Core Viewpoint - The inclusion of the RMB stock trading counter into the Hong Kong Stock Connect is expected to enhance market liquidity and drive the trading scale of RMB-denominated Hong Kong stocks upward, supported by the recent bullish trends in both A-shares and Hong Kong stocks [1][5]. Group 1: Market Reactions - Following the announcement by the Hong Kong Securities and Futures Commission (SFC) CEO, the A-share and Hong Kong stock markets experienced significant gains, with the A-share indices closing in the green and the Hang Seng Technology Index surging nearly 2% [1][4]. - The total trading volume in the A-share market exceeded 1.47 trillion yuan, indicating a strong market response to the news [1][4]. Group 2: RMB Stock Trading Counter - The technical preparations for incorporating the RMB stock trading counter into the Hong Kong Stock Connect are progressing smoothly, with an aim to announce implementation details soon [2][3]. - The anticipated inclusion is expected to allow mainland investors to trade RMB-denominated stocks directly, significantly boosting market liquidity [5]. Group 3: Southbound Capital Inflows - Recent data shows that southbound capital has been actively buying into Hong Kong stocks, with a net purchase of 12.067 billion HKD on July 7, marking the largest single-day net inflow since May 6 [5]. - Key stocks benefiting from this trend include Meituan, Tencent, and SMIC, which have seen substantial net purchases from southbound funds [5]. Group 4: Broader Market Implications - Analysts believe that the inclusion of the RMB trading counter will not only enhance liquidity but also lead to a higher proportion of RMB assets in the Hong Kong market as more Chinese concept stocks return and new economy enterprises list [5]. - The ongoing "anti-involution" policies are expected to accelerate the clearing of outdated production capacities, improving the return on equity (ROE) levels in related industries [6]. Group 5: External Environment - The current low interest rate environment in Hong Kong, coupled with the U.S. Federal Reserve's easing cycle, is seen as favorable for maintaining liquidity and reducing downward pressure on the Hong Kong stock market [7]. - The proportion of short-selling in the Hong Kong market has decreased to relatively low historical levels, further indicating reduced downward pressure [7].

Group 1 - Hong Kong Exchanges and Clearing CEO stated that simultaneous listings of Greater Bay Area companies in Hong Kong and Shenzhen will help expand investor coverage without diluting market liquidity [1] - The Hong Kong Stock Exchange is currently processing over 160 listing applications, with nearly 20 companies expected to raise over $1 billion each [1] - The Hong Kong Securities and Futures Commission is actively promoting the inclusion of RMB counter in Stock Connect, which is expected to launch by the end of the year [1] Group 2 - Nasdaq China Golden Dragon Index rose by 2.07%, with major US stock indices also showing gains, including a 0.75% increase in the Dow Jones Industrial Average [2] - Popular Chinese concept stocks mostly rose, with Futu Holdings up over 10% and Bilibili up over 5% [2] Group 3 - The National Development and Reform Commission reported that pig prices have hit a 17-month low, with the average price at 14.45 yuan per kilogram, down 1.77% from previous periods [3] Group 4 - Guangdong Province is supporting the innovation and development of radioactive drugs, focusing on new targets and mechanisms for drug research [4] Group 5 - WeChat announced that public accounts can now link to WeChat stores, allowing users to display and sell products directly through their accounts [5] Group 6 - China Shenhua reported a 10.7% year-on-year decrease in coal sales volume for May, attributed to weak downstream demand [6] Group 7 - Hong Kong Broadband announced the establishment of an independent board committee to provide recommendations regarding China Mobile's offer [7] Group 8 - Fosun Pharma and Teva have entered a strategic partnership to jointly develop the anti-PD1-IL2 therapy, with Fosun obtaining exclusive rights for development in China and certain Southeast Asian countries [8] Group 9 - Nanshan Resources expects annual profit to increase from approximately 37.7 million HKD to at least 80 million HKD for the fiscal year ending March 31, 2025 [9] Group 10 - Dongfang Zhenxuan launched its first self-operated sanitary napkin product, achieving sales of over 300,000 packs shortly after launch [10] Group 11 - Zijin Mining and Ajilan Mining are in the process of establishing a joint venture in Saudi Arabia to explore and develop mineral resources [11] Group 12 - Haitan Flavor Industry's IPO in Hong Kong received an oversubscription of approximately 930 times from retail investors [12] Group 13 - China Software International launched its self-developed Hongyun virtual machine, enabling seamless compatibility with Windows software on HarmonyOS [13] Group 14 - China Biopharmaceutical's TDI01 suspension has been included in the breakthrough therapy designation program for treating chronic graft-versus-host disease [14]

Core Viewpoint - The "Hong Kong Dollar-Renminbi Dual Counter Model" has been successfully implemented since June 19, 2023, with a total transaction volume of 49.051 billion RMB for 24 selected stocks, indicating a growing interest in RMB-denominated trading in the Hong Kong market [1][2][4]. Group 1: Market Performance - The top five stocks in the dual counter model by transaction volume are China Mobile-R, Ping An-R, Tencent Holdings-R, Hong Kong Exchanges-R, and Alibaba-WR, with total transaction volumes of 6.117 billion RMB, 5.775 billion RMB, 5.687 billion RMB, 5.356 billion RMB, and 4.872 billion RMB respectively over the past two years [1][3]. - The transaction volume for Tencent Holdings-R has seen significant growth, with multiple trading days exceeding 50 million RMB this year, and Hong Kong Exchanges-R achieving a daily transaction volume of over 200 million RMB on certain days [5][6]. Group 2: Regulatory Developments - The Hong Kong Securities and Futures Commission is actively promoting the inclusion of RMB counters in the Stock Connect program, which is expected to launch by the end of the year, enhancing the accessibility of RMB assets for investors [2][6]. - The dual counter model is anticipated to facilitate the use of RMB in Hong Kong stock trading, potentially expanding to more stocks and products in the future, thereby supporting the internationalization of the RMB [4]. Group 3: Investor Behavior - The dual counter model allows investors holding offshore RMB to directly invest in Hong Kong stocks, helping to mitigate exchange rate risk and increasing market demand for RMB-denominated assets [3][5]. - Despite the growth in transaction volumes, the average turnover rate for RMB-denominated stocks remains low, primarily due to the large market capitalization of the stocks involved and the preference of institutional investors for holding rather than frequent trading [6].