计降息 25 个基点；第三季度再降⼀次。 五件你需要知道的事： 1/ GS Weekend – thought leader views and weekend macro call 1 ...

Investment Rating - The report has lowered the eCommerce sub-sector preference to 4 from 3 due to a more challenged near-term profit outlook, while identifying JD as having the most favorable upward risk-reward within eCommerce on a 12-month view [1][2]. Core Insights - China Internet companies reported solid 1Q results with top line and profit beats, but expressed conservative tones regarding 2Q profitability due to investments in platform ecosystems, food delivery subsidies, AI applications, and overseas expansions [1]. - Key investor debates include food delivery competition, AI application beneficiaries, and the implications of geopolitical developments [1][2]. Summary by Sections 1Q Results Recap & Stock Ideas - The report highlights the top four investor focuses: food delivery competition, weak 2Q profit setup for transaction platforms, the status of the AI trade, and navigating geopolitical events [8][9]. - JD's GMV growth was estimated at +16% in 1Q25, while PDD and Kuaishou both saw growth of 15% [9]. eCommerce & Local Services - The report notes a significant increase in food delivery industry volume growth due to subsidies, with JD's 2Q new business EBIT loss estimated at RMB 10 billion [9]. - JD's unique 1P + supply chain-driven business model is expected to benefit from the government's trade-in program, while Meituan's food delivery profit is projected to decline by RMB 5-6 billion year-on-year [12][13]. AI Applications - Tencent and Kuaishou are identified as key beneficiaries of AI applications, with Tencent's ads and games businesses expected to benefit directly from AI in adtech and gaming experiences [1][12]. - The report anticipates further model launches and AI agents to sustain investor interest in AI applications over the next 3-6 months [12]. Mobility and Internet Verticals - Mobility is highlighted as a strong growth area, with YMM expected to see over 60% year-on-year growth in adjusted EBIT for 2025 [14]. - Xiaomi is projected to experience a multi-year growth trajectory, with revenue and net profit CAGRs forecasted at 26% and 39% respectively for 2024-2027 [14]. Geopolitical Implications - The report discusses the impact of geopolitical events on investor appetite, noting a preference for HK-listed or dual-listed companies over US-only listed names due to potential restrictions and tariffs [12][16].

Investment Rating - The report does not explicitly provide an investment rating for the industry or specific companies Core Insights - The China Export Tracker indicates a gradual recovery in US-bound orders from Chinese corporates following a reduction in tariffs from 145% to 30%, with orders reaching an average of 95% of pre-tariff levels [2][3][19] - Despite the tariff reduction, the overall recovery in orders is described as mild, with many companies still cautious about inventory levels and future demand [3][27] - The report highlights a significant shift in supply chain dynamics, with a notable increase in shipments from China to the US, now fulfilling 47% of US orders compared to 35% previously [19][22] Summary by Sections Export Orders - Post-tariff reduction, export orders from the US have incrementally picked up, averaging 95% of pre-tariff levels, compared to 90-92% in April [3][19] - Approximately 25% of corporates reported a 2-13% increase in US order books, particularly in consumer products [4][21] - A small number of products are experiencing declines in orders, with nearly 60% of corporates reporting no changes [12][21] Supply Chain Adjustments - Nearly one-third of products saw improvements in US-bound shipments, particularly in lifestyle products and machinery [17] - The report notes that only about 2% of corporates plan to move production back to China despite the tariff reduction [18] - The increase in shipments from China is primarily driven by additional orders rather than a shift from ex-China production [19] US Inventory Update - US inventory levels are reported to range from 1-4.5 months, with 42% of corporates indicating a restocking trend [27][31] - Restocking is mainly observed in consumer goods, while industrial products are experiencing destocking [27][31] Pricing Discussions - There has been significant progress in pricing negotiations, with 35% of corporates settling prices, often with end-customers bearing the tariff burden [32][36] - The report suggests that supply chains can function effectively if tariffs remain below 40% [33] Capacity Expansion - Over 60% of corporates are committed to expanding overseas production capacity, with varying degrees of ramp-up planned by year-end [34][38] - Specific sectors, such as selected appliances and industrial tech components, are expected to see significant increases in production capacity [34][38] Shipping Data - High-frequency shipping data indicates a decline in container shipping from China to the US in May, but signs of recovery are emerging [41][42] - Container shipping to Southeast Asia has shown a 26% increase in cargo volume compared to the previous year [42]

Investment Rating - The report indicates a revised Q1 GDP growth of -0.2% (quarter-over-quarter annualized), which is an upward revision of 0.1 percentage points from previous estimates [1][6] Core Insights - The revision details show softer underlying growth, particularly in real domestic final sales, which were revised down by 0.3 percentage points, primarily due to a 0.6 percentage point downward revision in consumer spending growth [1][6] - The contribution of inventory accumulation to GDP growth was revised up by 0.3 percentage points to 2.6 percentage points, while net exports' contribution was revised down by 0.1 percentage points to -4.9 percentage points [6][7] - Real gross domestic income (GDI) fell by 0.2% in Q1, influenced by a significant drag from net dividends, which saw a $125 billion increase from the rest of the world, the largest since 2018 [7][8] - Core PCE inflation for April is forecasted at 0.10%, leading to a year-over-year rate of 2.49%, while headline PCE inflation is expected at 0.09%, corresponding to a year-over-year rate of 2.12% [8][9] - Initial jobless claims rose to 240,000 for the week ending May 24, exceeding expectations, with continuing claims also showing an increase [9][10] Summary by Sections GDP and Economic Activity - Q1 GDP growth was revised to -0.2%, with consumer spending growth revised down to +1.2% [2][6] - Equipment investment growth saw a significant upward revision to +24.8% [6][7] Inflation Metrics - Core PCE inflation was revised down to +3.41% annualized, with the year-on-year rate at +2.76% [8] - The GDP deflator was also revised down to +3.70% annualized [8] Employment Data - Initial jobless claims increased by 14,000 to 240,000, with a four-week moving average remaining at 231,000 [9][10]

Investment Rating - The report does not explicitly provide an investment rating for the industry or assets discussed Core Insights - Recent simultaneous declines in US equities, bonds, and the Dollar have raised questions about changes in cross-asset correlations [2][4][6] - The Dollar has historically provided protection against equity declines during monetary policy tightening, but recent trends show a weakening Dollar alongside rising yields and falling equity prices, indicating a significant shift [4][6][17] - New structural risks in the US, such as concerns over central bank independence and fiscal sustainability, are altering traditional asset correlation patterns [4][7][17] Summary by Sections Market Performance - Since the peak of the US equity market in late February, equities have declined, long-end yields have increased, and the Dollar has weakened [2][4] - The report highlights that bonds typically protect equity portfolios during negative growth shocks but fail to do so during monetary policy tightening shocks [6][18] Cross-Asset Correlations - The report identifies a new set of shocks affecting market dynamics, including tariff concerns, bond market dysfunction, and fiscal sustainability worries, which have not been prominent in recent memory [7][17] - The correlation structure has shifted, with the Dollar weakening alongside equity and bond weakness during these new structural risks [4][16][17] Portfolio Implications - Longer-dated bonds may be less effective as risk reducers than usual, while front-end yields could provide protection against equity downside in growth concerns [18] - Positioning for USD weakness against currencies like EUR, JPY, and CHF is recommended to mitigate new risks [18][19] - Gold is expected to perform well in the context of these structural risks, suggesting a potential allocation in diversified portfolios [19]

Investment Rating - The report assigns a "Buy" rating to Li Auto, indicating a positive outlook for the company's stock performance [1][9][10]. Core Insights - Li Auto's 1Q25 results showed a GAAP net profit that exceeded Goldman Sachs estimates and Visible Alpha Consensus by 21% and 33%, respectively, primarily driven by higher vehicle sales [1]. - The company is positioned well for 2025 with improvements in urban NOA performance and a focus on AI, which aligns with the growing trend of intelligent driving [9]. - Li Auto maintains the best net cash position among major Chinese OEMs, which supports future R&D and capital expenditures [9]. Financial Performance Summary - Vehicle sales increased by 5% compared to Goldman Sachs estimates, attributed to a 3% rise in sales volume and a 2% increase in average selling price (ASP) [2]. - The vehicle gross margin was reported at 19.8%, reflecting a year-over-year increase of 0.4 percentage points and a quarter-over-quarter increase of 0.1 percentage points [2]. - SG&A expenses were 9% lower than estimates, indicating improved cost control, while R&D expenses rose by 11% due to increased investment in new vehicle models and AI technologies [2]. Guidance and Future Outlook - For 2Q25, the guidance aligns broadly with estimates, projecting vehicle sales volume between 123,000 and 128,000 units, and revenue between RMB 32.5 billion and RMB 33.8 billion [3]. - Upcoming catalysts include new model launches and advancements in ADAS and AI technologies, which are expected to drive growth [9]. Balance Sheet and Cash Flow Analysis - As of 1Q25, Li Auto reported RMB 102 billion in net cash, with a stable total debt to equity ratio of 12% [4]. - The company experienced a tightening of working capital quarter-over-quarter but showed improvement year-over-year, with stable receivable days and an increase in payable days [4]. Valuation Metrics - Li Auto is currently trading below its historical average 12-month forward price-to-sales (P/S) and price-to-earnings (P/E) multiples, suggesting potential undervaluation [9]. - The 12-month price target is set at $31.7 for ADR and HK$124 for H-shares, indicating an upside potential of approximately 13.6% and 13.9%, respectively [8].