Group 1: Drone Industry in the Greater Bay Area - The demand for drone assembly and testing positions in the Greater Bay Area has increased by 166.4% year-on-year as of the first half of 2025 [1] - The demand for drone engineers has also seen a significant rise of 57.5% [1] - Continuous upgrades in drone technology and the expansion of application scenarios are driving this surge in job demand [1] Group 2: National Debt Issuance in Macau - The Ministry of Finance will issue 60 billion RMB in national bonds in Macau on July 16, marking the fourth consecutive year of such issuances [2] - This issuance aims to enhance the regular issuance mechanism and provide safe investment options for investors [2] - The move is expected to attract international investors and promote the development of Macau's offshore RMB market [2] Group 3: Elderly Products Industry in Guangdong - Guangdong's elderly products industry achieved a revenue of 655.1 billion RMB in 2024, reflecting a year-on-year growth of 10.2% [3] - The province has 6,814 large-scale elderly products enterprises, covering various sectors such as medical devices and nutritional products [3] - Guangdong's advantages in manufacturing costs and technological innovation are driving growth in the silver economy [3] Group 4: BYD's Automotive Export - BYD's "Shenzhen" automobile transport ship has set sail for Europe carrying over 6,800 electric vehicles [4] - Among the exported vehicles, over 1,100 are from the Song series produced in the Shenzhen area [4] - The "factory-to-port" model allows for rapid transition from production to shipping, highlighting the efficiency of the Shenzhen manufacturing hub [4] Group 5: Shenzhen Stock Market Update - The Shenzhen Component Index closed at 10,581.80 points, down 0.06% [5] - Notable gainers included New City with a price of 17.86 RMB, up 20.03%, and Tongguan Copper Foil at 20.26 RMB, also up 20.02% [6] - Decliners included *ST Zitian at 4.47 RMB, down 20.04%, and Baoming Technology at 63.52 RMB, down 10% [6]

Core Viewpoint - The Hong Kong Securities and Futures Commission (SFC) is actively collaborating with mainland regulatory authorities to advance the inclusion of a Renminbi (RMB) stock trading counter into the Hong Kong Stock Connect, with technical preparations progressing smoothly and implementation details expected to be announced soon [1][3]. Group 1: Development of RMB Fixed Income Market - One of the key focuses for the SFC this year is the development of the fixed income and currency markets, particularly the RMB fixed income market [2]. - The issuance of offshore RMB bonds in Hong Kong has seen rapid growth, with the total amount surpassing 1 trillion yuan in 2024, representing a 37% year-on-year increase [3]. - The Ministry of Finance has increased the frequency and scale of issuing national bonds in Hong Kong, particularly mid- to long-term bonds, to better meet international investors' needs [3]. Group 2: Enhancing Market Liquidity - The SFC aims to enhance the liquidity of the secondary bond market, which will provide issuers with more competitive pricing conditions and a broader investor base [4]. - The development of derivative instruments is crucial for bond investors to hedge risks and manage liquidity [4]. Group 3: Infrastructure Development for Offshore RMB Products - The SFC supports financial institutions in developing more attractive and diversified derivative products, including interest rate, foreign exchange, and credit derivatives [5]. - There is an understanding of the market's expectation for the prompt launch of national bond futures, with ongoing collaboration with mainland regulatory bodies to advance preparations [5]. - The establishment of an offshore RMB-related product infrastructure, including front and back office systems, is being researched to enhance the stability of Hong Kong's financial system and provide an efficient and transparent trading platform for offshore RMB assets [5].

Group 1 - The Hong Kong stock market and traditional asset management are experiencing steady growth, with significant developments in digital assets. The government plans to release a second policy declaration on digital asset development to outline future policy directions [1][2] - The Hang Seng Index has increased by over 3,800 points this year, representing a rise of approximately 20%, making it one of the top performers among major global indices. The average daily trading volume in the stock market has increased by about 120% year-on-year, reaching HKD 242 billion [1] - As of March this year, the number of registered funds in Hong Kong reached 976, with a net inflow of over USD 44 billion, marking a growth of 285%. Hong Kong is expected to become the largest cross-border asset management center globally within the next two to three years [1] Group 2 - Hong Kong has made significant progress in digital finance, green finance, and the offshore RMB market. Since the first policy declaration on digital asset market development at the end of 2022, the market has accelerated, with 10 virtual asset trading platforms licensed and 8 more applications being processed [2] - The government plans to introduce specific measures to better integrate traditional financial services with technological innovations in the digital asset sector, enhancing the safety and flexibility of digital assets in real economic activities [2] - The recently passed Stablecoin Ordinance will establish a licensing system for fiat-backed stablecoin issuers, effective from August 1. The global stablecoin market is estimated to be around USD 240 billion, with over USD 20 trillion in trading volume last year, indicating a growing demand for stablecoins [2]

Core Insights - The Standard Chartered Renminbi Global Index (RGI) has risen to its highest level in eight months, reaching 5167, with an increase of 8.3% since the beginning of the year [1] Group 1 - The RGI has shown continuous growth in the first four months of 2025 [1] - Positive factors driving the offshore Renminbi market include stable capital flows in the northbound bond market, southbound stock market, and the consistent share of Renminbi trade settlement in goods trade [1]

Core Viewpoint - The offshore RMB bond market is experiencing significant growth, driven by various factors including increased issuance from the Chinese government and private institutions, as well as a favorable macroeconomic environment [1][3][5]. Group 1: Market Trends - The issuance of offshore RMB bonds is projected to reach a peak of 16,124 billion RMB in 2024, representing a 26% year-on-year increase from 2023 [3]. - In the first quarter of 2025, the issuance scale exceeded 3,780 billion RMB, marking a 53.7% increase compared to the same period in 2023 [3]. - The secondary market for offshore RMB bonds remains resilient despite global market volatility, with trading prices tightening by 15-20 basis points since early April [6]. Group 2: Factors Driving Growth - The Chinese Ministry of Finance has diversified its supply, establishing benchmarks for the market, including the issuance of green sovereign bonds in London and Hong Kong [3][4]. - There is a trend of longer maturities in bond issuance, with notable examples including Baidu's issuance of 10 billion RMB bonds and the Hong Kong Airport Authority's issuance of 10-year and 30-year bonds [4]. - The offshore RMB market is becoming more attractive for private institutions, which previously favored the US market for bond issuance [2]. Group 3: Changes in Issuer Landscape - The first quarter of 2025 saw new borrowers entering the market, issuing large-scale bonds, and structural innovations such as green bonds backed by multilateral institutions [4]. - The total issuance from international multilateral institutions reached 8.9 billion RMB in the first quarter of 2025, significantly up from 3.2 billion RMB in the same period of 2024 [4]. Group 4: Future Outlook - The issuance volume of offshore RMB bonds is expected to remain stable, with a significant portion being short-term deposits that will likely be rolled over [7]. - There is a potential shift of investor interest from US Treasury bonds to RMB assets, which could lead to increased inflows into the offshore RMB market [7]. Group 5: Policy Recommendations - There is a call for further development of cross-currency swaps and derivative markets to attract more foreign issuers [8]. - The implementation of proactive macroeconomic policies is deemed crucial to enhance investor confidence and participation in the offshore RMB market [8]. - Expansion of the "Southbound Pass" plan is anticipated to provide more diversified investment options for domestic liquidity and enhance the attractiveness of the offshore RMB market [8].

Core Viewpoint - The offshore RMB bond market has shown resilience despite global market volatility, driven by strong issuance growth and favorable conditions for private sector borrowers [1][5][6]. Group 1: Market Trends - The issuance of offshore RMB bonds is expected to reach a peak of 16,124 billion RMB in 2024, representing a 26% increase from 2023 [2]. - In Q1 2025, the issuance scale is projected to exceed 3,780 billion RMB, marking a 53.7% year-on-year growth compared to Q1 2023 [2]. - The market has seen a trend towards longer maturities, with notable issuances such as Baidu's 10 billion RMB bond and Hong Kong Airport Authority's 10 and 30-year bonds [3]. Group 2: Supply-Side Factors - The Chinese Ministry of Finance has diversified its supply, establishing benchmarks in the market, including the issuance of green sovereign bonds [2][3]. - The liquidity and investor base in the offshore RMB market have deepened, providing better market access and competitive pricing for private issuers [2][3]. - Structural innovations have emerged, such as the issuance of green bonds backed by multilateral institutions, indicating a growing trend in the market [3]. Group 3: Investor Sentiment and Market Dynamics - Despite recent market volatility, the secondary market for offshore RMB bonds remains relatively strong, with trading prices tightening by 15-20 basis points since early April [5][6]. - High-quality offshore RMB bonds are seen as scarce, enhancing their value in a moderately loose macroeconomic environment [6]. - Investor sentiment is cautious, with many adopting a wait-and-see approach before making further allocations [5][6]. Group 4: Future Outlook and Recommendations - The issuance volume of offshore RMB bonds is expected to remain stable in the short term, influenced by global volatility and market re-pricing [6]. - There is optimism for medium to long-term recovery in demand and supply, driven by potential shifts in investor allocations from US Treasuries to RMB assets [6]. - Recommendations for further development of the offshore RMB market include enhancing cross-currency swaps and derivative markets, and implementing proactive macroeconomic policies [7].