Group 1 - The core viewpoint of the articles highlights the increasing interest of overseas investors in Chinese public funds, with a focus on the accessibility and low entry barriers these funds provide for global investors to tap into China's growth dividends [1][2][3] - Thai investors are particularly drawn to the Bualuang China A500 passive fund, which links to the Huaxia A500 ETF, allowing them to invest in leading Chinese companies with a minimum investment of only 500 Thai Baht (approximately 110 RMB) [2][3] - The B-CNA500P fund strategically reduces exposure to financial stocks while focusing on high-growth sectors such as technology and consumption, aligning with China's economic transformation from manufacturing to innovation and domestic consumption [3] Group 2 - The launch of the B-CNA500P fund in Thailand is part of a broader trend of Chinese public funds expanding into Southeast Asia, supported by initiatives like the Regional Comprehensive Economic Partnership (RCEP) and the Belt and Road Initiative [4] - Major Chinese asset management firms are establishing comprehensive pathways for market entry in Southeast Asia, including partnerships for launching ETFs and other investment products [4][5] - The collaboration between E Fund and Itaú Asset Management in Brazil resulted in the successful issuance of the Itaú E Fund MSCI China A50 ETF, enhancing connectivity between Chinese and Brazilian capital markets [5][6] Group 3 - Chinese public funds are also exploring opportunities in the Middle East, with firms like Fuqua Hong Kong partnering with local asset managers to launch Chinese equity funds [6][9] - The introduction of various cross-border investment products, such as the Southbound ETF and mutual recognition funds, reflects the industry's commitment to facilitating global asset allocation [10] - The establishment of overseas subsidiaries by Chinese public fund companies has become a crucial strategy for expanding their international presence, with over twenty firms having set up such entities since 2008 [10][11] Group 4 - The public fund industry is actively working to tell the "China story" and help global investors share in the benefits of China's economic development while meeting domestic investors' needs for global asset allocation [11]

Core Viewpoint - Hong Kong Stock Exchange (HKEX) reported strong performance in H1 2025, with total revenue of HKD 14.076 billion (YoY +33%) and net profit attributable to shareholders of HKD 8.519 billion (YoY +39%) [1] Revenue Breakdown - Trading fees and system usage fees increased by 49%, settlement and clearing fees by 48%, listing fees by 13%, custody and agency services fees by 23%, market data fees by 6%, and net investment income by 14% [1] - Revenue from the cash market, equity securities and financial derivatives, commodities, data and connectivity, and corporate projects grew by 62%, 15%, 8%, 5%, and 28% respectively [1] Quarterly Performance - In Q2 2025, total revenue reached HKD 7.219 billion (YoY +33%, QoQ +5%), and net profit attributable to shareholders was HKD 4.442 billion (YoY +41%, QoQ +9%), both setting new quarterly records [1] Market Activity - The Hang Seng Index saw a cumulative increase of 20% in H1 2025, with the average daily turnover in the cash market reaching HKD 240.2 billion, more than double that of H1 2024 [2] - The average daily turnover for the Shanghai-Hong Kong Stock Connect was HKD 171.3 billion (YoY +32%), while the Hong Kong Stock Connect averaged HKD 111 billion, nearly three times that of H1 2024 [2] IPO Activity - In H1 2025, 44 companies went public in Hong Kong, raising HKD 109.4 billion, which is over eight times the amount raised in H1 2024, driven by an increase in listings from mainland and international issuers [2] Derivatives Market - The derivatives market maintained an upward trend, with average daily turnover for structured products reaching HKD 17.4 billion (YoY +72%) and trading fees increasing by 64% [2] - Average daily contracts traded for derivatives reached 1.7 million (YoY +11%), with a decrease in futures contracts but an increase in stock options [2] Commodity Division - The LME trading and settlement fees grew, with average daily trading volume for metal contracts at 715,000 lots (YoY +3%) and trading fees of HKD 766 million (YoY +6%) [3] Investment Income - Investment income increased due to a rise in the average amount of self-owned funds to HKD 36.4 billion (YoY +8%) and an annualized investment return of 5.73% (YoY +0.40 percentage points) [3] - Margin requirements increased, leading to an average amount of margin and clearing funds of HKD 227.2 billion (YoY +15%) [3] Future Outlook - HKEX is expected to maintain high profit growth in 2025, with revised net profit forecasts of HKD 18.8 billion and HKD 20 billion for 2025 and 2026 respectively, reflecting YoY increases of 44% and 6% [4] - The anticipated PE ratios for 2025, 2026, and 2027 are 29.7, 27.9, and 26.5 times respectively, maintaining a "recommended" rating [4]

Investment Rating - The investment rating for the company is "Strong Buy" (maintained) [1][11] Core Views - The report highlights that the Hong Kong Stock Exchange (HKEX) has shown strong performance in the first half of 2025, with total revenue reaching 14.076 billion HKD, a year-on-year increase of 33%, and net profit attributable to shareholders at 8.519 billion HKD, up 39% year-on-year [2][6] - The report emphasizes the recovery of trading sentiment and the potential for performance and valuation recovery, driven by increased trading activity and improved market conditions [4][6] Financial Performance Summary - For the first half of 2025, the trading fees and transaction system usage fees increased by 49%, settlement and clearing fees by 48%, and listing fees by 13% [6] - The average daily trading volume in the cash market reached 240.2 billion HKD, more than double that of the first half of 2024, with the average daily trading volume for the Stock Connect program also showing significant growth [6] - The report projects a strong growth trajectory for the company, with net profit forecasts for 2025, 2026, and 2027 revised to 18.8 billion HKD, 20 billion HKD, and 21.1 billion HKD respectively, reflecting year-on-year growth rates of 44%, 6%, and 5% [6][8]

Core Viewpoint - Hong Kong-listed REITs are expected to enter the mainland market through the Stock Connect program, which is seen as a significant breakthrough for capital market connectivity and has strategic value for both Hong Kong and mainland investors [1][2]. Group 1: Performance of Listed REITs - Most listed REITs in Hong Kong reported a decline in revenue and net property income in their interim results [3][4]. - Yuexiu REIT reported total revenue of 966 million RMB, down 6.6% year-on-year, and net property income of 679 million RMB, down 8.6% [3]. - Prosperity REIT achieved revenue of 855 million HKD, down 2% year-on-year, with net property income of approximately 613 million HKD, down 3.2% [3]. - Sunshine REIT reported revenue of 391 million HKD, down 4.8% year-on-year, and net property income of approximately 307 million HKD, down 5.4% [3]. - SF REIT achieved revenue of approximately 230 million HKD, up 3.4% year-on-year, with net property income of approximately 192 million HKD, up 6% [3]. Group 2: Sector Performance - The performance of office, retail, and logistics properties remains challenging, while the hotel and tourism sectors have shown strong performance [5][7]. - The overall occupancy rate for Yuexiu REIT's properties was approximately 82.2%, a slight decline of 1.8 percentage points year-on-year [6]. - Sunshine REIT's overall occupancy rate was 89.2%, down 2 percentage points from the beginning of the period, with office occupancy at 90.0% and retail occupancy at 87.6% [6]. - The hotel and tourism sectors have seen significant growth, with properties like Guangzhou IFC serviced apartments achieving record revenue [7]. Group 3: Financing Costs - Financing costs have decreased, alleviating pressure on distributable income for several REITs [8]. - Yuexiu REIT reported financing costs of 403 million RMB, down 13.5% year-on-year, saving approximately 63 million RMB compared to the previous year [8]. - Sunshine REIT's weighted average financing cost decreased from 4.2% to 3.7% year-on-year [8]. - Prosperity REIT's financing costs decreased by 12.6% to 173 million HKD during the reporting period [8].

Core Viewpoint - The inclusion of exchange-traded funds (ETFs) in the mutual market access mechanism between mainland China and Hong Kong is aimed at enhancing the development of both capital markets and providing more investment opportunities for domestic and foreign investors [1][2][3]. Group 1: Regulatory Developments - The China Securities Regulatory Commission (CSRC) and the Hong Kong Securities and Futures Commission (SFC) have agreed to include eligible ETFs in the mutual market access framework [1]. - The public consultation on the rules for including ETFs in the mutual market access was initiated by the Shanghai and Shenzhen Stock Exchanges [3]. - The mutual market access mechanism has been operating steadily since its inception, contributing positively to attracting foreign long-term capital and improving market structure [1]. Group 2: ETF Inclusion Criteria - The criteria for including ETFs in the mutual market access require that mainland ETFs have an average daily asset size of 1.5 billion RMB over the past six months, while Hong Kong ETFs must have an average daily asset size of 1.7 billion HKD [3]. - The ETFs must primarily consist of stocks eligible for the Stock Connect program and must have been listed for at least six months with their underlying index published for at least one year [3]. Group 3: Market Impact and Investor Benefits - The inclusion of ETFs is expected to enrich the investment channels and products available to both domestic and foreign investors, facilitating better market resource alignment [4]. - Analysts believe that this move will improve the investor structure and promote the healthy development of the ETF market [4]. - The overall benefits of including ETFs in the mutual market access include promoting the joint development of capital markets, enriching investment options for investors, and enhancing the scale and liquidity of ETFs in both markets [4].

日前，经国务院同意，中国证监会、香港证监会批准上交所、深交所、港交所、中国结算和香港结算开 展沪深港通交易日历优化工作。两地证监会已发布《联合公告》，明确相关机制安排。优化后，沪深港 三所的共同交易日均可开通沪深港通交易。此举是认真贯彻落实党中央、国务院关于进一步扩大资本市 场高水平双向开放的重要举措，有利于进一步完善内地与香港股票市场交易互联互通机制，巩固香港国 际金融中心地位，促进内地与香港资本市场长期平稳健康发展。 双向交易日历优化 2014年、2016年沪深港通先后开通，总体运行平稳。截至今年6月底，沪深股通持有A股市值2.55万亿 元，港股通持有港股市值1.91万亿元，已成为参与两地市场运行的重要力量。 随着互联互通机制的发展深化，两地投资者对于优化沪深港通交易日历、增加交易日的需求日益增强， 市场呼声渐起。因两地假期安排不同、结算周期不同，出现部分日期无法交易的情形。比如，一地为交 易日，但另一地为节假日；或者，两地市场虽同为交易日，但一方的交收日是另一方的节假日。另外， 港股通当前仍然采取"T+2"的交收安排，其享有红利、送股等权益的最后交易日将与权益登记日相分 离，因此若出现交易时间两地都开市 ...

Group 1 - The core viewpoint is that the inclusion of 129 A-shares, including 11 from the Sci-Tech Innovation Board, into the FTSE Global Equity Index Series signifies increasing international recognition and investment in the A-share market [1][2] - The addition of these A-shares is expected to enhance foreign capital allocation and bring in more incremental funds, particularly an estimated $100 million for the Sci-Tech Innovation Board [1][2] - The move reflects a growing demand from overseas investors for investment in the Sci-Tech Innovation Board, which is anticipated to boost trading volume and liquidity, thereby enhancing overall valuations [2][3] Group 2 - The trend of increasing foreign investment in the A-share market is supported by China's long-term economic confidence and ongoing capital market reforms [3] - Recent data indicates that foreign capital has been steadily increasing its allocation to the A-share market, with net purchases reaching 217.178 billion yuan over the past year [3] - The process of international indices gradually incorporating A-shares is evolving from a limited selection to a broader coverage, reflecting a deeper understanding of the Chinese capital market [3]

Summary of Key Points Core Viewpoint - The Hong Kong Stock Exchange reported that during the week of July 21 to July 27, a total of 9 companies submitted applications, 1 company passed the hearing, and 1 new stock was listed. Company Summaries - **GoerTek Inc.**: Submitted an application on July 21, focusing on smart sensing interaction solutions, particularly acoustic sensors. It is the fifth largest global provider in this sector with a market share of 2.2% and the largest in China. Revenue for 2022 to 2024 was approximately RMB 31.21 billion, RMB 30.01 billion, and RMB 45.36 billion respectively, with net profits of RMB 3.26 billion, RMB 2.89 billion, and RMB 3.09 billion [2][2]. - **Guangdong Tianyu Semiconductor Co., Ltd.**: Submitted an application on July 22, specializing in silicon carbide epitaxial wafers. It holds the top position in China's market with a revenue market share of 30.6%. Revenue for 2022 to 2024 was approximately RMB 4.37 billion, RMB 11.71 billion, and RMB 5.2 billion respectively, with net profits of RMB 281.4 million, RMB 95.88 million, and a loss of RMB 500 million [3][3]. - **Daheng Technology (Shenzhen) Co., Ltd.**: Submitted an application on July 22, known for its folding bicycles, holding a market share of 26.3% in volume and 36.5% in revenue in China. Revenue for 2022 to 2024 was approximately RMB 2.54 billion, RMB 3 billion, and RMB 4.51 billion respectively, with net profits of RMB 314.34 million, RMB 34.85 million, and RMB 52.29 million [4][4]. - **Juzhi Technology Development Co., Ltd.**: Submitted an application on July 23, focusing on baby monitoring products. Revenue for 2022 to 2024 was approximately RMB 1.90 billion, RMB 3.48 billion, and RMB 4.62 billion respectively, with net profits of RMB 34.82 million, RMB 63.36 million, and RMB 94.69 million [5][6]. - **Jiangsu Zhonghui Yuantong Biotechnology Co., Ltd.**: Submitted an application on July 24, specializing in vaccines. Revenue for 2023 to 2025 was approximately RMB 52.17 million, RMB 260 million, and RMB 410,000 respectively, with net losses of RMB 425 million, RMB 259 million, and RMB 87.32 million [7][7]. - **Fujian Lemo IoT Technology Co., Ltd.**: Submitted an application on July 25, a leader in smart massage services in mainland China, with a market share of 33.9% to 42.9% from 2022 to 2024. Revenue for 2022 to 2024 was approximately RMB 3.30 billion, RMB 5.87 billion, and RMB 7.98 billion respectively, with net profits of RMB 6.48 million, RMB 87.34 million, and RMB 85.81 million [8][8]. - **Anhui Jinyan High Clay New Materials Co., Ltd.**: Submitted an application on July 25, specializing in kaolin materials with a market share of 19.1%. Revenue for 2022 to 2024 was approximately RMB 1.90 billion, RMB 2.05 billion, and RMB 2.67 billion respectively, with net profits of RMB 24.42 million, RMB 43.61 million, and RMB 52.60 million [9][9]. - **Shandong Shengruan Technology Co., Ltd.**: Submitted an application on July 26, providing digital solutions for energy and manufacturing sectors. Revenue for 2022 to 2024 was approximately RMB 3.91 billion, RMB 5.02 billion, and RMB 5.25 billion respectively, with net profits of RMB 37.60 million, RMB 53.70 million, and RMB 59.30 million [10][10]. - **AIWB Inc.**: Submitted an application on July 25, focusing on smart building solutions in Texas. Revenue for 2022 to 2024 was approximately USD 103 million, USD 121 million, and USD 105 million respectively, with net losses of USD 347,000, USD 620,000, and USD 531,000 [11][11]. Company Hearing and IPO - **Jiangsu Zhonghui Yuantong Biotechnology Co., Ltd.**: Passed the hearing on July 27, focusing on innovative vaccines with two core products. Revenue for 2023 to 2025 was approximately RMB 52.17 million, RMB 260 million, and RMB 410,000 respectively, with net losses of RMB 425 million, RMB 259 million, and RMB 87.32 million [12][12]. - **Vili Zhibo-B (09887.HK)**: Launched an IPO from July 17 to July 22, with a subscription rate of 3494.78 times in the public offering. The stock began trading on July 25 at HKD 67.10, a 91.71% increase [13][14].

Group 1 - Hong Kong's international financial center is thriving, with the Hong Kong Stock Exchange leading global IPO activities, completing 35 IPOs and raising nearly 1000 billion HKD by June 23, 2025 [1] - The number of companies waiting for IPO approval in Hong Kong exceeds 160, with over 40 applications submitted in May alone [1] Group 2 - Chinese securities firms play a crucial role in enhancing Hong Kong's status as an international financial center, becoming significant players in the IPO market and driving fundraising to global prominence [2][3] - The IPO market in Hong Kong has shown a notable recovery, with fundraising exceeding the total for the entire year of 2024, aided by Chinese securities firms' deep local resources and understanding of regulatory frameworks [3] Group 3 - Chinese securities firms are increasingly dominating the IPO market, surpassing foreign institutions in the number of projects, as evidenced by the successful listing of Haitian Flavoring and Food Company, which became the second-largest IPO in Hong Kong this year [4] - The involvement of major international investment banks alongside Chinese firms highlights the growing maturity and competitiveness of Chinese securities firms in the local market [4] Group 4 - Chinese securities firms facilitate cross-border capital flow and deepen the connectivity between mainland and Hong Kong capital markets, with a significant increase in trading volume through the Hong Kong Stock Connect [5] - In 2024, the trading amount serviced by Chinese securities firms for the Hong Kong Stock Connect reached 11.2 trillion HKD, a year-on-year increase of 64.9% [5] Group 5 - Chinese securities firms are expanding their presence in Hong Kong, with 35 subsidiaries established by the end of 2024, reflecting their commitment to the market [6] - The establishment of a wholly-owned subsidiary by Western Securities with an investment of 1 billion RMB underscores the confidence of Chinese firms in maintaining financial stability in Hong Kong [6]

Core Viewpoint - The "ETF Connect" has significantly transformed the capital market landscape in China over the past three years, enhancing trading activity and providing new momentum for market development [1][2]. Summary by Sections Development and Growth of "ETF Connect" - Since its launch on July 4, 2022, the number of "ETF Connect" products has increased from 87 to 265, reflecting a substantial expansion in product offerings [3][4]. - Trading volume has surged, with northbound trading reaching a total of 256.36 billion RMB in the first five months of the year, a 148% increase compared to the same period last year, while southbound trading amounted to 416.34 billion HKD, a 180% increase [3][4]. Impact on Market Integration and Internationalization - "ETF Connect" has played a crucial role in enhancing the integration of domestic and Hong Kong markets, facilitating cross-border investment and promoting the internationalization of the RMB [4][5]. - The mechanism has been recognized as a key component of China's financial opening strategy, providing a more convenient and efficient investment channel compared to traditional methods like QFII and RQFII [7][8]. Advantages of "ETF Connect" - The mechanism allows for easier access to a diverse range of investment products without the complexities of qualification and capital approval processes, thus attracting more international investors [7][8]. - "ETF Connect" has been described as a "passive investment bridge" that not only enhances trading activity but also fosters deeper integration of market rules, valuation systems, and investor structures between mainland China and Hong Kong [8][9]. Future Potential and Innovations - The lowering of entry thresholds for "ETF Connect" is expected to further stimulate product innovation and layout by asset management institutions in both regions [8]. - The inclusion of REITs and support for leading domestic companies to list in Hong Kong are among the measures being implemented to inject new vitality into the capital market [9].