Core Viewpoint - The report from CICC indicates a downward revision of revenue and profit forecasts for Poly Property (06049) for the fiscal years 2025 and 2026 due to underperformance in value-added services [1] Group 1: Financial Projections - Revenue and profit forecasts for Poly Property for FY2025 and FY2026 have been lowered due to weaker-than-expected performance in value-added services [1] - The target price has been adjusted from HKD 32 to HKD 36.6 based on a target price-to-earnings ratio of 10.5 times, which is 0.5 standard deviations below the five-year average [1] Group 2: Business Performance - Despite the core property management business maintaining overall resilience, the growth momentum is expected to slow down due to weak project delivery in the industry and sluggish sales activities impacting non-owner value-added services [1] - The defensive advantage provided by the state-owned enterprise background is highlighted as a positive factor for the company [1]

Market Overview - The A-share market showed significant differentiation last week (May 12 to May 16), with large-cap stocks performing well while small-cap and Sci-Tech Innovation Board faced slight pressure. The Shanghai 50 and CSI 300 rose by 1.22% and 1.12% respectively, indicating the defensive advantage of undervalued blue-chip stocks. The ChiNext 50 increased by 2.00%, reflecting the attractiveness of large-cap growth sectors. Conversely, the Sci-Tech 50 fell by 1.10%, possibly due to underwhelming earnings from some semiconductor companies and capital diversion to other tech sectors [2][12]. Industry Performance - Last week, 65% of sectors achieved positive returns, with beauty care, non-bank financials, and automotive sectors performing relatively well, rising by 3.08%, 2.49%, and 2.40% respectively. In contrast, media, defense, and computer sectors showed significant weakness, declining by 0.77%, 1.18%, and 1.26% respectively [2][14]. Fund Issuance - A total of 23 funds were issued last week, including 12 equity funds, 5 mixed funds, 5 bond funds, and 1 fund of funds (FOF), with a total issuance of 24.004 billion units [2][20]. Fund Performance - The Wind China Fund Total Index rose by 0.17% last week. The ordinary equity fund index increased by 0.26%, while the mixed equity fund index rose by 0.30%. The bond fund index saw a slight decline of 0.05% [3][10]. Global Asset Review - Global markets exhibited significant divergence last week, with equity markets generally rising, driven by technology stocks. The S&P 500 and Nasdaq increased by 4.54% and 6.60% respectively, propelled by better-than-expected earnings from AI leaders like Nvidia. European markets also showed resilience, with the German DAX and French CAC both rising over 0.8%, reflecting enhanced economic resilience in the Eurozone. The Hang Seng Index in the Asia-Pacific region rose by 2.09%, influenced by positive signals from US-China trade talks [5][6]. Domestic Bond Market Review - Last week, the 10-year and 30-year government bond futures fell by 0.51% and 1.17% respectively, indicating upward pressure on yields. The short-term funding spread (R007-DR007) showed no significant compression compared to the previous week, while medium to long-term rates remained low [15][19].