Core Viewpoint - The strategic direction of leading e-commerce and logistics companies is creating new growth opportunities for infrastructure service providers, as evidenced by Prologis China's recent financial performance and significant investments from major capital sources [1][2][3]. Financial Performance - Prologis China reported a total revenue of 4.224 billion yuan for the first half of 2025, representing a year-on-year growth of 10% - The company's operating EBITDA reached 2.027 billion yuan, with a year-on-year increase of over 20% [1]. Strategic Investments - Prologis announced a strategic investment of 1.5 billion USD (approximately 10.7 billion yuan) from the Abu Dhabi Investment Authority (ADIA), with an initial deployment of 500 million USD [2]. - The company also received a 2.5 billion yuan investment from Quzhou Industrial Holding Group, a state-owned enterprise [2]. Focus Areas - Prologis plans to continue focusing on logistics and manufacturing R&D facilities, data centers, and new energy infrastructure investments, while also enhancing its fund management business [2][5]. - The new economic sectors, including logistics supply chains, digital infrastructure, and new energy, are becoming key investment areas both in China and internationally [2]. Market Trends - The demand for logistics infrastructure is increasing due to the evolution of retail formats, such as hard discounts and community group buying, which require more efficient supply chain models [4]. - Prologis has signed new leases covering over 7.8 million square meters in logistics, high-end manufacturing, and R&D facilities in the second quarter of this year [4]. Growth in New Economy Sectors - Prologis's smart cold chain subsidiary, ProCold, has expanded its services, including partnerships with major retail chains for fresh food distribution [4]. - The company's intelligent computing business saw a revenue increase of over 48% year-on-year [5]. Investment Strategy - ADIA's investment in Prologis reflects a strategic interest in China's new infrastructure and new energy sectors, aligning with its investment strategy [5]. - Prologis has invested approximately 16.5 billion yuan in over 110 companies through its private equity arm, Yinshi Capital, focusing on modern logistics services and technology [5]. Future Outlook - Prologis is considering an initial public offering (IPO) in Hong Kong, potentially as early as 2025, following the recent strategic investments [6]. - The company operates over 450 logistics and manufacturing facilities in 70 markets across China, with an asset management scale of approximately 79 billion USD [6]. REIT Performance - The China International Capital Prologis REIT reported a revenue of approximately 216 million yuan in the first half of the year, with a distributable amount of about 167 million yuan [7]. - The REIT has completed 12 distributions since its listing, totaling over 1.2 billion yuan, with a historical annual distribution ratio close to 100% [7]. International Investment Confidence - The investment from ADIA signifies international investors' confidence in China's long-term economic prospects and the attractiveness of its new economy sectors [8].

Core Viewpoint - The strategic investment of $1.5 billion by Abu Dhabi Investment Authority (ADIA) in Prologis signifies a strong commitment to China's new economy sectors, highlighting a new model for global capital to engage deeply with China's real economy [1][2]. Group 1: Investment Details - ADIA's initial $500 million investment is allocated to logistics supply chains, digital infrastructure, and new energy projects, indicating a focus on high-growth sectors [1]. - Prologis has established itself as a dual-identity entity, functioning as both an infrastructure operator and a capital hub, managing nearly $80 billion in global assets [1][3]. Group 2: Partnership Evolution - The collaboration between ADIA and Prologis has evolved from financial investment to a strategic partnership, reflecting a deeper commitment to the latter's business model and growth potential [2][4]. - Prologis has a history of successful collaborations with ADIA, having previously engaged in multiple fund investments across various markets [2]. Group 3: Business Model and Ecosystem - Prologis operates as an alternative asset investment and management institution, focusing on new economy sectors while providing operational services linked to infrastructure assets [3][5]. - The company has developed a closed-loop value creation system that integrates industry and capital, which is highly valued by long-term capital investors like ADIA [4]. Group 4: Market Potential and Economic Indicators - The logistics and warehousing industry in China has shown resilience, with a social logistics total exceeding 200 trillion yuan and a year-on-year growth of 5.2% [7]. - The demand for digital economy infrastructure, particularly in AI and renewable energy, is rapidly increasing, driven by national strategies and market needs [7][8]. Group 5: Future Prospects - Prologis is reportedly planning a potential IPO in Hong Kong, which could provide global capital with easier access to investment opportunities in China [8]. - The recent strategic investment from Zhejiang state capital into Prologis's computing center business underscores the synergy between international and local capital in promoting AI and industrial integration [8].

记者获悉，在这一背景下，汇丰近期于深圳举办为期共三天的第十二届"中国研讨会"和第三届"汇 丰中国投资者高峰会"，共计吸引1300多位来自全球的商界领袖、企业高管，以及机构和个人投资者， 共同探讨由新经济、新兴经贸走廊等带来的中国市场投资和财富管理新机遇。 本次活动中，数十位来自学术界、金融界和企业界的专家代表深入探讨中国经济前景、人工智能发 展、新消费趋势、中国企业全球化等全球投资者关注的热点话题。与会者反响热烈，对中国市场的投资 前景表示乐观。 汇丰亚洲及中东地区联席行政总裁廖宜建表示，得益于中国经济的增长韧性和投资者信心复苏，中 国资本市场今年的表现尤其亮眼。汇丰全球投资研究追踪了近300只全球新兴市场（GEMs）主动型基 金，在这些基金的投资组合中，中资股的权重已从一年前的22.5%增长至近28%，而近三个月的增配更 为显著，尤其是科技和消费板块。 "尽管如此，与相关的基准指数相比，全球新兴市场基金对中国资产依然处于低配状态；人工智 能、电动汽车、无人机、机器人和医药等新兴产业的增长潜力仍待全球投资者进一步发现。"廖宜建指 出，由创新驱动的中国经济增长将继续吸引全球投资者的关注，中国市场不仅具有投资价值 ...

Summary of Key Points from the Conference Call Industry and Company Overview - The discussion primarily revolves around the **Chinese economy and stock market**, focusing on the divergence between economic data and stock performance, as well as the implications for various sectors, particularly new and traditional economies. Core Insights and Arguments 1. **Divergence Between Stock Market and Economic Data** The Chinese stock market is performing strongly despite weak economic indicators, suggesting that liquidity is favoring stocks over other asset classes, particularly in technology and innovation sectors [1][4][5] 2. **Impact of Global Market Sentiment** Global market sentiment has shifted, with non-US assets benefiting from a recovery in risk appetite, particularly after the trade war fears did not materialize as expected [1][6] 3. **Strong Export Performance** China's exports have exceeded expectations, particularly to regions like Africa, the Middle East, and Latin America, which has helped offset declines in demand from developed countries [1][8][11] 4. **Importance of Exports for Economic Stability** Exports are crucial for China's economic growth and asset pricing, especially for real estate in lower-tier cities, where income growth is tied to export performance [1][10][15] 5. **Structural Changes in the Economy** There is a significant structural divergence between new and old economies in China, with emerging sectors like technology showing robust growth, which is not fully captured by aggregate economic data [1][7][9] 6. **Future Economic Outlook** The outlook for 2025 indicates potential pressures on exports, but a rebound in global demand is expected in 2026, which may lead to a bear market in bonds and a recovery in the stock market [1][17] 7. **PMI vs. Actual Export Performance** The discrepancy between PMI data and actual export performance can be attributed to the differing impacts on small versus large enterprises, with larger firms being less affected by trade tensions [1][12] 8. **Risks in the Capital Market** The capital market is currently pricing in economic weakness, and any changes in core variables, such as export performance, could lead to a more severe contraction in risk appetite than previously anticipated [1][13][14] 9. **Real Estate Market Dynamics** The real estate market, particularly in third and fourth-tier cities, is stabilizing, but its recovery is heavily dependent on export performance and overall economic growth [1][10][18] 10. **Investment Opportunities** Short-term investment strategies should focus on new economy sectors, as traditional sectors may only see opportunities after a broader economic recovery is confirmed [1][24] Other Important but Overlooked Content - The discussion highlights the potential for a significant shift in the investment landscape as global economic conditions evolve, particularly with the anticipated easing of US monetary policy and its effects on global demand [1][3][17][20] - The need for close monitoring of macroeconomic indicators and policy changes is emphasized, as these will play a critical role in shaping market dynamics in the coming months [1][20]

Core Viewpoint - A-share companies' profitability showed a modest increase in the first half of 2025, with a year-on-year growth of 2.8%, while non-financial profits grew by only 1.5% [1][5][20]. Financial Performance - In the first half of 2025, the net profit attributable to shareholders for the entire A-share market, financial sector, and non-financial sector grew by 2.8%, 4.2%, and 1.5% respectively [1][5]. - Non-financial operating revenue experienced a slight decline of 0.4% year-on-year [1]. - In Q2 2025, the net profit growth rates for the entire A-share market, financial sector, and non-financial sector were 1.6%, 5.7%, and -1.6% respectively, indicating a negative growth for non-financial profits [1][19]. Sector Analysis - The real estate and export sectors saw a slowdown in growth compared to Q1, with PPI's year-on-year decline further widening, impacting non-financial revenue growth and profit margins [1]. - The financial sector remained active in Q2, with the securities and insurance industries experiencing a profit growth of 16.6%, driven by a 49.2% increase in securities profits and a 5.9% increase in insurance profits [1][19]. - The main board, ChiNext, and Sci-Tech Innovation Board saw year-on-year profit changes of -2.7%, +4.1%, and +24.5% respectively in Q2 [1][19]. Economic Segmentation - The new economy's profitability improved by 6.8% year-on-year in Q2, while the old economy turned negative with a decline of 8.3% [1][19]. - Profit growth in upstream, midstream, and downstream sectors was -16.3%, +3.7%, and +1.7% respectively, with upstream performance weakened by the widening PPI decline [1][19]. Industry Highlights - The TMT sector, non-ferrous metals, and certain midstream areas performed well, with specific growth characteristics including: - Energy and raw materials sector profits increased by 12.7%, 77.5%, and 40.5% for industrial metals, precious metals, and rare metals respectively [18]. - The midstream manufacturing sector, particularly in power equipment and new energy, saw a profit increase of 26.8% [18]. - The consumer sector's profitability was supported by price and cost reductions, with agriculture, forestry, animal husbandry, and fishery profits up by 20.4% [18]. Profit Distribution - The profitability of energy raw materials as a percentage of total profits decreased from nearly 40% in 2022 to 30.8% in Q2 2025 [1][14]. Performance Quality - Non-financial ROE remained stable, with upstream sectors experiencing a decline while midstream sectors stabilized [24][25]. - A-share companies' cash flow statements showed improvement, with operating cash flow reaching the highest level since 2010 [31][34]. - Capital expenditure growth improved, with new economy sectors showing positive growth for the first time since Q2 2024 [39][41].

Group 1 - The Hong Kong Stock Exchange (HKEX) is actively promoting the economic and financial development of the Greater Bay Area, serving as a core financial infrastructure [1] - Recent reforms in listing rules have provided diverse and convenient channels for new economy companies to list in Hong Kong, including those with dual-class share structures and biotech firms without revenue [1] - New economy sectors, such as healthcare, renewable energy, and TMT, account for over 60% of new stock financing in Hong Kong, with total financing reaching HKD 127.9 billion from January to July, ranking first globally [1] Group 2 - HKEX is enhancing connectivity with mainland financial markets through mechanisms like Stock Connect and Bond Connect, facilitating international investment in China and providing mainland funds access to overseas assets [2] - Ongoing collaborations with the Shanghai and Shenzhen stock exchanges aim to optimize Stock Connect by including REITs and introducing block trading mechanisms [2] - HKEX is also focusing on green finance and low-carbon transition, seeking to explore carbon market cooperation opportunities with more financial institutions in the Greater Bay Area [2]

Core Insights - The seventh Guangdong-Hong Kong-Macao Greater Bay Area Financial Development Forum was held in Guangzhou, focusing on comprehensive financial cooperation and development [1] - Hong Kong's financial market raised HKD 127.9 billion from January to July this year, ranking first globally, with over 200 listing applications currently being processed, many from high-tech companies in the Greater Bay Area [1] - The Hong Kong Stock Exchange (HKEX) has optimized its listing system for new economy companies, allowing dual-class share structures and biotech firms without revenue to list, with at least 60% of the financing coming from sectors like pharmaceuticals, new energy, and TMT [1] Listing and Regulatory Developments - In October 2024, HKEX and the Hong Kong Securities and Futures Commission will streamline the approval process for eligible A-share companies seeking to list in Hong Kong [1] - By May 2025, HKEX will launch a technology-focused channel to further optimize the application process for specialized technology and biotech companies [1] - In August 2025, HKEX will enhance new stock pricing and public holding requirements, easing restrictions to improve pricing efficiency and international competitiveness [1] Market Connectivity and Collaboration - The Shenzhen-Hong Kong Stock Connect has seen active trading, with cumulative transactions reaching approximately RMB 116 trillion by the end of July this year [2] - HKEX is collaborating with the Shanghai and Shenzhen stock exchanges to include block trading in the connectivity mechanism and optimize the inclusion of RMB counters in the Hong Kong Stock Connect [2] - HKEX is also working on a comprehensive fund platform with the Shenzhen Stock Exchange to enhance the fund distribution network and market efficiency [2] - The establishment of HKEX's subsidiary in Shenzhen, with over 200 employees, aims to leverage the region's technological and talent advantages to enhance market competitiveness [2]

Core Insights - The Thai Board of Investment (BOI) and the Stock Exchange of Thailand (SET) have announced a strategic partnership to attract foreign high-tech companies to the Thai capital market and support existing listed companies in their transformation towards a technology-driven "new economy" [1] Group 1: Strategic Focus - The collaboration will focus on two main areas: attracting foreign high-tech companies to list in Thailand and supporting existing listed companies in their transformation and upgrading [1] - The initiative aims to encourage companies to invest in improving production efficiency and increasing added value while achieving long-term growth through sustainable development [1] Group 2: Target Industries - The partnership will initially target three high-tech industries: smart electronics and appliances, electric vehicles, and the digital industry [1] - These industries have seen significant foreign investment in Thailand, with successful listing cases such as Delta Electronics (Thailand) PCL and Cal-Comp Electronics (Thailand) PCL [1] Group 3: Support Mechanisms - The SET will provide support through the "JUMP+ Program," which includes growth planning, investor communication, and enhancing corporate visibility [2] - The BOI will offer tax incentives through the "Smart and Sustainable Industry Plan" [2] - A Fast-Track service will be established to facilitate companies in obtaining both types of support simultaneously [2]

Group 1 - GLP Pte Ltd (普洛斯) announced a $1.5 billion investment from Abu Dhabi Investment Authority (ADIA), with an initial deployment of $500 million to strengthen financial capabilities and accelerate new economic business development [1] - ADIA is one of the largest sovereign wealth funds in the Middle East, and this investment signifies a new collaboration model between GLP and ADIA, enhancing their long-standing partnership [1] - The cooperation between GLP and ADIA reflects optimistic expectations from international financial institutions regarding the Chinese economy [1] Group 2 - GLP operates approximately 450 logistics, warehousing, and manufacturing facilities across 70 regions in China, with an asset management scale of about $79 billion [2] - In the first seven months of the year, China's total social logistics exceeded 200 trillion yuan, showing a year-on-year growth of 5.2%, supported by strong demand in high-end manufacturing and green low-carbon sectors [2] - The digital economy and energy sectors are increasingly integrated, with significant investments in digital transformation and sustainable energy infrastructure, driven by the dual carbon strategy and energy security needs [2] Group 3 - GLP recently accelerated its capital operations, announcing a 2.5 billion yuan investment from a strategic partner in Zhejiang, focusing on AI-driven future industries and the integration of intelligent computing with the real economy [3] - The new economic sectors that GLP focuses on are entering a long-term expansion phase, presenting substantial market opportunities, and the investment from ADIA enhances GLP's financial strength and strategic alignment [3]

Core Insights - Prologis Group, a leading global provider of supply chain, big data, and new energy infrastructure services and investments, announced a $1.5 billion investment from Abu Dhabi Investment Authority (ADIA) to support the next phase of its business growth [1][2] - The investment will enhance Prologis' financial strength and accelerate the development of its new economy business, focusing on logistics supply chain, digital infrastructure, and new energy sectors [1] Investment Details - The initial deployment of the investment will be $500 million, aimed at strengthening the company's financial capabilities [1] - This investment is a recognition of Prologis' ability to create value in high-growth new economy sectors and its outstanding performance [1] Strategic Partnerships - Prologis has successfully collaborated with ADIA for many years at the fund level, and this new investment marks a deeper partnership at the company level [2] - The investment aligns with ADIA's strategy to expand its investments in the new economy sector [2] Market Opportunities - The new economy sectors that Prologis focuses on are experiencing long-term expansion, driven by trends such as the growth of e-commerce, the acceleration of artificial intelligence and cloud technology, and the global energy transition towards cleaner and sustainable energy [1]