Summary of Key Points Core Viewpoint - The Hong Kong Stock Exchange (HKEX) reported that seven companies submitted applications for listing, with two companies passing the hearing and one company currently in the process of an initial public offering (IPO) without any new stocks listed during the week. Group 1: Companies Submitting Applications - **Wenzhi Traditional Chinese Medicine**: The largest AI-assisted TCM service provider in mainland China, with projected revenues of approximately 621.69 million RMB in 2022 and a loss of about 154 million RMB in the same year [2] - **Zhengpin Holdings Limited**: Engaged in the development and distribution of health and beauty supplements in Hong Kong, with revenues projected to reach approximately 110 million HKD in 2025 and a profit of about 35.5 million HKD in the same year [3] - **YunTian LiFei Technology Co., Ltd.**: A leading AI company focusing on AI inference chips, with revenues expected to be around 5.46 billion RMB in 2022 and a loss of approximately 4.47 billion RMB [4] - **Xinnengda Electronics Co., Ltd.**: A global leader in lithium battery technology, with projected revenues of about 521.62 billion RMB in 2022 and a profit of approximately 7.63 billion RMB [5] - **Danno Pharmaceutical (Suzhou) Co., Ltd.**: A biotech company focused on innovative drug development, with losses projected to be around 1.22 billion RMB in 2023 [6] - **Innovation International Industrial Group**: Engaged in the production of aluminum products, with revenues expected to reach approximately 134.90 billion RMB in 2022 and a profit of about 9.13 billion RMB [7] - **Wangshan Wangshui Biopharmaceutical Co., Ltd.**: Focused on small molecule drug development, with revenues projected to be around 200 million RMB in 2023 [8] Group 2: Companies Passing Hearings - **Shandong Tianyue Advanced Technology Co., Ltd.**: A leading manufacturer of silicon carbide substrates, with revenues projected to be approximately 4.17 billion RMB in 2022 and a loss of about 1.76 billion RMB [8] - **Guangzhou Yinnuo Pharmaceutical Group Co., Ltd.**: Focused on innovative drug development for metabolic disorders, with no recorded revenue in 2023 and a loss of approximately 733 million RMB [9] Group 3: IPO and Market Updates - **Zhonghui Biotechnology-B**: Plans to offer 33.44 million H-shares with a price range of 12.9 to 15.5 HKD per share, aiming for a total of approximately 1.02 billion HKD from cornerstone investors [10] - **HKEX New IPO Regulations**: New rules effective from August 4 aim to enhance the pricing and allocation framework for IPOs, requiring at least 40% of shares to be allocated to book-building investors [11] - **A+H Listing Trends**: Regulatory considerations are underway to increase the minimum market capitalization requirement for A-share companies seeking to list in Hong Kong from 10 billion to 20 billion RMB [12]

Economic and Trade Developments - The first meeting of the China-US economic and trade consultation mechanism was held in London, where both sides reached a framework agreement to implement the consensus from the recent phone call between the two countries' leaders and to consolidate the outcomes of the Geneva talks [2] - The State Council of China held a meeting to deploy pilot measures for the replication and promotion of the China (Shanghai) Free Trade Pilot Zone, focusing on stabilizing expectations and activating demand in the real estate market [1][2] Consumer and Producer Price Index - In May, the Consumer Price Index (CPI) decreased by 0.2% month-on-month and by 0.1% year-on-year, with the core CPI (excluding food and energy) rising by 0.6% year-on-year, an increase of 0.1 percentage points from the previous month [3] - The Producer Price Index (PPI) fell by 0.4% month-on-month and by 3.3% year-on-year, with the decline attributed to international input factors and a temporary decrease in domestic energy and raw material prices [3] Financial and Monetary Data - As of the end of May, the broad money supply (M2) stood at 325.78 trillion yuan, growing by 7.9% year-on-year, while the narrow money supply (M1) was 108.91 trillion yuan, up by 2.3% year-on-year [6] - The People's Bank of China reported a net cash injection of 306.4 billion yuan in the first five months of the year [6] Automotive Industry Developments - Several major automotive companies, including China FAW, Dongfeng, and Geely, announced a unified payment term of 60 days for suppliers, reflecting a commitment to maintaining a healthy supply chain [8] - The launch of aluminum alloy futures trading on June 10, with a base price set at 18,365 yuan per ton, indicates a new development in the commodities market [8] Regulatory Changes - The State Administration for Market Regulation released a draft for public consultation on the supervision of live e-commerce, emphasizing the responsibility of live stream operators to avoid false or misleading commercial promotions [5] - New regulations for individual business registration will take effect on July 15, clarifying the registration process for individual businesses operating online [5]

Overall Requirements - The article emphasizes the importance of adhering to Xi Jinping's thoughts and the spirit of the 20th National Congress, focusing on comprehensive implementation of new development concepts and balancing development with security [1] Education, Technology, and Talent System Reform - The article highlights the need for efficient collaboration between industry, academia, and research, advocating for the role of leading technology enterprises as "problem solvers" [2] - It discusses the exploration of new compensation management systems for research institutions and the reform of research funding management [2] - The article calls for the integration of education and industry to cultivate high-quality, innovative talents, particularly in engineering and technology fields [3] - It mentions the importance of enhancing support mechanisms for overseas talent recruitment and providing greater autonomy to employers in managing talent [3] Empowering the Real Economy - The article outlines the establishment of incentive mechanisms for financial services to support the real economy, including pilot projects for integrated financial services in technology industries [4] - It discusses the innovation of systems to support emerging industries, including the establishment of a comprehensive service system for technology transfer and commercialization [4] - The article emphasizes the need for market-oriented reforms in data elements, including the exploration of data trading and circulation mechanisms [5][6] Open Economic System - The article advocates for the optimization of goods trade and the support of new business models, particularly in customs facilitation and trade logistics [7] - It highlights the importance of enhancing service trade and exploring pilot projects for high-value, environmentally friendly services [7] - The article discusses the need for improved mechanisms for personnel mobility, including reforms to facilitate the practice of professionals from Hong Kong and Taiwan in Shenzhen [7] Governance Model - The article emphasizes the need for improved public service levels, particularly in healthcare and drug regulation [8] - It discusses the reform of land and natural resource management systems to enhance efficiency and sustainability [8] - The article highlights the importance of judicial reforms to establish a comprehensive mechanism for resolving commercial disputes [9] Implementation and Evaluation - The article stresses the importance of strong leadership and coordination in implementing reform measures, ensuring that tasks are effectively executed [10] - It calls for the establishment of a robust evaluation and promotion system for pilot reform experiences, ensuring timely adjustments to ineffective measures [10]