Report Summary 1. Market Performance - Hong Kong stocks rose with the Hang Seng Index up 169 points or 0.7% to 24,902, the Hang Seng China Enterprises Index up 57 points or 0.65% to 8,951, and the Hang Seng Tech Index up 39 points or 0.7% to 5,521. The total turnover was HK$229.399 billion [1]. - A - shares advanced with the Shanghai Composite Index up 34 points or 1% to 3,617, the Shenzhen Component Index up 65 points or 0.6% to 11,106, and the ChiNext Index up 9 points or 0.4% to 2,343. The turnovers were RMB656.4 billion, RMB939.7 billion, and RMB475.6 billion respectively [2]. - US stocks fell with the Dow Jones Industrial Average down 61 points or 0.1% to 44,111, the S&P 500 Index down 30 points or 0.5% to 6,299, and the Nasdaq Composite down 137 points or 0.7% to 20,916 [2]. 2. Policy and Economic Data - The People's Bank of China conducted RMB160.7 billion of seven - day reverse repurchase operations on the 5th, with an operating rate unchanged at 1.4%. There were RMB449.2 billion of reverse repurchases maturing, resulting in a net withdrawal of RMB288.5 billion. The central parity rate of the RMB against the US dollar was raised by 29 points to 7.1366 [2]. - China's July S&P Global Services PMI rose to 52.6, while the Composite PMI fell to 50.8 [2]. - The US July ISM Services Index was worse than expected, increasing concerns about stagflation [2]. 3. Trade - related Statements - US President Trump said that the EU's commitment to invest $600 billion in the US in the US - EU trade agreement was one reason for him to lower the tariff on EU goods to 15%. If the condition was not met, the tariff on EU goods would be 35% [3]. - Trump also said that the US would announce tariffs on semiconductor and pharmaceutical imports in about a week. The initial tariff rate for pharmaceuticals would be low, rising to 150% within a year and a half and eventually to 250%. Semiconductor and chip tariff measures would be in another category [4]. 4. Company - specific News - Li Xiang, CEO of Li Auto - W (02015.HK) (LI.US), revealed that the small - order users of Li i8 exceeded 30,000 [4]. - Yum China (09987.HK) reported its six - month interim results as of June. The total revenue was $5.768 billion, up 2.3% year - on - year. The net profit was $507 million, up 1.6%, with an earnings per share of $1.36 and a dividend per share of 24 cents [4]. - Hon Hai Precision Industry, a major server assembly partner of Nvidia (NVDA.US), saw its July sales growth slow down. Its July sales increased 7.25% year - on - year to NT$613.8 billion (about $20.5 billion), the lowest increase since January [4]. - The interim results of The Link REIT (00778.HK) as of the end of June showed that the distributable income was HK$377 million, up 2.1% year - on - year. The interim distribution per fund unit was 18.41 cents, up 1% from the previous year. The annualized distribution yield per fund unit was 7.7% based on the closing price on June 30 [5].

Market Performance - The Hang Seng Index rose by 129 points or 0.5%, closing at 25,667 points, marking a five-day consecutive increase[1] - The Shanghai Composite Index increased by 23 points or 0.7%, closing at 3,605 points, reaching a nine-month high[2] - The S&P 500 index gained 4 points, closing at 6,363 points, while the Dow Jones Industrial Average fell by 316 points or 0.7%[2] Economic Indicators - The People's Bank of China conducted a 331 billion yuan reverse repurchase operation at a steady rate of 1.4%, resulting in a net withdrawal of 119.5 billion yuan for the day[2] - The RMB/USD midpoint rose by 29 pips to 7.1385, the highest since November of the previous year[2] Automotive Industry - In June 2025, sales of Chinese brand passenger cars reached 1.707 million units, a month-on-month increase of 5.3% and a year-on-year increase of 19.3%, capturing 67.3% of total passenger car sales[3] Corporate Earnings - Kintor Pharmaceutical (00148.HK) expects a net profit increase of over 70% for the six months ending June 2025, exceeding approximately 2.56 billion yuan[4] - Lingbao Gold (03330.HK) anticipates revenue between 7.492 billion to 7.92 billion yuan, representing a year-on-year increase of approximately 75% to 85%[4]

Market Performance - The Hang Seng Index (HSI) rose by 408 points or 1.6%, closing at 25,538 points, marking a three-year high and a four-day consecutive increase[1] - The Hang Seng Tech Index increased by 138 points or 2.5%, closing at 5,745 points[1] - The total trading volume in Hong Kong was 333.067 billion HKD[1] Economic Indicators - The People's Bank of China conducted a 150.5 billion CNY reverse repurchase operation at a steady rate of 1.4%[1] - The CNY/USD midpoint rose by 46 pips to 7.1414, the highest level since November 6 of the previous year[1] A-Share Market - The Shanghai Composite Index (SSE) gained less than 1 point or 0.01%, closing at 3,582 points with a trading volume of 857.05 billion CNY[1] - The Shenzhen Component Index fell by 40 points or 0.4%, closing at 11,059 points, with a trading volume of 1.01 trillion CNY[1] - The ChiNext Index decreased by less than 1 point or 0.01%, closing at 2,310 points, with a trading volume of 448.7 billion CNY[1] Trade Agreements - The EU and the US are reportedly close to an agreement to impose a 15% tariff on most products, which led to a rise in US stock markets[2] - The Dow Jones Industrial Average increased by 507 points or 1.1%, reaching 45,016 points, near its historical high[2] - The S&P 500 index rose by 49 points or 0.8%, closing at 6,358 points, marking the 12th record high this year[2] Corporate Earnings - WuXi Biologics (02269.HK) expects a 16% year-on-year increase in revenue for the first half of the year, with a gross margin improvement of approximately 3.6%[3] - Profit attributable to equity shareholders is projected to grow by about 54% year-on-year, with adjusted net profit expected to increase by around 11%[3]

Report Overview - The report provides a comprehensive review of the financial markets on July 22, 2025, including stock indices, central bank operations, economic data, and corporate news [1][2][4] Market Indices Hong Kong Stock Market - The Hang Seng Index opened 165 points higher and reached a high of 25,010 points, a three - year high since February 2022, closing at 24,994 points, up 168 points or 0.7% with a turnover of HK$263.012 billion [1] - The Hang Seng China Enterprises Index rose 53 points or 0.6% to close at 9,040 points [1] - The Hang Seng Tech Index rose 46 points or 0.8% to close at 5,585 points [1] A - share Market - The Shanghai Composite Index rose 25 points or 0.7% to close at 3,559 points, a nine - month high since October last year, with a turnover of RMB730.9 billion [2] - The Shenzhen Component Index rose 93 points or 0.9% to close at 11,007 points, with a turnover of RMB969.1 billion [2] - The ChiNext Index rose 19 points or 0.9% to close at 2,296 points, with a turnover of RMB444 billion [2] US Stock Market - The S&P 500 Index rose 0.1% to close at 6,305 points, closing above 6,300 points for the first time, and the Nasdaq rose 78 points or 0.4% to close at 20,974 points [2] Central Bank Operations - The People's Bank of China conducted 170.7 billion yuan of seven - day reverse repurchase operations on July 21, with an operating rate of 1.4%. There were 226.2 billion yuan of reverse repurchases maturing, resulting in a net withdrawal of 55.5 billion yuan [2] - The central parity rate of the RMB against the US dollar was set at 7.1522, down 24 points [2] Economic Data - The overall consumer price index in June 2025 increased by 1.4% year - on - year, lower than the market expectation of 1.7% and the 1.9% increase in May 2025. The basic inflation rate was 1%, the same as in May [4] Corporate News - JD.com's self - operated takeaway store "Seven Fresh Kitchen" opened on July 20 [4] - Transsion Holdings is considering a secondary IPO in Hong Kong, planning to raise about US$1 billion (equivalent to about HK$7.8 billion), but the discussion is in the early stage [4] - Harbin Electric issued a profit warning, expecting a net profit of about 1.02 billion yuan for the six months ended June, compared with 523 million yuan in the same period last year [5] - Meitu expects an adjusted net profit attributable to the parent company's equity holders to increase by about 65% - 72% year - on - year for the six months ended June 30, 2025. Considering non - cash and non - operating items, the net profit is expected to increase by no less than 30% [5] International News - The Kremlin said it does not rule out a meeting between the Russian and US presidents if they both visit Beijing in September. Russian President Putin will visit China for the 80th anniversary of the end of World War II [3] - US Treasury Secretary Bessent said the US government focuses on the quality of trade agreements and will not rush to reach an agreement. Countries in trade negotiations with the US may face high tariffs if no agreement is reached by August 1 [3]

Core Insights - The report highlights a mixed performance in the US stock market, with only the Nasdaq index declining as the market awaits the announcement of reciprocal tariffs by President Trump [5] - European markets also experienced declines, particularly the French CAC40 index, influenced by the uncertainty surrounding the upcoming tariffs [5] - The Hang Seng Index and the National Index both fell, with the Hang Seng Index showing a larger decline due to the tariff concerns [5] - The Shanghai Composite Index and Shenzhen Component Index also saw declines, with the Shenzhen Component Index experiencing a more significant drop [5] - The report notes that the telecommunications sector led gains in the CSI 300 index, while the industrial sector faced the largest losses [5] Economic Data Summary - China's Manufacturing Purchasing Managers' Index (PMI) for March was reported at 50.5, slightly above the market expectation of 50.4, while the Non-Manufacturing PMI was at 50.8, also above the expected 50.6 [6] - The Composite PMI for China was reported at 51.4, up from the previous value of 51.1 [6] - In Germany, the Consumer Price Index (CPI) for March showed a month-on-month increase of 0.3%, matching market expectations, while the year-on-year CPI was reported at 2.2%, in line with expectations [6] - Japan's industrial production year-on-year growth for March was reported at 0.3%, below the expected 1.2% [6] Major News Summary - President Trump's upcoming announcement regarding reciprocal tariffs is expected to impact market sentiment significantly [9] - The uncertainty surrounding tariffs and tax cuts has led US companies to temporarily postpone spending plans, affecting investment expectations [9] - Germany's inflation rate has slowed more than expected, nearing the European Central Bank's target level, which may influence future monetary policy decisions [9] - The People's Bank of China conducted a 800 billion yuan reverse repurchase operation in March, indicating a cautious approach to liquidity management amid tariff threats [9] - Sales figures for China's top 100 real estate companies in March showed a year-on-year decline of 11%, reflecting weak demand in the market [9]