Group 1 - The core viewpoint of the report indicates a slowdown in merger and acquisition activities among Hong Kong listed companies, with a 24% decrease in transaction volume in Q1 2025 compared to the same period in 2024, dropping from 67 to 51 transactions [1] - In 2024, the number of merger and acquisition transactions increased by 9% to 250 from 229 in 2023, ending a three-year decline, driven by increased asset acquisitions and sales in the materials and energy sectors [1] - The report highlights that the decline in transaction volume in early 2025 suggests a cautious outlook for business activities, influenced by geopolitical risks and conservative investment strategies among companies [1] Group 2 - The report anticipates that stricter antitrust and data privacy reviews, along with U.S. tariff policies and geopolitical instability, will complicate due diligence processes and extend review cycles, potentially leading to a decrease in cross-border transactions in 2025 [2] - However, if interest rates are lowered mid-year, it could improve market liquidity and reduce financing costs, potentially boosting transaction activity in the second half of the year [2]