Daily Spotlight 9 December 2025 Michael MENG (852) 3988 6433 michael.meng@bocigroup.com Index Performance | | Last close | % 1D | % YTD | | --- | --- | --- | --- | | HSI | 25,765 | (1.2) | 28.4 | | HSCEI | 9,084 | (1.2) | 24.6 | | HSCCI | 4,218 | (1.0) | 11.6 | | MSCI HK | 13,724 | (0.4) | 29.9 | | MSCI CHINA | 85 | (0.7) | 30.7 | | FTSE CHINA A50 | 15,370 | 0.9 | 13.7 | | CSI 300 | 4,622 | 0.8 | 17.5 | | TWSE | 28,304 | 1.2 | 22.9 | | SENSEX | 85,712 | 0.5 | 9.7 | | NIKKEI 225 | 50,582 | 0.2 | 26.8 | | KOS ...

Core Viewpoint - The article emphasizes the importance of high-level financial openness in China, highlighting the need for coordinated reforms to support the internationalization of the Renminbi and the opening of capital accounts, while ensuring that these efforts align with domestic economic development [1][3][14]. Group 1: Financial Openness and Reform - Financial openness is crucial for promoting reform and development, but it requires deeper reforms to address the unique challenges posed by financial markets [2][3]. - Historical examples show that financial crises in emerging markets often stem from delayed domestic reforms following financial liberalization [2][3]. - The current global economic environment presents both opportunities and challenges for China's financial openness, necessitating a careful balance between opening up and ensuring domestic stability [3][14]. Group 2: Key Reforms for High-Level Openness - Strengthening the domestic circulation system is essential, with a focus on enhancing consumption, investment, and the overall market structure to support the Renminbi's international status [5][6]. - Enhancing technological innovation capabilities is vital for maintaining competitiveness in the face of external pressures and fostering new productive forces [7]. - Improving the protection of property rights is critical for attracting both domestic and foreign investment, as clear and strong property rights enhance market appeal [8]. - Elevating macroeconomic governance effectiveness is necessary to ensure that market mechanisms function optimally while government plays a supportive role [9][10]. - Modernizing corporate governance structures is important for fostering a dynamic economic environment and addressing competitive challenges [12]. - Strengthening capital market functions is essential for supporting new productive forces and ensuring that financial services benefit the broader population [13].