Group 1 - The 2025 Lujiazui Forum is themed "Financial Openness and Cooperation in the Global Economic Landscape" and aims to discuss financial reform and international cooperation [1] - Over 70 financial professionals from more than 10 countries and regions are participating in the forum, which will last for two days [1] - Key discussion topics include enhancing global monetary policy coordination, promoting stable capital market development, and improving inclusive financial services [1] Group 2 - Major financial policies will be announced by central financial management departments during the forum [2] - Shanghai and Hong Kong will sign the "Coordinated Development Action Plan for International Financial Centers" during the forum [2] - The forum has a history of being a platform for significant policy announcements, such as the launch of the Science and Technology Innovation Board in 2019 and the initiation of the Shanghai Reinsurance "International Board" in 2023 [2]

Core Viewpoint - The 2025 Lujiazui Forum focuses on "Financial Opening and Cooperation in the Global Economic Changes and High-Quality Development," aiming to explore financial reform, international cooperation, and governance to stimulate global economic growth [6][9]. Group 1: Forum Overview - The forum is co-hosted by the People's Bank of China, the National Financial Regulatory Administration, the China Securities Regulatory Commission, and the Shanghai Municipal Government, with key leaders including the Governor of the People's Bank of China and the Mayor of Shanghai [3]. - Over 70 financial professionals from more than 10 countries and regions will participate in discussions on various themes related to financial cooperation and development [6]. Group 2: Key Themes and Discussions - The forum will address eight major themes, including enhancing global monetary policy coordination, promoting stable capital market development, and improving inclusive financial services [9]. - Specific topics include the collaboration between Shanghai and Hong Kong as international financial centers, the role of financial support in new productive forces, and the impact of artificial intelligence on financial innovation [9][14]. Group 3: Policy Announcements - Significant financial policies are expected to be announced during the forum, continuing a tradition of using the event to release important regulatory signals [4][11]. - Past forums have seen the launch of major initiatives such as the Science and Technology Innovation Board and the international reinsurance "board" [11]. Group 4: Shanghai-Hong Kong Cooperation - A key highlight will be the signing of the "Shanghai-Hong Kong International Financial Center Collaborative Development Action Plan," aimed at enhancing cooperation and leveraging the strengths of both financial hubs [13]. - Discussions will focus on multi-level collaboration in financial product innovation, market connectivity, and cross-border regulatory cooperation [14].

Group 1 - The 2025 Lujiazui Forum is themed "Financial Openness and Cooperation in the Global Economic Landscape" and aims to discuss financial reform and international cooperation [1] - Over 70 financial professionals from more than 10 countries and regions are participating in the forum, which will last for two days [1] - Key discussion topics include enhancing global monetary policy coordination, promoting stable capital market development, and improving inclusive financial services [1] Group 2 - Major financial policies will be announced by central financial management departments during the forum [2] - Shanghai and Hong Kong will sign the "Coordinated Development Action Plan for International Financial Centers" during the forum [2] - The forum has a history of being a platform for significant policy announcements, such as the launch of the Science and Technology Innovation Board in 2019 and the initiation of the Shanghai Reinsurance "International Board" in 2023 [2]

Investment Rating - The report suggests a focus on industries with low PB-ROE ratios, particularly financials, computing, defense, pharmaceuticals, and electrical equipment, indicating a potential for undervalued reversals [4][5]. Core Insights - Since April 2025, global trade tariff conflicts have led to significant volatility in capital markets, with markets in Japan, Germany, and the US rising by 5-10% compared to pre-tariff levels, while Chinese asset prices have slightly declined [3][4]. - The report emphasizes the importance of performance benchmarks for public funds, highlighting that financials, dividends, and computing are major underweight sectors [3][4]. - The report identifies a calendar effect where certain sectors like electronics and military are expected to yield higher absolute returns in June and July [3][4]. Summary by Sections Industry Rotation Review and Outlook - Consumer, pharmaceutical, banking, and dividend assets have shown superior performance [12]. Fund Analysis - New regulations for public funds stress the significance of performance benchmarks, with financials, dividends, and computing being the main underweight sectors [3][4]. Market Trading Characteristics - Assets that have seen declines for four consecutive years, such as pharmaceuticals and certain consumer goods, are beginning to stabilize, while real estate and liquor sectors have yet to show improvement [3][4]. Economic Conditions, Valuation, and Capital Chips - The current PB-ROE framework favors industries poised for undervalued reversals, including financials, computing, defense, pharmaceuticals, and electrical equipment [4][5]. Industry Policies - The report discusses ongoing policies aimed at stabilizing capital markets, boosting consumption, and addressing internal competition, with a focus on new productivity [4][5]. 2025 Industry Allocation - The report provides a detailed allocation table for the second half of 2025, indicating sectors with potential for absolute returns [12].