Bank of China Securities·2025-07-29 13:29Group 1 - The report highlights the ongoing trend of Chinese concept stocks returning to the domestic capital market due to increasing regulatory pressures and tensions in US-China relations, with the Chinese government providing supportive policies such as the registration system and CDR to facilitate this return [2][5][26] - Various pathways for the return of Chinese concept stocks are identified, including secondary listings in Hong Kong, dual primary listings, privatization followed by relisting, and CDR issuance, which collectively create a favorable environment for companies seeking to regain financing opportunities [2][37] - The report emphasizes the role of Hong Kong as a preferred destination for Chinese concept stocks due to its flexible listing mechanisms, lower thresholds, and policies allowing for "same share, different rights," making it an attractive platform for companies to return [2][5][24] Group 2 - The report discusses the benefits for Chinese securities firms from the return of Chinese concept stocks, particularly those with strong cross-border capabilities, as they can provide capital operation services and capture a larger market share [2][3][37] - The shell company market is highlighted as a key vehicle for the rapid return of Chinese concept stocks, with increased demand leading to a revaluation of shell companies, making them a focal point for investors [2][3][37] - The report outlines the integration of dual listings and the A/H share market, allowing investors to diversify their asset allocation strategies, as companies listed in both markets often exhibit cross-market premiums [2][3][37] Group 3 - The report notes that the return of Chinese concept stocks is accompanied by a potential revaluation of market capitalization and valuation premiums, indicating a shift in investor sentiment and market dynamics [2][3][37] - The report suggests that the shell market presents both opportunities and risks, necessitating effective regulation to ensure its stable and healthy development, which is crucial for the sustainable return of Chinese concept stocks [2][3][37] - The report concludes with a strategic summary advocating for a dual allocation strategy focusing on "Chinese securities firms + shell resources" to capitalize on the ongoing trends in the market [2][3][37]