Core Insights - The northbound capital trading has remained active since the opening of the interconnection mechanism, with cumulative trading volume exceeding 188 trillion yuan for the first time [1] Group 1 - On September 29, the trading volume of the Shanghai-Hong Kong Stock Connect reached 294.618 billion yuan [1] - The cumulative trading volume since the opening of the interconnection mechanism has reached 188.08 trillion yuan, marking a significant milestone [1]

Report Industry Investment Rating No relevant content provided. Report's Core View - The release of the Fixed Income and Money Market Development Roadmap in Hong Kong is beneficial to the dim - sum bond market. Policy support may boost the issuance activity of dim - sum bonds, and attention should be paid to the allocation opportunities of new supplies in 1 - 3 years [1][23] Summary According to Related Catalogs Hong Kong Releases Fixed Income and Money Market Roadmap, Beneficial to Dim - sum Bonds - On September 25, 2025, the Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority jointly released the "Fixed Income and Money Market Development Roadmap", aiming to make Hong Kong a global fixed - income and currency hub [8] - The roadmap proposes ten measures around four aspects: bond issuance, liquidity, offshore RMB business, and infrastructure. For example, in bond issuance, it includes issuing government bonds, promoting Hong Kong's advantages to target markets, and expanding the investor base [8] - As of September 22, 2025, the issuance amount of Chinese dim - sum bonds this year was 4879.85 billion yuan, basically the same as the same period last year. The first - time issuance scale of dim - sum bonds was 966.69 billion yuan, accounting for about 20% of the total issuance scale [11] - Newly issued dim - sum bonds are mainly industrial bonds, followed by urban investment bonds. About half of the maturities are 3 - year bonds, and the issuance amount of ESG dim - sum bonds accounts for nearly 20%. The coupon rate is mostly between 1 - 3%, and the short - term coupon rate is higher [13][16][17][19] Market Review: Bond Funds Sell Medium - and Long - Term Credit Bonds, Credit Bond Yields Rise Across the Board - From September 19 to September 26, 2025, the new regulations on bond fund redemption fees were negative for the bond market. Bond funds sold 110 billion yuan of 1 - 5Y credit bonds throughout the week, and the yields of credit bonds rose across the board, with the supplementary decline of secondary and perpetual bonds being more obvious [2][24] - The yields of general credit bonds rose by 4 - 12BP, and the yields of medium - and long - term bonds rose by more than 6BP. The yields of secondary and perpetual bonds generally rose by 5 - 18BP, and the yields of medium - and long - term bonds rose by more than 10BP [2][24] - Last week, the buying demand weakened. Wealth management products had a net purchase of 166 billion yuan, and funds had a net purchase of 70 billion yuan. The scale of credit bond ETFs was 3642 billion yuan, a 2.22% increase compared with the previous week [2][24] Primary Issuance: Net Financing of Credit Bonds Declines Month - on - Month, and Most Issuance Interest Rates Rise - From September 22 to September 26, 2025, the total issuance of corporate credit bonds was 428.4 billion yuan, a 25% month - on - month increase; the total issuance of financial credit bonds was 132.8 billion yuan, a 36% month - on - month decrease [3][52] - The total net financing of corporate credit bonds was 69.5 billion yuan, a 35% month - on - month decrease. Among them, urban investment bonds had a repayment of 9.1 billion yuan, and industrial bonds had a net financing of 74.2 billion yuan. Financial credit bonds had a total net repayment of 84.6 billion yuan [3][52] - In terms of issuance interest rates, the average issuance interest rate of medium - and short - term notes showed an upward trend except for AAA, and the average issuance interest rate of corporate bonds showed an upward trend except for AA [3][52] Secondary Trading: Medium - and Short - Term Maturities Are Actively Traded, and Long - Term Maturities Remain at a Low Level - Active trading entities are mainly medium - and high - grade, medium - and short - term, central and state - owned enterprises [4][62] - For urban investment bonds, active trading entities are mainly from strong economic and financial provinces and relatively high - spread areas in large economic provinces. Real estate bonds and private enterprise bonds' active trading entities are still mainly AAA, and the trading maturities are mostly medium - and short - term [4][62] - There were no transactions of urban investment bonds with a maturity of more than 5 years among actively traded bonds, which was the same as the previous week [4][62]

本报讯(记者毛艺融)9月25日，香港证监会行政总裁梁凤仪在香港固定收益及货币论坛2025上发表演 说。梁凤仪表示，香港作为全球领先的离岸人民币中心，肩负着促进人民币在全球更广泛应用的重要使 命。香港证监会未来将在两个方面持续发力。 第一，扩大人民币固收产品发行规模。"下一步，香港证监会将继续推动更多不同国家、不同种类的发 行人推出人民币固收产品，以及股票交易人民币柜台的进一步发展。"梁凤仪表示，同时，将不断提升 离岸人民币固收产品二级市场的流动性，并完善风险管理机制，例如支持金融机构开发更多元衍生产 品、推动国债期货尽早在港落地、发展回购市场等，以便利投资者管理人民币风险敞口，鼓励他们长期 持有人民币资产。 第二，优化互联互通机制和基础设施。梁凤仪表示："未来，香港证监会将与香港金管局和内地相关部 门继续优化各项机制，为投资者提供更高效的双向市场准入。同时，香港证监会正在与市场参与者共同 探讨开发一个包揽债券、回购和外汇的电子交易平台的可行性，涵盖以多种货币计价的产品，将有助提 升市场效率、透明度及韧性。" ...

Core Insights - The Hong Kong Stock Exchange (HKEX) is witnessing a significant shift in foreign investment sentiment towards Chinese assets, moving from a stance of avoidance to one of necessity, driven by China's policy stability and technological advancements [1][3] Group 1: Investment Trends - HKEX's CEO highlighted that global diversification needs and the attractiveness of Chinese assets are leading foreign capital to transition from "cannot invest" to "cannot miss investing" in China [1][3] - In the first half of the year, HKEX reported a new stock financing amount of HKD 1,094 billion, reclaiming the top position among global exchanges, with a daily average trading volume of HKD 2,402 billion, a year-on-year increase of 118% [2] - Foreign capital is significantly returning to the Hong Kong market, with foreign subscriptions accounting for 70-80% of certain IPOs, indicating a robust demand from long-term investors from regions such as Europe, the Middle East, and Southeast Asia [2][3] Group 2: Market Dynamics - The shift in foreign investment logic is attributed to geopolitical tensions and a reassessment of asset allocation strategies, leading to a search for new investment opportunities in Hong Kong's leading and high-potential companies [2][3] - The average daily trading volume of Hong Kong stocks is projected to rise from approximately HKD 1,000 billion in 2023 to HKD 1,300 billion in 2024, further increasing to HKD 2,402 billion in the first half of 2025, with foreign trading volume accounting for about 70% [3] Group 3: Institutional Innovation - HKEX is committed to optimizing its institutional framework to meet diverse financing needs, with recent innovations such as the introduction of Chapter 18A and 18C rules allowing biotech and specialized technology companies to list without prior revenue [4][5] - The successful implementation of these rules has led to increased market recognition and a growing number of applications from companies seeking to list under these provisions [5] Group 4: Market Connectivity - The rise in IPO activity is complemented by a positive interaction with the A-share market, with "A+H" listings creating a beneficial cycle between the two markets [6] - HKEX aims to enhance its product offerings in fixed income, foreign exchange, and commodities to better compete globally, addressing current gaps in its market [6][7] - Future plans include expanding the range of products available through the Stock Connect program, including ETFs and bonds, to facilitate greater access for international investors [6][7]

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) is witnessing a significant shift in foreign investment sentiment towards Chinese assets, moving from a stance of avoidance to one of necessity, driven by China's policy stability and technological advancements [1][3]. Group 1: Investment Trends - Foreign capital is increasingly viewing Chinese assets as essential, with a notable change in investment logic from "Anything But China" to "Buy China" [3]. - In the first half of the year, HKEX reported a new stock financing amount of HKD 1,094 billion, reclaiming the top position among global exchanges [2]. - The average daily trading volume in the securities market reached HKD 2,402 billion, a year-on-year increase of 118% [2]. Group 2: Supply and Demand Dynamics - The supply side is robust, with over 200 companies currently processing IPO applications, nearly half of which are technology firms [2]. - A significant highlight on the demand side is the substantial return of foreign capital, with foreign investors participating in 70-80% of certain IPOs [2][3]. - The shift in global asset allocation strategies, influenced by geopolitical tensions and trade protectionism, is prompting investors to diversify away from USD assets towards Hong Kong stocks [2][3]. Group 3: Institutional Innovation - HKEX is committed to optimizing its institutional framework to meet diverse financing needs, exemplified by the introduction of the 18A and 18C listing rules, which allow biotech and specialized technology companies to go public [5]. - The 18C rule has already seen three companies listed and over ten applications submitted, indicating growing market acceptance [5]. Group 4: Market Connectivity - The "A+H" listing model has created a positive feedback loop, with average trading volume for "A+H" companies in A-shares increasing by approximately 15% this year [6]. - HKEX aims to enhance its product offerings in fixed income, foreign exchange, and commodities to better compete with global markets [6]. - Future plans include expanding the range of products available through the Stock Connect, including ETFs and bonds, to facilitate greater market integration [6][7].

Group 1 - The core point of the article highlights that since the launch of the interconnection mechanism, the trading activity of northbound funds has remained active, with the cumulative transaction amount surpassing 187 trillion yuan for the first time [1] - On September 24, the daily trading volume of the Shanghai-Hong Kong Stock Connect reached 286.13 billion yuan, contributing to the cumulative total of 187.21 trillion yuan since the mechanism's inception [1]

Core Insights - The report highlights the significant progress in China's financial market opening during the "14th Five-Year Plan" period, transitioning from market access to institutional opening [1][3] - The focus for the upcoming "15th Five-Year Plan" is on deepening interconnectivity and aligning rules with international standards [4][5] Group 1: Financial Market Developments - The average annual growth rate of entrusted assets in trust, wealth management, and insurance asset management reached 8% over the past five years, with total assets growing to 154 trillion yuan by the end of 2024, a year-on-year increase of 10.4% [3] - By the end of 2024, foreign ownership of A-shares is projected to be approximately 3.4 trillion yuan, accounting for 4.3% of the total market, an increase of 1.8 percentage points from the end of the "13th Five-Year Plan" [2] - The expansion of interconnectivity mechanisms, including the launch of the Bond Connect "southbound" channel and the integration of QFII and RQFII systems, has broadened cross-border investment channels [2] Group 2: Regulatory and Legal Framework - The "14th Five-Year Plan" has seen the implementation of significant institutional breakthroughs, including the substantial reduction of the negative list and the establishment of a national treatment framework for foreign investment [1][3] - The introduction of the Futures and Derivatives Law has filled legal gaps in the derivatives market, providing clear legal boundaries for foreign participation [2] Group 3: Future Directions - The "15th Five-Year Plan" aims to optimize interconnectivity mechanisms through three levels and nine initiatives, focusing on expanding product offerings and improving risk management tools [5][6] - There is a call for further reduction of restrictions on foreign financial institutions, including ownership structures and business scopes, to attract high-quality foreign entities [6] Group 4: Currency Internationalization - The internationalization of the renminbi and reforms in the exchange rate mechanism have made substantial progress, with the cross-border payment system covering 180 countries [7][9] - The renminbi's role in global trade settlement and cross-border investment is expected to grow, with initiatives like digital renminbi bonds being tested in Hong Kong [8][10] - Future efforts will focus on enhancing the renminbi's use in energy and commodity settlements, strengthening offshore renminbi centers, and promoting digital currency applications [10]

Core Insights - The core viewpoint of the articles is that China's financial industry has transitioned from "opening the door" to "restructuring rules" during the "14th Five-Year Plan" period, with significant institutional breakthroughs achieved in financial openness, and the focus is now on deepening these reforms in the upcoming "15th Five-Year Plan" period [1][6]. Summary by Sections Institutional Breakthroughs - The "14th Five-Year Plan" has marked a historic shift in China's financial openness, moving from market access to rule alignment, with key breakthroughs in three main areas: the implementation of the negative list and national treatment framework, upgrades in factor mobility and infrastructure connectivity, and improvements in financial legal systems and macro-prudential frameworks [1][3]. Market Access and Foreign Investment - Restrictions on foreign ownership in key sectors such as securities, funds, futures, and life insurance have been completely lifted, allowing major international investment banks to establish wholly-owned subsidiaries in China. This includes firms like JPMorgan, Goldman Sachs, and Standard Chartered [2]. - By the end of 2024, foreign ownership of A-shares is projected to reach approximately 3.4 trillion yuan, accounting for 4.3% of the total market, an increase of 1.8 percentage points from the end of the "13th Five-Year Plan" [2]. Interconnectivity Mechanisms - Significant progress has been made in interconnectivity mechanisms, expanding from the Shanghai-Hong Kong Stock Connect to include the Shenzhen-Hong Kong Stock Connect, Bond Connect, and others, facilitating a broader range of investment products [2][4]. - The Bond Connect's "southbound" channel has officially opened, and the integration of QFII and RQFII systems has been completed, further broadening cross-border investment channels [2]. Financial Demand and Opportunities - The growing wealth management needs of Chinese residents, driven by the accumulation of financial assets, present substantial opportunities for foreign financial institutions. The total scale of entrusted assets in trust, wealth management, and insurance asset management is expected to reach 154 trillion yuan by the end of 2024, with an annual growth rate of 10.4% [3][4]. Challenges for Foreign Institutions - Foreign financial institutions face significant localization challenges, including insufficient retail network presence and lagging digitalization. Their average net interest margin is 0.6 percentage points lower than that of domestic banks [5]. - The complexity of regulatory compliance and the need to adapt to China's unique regulatory environment pose additional challenges for foreign entities [5]. Future Directions for Financial Openness - The "15th Five-Year Plan" is expected to focus on deepening interconnectivity and aligning rules, with an emphasis on optimizing interconnectivity systems through expanded product offerings and improved risk management tools [6][8]. - Experts suggest further reducing the negative list for financial services and establishing consistent licensing standards for both domestic and foreign institutions to attract high-quality foreign entities [9]. Data Governance and Cross-Border Compliance - Data governance and cross-border compliance are anticipated to be major focuses in the "15th Five-Year Plan," with calls for establishing clear rules for financial data circulation and enhancing cross-border regulatory cooperation [10]. Renminbi Internationalization and Exchange Rate Reform - The internationalization of the renminbi and reforms in the exchange rate mechanism have made substantial progress, with the renminbi's role in global trade settlements and cross-border investments steadily increasing [11][12]. - Future efforts will likely focus on expanding the renminbi's use in energy and commodity settlements, enhancing offshore renminbi centers, and promoting the application of digital renminbi in cross-border transactions [13].

Group 1 - The Hong Kong government aims to strengthen its position as a bond center by enhancing financial infrastructure [1] - The Hong Kong Monetary Authority (HKMA) will collaborate with the Hong Kong Stock Exchange (HKEX) to develop a platform for centralized management and cross-collateralization of various assets [1] - Plans include establishing connections with markets in Switzerland and the UAE, and promoting the use of offshore Chinese government bonds as collateral in different clearing houses [1] Group 2 - The Hong Kong Securities and Futures Commission (SFC) is exploring the feasibility of a market-operated electronic bond trading platform [1] - There is an active push to establish a commercial repurchase market and a central counterparty system in Hong Kong to enhance market liquidity [1]

Core Viewpoint - The Hong Kong stock market is experiencing increased trading activity and stability, supported by significant inflows of southbound capital, which have reached a historical high of over 1 trillion Hong Kong dollars this year [1][3]. Group 1: Southbound Capital Inflows - As of September 2, 2023, the cumulative net inflow of southbound capital has surpassed 1 trillion Hong Kong dollars, reaching 10,002.21 million Hong Kong dollars, marking a record high [1]. - Daily trading volume of southbound capital has increased from approximately 5% at the beginning of the Hong Kong-Shanghai Stock Connect to around 35% currently, enhancing market liquidity and altering investment structures [1]. - Since the launch of the Stock Connect mechanism in November 2014, total southbound capital inflows have reached 4.7 trillion Hong Kong dollars, with a consistent net inflow trend observed since 2015 [3][4]. Group 2: Investment Preferences - The top ten stocks with the largest increase in market value held by southbound capital include Tencent Holdings, Alibaba, and others, with significant increases in market value ranging from 391.4 million to 2,169.2 million Hong Kong dollars [2]. - Southbound capital is primarily focused on globally competitive internet companies, stable cash flow value stocks with generous dividends, and innovative biopharmaceutical companies [2]. - The preference for high-dividend assets has led to significant valuation improvements in sectors such as finance, energy, and telecommunications over the past two years [2]. Group 3: Market Dynamics and Future Outlook - The influx of southbound capital has transformed the Hong Kong stock market into a core market for global investors seeking to allocate "Chinese assets," influencing market styles, sector rotations, and individual stock performances [5]. - The trend of increasing southbound capital inflows is expected to continue, driven by the valuation discrepancies between A-shares and H-shares, with investors favoring lower-priced Hong Kong stocks for similar dividend returns [4][6]. - The shift from retail to institutional dominance in southbound capital has enhanced the professional investment capabilities and value discovery functions within the Hong Kong market [6].