Group 1: Industry Development Perspective - The Chinese capital market is currently in a phase focused on "high-quality development," emphasizing the construction of a financial powerhouse as a national strategy [2] - Regulatory measures are being implemented to enhance market stability and promote high-quality development, focusing on risk prevention and strong regulation [2] - Key strategies include building a capital market ecosystem that supports comprehensive innovation and enhancing investor protection [2] Group 2: Wealth Management Business - The company is committed to being a responsible wealth manager, focusing on high-quality clientele and efficient online operations [4] - There is a strong emphasis on transitioning to a buyer-oriented advisory model and enhancing multi-asset allocation capabilities [4] - The company is integrating AI services to improve customer experience and operational efficiency [4] Group 3: Public Fund Industry - The public fund industry is experiencing steady growth, with total net assets reaching CNY 36.74 trillion by September 2025, an increase of 11.93% from the end of 2024 [5][6] - The introduction of policies aimed at promoting high-quality development in the public fund sector is enhancing service quality and investor returns [5] Group 4: Investment Banking Business - The company aims to support the high-quality development of the real economy and enhance its role as a direct financing service provider [6] - There is a focus on building capabilities in key industry sectors and strengthening market positions in regions like the Greater Bay Area and Yangtze River Delta [6] - The company is advancing its digital transformation and risk management practices to ensure stable growth [6]

Core Viewpoint - The A-share market is experiencing an unprecedented wave of dividend reform, with 25 listed companies reporting profits exceeding 3 billion yuan in the third quarter of 2025, collectively announcing a mid-term dividend plan totaling 69.4 billion yuan, averaging over 2.7 billion yuan per company [1] Group 1: Dividend Reform - The new "National Nine Articles" and other policies are significantly driving this dividend reform [1] - Leading companies in energy, manufacturing, and finance are at the forefront of this change, with China Shenhua leading with a dividend of 19.47 billion yuan, followed by Industrial Bank and Industrial Fulian [1] - Mid-term dividends are becoming a "new standard" for quality enterprises, with over half of the companies reporting profits exceeding 3 billion yuan implementing mid-term dividends, a nearly sixfold increase compared to three years ago [1] Group 2: Shareholder Return Mechanism - This shift marks a new phase in the A-share shareholder return mechanism, showcasing a significant breakthrough in the balanced development of capital market investment and financing [1] - As regulatory policies continue to strengthen, listed companies are transitioning from "distributing if possible" to "distributing as much as possible" [1]

Core Viewpoint - The company aims to enhance its value management through strategic design, operational efficiency improvement, capital market operations, and strengthened investor relations, focusing on the organic integration of industrial and financial capital to achieve stable market value growth and safeguard state-owned assets [1] Group 1 - The company will implement top-level strategic design and improve operational efficiency as part of its value management enhancement efforts [1] - The goal is to create and realize value while promoting stable growth in market capitalization [1] - The company plans to expand its influence and guide the capital market towards a correct understanding and positive interpretation [1] Group 2 - The company will actively study and implement the new "National Nine Articles" and its supporting policies to improve the quality of the listed company [1] - There will be a continued focus on core business operations and management to enhance overall competitiveness [1] - The company aims to increase shareholder returns through these initiatives [1]

Investment Rating - The report maintains an "Add" rating for the company [2][6] Core Views - The company has achieved significant profit growth, with a year-on-year increase in net profit of 129.8% for the first three quarters of 2025, reaching 6.567 billion yuan [4][6] - The company is positioned to benefit from the ongoing recovery in the capital markets, supported by favorable policies and a strong market presence in investment banking and wealth management [6] Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported revenue of 20.761 billion yuan, a 54.4% increase year-on-year, and a net profit of 6.567 billion yuan, reflecting a 129.8% increase [4] - The annualized weighted average ROE was 8.39%, up by 4.87 percentage points year-on-year [4] Business Segments - Brokerage and proprietary trading remain the core revenue drivers, with brokerage income increasing by 76% year-on-year to 4.516 billion yuan for the first three quarters [4] - Investment banking revenue grew by 43% year-on-year to 2.940 billion yuan, with a notable increase in equity financing [4] - Asset management revenue also saw a 27% increase year-on-year, reaching 1.062 billion yuan [4] Market Position - The company has strengthened its leading position in the investment banking sector, with a market share of 8.29% in A-share IPO underwriting, up by 1.38 percentage points year-on-year [4] - The company’s asset management scale reached 1.468 trillion yuan, an 8.6% increase since the beginning of the year [4] Future Outlook - The company expects continued growth in net profit, with projections of 9 billion yuan for 2025, 10.7 billion yuan for 2026, and 11.6 billion yuan for 2027 [6][7] - The report anticipates that the company will benefit from increased market activity and capital inflows due to supportive government policies [6]

Core Viewpoint - The A-share market has witnessed a significant surge in mid-term dividend announcements, with 843 companies planning to distribute a total of 662.03 billion yuan, nearly matching the total for the previous year [1][6]. Group 1: Dividend Distribution Overview - A total of 843 A-share companies have announced 850 mid-term dividend plans, amounting to 6620.26 billion yuan, which is close to last year's total mid-term dividends [1][6]. - Major companies like China Mobile and Industrial and Commercial Bank are leading with mid-term dividends exceeding 50 billion yuan each, while industry leaders such as Industrial Fulian and China CRRC have also joined the dividend distribution [3][6]. - Among the 843 companies, 442 have a market capitalization exceeding 10 billion yuan, highlighting the involvement of large-cap firms in enhancing shareholder returns [5]. Group 2: Financial Highlights - The total planned mid-term dividends of 6620.26 billion yuan is a remarkable figure, with 79 companies planning dividends over 1 billion yuan, and 14 companies exceeding 10 billion yuan, indicating a trend towards regular dividend distributions [6][10]. - The increase in dividend frequency is notable, with 7 companies planning to distribute dividends twice within the year, reflecting a shift towards more consistent shareholder returns [7]. Group 3: Factors Driving Dividend Surge - The new "National Nine Articles" policy has played a crucial role in promoting cash dividends among listed companies, mandating stricter regulations on companies with low or no dividends [9]. - Companies are showing strong profitability and cash flow, with industry leaders like Midea Group and CATL planning dividends exceeding 10 billion yuan, demonstrating their financial strength [10]. Group 4: Market Impact - The substantial mid-term dividends are expected to attract more long-term funds into the market, particularly from pension and insurance funds seeking stable returns [13]. - Consistent dividend payments can stabilize market expectations and reduce volatility, providing a "safe haven" for investors during market downturns [13]. Group 5: Investor Considerations - Investors are advised to remain cautious of potential "false dividend traps," where companies may announce high dividends despite poor financial health [15]. - Rational investment strategies are emphasized, encouraging investors to consider their risk tolerance and the overall financial health of companies when making investment decisions [16]. Conclusion - The current mid-term dividend wave in the A-share market signifies a positive shift towards enhanced shareholder returns and a more mature market environment, with expectations for continued growth in dividend distributions [17].

Policy Background - During the "14th Five-Year Plan" period, the capital market reform deepened, emphasizing the improvement of the quality of listed companies [6][7] - The new "National Nine Articles" and over 60 supporting rules in 2024 further solidified the regulatory framework for enhancing the quality of listed companies [6][7] - The regulatory framework focuses on three main aspects: strict entry standards for listings, rigorous delisting supervision, and enhanced ongoing regulation to guide companies in improving investment value and shareholder returns [6][7] Market Review Total Structure - The number of listed companies and total market capitalization in A-shares increased by over 30% compared to the "13th Five-Year Plan" period, with the number of new companies in emerging industries exceeding 70% [11][12] - By September 2025, the total number of A-share listed companies reached 5,436, with a total market capitalization of 105.8 trillion yuan, marking a 30% and 33.2% increase respectively from the end of the "13th Five-Year Plan" [11][12] - The market's survival of the fittest mechanism was strengthened, with 207 companies delisted during the "14th Five-Year Plan," four times the number during the previous period [11][12] Operating Quality - A-share companies saw significant improvements in revenue quality, with total revenue and net profit increasing by 43.7% and 38.0% respectively compared to the "13th Five-Year Plan" [15][18] - The proportion of operating income to total profit rose from 57.8% at the end of the "13th Five-Year Plan" to 68.1% by mid-2025, indicating healthier profit structures [15][17] - R&D expenditures doubled during the "14th Five-Year Plan," reaching 7.3 trillion yuan, with the intensity of R&D spending as a percentage of revenue increasing from 2.5% to 3.1% [18][19] Shareholder Returns - A-share companies distributed a total of 9.2 trillion yuan in cash dividends during the "14th Five-Year Plan," a 49.4% increase from the previous period, with approximately 70% of companies implementing dividends [23][24] - The total amount of share buybacks reached 594.14 billion yuan, representing a 148.3% increase compared to the "13th Five-Year Plan" [23][24] Future Outlook - The quality of listed companies is expected to continue improving, creating more investment opportunities driven by market reforms and industrial upgrades [26][28] - The capital market is anticipated to follow the high-quality development path outlined by the new "National Nine Articles," enhancing support for technology innovation and improving corporate governance and investor return mechanisms [26][28] - Key sectors to watch include AI and advanced manufacturing, particularly leading companies with advantages in operational quality and technological innovation [28]

Core Insights - The capital market in China has undergone significant reforms and structural optimization during the "14th Five-Year Plan" period, enhancing its ability to serve the real economy and improving both attractiveness and inclusivity [1][2][3] Group 1: Policy and Regulatory Changes - The implementation of the new Securities Law and the "New National Nine Articles" has fundamentally reshaped the capital market's basic system and regulatory logic, marking the beginning of a new era for high-quality development [2][3] - The introduction of the registration system, which began with the Science and Technology Innovation Board, has shifted the focus to market-driven mechanisms, enhancing market efficiency and investor confidence [1][2] Group 2: Market Performance and Structure - As of August 2023, the total market capitalization of A-shares surpassed 100 trillion yuan, reflecting a significant recovery in investor confidence and a structural transformation within the market [5][6] - The proportion of high-tech enterprises among newly listed companies exceeded 90% during the "14th Five-Year Plan" period, indicating a strong focus on strategic emerging industries [2][4] Group 3: Financing and Investment Trends - Total financing through stock and bond markets reached 57.5 trillion yuan, with a steady increase in the proportion of direct financing, which rose by 2.8 percentage points to 31.6% compared to the end of the "13th Five-Year Plan" [7] - The market has seen a significant increase in long-term capital, with various types of long-term funds holding approximately 21.4 trillion yuan of A-share market value, a 32% increase from the end of the "13th Five-Year Plan" [6][7] Group 4: Market Stability and Risk Management - The regulatory authorities have implemented over 60 supporting rules since the release of the "New National Nine Articles," enhancing the stability of the capital market and addressing key areas such as issuance, listing, and mergers and acquisitions [8][9] - The A-share market has demonstrated resilience against external shocks, with the annualized volatility of the Shanghai Composite Index decreasing by 2.8 percentage points compared to the "13th Five-Year Plan" period [9]

Core Viewpoint - The current A-share market is driven by five main factors: robust economic recovery, proactive "anti-involution" policies, significant technological advancements, the introduction of new regulatory frameworks, and favorable global liquidity conditions [1] Economic and Market Conditions - China's economic fundamentals are showing strong resilience, providing solid support for the stock market [1] - The Shanghai Composite Index has reached a ten-year high, indicating strong market vitality [1] - A-share market is expected to maintain a slow bull trend, supported by both fundamental and valuation recovery [1] Policy and Regulatory Environment - The introduction of the "New National Guidelines" is expected to lay a solid institutional foundation for the high-quality development of the capital market [1] - Recent reforms, including the "1+6" reform for the Sci-Tech Innovation Board and the "merger six guidelines," are restructuring the capital market ecosystem and injecting new momentum [2] Investment Opportunities - Three main investment directions are suggested: 1. The photovoltaic industry chain and related sectors affected by valuation pressures, such as energy storage and lithium battery industries [3] 2. Traditional industries experiencing overcapacity, including steel, cement, and glass [3] 3. Emerging non-manufacturing sectors, such as the e-commerce industry [3] Market Trends and Future Outlook - The trend of mainland companies listing in both A-share and H-share markets is expected to continue, driven by policy incentives, improved liquidity in the Hong Kong market, and companies' strategic needs [2] - The new listing standards are expected to benefit companies in cutting-edge fields like commercial aerospace and artificial intelligence [2]

Core Viewpoint - The implementation of mid-term dividends by listed banks for 2025 is progressing, with a total of 21 banks announcing their dividend intentions, amounting to a total of 237.54 billion yuan [3][5]. Group 1: Dividend Distribution - As of September 28, 2023, 21 listed banks have confirmed their mid-term dividend intentions, with 17 banks having established specific dividend plans [3][5]. - The six major state-owned banks plan to distribute a total of 204.66 billion yuan, accounting for over 86% of the total mid-term dividends [3][5]. - Notably, seven banks, including China Merchants Bank and Changshu Bank, are announcing their first mid-term dividend plans since going public [5][6]. Group 2: Financial Performance - In the first half of 2025, 42 listed banks achieved a total operating income of 2.9 trillion yuan, a year-on-year increase of 1%, while net profit reached 1.1 trillion yuan, up 0.8% [3][7]. - The average non-performing loan (NPL) ratio for listed banks was 1.23% as of June 30, 2025, a decrease of 1 basis point from the end of 2024 [8][9]. - The total assets of listed banks reached 321.33 trillion yuan, growing by 6.35% compared to the end of 2024, with total loans amounting to 184.38 trillion yuan, reflecting a growth of 5.9% [8]. Group 3: Market Signals and Investor Confidence - The increase in dividend frequency is seen as a positive signal of operational stability from listed banks, enhancing investor confidence, particularly among long-term investors such as insurance and social security funds [6][9]. - The narrowing pressure on net interest margins is expected to stabilize, contributing to the overall profitability of listed banks [8][9].

Core Insights - The report by Deloitte China highlights a slowdown in the global IPO market due to economic factors and geopolitical uncertainties, particularly the U.S. tariff policies, leading to a decrease in the financing scale of the top ten global IPOs compared to the previous year [1] - Despite global trends, Hong Kong is expected to maintain its position as the top global IPO financing hub, driven by six large IPOs during the period [1] - The A-share market in mainland China is showing steady growth in new listings and financing amounts, supported by the implementation of new policies aimed at enhancing the capital market [1] Group 1: A-share Market Performance - The A-share market is projected to have 78 new listings by September 30, 2025, with total financing reaching 77.1 billion yuan, marking a 13% increase in the number of new stocks and a 61% increase in financing compared to the same period last year [1] - The technology and innovation sectors are expected to remain hot spots for new listings in the A-share market, reflecting the government's support for these industries [1][2] - The steady rise in the A-share market index is seen as a positive outcome of the new policies being implemented [1] Group 2: Hong Kong Market Outlook - Hong Kong is anticipated to have 66 new listings in the first three quarters of the year, raising 1,823 million HKD, which is a 47% increase in the number of new stocks and a 228% increase in financing compared to the same period last year [2] - The presence of significant overseas capital inflow is boosting the Hong Kong stock market, leading to a recovery in valuations [3] - The forecast for the last quarter suggests that Hong Kong's IPO market will maintain strong momentum, with over 80 new listings expected for the entire year, and total financing projected between 250 billion to 280 billion HKD [3]