Core Viewpoint - The Chinese capital market is expected to undergo a historic transformation in 2025, driven by policy stabilization, reduced risk premiums, and a reversal of RMB depreciation expectations, alongside the continuous enhancement of the global competitiveness of Chinese technology companies [1][2]. Group 1: Market Conditions and Trends - Over the past four years, the Chinese capital market faced multiple challenges, including real estate risks, economic slowdown, and geopolitical tensions, leading to a low allocation of Chinese assets by overseas investors [2]. - Since the third quarter of last year, a series of policy measures have supported economic stabilization, resulting in a significant drop in the 10-year government bond yield, which fell below 1.6%, thereby increasing investor risk appetite [2]. - The perception of risk has shifted, with investors realizing that the U.S. also faces various risks, leading to a relative decrease in the risk premium of the Chinese market and a narrowing of RMB depreciation expectations [2]. Group 2: Technological Impact on Asset Valuation - The core driver of the current revaluation of Chinese assets is not traditional growth paths but rather structural upgrades brought about by technological revolutions [3]. - China is experiencing continuous innovation in cutting-edge fields such as artificial intelligence, new energy, and high-end manufacturing, enhancing production efficiency and global competitiveness [3]. - The significant investment in education over the past thirty years has created a substantial engineer dividend and a growing number of outstanding entrepreneurs, allowing Chinese technology companies to compete globally [3]. Group 3: Hong Kong Market Dynamics - The Hong Kong stock market, viewed as "dollar-denominated Chinese assets," has been the first to reflect the changing expectations of international investors, with the Hang Seng Index outperforming major global indices since the beginning of the year [4]. Group 4: Research as a Core Competitiveness - Research capability is identified as a core competitiveness of investment banks, essential for pricing risks and growth opportunities [5]. - The rapid iteration of technology companies and the changing industrial landscape necessitate deep research support across all investment banking activities, including pricing for industry exits, mergers, financing, and IPOs [5][6]. - Many securities firms have yet to establish a comprehensive research framework, remaining focused on secondary market tracking and lacking international influence [6]. Group 5: Evolving Requirements for Researchers - The market ecology has fundamentally changed the requirements for researchers, emphasizing a deep understanding of the entire industry chain rather than just listed companies [7]. - Researchers must cover all clients with pricing power, including insurance, private equity, and state-owned enterprises, to provide comprehensive service [7]. - The focus should be on delivering genuine insights that help clients make informed decisions, avoiding superficial analysis [7]. Group 6: Strategic Positioning of Research - The debate on whether research is a cost center or profit center reflects a misunderstanding of the investment banking business model, as strong research is crucial for overall business success [8]. - A strategic approach involves setting three-year phases for development, ensuring a stable research framework, and maintaining a focus on long-term value rather than short-term gains [8]. - The commitment to high-quality research is essential for achieving long-term client success and navigating market challenges [8]. Group 7: Practical Implementation at Huatai Securities - Huatai Securities has been restructuring its research system and enhancing its comprehensive financial service capabilities, focusing on expanding research coverage and cross-border services [9]. - In the first half of 2025, Huatai Securities' research business generated commission income of 222 million yuan, achieving a market share of 4.97%, indicating a clear upward trajectory in its research commission ranking amid increasing competition [9].

Core Viewpoint - Global markets have surged while A-shares are on holiday, indicating a strong bullish sentiment, particularly in technology and high-end manufacturing sectors [1][3]. Group 1: Global Market Performance - U.S. stock markets have reached new highs, with the Nasdaq showing significant gains, while Asian markets, including South Korea and Taiwan, have also hit historical peaks [1]. - The Hong Kong market has seen substantial increases, with the Hang Seng Index rising by 1.61% and the Hang Seng Tech Index soaring by 3.36% [1]. Group 2: Foreign Investment Trends - Foreign capital appears to be genuinely interested in "bottom-fishing" in China, focusing on long-term economic transformations rather than short-term fluctuations [3]. - The shift in focus from traditional sectors like real estate to technology and high-end manufacturing reflects a deeper economic transformation in China [3]. Group 3: Technology Sector Insights - Semiconductor companies like SMIC are gaining global competitiveness, being compared to TSMC, while Alibaba is being positioned alongside Nvidia due to its advancements in AI [3]. - The market sees the valuation gap between Alibaba and Nvidia as an opportunity rather than a risk, highlighting the potential of Chinese companies in the AI era [3]. Group 4: High-End Manufacturing Developments - China has demonstrated significant advancements in high-end manufacturing across various sectors, including home appliances, photovoltaics, lithium batteries, and new energy vehicles [5]. - Companies like CATL are achieving high market valuations, with their Hong Kong market cap nearing HKD 2.7 trillion, reflecting strong international investor confidence [5]. Group 5: Economic Transition Challenges - Despite the bullish market trends, traditional sectors like real estate and consumer goods remain sluggish, indicating that many ordinary people have yet to feel the economic recovery [7]. - The divergence in performance between core asset stocks and new economy stocks suggests a capital shift from old industries to emerging sectors [7].

Core Insights - International capital is returning to China at an unprecedented speed, signaling a significant shift in investment sentiment towards Chinese assets [1][3] - The recent surge in foreign investment is driven by a reassessment of China's economic resilience rather than policy stimulus [3][4] - The current market dynamics indicate a potential for further capital inflow, as foreign allocation to Chinese assets remains underweight by 1.3 percentage points [3][4] Group 1: Market Activity - Global hedge funds are increasingly active in the Chinese A-share market, reaching a recent high in engagement [3] - On September 29, Chinese assets experienced a notable rally, with the ChiNext Index rising by 2.74% and the Hang Seng Tech Index increasing by 2.08% [3] - Major Chinese companies, such as Alibaba and Bilibili, saw stock price increases exceeding 4%, indicating a rare cross-market rally [3] Group 2: Capital Flows - Data from the central bank shows that net foreign capital inflows in the first half of the year surpassed 60% of last year's total [4] - In August, foreign investors were reported to have net bought Chinese stocks and bonds, reinforcing positive market sentiment [4] - Analysts suggest that the market is likely to maintain an upward trend post the National Day holiday, supported by historical patterns of capital return [4] Group 3: Economic Context - The revaluation of Chinese assets is linked to the Federal Reserve's shift to a rate-cutting cycle and the weakening of the US dollar, which is expected to attract new capital to emerging markets [5] - China's capital market continues to hold advantages in depth and liquidity, particularly as it transitions from follower to leader in high-end manufacturing and digital economy sectors [5] - The ongoing structural adjustments in the Chinese economy are beginning to yield results, enhancing global investor confidence in China's long-term growth prospects [5]

外资重估中国资产。 当地时间9月29日，纳斯达克中国金龙指数涨2.03%，热门中概股集体上涨，哔哩哔哩、阿里巴巴、新东方涨 超4%，理想汽车、京东涨超3%。 全球基金经理正重返中国市场 美东时间9月29日，据彭博社报道，全球基金经理正重返中国市场，这源于在全球范围内领先的股市反弹和中 国高科技产业的进步。 高盛指出，全球对冲基金上个月在中国境内股票市场的活跃度为近年来最高。 Pacific Investment Management Co.表示，投资者现在更担心错失良机，而不是风险。官方数据显示，外资正在 流入中国各类资产，这种同步增长的现象过去十年仅出现过三次。 根据彭博汇编数据，截至9月19日当周，在投资新兴市场的美国上市交易所交易产品中，追踪中国香港和中国 内地股票和债券的产品资金流入规模最大。 摩根士丹利表示，截至8月底，外国多头基金的资金流入规模已达10亿美元，去年则流出170亿美元。 报道称，目前全球基金对中国股市的配置处于"低配"状态，意味着仍有大量空间可以加仓。根据摩根士丹利本 月早些时候发布的报告，全球基金对中国资产的配置仍低配1.3个百分点。 据彭博社最新报道，全球基金经理正重返中国市场。 ...

Group 1 - The Hong Kong stock market indices collectively rose today, with the Hang Seng Index increasing by 1.9%, the Hang Seng China Enterprises Index rising by 1.6%, and the CSI Hong Kong Stock Connect China 100 Index up by 1.8% [1] - Huatai Securities indicates that the market fundamentals remain stable, supported by a liquidity-rich environment, domestic policies, and positive trends in industries such as AI, new consumption, and pharmaceuticals [1] - The strategic allocation value of the Hong Kong stock market is viewed positively as China’s asset revaluation enters a new phase [1] Group 2 - The Hang Seng ETF, tracking the Hang Seng Index, consists of large-cap, actively traded stocks with strong industry representation, covering financials, consumer discretionary, and information technology, which together account for nearly 80% of the index [2] - The Hang Seng China Enterprises Index, tracked by HIGETF, includes 50 large-cap, actively traded stocks from mainland China listed in Hong Kong, with consumer discretionary, financials, and information technology making up over 85% of the index [2] - The CSI Hong Kong Stock Connect China 100 Index comprises 100 large-cap, actively traded mainland Chinese companies, with consumer discretionary, information technology, and financial sectors accounting for nearly 75% of the index [2]

Core Viewpoint - The article discusses the recent trend of residents shifting their savings from bank deposits to the stock market and mutual funds, driven by a recovering market and declining deposit interest rates. The public fund industry has seen significant growth, with the total net asset value reaching 35.08 trillion yuan, an increase of 2.25 trillion yuan from the previous year [6][9][20]. Group 1: Market Performance - The Shanghai Composite Index has surpassed 3,800 points, marking a ten-year high, while the Hang Seng Index has crossed 26,000 points with a year-to-date increase of nearly 33% [6][9]. - As of September 15, 2023, the public fund scale was 33.92 trillion yuan, a decrease of 1.16 trillion yuan from the end of July [19]. - In 2023, 98% of mutual funds have reported profits, with 2,582 funds yielding over 30% returns, and 39 funds exceeding 100% returns [9][10]. Group 2: Fund Manager Performance - Star fund managers like Zhang Kun and Ge Lan have seen significant changes in their fund management scales, with Zhang's scale dropping from 1,019.35 billion yuan to 550.47 billion yuan [16]. - Ge Lan's fund, which focused on the pharmaceutical sector, experienced a cumulative decline of over 65% from July 2021 to September 2024, but has recently rebounded by 52.37% in the past year [14][16]. - The article highlights a shift in investor sentiment, with many choosing to exit funds once they break even, reflecting a "holding paradox" in the mutual fund industry [19]. Group 3: Investment Trends - The article notes that the current market is characterized by a "slow bull" phase, with many investors returning to their accounts to find that their funds have recovered or gained value [8][10]. - The trend of residents moving their savings into the stock market and mutual funds is expected to continue, especially as deposit rates decline and the capital market strengthens [20][22]. - Analysts predict that the issuance of new funds will increase in the second half of the year, enhancing market activity [21].

Core Viewpoint - The A-share market has shown strong resilience in 2023, with significant increases in major indices, driven by macroeconomic stability, improving corporate earnings, attractive global valuations, and enhanced liquidity [1][2]. Market Performance - Since April 8, 2023, the Shanghai Composite Index has risen by 23.64%, the Shenzhen Component Index by 40.51%, and the ChiNext Index by 71.97% [1]. - The market is expected to continue its upward trend due to strong macroeconomic performance and positive corporate earnings outlook, with a projected 3% growth in earnings for A-share companies this year [2]. Investment Drivers - Key drivers for the market's future growth include the restructuring of the global monetary order, which is expected to benefit RMB assets and continue the revaluation of Chinese assets [3]. - The current valuation of A-shares remains reasonable, with corporate earnings likely to improve further, supporting the long-term upward trend [3]. Fund Flow and Market Structure - The market's funding situation has improved, with a notable increase in margin trading balances, which reached nearly 2.4 trillion yuan by September 19, 2023 [4]. - The current margin trading balance represents about 2.4% of the A-share market's circulating value, which is close to the historical average since 2014 [4]. - The distribution of margin trading funds is more diversified, favoring emerging industries and growth sectors such as pharmaceuticals, electronics, and high-end manufacturing [5]. Sector Rotation and Investment Focus - The A-share market has exhibited diverse sector rotation since mid-2023, with growth sectors, particularly those related to AI and innovative pharmaceuticals, leading the market [7]. - Future investment focus should be on industries with solid fundamentals, such as telecommunications, semiconductors, and defense, as well as sectors benefiting from increased domestic production rates [8]. - The financial sector, particularly insurance and brokerage firms, is expected to see improved performance due to a recovery in market sentiment [7].

Market Performance - A-shares have shown strong resilience in 2023, with the Shanghai Composite Index up 23.64%, the Shenzhen Component Index up 40.51%, and the ChiNext Index up 71.97% since April 8 [1] - The market's upward trend is supported by strong macroeconomic resilience, improving corporate earnings, attractive global valuations, and enhanced liquidity [1][2] Investment Drivers - The restructuring of the global monetary order is identified as a key driver for the future rise of the A-share market, with Chinese assets expected to benefit from this process [2] - A-share valuations remain reasonable, and corporate earnings are anticipated to continue improving, maintaining the upward trend of the market [2] Fund Flow and Market Structure - The margin trading balance has increased significantly, reaching nearly 2.4 trillion yuan, with a lower proportion of margin trading relative to the total market capitalization compared to 2015 [2][3] - The current market structure shows a more diversified holding pattern, favoring emerging industries and growth styles, particularly in sectors like pharmaceuticals, electronics, and high-end manufacturing [3] Sector Rotation and Investment Focus - The A-share market has exhibited diverse sector rotation since mid-2023, with growth sectors leading the market rally, particularly in AI, innovative pharmaceuticals, and high-end manufacturing [4] - Future investment focus should be on industries with solid fundamentals, such as communication equipment, semiconductors, and defense, as well as sectors benefiting from increased domestic production rates [4]

Core Viewpoint - The Chinese public fund industry is transitioning from domestic to international, aiming for high-quality development and global market presence through various strategies such as QDII business expansion and partnerships with overseas financial institutions [1][2][4]. Group 1: Industry Development - The Chinese public fund market has matured, with total assets surpassing 35 trillion yuan by July this year, prompting a collective vision for international business expansion [2]. - Recent initiatives include the launch of a FOF fund in Thailand, showcasing the active engagement of Chinese public funds in overseas markets [2]. - The establishment of overseas subsidiaries has expanded from Hong Kong to other regions like Macau, Singapore, and New York, with over 20 public funds already having set up such entities [2][3]. Group 2: Internationalization and Global Pricing Power - The internationalization of public funds is driven by the maturation of the industry and the evolving needs of investors, facilitating better global pricing for Chinese assets [4]. - The increasing demand for diversified asset allocation among domestic investors is pushing public funds to explore international markets [5]. - The expansion of mutual fund products, such as ETFs, has reached 265, providing significant avenues for global investors to access Chinese assets [3]. Group 3: Competitive Advantages - Chinese public funds possess unique competitive advantages in the international market, including strong learning capabilities, a large pool of skilled financial talent, and a robust domestic market [7]. - The integration of Chinese technology with local industries in regions like the Middle East is creating opportunities for customized investment products [6]. - The ongoing global re-evaluation of Chinese assets positions public funds favorably for international investments [7]. Group 4: Risk Management and Challenges - The globalization of public funds necessitates enhanced risk management capabilities, particularly in understanding diverse regulatory environments and market conditions [8][9]. - Challenges such as high information acquisition costs, currency fluctuations, and compliance risks require public funds to develop comprehensive risk management systems [9]. - Continuous research and collaboration with international institutions are essential for improving overseas investment capabilities and addressing investor concerns [9].

Report Investment Rating - No investment rating information is provided in the given content Core Viewpoints - Technology remains the main driving force, with the recent volatility of high - flying technology blue - chips increasing significantly, and sectors such as solid - state batteries and energy storage taking over to gain strength. There is still room for the revaluation of Chinese assets, but its sustainability requires the support of macro - policies. It is recommended to enter the futures index market on pullbacks [3] - It is advisable to focus on allocating to technology - growth sectors with earnings certainty, such as semiconductors and AI computing power, and also pay attention to the rotation allocation value of low - valuation defensive sectors like finance, securities, and consumption [6] Summary by Directory Market Performance - This week, domestic stock indices were mainly volatile, with the ChiNext and STAR Market indices remaining strong. The Shanghai Composite Index fell by 1.30%, the Shenzhen Component Index rose by 1.14%, the ChiNext Index rose by 2.34%, and the STAR 50 Index rose by 1.84%. In terms of global indices, the Nasdaq rose by 2.22%, the S&P 500 rose by 1.22%, and the Hang Seng Tech Index rose by 5.09% [15][19] - Among the Shenwan first - tier industries, sectors such as coal, power equipment, and electronics rose significantly, while sectors such as banks, non - ferrous metals, and non - bank finance led the decline [19] Liquidity - In August, the growth rate of social financing declined, and the "scissors gap" between M1 and M2 narrowed. The difference in August was 2.8 percentage points, indicating an increase in the activation of funds. The policies to stabilize the market effectively boosted market confidence, which is beneficial for the short - term economic activity [17][18] - As of September 19, 2025, the capital interest rate (DR007) remained at a low level, and the net MLF investment in July was 40 billion yuan. The yield of the 10 - year Treasury bond was around 1.7%. The total social financing in August increased less year - on - year, with the new social financing in August at 2.57 trillion yuan, a year - on - year decrease of 483 billion yuan. The year - on - year growth rate of the social financing stock dropped to 8.8%, 0.2 percentage points lower than at the end of last month [20] Trading Data and Sentiment - The number of new accounts opened in January was 1.57 million, in February was 2.88 million, in March was 3.06 million, in April dropped to 1.92 million, in May continued to drop to 1.555 million, in June slightly rose to 1.6464 million, in July was 1.9636 million, and in August was 2.6503 million [28] - The average daily trading volume of the two markets (MA5) rebounded above 2.5 trillion yuan, and the liquidity supported the index. The single - day trading volume within the week exceeded 3 trillion yuan, and the divergence intensified [28] Index Valuation - As of September 19, 2025, the latest PE of the Shanghai Composite Index was 16.36, with a percentile of 81.41; the latest PE of the SSE 50 was 22.10, with a percentile of 84.90. Among the major stock indices, the valuation percentiles of the CSI 1000, CSI 500, and SSE 204.5 were close to 50% [37] Index Industry Weights (as of 2025/6/30) - For the SSE 50, the weights of the banking, non - bank finance, and food and beverage sectors were relatively high, at 21.34%, 15.48%, and 13.88% respectively. The electronics industry became the fourth - largest weighted industry [46][47] - For the CSI 300, the weights were relatively dispersed. The top three weighted industries were banking, non - bank finance, and electronics [46][47] - For the CSI 500, the top three weighted industries were electronics, pharmaceutical biology, and non - bank finance [47][51] - For the CSI 1000, the top three weighted industries were electronics, pharmaceutical biology, and computer [47][51] Other Overseas and Domestic Policy Tracking - The United States is about to enter another interest - rate cut cycle, with a 25 - basis - point cut in September. According to CME data, as of September 18, the probability of another interest - rate cut by the Fed in October is nearly 80%, and there are still two expected cuts within the year [52] - In 2025, the government work report and the Two Sessions in March set the economic growth target at 5%, the CPI increase at around 2%. A moderately loose monetary policy was implemented, with timely reserve - requirement ratio cuts and interest - rate cuts to ensure sufficient bond liquidity. A more proactive fiscal policy was implemented, with a planned deficit ratio of around 4% and the issuance of ultra - long - term special treasury bonds worth 1.3 trillion yuan [53] - At the State Council Information Office press conference on May 7, 2025, the reserve - requirement ratio was cut by 0.5 percentage points, the policy interest rate was lowered by 0.1 percentage points from 1.56% to 1.4%, and the provident - fund interest rate was lowered by 0.25 percentage points. A 500 - billion - yuan re - loan for service consumption and elderly care was established, and support was provided for Central Huijin to play the role of a "stabilization fund" [53]