CATL(SZ:300750) HTSC·2025-05-29 14:56Group 1 - The report highlights the significant interest from global investors in high-quality A-share companies that have listed in Hong Kong, such as Ningde Times and Midea Group, which raised a total of HKD 410 billion during their listings, with cornerstone investors accounting for nearly 50% of the subscriptions [1][11]. - The performance of A-share companies that have recently listed in Hong Kong has been strong, with an average year-to-date (YTD) increase of 4.6% compared to the overall A-share market's 0.7% [2][45]. - The report indicates that the current A-share core assets are undervalued from a global price-to-book (PB) and return on equity (ROE) perspective, suggesting a potential for valuation recovery as foreign capital reallocates towards these assets [1][4]. Group 2 - The report discusses the recent trend of leading companies from mainland China opting for secondary listings in Hong Kong, which has positively impacted A-share performance through liquidity spillover effects [2][30]. - It notes that the Hong Kong IPO market has shown signs of recovery, with 70 IPOs in 2024 and a fundraising scale of HKD 878 billion, marking a 92.8% increase from 2023 [11][19]. - The report emphasizes the structural changes in the Hong Kong market since 2018, which have improved liquidity and growth potential, making it an attractive platform for mainland companies seeking to expand their financing options [19][23]. Group 3 - The report identifies a pattern of A-share pricing becoming more aligned with Hong Kong valuations, particularly during periods of increased foreign investment, such as the opening of the Shanghai-Hong Kong Stock Connect in 2014 and the MSCI index inclusion in 2017 [5][9]. - It highlights that the recent listings of companies like Midea Group and Ningde Times have led to significant price movements in their respective sectors, with Midea's stock showing a notable increase post-listing [30][33]. - The report suggests that the trend of A-share companies listing in Hong Kong is likely to continue, with 41 companies planning to do so in 2025, indicating a robust pipeline of potential listings [23][45].