CSEC,China Shenhua(SH:601088) Bank of China Securities·2025-08-18 05:32Market Performance - The Hang Seng Index (HSI) closed at 25,270, down 1.0% for the day but up 26.0% year-to-date (YTD) [2] - The HSCEI also fell by 1.0% to 9,039, with a YTD increase of 24.0% [2] - The MSCI China index decreased by 0.3% to 82, with a YTD growth of 26.3% [2] Commodity Prices - Brent Crude oil prices fell by 0.4% to US$66 per barrel, down 9.4% YTD [3] - Gold prices decreased by 0.2% to US$3,330 per ounce, but are up 26.9% YTD [3] - The Baltic Dry Index (BDI) rose by 0.7% to 2,039, showing a significant YTD increase of 104.5% [3] Economic Indicators - China's GDP growth is estimated to have slowed to 4.8% in July from 5.2% in Q2 2025 [6] - Fixed Asset Investment (FAI) showed contraction due to multiple pressures, including adverse weather and property market challenges [7] - Consumption growth moderated in July, with policies shifting focus from durable goods to service consumption [8] Corporate Earnings - Towngas Smart Energy reported a 2% YoY earnings growth to HK$758 million in 1H25, slightly below expectations [10] - The company anticipates a 32% increase in earnings for 2H25 due to higher profits from its renewable business [10] - Shenhua Energy's acquisition of parent assets is expected to be EPS dilutive, with a total book value of RMB90.5 billion for the target assets [17]