Investment Rating - The investment rating for the company is "Outperform the Market" [6] Core Views - The company's performance in H1 2025 showed significant growth, with revenue reaching HKD 14.076 billion, a year-on-year increase of 32.5%, and net profit attributable to shareholders at HKD 8.519 billion, up 39.1% [1][9] - The increase in trading volume, particularly from southbound funds, has been a key driver of the company's performance, with the average daily trading (ADT) for H1 2025 reaching HKD 222.8 billion, a 122.1% increase year-on-year [2][13] - The company has maintained a high EBITDA margin of 77.7% in H1 2025, reflecting its efficient business model and strong profitability [1][3] Summary by Sections Financial Performance - In H1 2025, the company achieved an EBITDA margin of 77.7%, with operating expenses of HKD 2.973 billion, of which staff costs accounted for 65.6% [3][24] - The annualized return on equity (ROE) increased to 30.76%, nearing the peak levels seen in 2015 [1][9] Market Dynamics - The southbound trading activity has significantly contributed to the trading volume, with southbound funds showing strong buying power, while international intermediaries have reduced net selling since early July [2][18] - The IPO market in Hong Kong has rebounded, with H1 2025 IPO amounts reaching HKD 109 billion, reclaiming the top position globally [2][13] Investment Recommendations - The company has adjusted its profit forecasts for 2025-2027 upwards by 3.99%, 5.37%, and 5.53% respectively, based on the strong performance in H1 2025 [4][26] - The ongoing dual opening of capital markets and the company's strategic initiatives are expected to enhance its revenue and profit growth potential [4][24]

Group 1 - The Shanghai Composite Index surpassed the previous high of 3674.4 points, reaching a new high since December 2021, indicating potential investment opportunities in A-shares [1] - The CSI A500 Innovation Index is compiled using an internationally recognized "industry balance" method, selecting 500 securities with large market capitalization and good liquidity across all secondary and 97% of tertiary industries [1] - The index includes almost all leading companies in tertiary industries, achieving a "gathering of leaders" and incorporates mechanisms like mutual connectivity and ESG screening, appealing to both domestic and international institutional investors [1] Group 2 - The number of accounts for the Guotai CSI A500 ETF exceeded 156,000, making it the leader in its category, with more than three times the number of accounts compared to the second-ranked product [1] - Investors without stock accounts can consider the Guotai CSI A500 ETF Initiated Link A (022448), Link C (022449), and Link I (022610) [1]

Core Viewpoint - The report from China Merchants Securities emphasizes the need for industry allocation in the CSI A500 index to focus on "de-involution" clearance, sectors with high mid-year performance growth, and low valuations [1] Group 1: Performance Improvement Areas - Expected areas of mid-year performance improvement include: 1) High-growth TMT sectors such as optical optoelectronics, consumer electronics, and communication equipment, benefiting from AI innovation and accelerated substitution [1] 2) Midstream manufacturing sectors with global competitiveness, including automotive parts, automation equipment, and electronics, showing signs of marginal order recovery [1] 3) Consumer services, particularly home appliances and household goods, experiencing demand improvement due to policy support [1] 4) Cyclical industries like precious metals, industrial metals, and electricity, with potential profit recovery [1] Group 2: Market Conditions - Current prices for resource products such as steel and coal have bottomed out and are recovering, while the photovoltaic industry chain is also seeing marginal price recovery [1] - The de-involution policy is driving capacity clearance in certain industries, making performance elasticity worth noting [1] Group 3: CSI A500 Index Composition - The CSI A500 Innovation Index is compiled using an internationally recognized "industry balance" method, selecting 500 securities with large market capitalization and good liquidity across all secondary and 97% of tertiary industries [1] - The index includes nearly all leading companies in tertiary industries, achieving a "gathering of leaders" [1] - The index compilation incorporates mechanisms like mutual connectivity and ESG screening, aligning with the preferences of domestic and international institutional investors, which is beneficial for attracting long-term capital to core A-share assets [1] - Interested investors may consider the CSI A500 ETF (159338) [1]

证券研究报告 | 公司深度报告 2025 年 08 月 05 日 香港交易所（00388.HK） 强烈推荐（维持） 目标估值：515.00 港元 当前股价：417.0 港元 基础数据 | 总股本（百万股） | 1268 | | --- | --- | | 香港股（百万股） | 1268 | | 总市值（十亿港元） | 528.7 | | 香港股市值（十亿港元） | 528.7 | | 每股净资产（港元） | 41.0 | | ROE（TTM） | 25.1 | | 资产负债率 | 86.2% | | 主要股东 | JPMorgan Chase & | | | Co. | | 主要股东持股比例 | 6.8756% | 股价表现 % 1m 6m 12m 绝对表现 1 42 89 相对表现 -3 23 43 资料来源：公司数据、招商证券 -20 0 20 40 60 80 100 120 Aug-24 Nov-24 Mar-25 Jul-25 (%) 香港交易所 恒生指数 相关报告 | 郑积沙 | S1090516020001 | | --- | --- | | | zhengjisha@cmschina.com. ...

Group 1 - The core viewpoint of the article highlights the significant inflow of funds into the China Securities A500 ETF (159338), with a net inflow of 36 million shares and a trading volume exceeding 1.9 billion yuan, indicating strong market interest in core A-share assets [1] - Dongxing Securities suggests that the political bureau meeting has acknowledged achievements while also providing policy direction, creating a favorable environment for the stable development of the stock market, with a high likelihood of maintaining a slow bull market [1] - The China Securities A500 Innovation Index is compiled using an internationally recognized "industry balance" method, selecting 500 securities with large market capitalization and good liquidity across all secondary and 97% of tertiary industries, effectively capturing industry leaders [1] Group 2 - The index compilation introduces mechanisms such as mutual connectivity and ESG screening, aligning with the preferences of domestic and international institutional investors, which is beneficial for attracting long-term capital to core A-share assets [1] - Investors without stock accounts are encouraged to consider related funds such as Guotai China Securities A500 ETF Initiated Link A (022448), Guotai China Securities A500 ETF Initiated Link C (022449), and Guotai China Securities A500 ETF Initiated Link I (022610) [1]

Core Insights - The Ministry of Transport of China announced significant achievements in the transportation sector over the past five years, highlighting the completion of key indicators ahead of schedule and the establishment of a comprehensive transportation system [3][4][6] Infrastructure Development - By the end of 2024, the total railway operating mileage is expected to reach 162,000 kilometers, an increase of approximately 16,000 kilometers since the end of the 13th Five-Year Plan, with high-speed rail accounting for 10,000 kilometers of this increase [6] - The total length of highways will reach 5.49 million kilometers, an increase of about 290,000 kilometers, including an addition of 30,000 kilometers of expressways [6] - The total length of high-grade navigable channels will reach 17,600 kilometers, an increase of 1,600 kilometers [6] - The number of port berths for vessels over 10,000 tons will increase to 2,971, up by 379 [6] Investment and Economic Impact - Fixed asset investment in transportation during the first four years of the 14th Five-Year Plan reached 15.2 trillion yuan, representing a year-on-year growth of 23.3% [6] - The transportation sector has seen a reduction in costs, with approximately 2.8 billion yuan saved in transportation costs over the past year [7] Rural Transportation - Since the 18th National Congress, over 4.9 trillion yuan has been invested in rural road infrastructure, with total rural road mileage reaching 4.64 million kilometers, accounting for nearly 85% of the national total [9] - The proportion of graded rural roads has reached 97.3%, with a good to medium road rate of 94.8% [9] International Connectivity - China has maintained the world's highest maritime connectivity for 19 consecutive years, with over 270 cooperation agreements signed in the transportation sector [10][12] - The China-Europe Railway Express connects to 229 cities in Europe and over 100 cities in Asia, while the "Air Silk Road" has expanded to 83 countries and 213 cities [12]

Core Insights - The A500 ETF by Huatai-PB has seen significant trading activity, with a trading volume of 3.383 billion yuan, representing a 77.96% increase compared to the previous day [1] - The fund has attracted 10.86 billion yuan in the last nine trading days, bringing its total size to 20.088 billion yuan, making it the only ETF tracking the CSI A500 index with a size exceeding 20 billion yuan [1][2] - The A500 ETF features a low fee structure, with management and custody fees at 0.15% and 0.05% per year, respectively, which are among the lowest in the market [1][2] Fund Performance - As of July 3, 2025, the A500 ETF has a cumulative unit net value of 1.0307 yuan, the only product among the first ETFs tracking the CSI A500 index to exceed this value [2] - The CSI A500 index focuses on 500 large-cap, liquid stocks across various sectors, with the top five sectors being electronics, banking, power equipment, pharmaceuticals, and food and beverage [2] - The A500 ETF is positioned as an ideal tool for investors looking to allocate to leading core assets in the A-share market, with a balanced industry allocation that combines growth and value attributes [2]

Group 1: Economic Performance - Hong Kong's economy has shifted from negative growth to positive growth since the current government took office, with median household income increasing by HKD 3,000, a rise of over 11% [2] - The government has attracted over 210,000 talents and 84 key enterprises in cutting-edge technology, bringing approximately HKD 50 billion in investments and creating over 20,000 jobs [2] Group 2: Government Initiatives - The government is actively addressing housing issues, reducing public housing waiting times, and recovering 8,700 public housing units from misuse [1] - Approximately 9,500 units of "simple public housing" are expected to be available for occupancy this year [1] - The government is focusing on three key areas: enhancing security for high-quality development, accelerating the development of the Northern Metropolis, and improving public welfare [3] Group 3: Future Outlook - The government aims to leverage the advantages of "One Country, Two Systems" to navigate economic transformation, emphasizing the importance of safety and development certainty in a world of increasing uncertainty [3] - Plans include expediting public housing supply, implementing medical reforms, and advancing transportation infrastructure projects, including the Hong Kong-Shenzhen Western Railway [3]

Core Viewpoint - The continuous implementation of the "trade-in" policy has significantly boosted retail sales for Bosch Home Appliances in China, reflecting the company's strong commitment to the Chinese market and its long-term development strategy [1][2]. Group 1: Company Development and Investment - Bosch Home Appliances has been operating in China for over 30 years, establishing a comprehensive sales and service network since its entry in 1994 [1]. - The company has invested in multiple facilities in Nanjing, including a manufacturing park and a global R&D center, which was upgraded last year to enhance its innovation capabilities [1][2]. - The global R&D center, with an investment of 400 million yuan and a workforce of 700 engineers, focuses on core product innovation and advanced fields such as smart appliances and smart manufacturing [2]. Group 2: Market Trends and Consumer Demand - The "trade-in" policy has led to a double-digit growth in retail sales from September to December last year, particularly in emerging categories and high-efficiency products [3]. - There is a notable shift in consumer demand from new home installations to renovations of older homes, creating new market opportunities for Bosch [3]. - Bosch is actively collaborating with local retailers to provide comprehensive solutions that include renovation design, appliance selection, and installation services, aiming to capture this emerging market [3]. Group 3: Strategic Vision - Bosch Home Appliances views China as one of the largest and most dynamic home appliance markets globally, emphasizing its importance in the company's overall strategy [3]. - The company is committed to the philosophy of "in China, for China, and for the world," aiming to tell a compelling story of investment in China through its actions [3].

6月24日至26日，亚洲基础设施投资银行第十届理事会年会在北京举行。中新网黄方 摄 中新网6月28日电(记者 黄方 赵丽) 6月24日至26日，亚洲基础设施投资银行(以下简称："亚投行")第十届 理事会年会在北京举行。本届年会以"互联助力发展，合作共创繁荣"为主题，聚焦数字化转型、绿色融 资、私营资本动员、跨境合作与多边伙伴关系等全球关注的议题，汇聚来自成员国政府、国际组织、企 业和学术界代表，共同探讨未来基础设施建设的方向。 作为由中国倡议设立的新型多边开发银行，亚投行自2015年成立以来，成员从57个创始国扩展至110 个，累计带动超过2000亿美元资金投入全球基础设施项目，逐步成长为推动全球可持续发展的关键力 量。 中国发改委：中国与亚投行合作推动绿色低碳与互联互通 国家发展改革委外资司副司长华中在论坛发言中指出，亚投行作为21世纪成立的新型多边金融机构，在 推动全球基础设施互联互通和经济可持续发展方面取得显著成果，特别是在国际合作模式创新上展现了 独特优势。 自2019年起，中国国家发展改革委与亚投行在主权贷款合作方面已启动三期合作，涵盖20个项目，总贷 款额达60亿美元。华中介绍，这些项目重点聚焦绿 ...