Summary of Key Points from the Conference Call Industry Overview - **Industry**: China Financials - **Industry View**: Attractive [5] Regulatory Developments - **Regulatory Notice**: On February 6, 2026, financial regulators issued a notice aimed at preventing cryptocurrency-related risks, renewing a similar notice from 2021. This notice explicitly bans the tokenization of real-world assets (RWA) onshore unless pre-approved by regulators and built on specific financial infrastructure [8] - **Stablecoin Licensing in Hong Kong**: The development of stablecoins in Hong Kong is expected to proceed independently. Mainland companies must obtain onshore regulatory approval to participate in stablecoin issuance in Hong Kong, as the notice prohibits them from issuing cryptocurrencies overseas without such approval [2] Company-Specific Insights - **Futu Holdings**: The company is already blocking any crypto-related offerings and market information access to mainland clients. Future offerings may focus more on overseas assets due to regulatory complexities surrounding onshore asset-linked RWAs [3] Market Controls - **Implementation of Controls**: A comprehensive set of controls will be established, covering market entity registration, advertising, financial services, and technology services to mitigate crypto-related risks [8] Analyst Insights - **Analyst Certification**: Analysts have certified that their views on the companies discussed are accurately expressed and that they have not received compensation for specific recommendations [13] - **Investment Banking Relationships**: Morgan Stanley has received compensation for investment banking services from various companies in the financial sector, including Agricultural Bank of China and Bank of China [16][18] Stock Ratings Overview - **Stock Ratings Distribution**: As of January 31, 2026, the distribution of stock ratings includes: - Overweight/Buy: 41% - Equal-weight/Hold: 43% - Underweight/Sell: 16% [28] Important Disclosures - **Conflict of Interest**: Investors should be aware of potential conflicts of interest that may affect the objectivity of Morgan Stanley Research [6] - **Research Methodology**: The research is based on public information, and while efforts are made to ensure accuracy, no guarantees are provided [45] Conclusion - The regulatory landscape for cryptocurrencies in China is tightening, with significant implications for companies involved in crypto and stablecoin activities. Futu Holdings appears well-positioned given its current compliance measures. The overall outlook for the China financial sector remains attractive, with ongoing monitoring of regulatory developments essential for investment decisions.

Core Insights - Bairong Inc. has established a strategic ecosystem partnership with Shanghai Pudong Development Bank to enhance the development of "financial agents" and promote the integration of AI in the financial sector [2][8] - The partnership aims to create a long-term "AI + finance" cooperation alliance, focusing on the deep integration of finance and technology [2][4] Company Overview - Bairong Inc. is a leading AI turnkey service provider in China, specializing in the industrial application of AI technologies [5][10] - The company has developed a core technology framework that includes its AI agent platform (Bairong CybotStar) and a self-developed large model (BR-LLM) [5][10] Strategic Partnership Details - The strategic cooperation agreement signed in November 2025 will enable both parties to explore joint development in areas such as AI-driven business innovation and intelligent risk management [2][7] - Bairong Inc. will provide SPD Bank with customizable AI hubs and enterprise-level intelligent agent capabilities, enhancing the bank's core functions [7][8] Industry Context - The partnership is set against the backdrop of global digitalization and the rapid evolution of the AI industry, which is transforming the financial sector [3][4] - SPD Bank is recognized as a pioneer among state-owned commercial banks in adopting technology-driven financial service models [4]

Investment Rating - KGI Financial (2883 TT) downgraded to Neutral [3][4] Core Insights - Taiwan Insurance sector is expected to receive regulatory support, but it may be insufficient to mitigate the damage already done to earnings and capital positions [3][7] - India Insurance sector shows stronger-than-expected ULIP sales growth of 19% YoY compared to industry APE growth of 14%, indicating positive near-term prospects for HDFC Life [3][8] - SMFG (8316 JP) remains Neutral despite a raised price target, with a forecasted total shareholder return (TSR) of 60% due to ongoing buybacks [3][13] Taiwan Insurance - Regulatory measures are anticipated to support life insurers in restoring FX reserves, but the impact on earnings and capital positions is likely to be detrimental [7] - KGI's FY25e EPS and DPS have been revised down by an average of 24% and 20% respectively, reflecting the challenges posed by currency fluctuations [7][8] - KGI's price target is set at NT$18.8, with a recommendation to buy on weakness if the stock falls below NT$15 [7] India Insurance - HDFC Life's APE growth was 19% YoY, driven by strong individual and group APE growth [8] - The upcoming Insurance Amendment Bill could allow for 100% FDI in the sector, although the open architecture model may face resistance from insurers [8] SMFG - Price target raised to Y4,180, with a forecast of Y300 billion in buybacks for FY25 [13][16] - SMFG's ROE is projected to remain below 10%, while Mizuho is expected to accelerate buybacks and achieve over 11% ROE [3][13]