Core Viewpoint - The Hong Kong stock market is entering a significant phase for annual IPOs, with six companies launching their offerings and scheduled to list on December 30, reflecting a strong demand for quality enterprises to utilize market opportunities [1][2]. Group 1: Companies and Their Offerings - Six companies, including Insilico Medicine, Wuyishijie, Xunce, Meilian Holdings, Woan Robotics, and Linqingxuan, are set to launch IPOs, covering diverse sectors such as AI pharmaceuticals, digital twins, home robotics, and high-end skincare [1][2]. - Insilico Medicine, known as a pioneer in AI pharmaceuticals, has set its IPO price at HKD 24.05, aiming to raise HKD 2.277 billion, making it the largest among the six [1]. - Wuyishijie, focusing on digital twin and Physical AI technologies, plans to issue 23.975 million shares at HKD 30.5 each, with a potential fundraising of up to HKD 841 million if the over-allotment option is exercised [2]. - Xunce, a real-time data infrastructure service provider, is expected to raise between HKD 1.08 billion and HKD 1.23 billion, with a share price range of HKD 48-55 [2]. - Woan Robotics, backed by industry figure Li Zexiang, is entering the home robotics sector, while Linqingxuan is offering 13.96645 million shares at HKD 77.77 each [2]. Group 2: Market Trends and Analysis - The concentration of tech and new consumer companies in the IPO market indicates a shift in the structure of IPOs, with technology and new consumption becoming the dominant forces [1][3]. - The traditional industrial sector, represented by Meilian Holdings, highlights the financing needs of transforming traditional industries, aligning with the "technology-led, diversified supplement" structure of the Hong Kong IPO market [3]. - The influx of new IPOs may lead to market differentiation, where the quality of cornerstone investors and the ability to deliver on performance will be critical in distinguishing the companies [3]. - The simultaneous issuance of multiple new stocks may create a fund diversion effect, impacting the demand for public offerings and international placements [3].

Core Viewpoint - The A-share market's bull market does not guarantee profits for all industries, as there is significant divergence in performance among sectors, with some industries outperforming the market while others lag behind [1] Historical Bull Market Analysis - Historical data from the last decade indicates that each bull market's leading sectors are closely aligned with the prevailing development trends of the era [1] - In the 2005-2006 bull market, industries such as non-ferrous metals, non-bank financials, and real estate benefited from urbanization and economic reforms [1] - The 2014-2015 bull market saw a rise in TMT sectors due to the emergence of smart manufacturing and new consumption trends, alongside a stimulus-driven infrastructure boom [1] - Post-2019, sectors like liquor and pharmaceuticals thrived due to consumption upgrades, while the "dual carbon" policy led to a surge in carbon-neutral industries [1][2] Industry Performance in Bull Markets - The analysis of the top 10 performing industries in each bull market reveals that machinery, building materials, and defense industries consistently ranked high, with significant gains even in years they did not make the top 10 [3] ETF Investment Strategies - **Machinery Sector**: The machinery sector, particularly in engineering and robotics, has maintained high performance. The Tianhong CSI Robotics ETF (159770) has a significant scale of over 7 billion, indicating strong market interest [4] - **Defense Industry**: The defense sector has shown consistent high performance across all four major bull markets from 2000 to 2021, with ETFs like Guotai CSI Defense ETF (512660) and Fuguo CSI Defense Leaders ETF (512710) exceeding 10 billion in scale [6] - **Building Materials**: The building materials sector is expected to benefit from increased demand and supply adjustments, with ETFs like Guotai CSI All-Index Building Materials ETF (159745) showing scale advantages [7]

Core Viewpoint - The report from Industrial Securities suggests that after a turbulent period, the Hong Kong stock market is expected to trend upwards starting in the second half of 2025, following the full digestion of tariff impacts on the Chinese economy [1] Group 1: Market Outlook - The Hong Kong stock market may maintain a "bottom-lifting large box oscillation" pattern before fully digesting tariff impacts, with potential for improvement in fundamentals and risk appetite thereafter [1] - The U.S. economy is projected to face a downturn in the second and third quarters of 2025, with persistent inflation and challenges in monetary policy affecting market confidence [3][4] Group 2: Investment Opportunities - The report identifies three strategic asset classes during the current period of international order restructuring: gold, military industry, and digital assets [2] - The focus on technology and new consumption sectors is highlighted, with an emphasis on distinguishing between genuine growth and market noise [8] - The upcoming peak period for the unlocking of restricted shares from April to September 2025 presents buying opportunities for genuine growth stocks, as adjustments from unlockings and reductions are seen as noise [7][8] Group 3: Sector Highlights - The report emphasizes the importance of new consumption trends, including service consumption, spiritual consumption, and AI consumption, which are expected to drive growth in the Chinese market [5] - The technology sector is noted for its breakthroughs, showcasing China's competitive strength in areas such as AI, robotics, and innovative pharmaceuticals [5] Group 4: Hong Kong Market Dynamics - The restructuring of the international order is expected to benefit the Hong Kong stock market, with a wave of quality companies listing and increased inflow of domestic and international capital [6] - The report anticipates a long-term bull market for Hong Kong stocks driven by the revaluation of Chinese assets and the influx of new economy companies [6][7] Group 5: Investment Strategy - The investment strategy suggests a strategic long position in the Hong Kong stock market, with a focus on both offensive and defensive measures [7] - The trend of "A-share characteristics" in Hong Kong is expected to enhance market activity, allowing for a broader range of investment opportunities beyond traditional blue-chip stocks [8]