Group 1 - Over 60% of actively managed equity funds have recovered their net value to levels seen two months ago, with a strong performance from funds focused on innovative pharmaceuticals and AI sectors [1] - The upcoming mid-year assessment is prompting wealth management companies to optimize asset allocation strategies, including shortening bond durations to control volatility [1] - The Hong Kong IPO market is heating up, with 190 companies queued for listing, many of which are from mainland China, indicating a trend of A+H listings [2] Group 2 - The domestic robotics industry is experiencing a surge in IPO activity in Hong Kong, with nine companies disclosing plans to list, reflecting strong investor interest in hard technology [2] - Midea Group has initiated a voluntary recall of over one million window air conditioners in North America due to a rare issue with mold on a specific component, with a complaint rate of less than 0.01% [3] - Several major automotive companies have committed to a unified payment term of no more than 60 days, indicating a shift in industry payment practices [3] Group 3 - The launch of the world's first AI-based fully automated design system for processor chips marks a significant advancement in chip design, addressing the growing demand for specialized chips [4] - The successful listing of a leading company in the panoramic camera sector has attracted significant attention from capital markets, with the global market for panoramic cameras expected to grow at a CAGR of over 10% [4] - The summer grain wheat harvest in China has progressed to over 70%, with significant contributions from major wheat-producing provinces [5] Group 4 - OpenAI is investigating increased error rates affecting its API and ChatGPT services, with over 1,000 service interruption reports logged [5] - Haitian Flavor Industry plans to issue 263.24 million shares in its Hong Kong listing, with a price range set between HKD 35 and HKD 36.3 [6] - A food safety incident involving excessive bacterial counts at a specific store has led to regulatory actions against the establishment [7] Group 5 - The financial regulatory authority has imposed strict penalties on two insurance companies, marking a shift towards individual accountability in the insurance sector [8] - Tencent Music has signed an acquisition agreement with Himalaya, with assurances that the brand and management structure will remain unchanged post-acquisition [9] - A significant personnel change has occurred at Yanghe Co., with a board member resigning due to work relocation [10]

Core Viewpoint - Regulatory requirements for the valuation of wealth management products are driving profound changes in the industry, with companies required to complete half of their rectification tasks by mid-year and fully by year-end [1] Group 1: Progress of Rectification - Different wealth management companies are showing varied progress in valuation rectification, with some in South China having completed their tasks by the end of last year, resulting in minimal operational impact [3] - Wealth management subsidiaries in East China are adopting a more cautious approach, shortening bond investment durations and being more selective in credit bond allocations to meet stricter regulatory requirements [3] - City commercial banks in North China generally find it manageable to complete rectification tasks due to the limited number of involved products [3] Group 2: Regulatory Requirements - Regulatory authorities have explicitly prohibited wealth management companies from using closing prices, smoothing valuations, or self-built valuation models, mandating the use of daily valuations provided by recognized financial institutions [3] - This regulation aims to eliminate unfair competition in the market and applies to both direct investment and outsourced business [3] Group 3: Impact on Asset Allocation Strategies - The deepening rectification work is expected to increase the volatility of net asset values, prompting wealth management companies to reassess and adjust their asset allocation strategies [4] - Shortening bond durations has become a common strategy among institutions to control net value fluctuations [4] - Companies are also managing leverage levels and selectively choosing investment targets to mitigate net value volatility, leading to opportunities for multi-asset and multi-strategy products [4] Group 4: Challenges for Short-term Products - Short-term wealth management products face significant challenges as the adoption of standardized valuations reflects market fluctuations directly, risking net values dropping below 1 yuan, which may lead to investor redemptions [4] - In contrast, long-term closed-end wealth management products have a natural advantage as investors tend to be more tolerant of net value fluctuations over longer periods [4]

Core Viewpoint - The regulatory requirements for the valuation of wealth management products are being implemented steadily, with many institutions reporting that they have completed about half of the necessary adjustments by the end of June [1][2]. Group 1: Valuation Rectification Progress - Regulatory authorities have mandated that wealth management companies rectify their valuation methods by the end of June, focusing primarily on closing price valuations [1][2]. - The rectification involves prohibiting the use of closing prices, smoothing valuations, and self-built valuation models, requiring companies to adopt valuations provided by recognized financial institutions [1][2][3]. - The main focus of the rectification is on closing price valuations, which have been used to smooth daily net value fluctuations of products, particularly for illiquid assets [3][4]. Group 2: Impact on Asset Allocation - As the rectification progresses, net value fluctuations of wealth management products are expected to increase, prompting companies to adjust their asset allocation strategies [3][5]. - Companies are likely to shorten bond durations, adjust leverage, and select investment targets more carefully to mitigate overall portfolio volatility [5][6]. - The demand for multi-asset and multi-strategy products is anticipated to rise as companies adapt to the changing landscape [6][7]. Group 3: Enhancing Research and Investment Capabilities - Despite the increased volatility in net values, wealth management products still possess a diversified asset allocation advantage compared to public funds [6][7]. - Companies are focusing on improving their research and investment capabilities to maintain competitiveness in a net value-driven market [6][7]. - The ability to innovate and manage risks effectively is becoming a crucial competitive edge for wealth management firms, with leading institutions likely to capture a larger market share [6][7].