Group 1: Overview of Shenzhen's Economic Landscape - Shenzhen has established itself as a leading financial and technological innovation hub, contributing significantly to the capital market with numerous quality listed companies [1][2] - As of mid-2023, Shenzhen has 425 A-share companies and 159 overseas-listed companies, ranking third among major cities in China [1][2] - The total assets of securities firms in Shenzhen have surpassed 3.3 trillion yuan, maintaining the top position in the country for total assets and operating income [1][4] Group 2: Performance of Listed Companies - Shenzhen's listed companies achieved a revenue of over 6.8 trillion yuan and a net profit of 480 billion yuan in 2024, ranking second among major cities in China [2] - The manufacturing sector is prominent, with 281 manufacturing companies generating 3.25 trillion yuan in revenue, reflecting a year-on-year growth of 16.9% [2] - Research and development spending by Shenzhen's listed companies reached 196.7 billion yuan in 2024, with a growth rate of 10.8% [2] Group 3: Support for Innovation and Internationalization - In 2024, Shenzhen led the nation with 11 companies successfully listing on the A-share Science and Technology Innovation Board and the Growth Enterprise Market, raising 9.392 billion yuan [3] - The overseas business revenue of Shenzhen-listed companies totaled 1.14 trillion yuan in 2024, marking a year-on-year increase of 15.9% [3] - Shenzhen's listed companies have contributed over 20 trillion yuan in taxes over the past five years, supporting the stability of the social economy [3] Group 4: Financial Industry Development - Shenzhen's securities and fund industries have seen rapid growth, with 24 securities firms and 31 public fund management companies, all ranking among the top in the country [4][5] - By mid-2023, the total assets of securities firms in Shenzhen reached 3,337.875 billion yuan, with a net profit of 42.955 billion yuan, both leading nationally [4] - The public fund management assets in Shenzhen reached 7.69 trillion yuan by the end of last year, showing a year-on-year growth of 14.43% [5] Group 5: Private Equity and Venture Capital - Shenzhen's private equity and venture capital sector is robust, with nearly 3,000 private fund managers and significant investment in early-stage and high-tech enterprises [5][6] - By the end of 2024, private equity funds in Shenzhen invested in over 9,000 seed and startup projects, focusing on high-tech industries [6]

Group 1: Bond Market News - The People's Bank of China (PBOC) reported a net liquidity injection of 100 billion yuan through Medium-term Lending Facility (MLF) and 200 billion yuan through reverse repos in July 2025 [2] - The bond market experienced significant volatility due to the resumption of value-added tax on government bond interest, with the yield on 10-year government bonds initially dropping to around 1.68% before rising back above 1.7% [2] - The bond market is expected to see a short-term preference for existing bonds due to tax advantages, but this impact is not anticipated to affect the long-term trend of the bond market [2] Group 2: Service Trade - China's service trade grew steadily in the first half of 2025, with total service trade reaching 38,872.6 billion yuan, a year-on-year increase of 8.0% [4] - Service exports amounted to 16,883 billion yuan, up 15.0%, while imports reached 21,989.6 billion yuan, growing by 3.2% [4] - Travel services saw the fastest growth, with imports and exports totaling 10,802.9 billion yuan, a 12.3% increase, and exports growing by 68.7% [4] Group 3: Cross-Border Wealth Management - The Hong Kong Monetary Authority reported that over 160,000 individual investors participated in the "Cross-Border Wealth Management Connect" 2.0 program, marking a 120% increase compared to the previous version [5] - The market response has been positive, with the value of holdings by Hong Kong participating institutions exceeding 16 billion yuan, a twofold increase from the previous program [5] Group 4: Commodity Market - International crude oil prices continued to decline, with WTI September futures down 1.54% to $66.29 per barrel, and Brent October futures down 1.30% to $68.76 per barrel [8] - Natural gas prices also saw a significant drop, decreasing by 4.62% to $3.095 per million British thermal units [8] Group 5: Equity and Convertible Bond Market - The A-share market experienced a rebound, with major indices closing higher, and the convertible bond market also saw a collective increase, with the China Convertible Bond Index rising by 0.90% [19] - The trading volume in the convertible bond market reached 802.41 billion yuan, an increase of 10.16 billion yuan from the previous trading day [19] - A total of 415 convertible bonds rose in price, while 38 fell, indicating a generally positive market sentiment [19]

Core Insights - As of June 2025, the total balance of various deposits in Shenzhen reached 14.16 trillion yuan, an increase of nearly 600 billion yuan since the beginning of the year [1] - The balance of various loans in Shenzhen reached 9.85 trillion yuan, with an increase of over 350 billion yuan since the beginning of the year [1] - The balance of loans to the private economy in Shenzhen reached 4.26 trillion yuan, with a new addition of 849.75 billion yuan [1] Financial Innovations - The scale of technology innovation bonds (referred to as "科创债") reached 20.75 billion yuan, with 14 bonds issued by 9 enterprises including major tech firms [3] - The People's Bank of China Shenzhen Branch has facilitated the issuance of technology innovation bonds, providing a model for financial support in the tech sector [3] - In the first half of 2025, 102 enterprises signed agreements for "腾飞贷" totaling 3.6 billion yuan, while "科技初创通" helped 3,761 enterprises secure loans amounting to 4.84 billion yuan [3] Cross-Border Transactions - In the first half of 2025, the number of foreign card transactions via WeChat Pay increased by 1.6 times, with nearly 2 million foreign users binding their cards [5] - Foreign personnel in Shenzhen conducted 85.8754 million non-cash payment transactions totaling 11.81 billion yuan, marking increases of 29% and 35% respectively [5] - The cross-border RMB payment amount reached 27.6328 trillion yuan, a year-on-year increase of 24.3%, with goods trade accounting for 5.5128 trillion yuan of this total [6] Digital Finance Development - The Shenzhen local credit platform launched over 50 credit products, enabling enterprises to secure financing of 574.4 billion yuan [8] - The digital RMB pilot program has seen nearly 30 million digital wallets opened, with pre-paid funds management reaching nearly 3.1 billion yuan [8] - Shenzhen is advancing the application of a multi-central bank digital currency bridge in cross-border transactions, successfully executing the first transaction involving "bulk commodity trading + multi-central bank digital currency bridge" [8]

Core Insights - The "Cross-Border Wealth Management Connect" has significantly facilitated cross-border investment for residents in the Guangdong-Hong Kong-Macao Greater Bay Area since its launch in 2021 [1] - As of June 30, 2025, there are 161,700 individual investors participating in the "Cross-Border Wealth Management Connect" program, with cross-border fund transfers exceeding 118 billion yuan [1] Group 1 - The program has enhanced the convenience of personal cross-border investments for residents in the Greater Bay Area [1] - The number of individual investors involved in the program has reached 161,700 [1] - The total amount of cross-border fund transfers has surpassed 118 billion yuan [1]

Core Insights - Chinese securities firms have made significant progress in Hong Kong's capital market by being selected as the first distributors for the Integrated Fund Platform (IFP) launched by the Hong Kong Stock Exchange (HKEX) [1][2] - The IFP aims to enhance the efficiency of the fund distribution ecosystem by integrating order processing for subscriptions and redemptions, thereby improving communication between fund distributors and registered agents [1][2] Industry Developments - The HKEX announced the launch of order transmission services on the IFP, which will streamline the processing of fund orders and enhance collaboration among participants in the fund distribution ecosystem [1][2] - The first batch of distributors includes 12 Chinese securities firms, which are expected to leverage their technological and asset allocation advantages to strengthen their roles in connecting mainland China and Hong Kong's capital markets [2] Company Strategies - Selected Chinese securities firms plan to enhance their service offerings and expand their wealth management business by providing a wider range of fund products and improving the transparency of investment information [1][3] - Companies like CITIC Securities and China Galaxy International are focusing on optimizing their service platforms and integrating digital order transmission to improve efficiency in fund subscription and redemption processes [3][4] - Guangfa Securities (Hong Kong) aims to leverage Hong Kong's position as an international asset and wealth management center by continuously innovating its wealth management services [4]

Group 1: Stablecoin Regulation in Hong Kong - The "Stablecoin Regulation" in Hong Kong will take effect on August 1, with strict standards for issuers and high entry barriers, resulting in only a few institutions likely to receive licenses initially [1] - Licensed stablecoins must correspond to specific uses, particularly related to trade, especially cross-border trade, and Web 3.0 applications [1] - The Hong Kong Monetary Authority's (HKMA) stablecoin sandbox program is experimental, allowing industry participants to test application scenarios and share experiences, but does not guarantee licensing [1] - The regulation provides a comprehensive framework for issuers, ensuring that similar risks receive the same regulatory treatment, promoting healthy and sustainable industry development [1] Group 2: Cross-Border Wealth Management - Initially, only about 1.5% of southbound funds were directed towards fund products under the cross-border wealth management scheme, but this has increased to 40% as mechanisms improve and investor understanding grows [1] - The HKMA is actively promoting the cross-border wealth management 3.0 initiative to further enhance the sales process, with the current scheme being experimental within the Greater Bay Area [1] Group 3: Hong Kong Monetary Policy and Market Conditions - Low Hong Kong dollar interest rates are seen as beneficial, with continuous capital inflow since May, supported by a strong stock market and a vibrant new stock market [2] - The interest rate spread between the Hong Kong dollar and the US dollar has widened to 3-4%, potentially leading the HKMA to intervene if the situation persists post half-year settlement [2] - Hong Kong's strong foreign exchange reserves and high liquidity are viewed as buffers against current market conditions, with opportunities arising from international investors seeking diversified asset allocation [2]

Core Insights - Guosen Securities reported a strong financial performance for 2024, achieving operating revenue of 20.167 billion yuan, a year-on-year increase of 16.46%, and a net profit of 8.217 billion yuan, up 27.84%, outperforming the industry and large brokerages [2][3][4] Business Performance - The investment and trading segment saw remarkable growth, with revenue increasing by 68.86%, contributing 44.64% to total revenue [5][6] - Wealth management and institutional business generated 8.810 billion yuan in revenue, a 17.97% increase, supported by a digital transformation strategy [4][6] - Asset management revenue rose to 0.852 billion yuan, reflecting a 60.55% increase, with total net asset management scale reaching 144.764 billion yuan [6] Market Position - Guosen Securities maintained a strong market position, with brokerage client assets exceeding 2.4 trillion yuan, an 11% increase year-on-year, and a market share in the stock and fund market of 2.75%, up approximately 15% [4][6] - The company completed 11.17 underwriting projects, ranking ninth in the industry, and raised 12.605 billion yuan, ranking sixth [4] Regional Focus - As a major player in the Guangdong-Hong Kong-Macao Greater Bay Area, Guosen Securities has supported 92 IPOs and 64 refinancing projects, with a total financing scale of approximately 125.6 billion yuan [7] - The company is actively involved in cross-border financial services, participating in the "Cross-Border Wealth Management Connect" pilot program [7][8]

Core Viewpoint - The company demonstrated strong resilience and vitality in a complex market environment, achieving a significant after-tax profit increase of 73% year-on-year, with all business segments showing notable revenue growth, maintaining its leading position in the industry [1] Group 1: Wealth Management Performance - The company expanded its high-quality customer base and developed a balanced and robust diversified product matrix, resulting in a 13% year-on-year increase in commission and fee income to HKD 439 million [2] - The company received regulatory approval to conduct virtual asset brokerage services, enhancing its offerings to clients [2] - The launch of the investment-grade bond fund aligns with investors' varying risk preferences and investment goals [2] Group 2: Cross-Border Financial Services - The company focused on customer needs, leading to a 20% year-on-year increase in net income from financial products to HKD 912 million [3] - It leveraged strategic opportunities from the deepening interconnectivity between mainland China and Hong Kong, providing seamless cross-border financial services [3] Group 3: Corporate Financing Business - The company participated in 232 bond issuance underwriting projects, a 59% increase year-on-year, with a total issuance amount of approximately HKD 389.1 billion, up 85% [4] - In equity business, the company completed three IPO sponsorship projects, raising approximately HKD 1.7 billion [4] Group 4: ESG Initiatives - The company completed 78 ESG bond issuance projects, a 123% increase year-on-year, with an issuance scale of nearly HKD 163.6 billion, marking a 125% increase [5] - The company achieved carbon neutrality for the second consecutive year through its participation in carbon offset projects [5] - The company received high praise for its sustainable development efforts, improving its ESG ratings to A-level from multiple rating agencies [5] Group 5: Future Outlook - The company aims to enhance its cross-border financial service capabilities and assist high-net-worth clients in global asset allocation and wealth preservation [6] - It will focus on maintaining stable and growing market value through effective capital operations and transparent information disclosure [6]

Core Viewpoint - The "Cross-Border Wealth Management Connect" 2.0 program is a financial innovation in the Guangdong-Hong Kong-Macao Greater Bay Area, allowing investors from mainland China and Hong Kong/Macao to invest in qualified financial products through a closed-loop funding channel, which has gained significant popularity among residents in the region [1][4][5]. Group 1 - The "Cross-Border Wealth Management Connect" allows for broad investment opportunities, enabling investors to diversify their portfolios and access high-quality assets in the Hong Kong and Macao markets, thus mitigating risks associated with single-market investments [7]. - The program lowers the entry barriers for cross-border investments by increasing the investment limit to 3 million RMB per individual, which does not consume personal foreign exchange quotas, facilitating easier access to investment services through mainland brokers [7][8]. - The initiative is part of a national strategy and is directly supervised by regulatory bodies such as the central bank and foreign exchange administration, ensuring that all products are rigorously vetted, thus maintaining a relatively controlled risk environment [8].

Summary of Conference Call Company and Industry Overview - The conference was held by State-Taiwan Security International, focusing on the company's performance and business development in 2024 [1] - The global economy is experiencing a downturn, with geopolitical uncertainties and global trade friction affecting the Hong Kong capital market [1] Key Financial Performance - The Hengsheng Technology Index increased by 18.7% year-on-year, with a daily trading volume of Hong Kong stocks rising by over 25% [2] - The total amount of IPO financing in the Hong Kong stock market reached 87.5 billion Hong Kong dollars, growing nearly 90% in 2023 [2] - The company's total assets at the end of 2024 were 1,301.73 billion yuan, up 21% from the end of 2023 [3][13] - The company achieved a tax return of 73%, with profits maintained since the last report [3] Revenue Breakdown - The company's income rose across all sectors, with commission and cost-benefit income reaching 8.72 billion Hong Kong dollars, a 26% increase [3] - Internal revenue increased by 28% to 23.14 billion Hong Kong dollars, driven by a market opportunity to increase holdings in high-quality fixed income securities [4] - Interest income from fixed income securities surged by 188% to 5.53 billion Hong Kong dollars [4] - Wealth management distribution revenue was 19.19 billion Hong Kong dollars, accounting for 43% of total revenue, benefiting from the recovery in Hong Kong stock trading volume [5] Business Development and Strategy - The company is focusing on enhancing its service capabilities, particularly in cross-border financial services and digital wealth management [8][9] - The company has launched a new app, offering 120 different funds and structured products [8][9] - The company is actively involved in the IPO market, with a rich pipeline of projects expected to grow significantly compared to the previous year [10] Cost Management and Financial Health - The company has seen an increase in financing costs due to higher market interest rates, but is implementing measures to optimize financing channels and manage costs effectively [14][15] - The company maintains a healthy financial structure, with a bank credit balance of 38.68 billion Hong Kong dollars and a usage rate of 15% [6] Market Outlook and Future Plans - The management anticipates a bullish market in Hong Kong, driven by increased foreign investment and supportive government policies [23][24] - The company plans to leverage opportunities in high-rated, high-liquidity fixed income securities, with expectations of reduced financing costs as interest rates decline [20] - The focus will be on diversifying financial products and enhancing asset management capabilities to adapt to market changes [19][21] Additional Insights - The company has been recognized for its ESG efforts, achieving an MSCI rating of A and maintaining its status as a signatory of the UN Global Compact [12] - The management emphasized the importance of investor returns, proposing a stable dividend policy with an annual payout ratio of 88% [7] This summary encapsulates the key points discussed during the conference call, highlighting the company's performance, strategic direction, and market outlook.