Report Industry Investment Rating - Not provided in the content Core Viewpoints - In July, the global economic data still showed resilience, but there were still pressures in domestic monthly economic data. The A-share market was strong on August 18, with the Shanghai Composite Index reaching a near 10-year high, and the Shenzhen Component Index and ChiNext Index breaking through last year's highs. The bond market tumbled, and commodities were divided. Attention should be paid to the impact of "reciprocal tariffs" and the progress of "anti-involution" [1]. - The current tariffs are still in a "stagnant" stage, which will bring certain drag to commodities greatly affected by external demand. After the July interest rate meeting, Powell did not give guidance on a September rate cut, emphasizing the uncertainty of tariffs and inflation [2]. - For commodities, the black and new energy metal sectors are most sensitive to the domestic supply side, the energy and non-ferrous sectors benefit significantly from overseas inflation expectations, and the "anti-involution" space of some chemical products is also worthy of attention. The short - term fluctuation space of agricultural products is relatively limited [3]. - For strategies, it is recommended to allocate more industrial products on dips in commodities and stock index futures [4]. Summary by Directory Market Analysis - In July, China's official manufacturing PMI dropped to 49.3, non - manufacturing remained in expansion, exports increased by 7.2% year - on - year in US dollars, monetary supply exceeded expectations, but financing and loan data were still weak, and investment data had obvious pressure. In the US, the July non - farm payrolls data was below expectations, but the service PMI improved significantly, and the "Great Beauty" bill might support subsequent consumption. On August 18, the A - share market was strong, with the total market turnover exceeding 2.8 trillion yuan, the third - highest in history. Market hotspots focused on AI hardware stocks, brokers, and fintech, while the bond market tumbled and commodities were divided [1]. Tariff Impact - On July 31, the White House re - set "reciprocal tariff" rates. From August 12, 2025, the implementation of a 24% tariff was suspended for 90 days until November 10. On August 15, the Trump administration expanded the scope of a 50% tariff on steel and aluminum imports and might announce a semiconductor tariff of up to 300% within two weeks. Current tariffs are in a "stagnant" stage, dragging down some commodities [2]. Commodity Analysis - The black sector is still dragged down by downstream demand expectations, and the non - ferrous sector's supply constraints have not been alleviated. The medium - term supply of the energy sector is considered to be relatively loose, with OPEC+ accelerating production and increasing production by 548,000 barrels per day in August. The "anti - involution" space of some chemical products is worthy of attention, and the short - term fluctuation of agricultural products is relatively limited. Since the "anti - involution" market started in July, major varieties have retreated to varying degrees [3]. Strategy - For commodities and stock index futures, it is recommended to allocate more industrial products on dips [4]. To - do News - On August 18, the market was strong, with the Shanghai Composite Index reaching a near 10 - year high, over 4000 stocks rising, and the trading volume reaching 2.81 trillion yuan. Trump will meet with Zelensky and European leaders on the 18th. The European Council President emphasized the importance of trans - Atlantic unity, and the EU will introduce the 19th round of sanctions against Russia in early September [5].

Core Viewpoint - The recent surge of Hong Kong-based brokerage firms seeking to list in the US stock market reflects a strategic move to capitalize on valuation benefits and operational efficiencies available in the Nasdaq market [1][2][3] Group 1: Listing Trends - Four Hong Kong brokerages, including Sibor Holdings, Hongbo Capital, Beta Financial, and Mango Financial, have initiated their US listing processes, with three opting for direct Nasdaq listings and one pursuing a SPAC merger [1] - The choice of Nasdaq as the listing destination is influenced by recent successful listings of other Hong Kong brokerages, indicating a trend towards Nasdaq as a testing ground for Hong Kong firms [1] Group 2: Motivations for US Listings - The primary motivation for these firms to list in the US is the balance between efficiency and valuation flexibility, as Nasdaq offers a more manageable compliance burden compared to Hong Kong and A-share markets [2] - The valuation disparity is significant, with Hong Kong brokerages receiving a price-to-book (P/B) ratio of 1.0-1.2, while Nasdaq-listed fintech peers achieve P/B ratios of 3-5 [2] - The financial thresholds for listing in the US are perceived to be lower, allowing firms to focus on growth without the historical burdens of profitability and competition [2] Group 3: Business Strategies and Licensing - Each brokerage is leveraging its existing licenses to expand into specific areas or enhance overseas qualifications, with Sibor Holdings focusing on asset management, Hongbo Capital on corporate financing, and Beta Financial on building a multi-market service network [2] - The capital raised will be allocated towards developing new funds, enhancing financial consulting services, and applying for additional licenses in the US and Southeast Asia [2] Group 4: Industry Challenges and Considerations - While the move to the US market presents opportunities, it also comes with regulatory challenges, including compliance with the HFCAA and PCAOB requirements [3][4] - The potential risks include market volatility for small-cap stocks, compliance costs, and the impact of high US dollar interest rates on profitability [4] - Legal considerations regarding VIE structures and the need for a robust compliance framework are critical for these firms as they navigate the complexities of international markets [4]

Report Industry Investment Rating - Not provided in the content Core Viewpoints - Trump's tariff policy is advancing, but the resilience of the US job market supports the three major US stock indices to close in the green. In China, as policy expectations become clearer, the heavyweight sectors start a catch - up rally, with the real estate sector significantly rebounding and the stock prices of the four major banks hitting new highs, driving up the Shanghai Composite Index. The strong performance of the equity market is expected to form a capital attraction effect, increasing the willingness of residents to transfer savings and long - term institutional funds to enter the market, which lays a solid foundation for the long - term healthy operation of the capital market [3] Summary by Relevant Catalogs Market Analysis - Domestically, from January 1, 2025, the basic pension level of retirees who have completed retirement procedures and receive monthly basic pensions by the end of 2024 will be increased by 2%, based on the average monthly basic pension of retirees in 2024. Overseas, Trump urges Fed Chairman Powell to cut interest rates and announces a 50% tariff on imported copper starting from August 1, 2025. He also criticizes the Fed's current interest rate policy, claiming that the interest rate is at least 3 percentage points too high, causing an annual refinancing cost of $360 billion for the US [1] Spot Market - A - share indices rise, with the Shanghai Composite Index up 0.48% at 3509.68 points and the ChiNext Index up 0.22%. The real estate, petroleum and petrochemical, steel, and non - banking financial sectors lead the gains, while the automobile, media, and national defense and military industries lead the declines. The trading volume of the Shanghai and Shenzhen stock markets remains at 1.5 trillion yuan. In the US, the number of initial jobless claims is 227,000, the lowest in two months, and the number of continuing jobless claims is 1.965 million, still the highest since the end of 2021. The three major US stock indices close slightly higher, with the Dow up 0.43% at 44,650.64 points [2] Futures Market - In the futures market, the basis of stock index futures fluctuates slightly. The trading volume and open interest of stock index futures increase simultaneously [2] Strategy - The current strong performance of the equity market can attract funds, with increased willingness of residents to transfer savings and long - term institutional funds to enter the market, which is beneficial for the long - term healthy operation of the capital market [3] Macroeconomic Charts - The charts include the relationship between the US dollar index and A - share trends, the US Treasury yield and A - share trends, the RMB exchange rate and A - share trends, and the US Treasury yield and A - share style trends [6][8][10] Spot Market Tracking Charts - The table shows the daily performance of major domestic stock indices. For example, the Shanghai Composite Index rises 0.48% to 3509.68 points, the Shenzhen Component Index rises 0.47% to 10,631.13 points, and the ChiNext Index rises 0.22% to 2189.58 points. There are also charts of the trading volume of the Shanghai and Shenzhen stock markets and the margin trading balance [13][14] Futures Market Tracking Charts - The table shows the open interest and trading volume of stock index futures. For example, the trading volume of IF is 97,027, an increase of 14,938, and the open interest is 258,020, an increase of 11,835. There are also charts of open interest, open interest ratio, net open interest of foreign capital, basis, and inter - delivery spread of different stock index futures contracts [17][42][50]

Report Industry Investment Rating - Not provided in the content Core Viewpoints - Amid uncertainties in Sino-US trade negotiations and unresolved market sentiment volatility risks, the market is expected to undergo a technical correction after a short-term rapid decline. It is recommended to focus on the layout of large-cap index futures and use small and medium-cap index futures for hedging [3] Summary by Directory Market Analysis - Domestically, the central budgetary investment for social undertakings is expected to increase by over 30% compared to the end of the "13th Five-Year Plan". Policies related to social security, education, and employment are being promoted, and the basic pension for retirees will be moderately raised, with plans to establish a childcare subsidy system. Overseas, the US and Mexico are close to an agreement to cancel a 50% tariff on a certain quantity of steel imports [1] - In the spot market, the three major A-share indices rebounded after hitting bottom. The Shanghai Composite Index fell 0.44% to close at 3384.82 points, and the ChiNext Index fell 1.17%. Most sector indices declined, with the beauty care, banking, and pharmaceutical sectors leading the gains, while the national defense and military industry, computer, electronics, and communication sectors led the losses. The trading volume in the Shanghai and Shenzhen stock markets increased to 1.4 trillion yuan. Overseas, the three major US stock indices closed higher, with the Nasdaq rising 0.63% to 19714.99 points [2] - In the futures market, only the IM basis rebounded. On the trading volume and open interest front, the trading volume of index futures increased on the day, and the open interest of IH and IM rose [2] Strategy - Given the uncertainties in Sino-US trade negotiations and the lingering risks of market sentiment fluctuations, it is expected that after a short-term rapid decline, the market will experience a technical correction. Operationally, it is advisable to focus on the layout of large-cap index futures and use small and medium-cap index futures for hedging [3] Macro Economic Charts - The content mainly lists charts related to the relationship between the US dollar index, US Treasury yields, RMB exchange rate, and A-share trends, as well as the relationship between US Treasury yields and A-share styles [6][10][12] Spot Market Tracking Charts - The daily performance of major domestic stock indices on June 10, 2025, shows that the Shanghai Composite Index fell 0.44%, the Shenzhen Component Index fell 0.86%, the ChiNext Index fell 1.17%, the CSI 300 Index fell 0.51%, the SSE 50 Index fell 0.08%, the CSI 500 Index fell 0.82%, and the CSI 1000 Index fell 0.92% [14] Futures Market Tracking Charts - The trading volume and open interest data of index futures show that the trading volume of IF, IH, IC, and IM increased, and the open interest of IH and IM rose, while that of IF and IC decreased [16] - The basis data of index futures show that only the IM basis increased, while the basis of IF, IH, and IC decreased or changed slightly [36] - The inter - delivery spread data of index futures show the differences and changes in spreads between different delivery months of IF, IH, IC, and IM [43][45]

Report Industry Investment Rating - Not provided in the content Core Viewpoints - The double positive factors of Trump delaying the tariff increase on the EU and the unexpected rebound of the US consumer confidence index have boosted the market's risk appetite, leading to a full - scale rise in the three major US stock indexes. In the domestic market, the main stock indexes continue to correct. With the continuous release of the bottom - support momentum of large funds, it is recommended to seize the opportunity to buy the large - cap stock index on dips [3] Summary by Related Catalogs Market Analysis - **Enterprise Profits**: In April, the profits of China's large - scale industrial enterprises increased by 3% year - on - year, 0.4 percentage points faster than in March. New - kinetic energy industries represented by equipment manufacturing and high - tech manufacturing had rapid profit growth. In May, the US consumer confidence index rose significantly from 85.7 in April to 98, higher than market expectations [1] - **Stock Index Adjustment**: In the domestic spot market, the three major A - share indexes fluctuated and adjusted. The Shanghai Composite Index fell 0.18% to close at 3340.69 points, and the ChiNext Index fell 0.68%. Most sector indexes declined, with textile and apparel, medicine and biology, and beauty care industries leading the gains, and non - ferrous metals, electronics, and automobile industries leading the losses. The trading volume of the Shanghai and Shenzhen stock markets remained at one trillion yuan. China Chengtong's subsidiary subscribed to the CSI Chengtong SOE Digital Economy ETF with a total amount of 600 million yuan. In the overseas market, the three major US stock indexes rose across the board, with the Nasdaq rising 2.47% to 19199.16 points [1] - **Futures Index Changes**: In the futures market, the basis of stock index futures showed a differentiated trend, and the basis of IM continued to rise. In terms of trading volume and open interest, only the trading volume of IM rebounded, and the open interest of the four major stock index futures increased [2] Strategy - Seize the opportunity to buy the large - cap stock index on dips in the domestic market [3] Macro - economic Charts - Include charts on the relationship between the US dollar index and A - share trends, the relationship between US Treasury yields and A - share trends, the relationship between the RMB exchange rate and A - share trends, and the relationship between US Treasury yields and A - share style trends [5][7][8] Spot Market Tracking Charts - **Stock Index Performance**: On May 27, 2025, the Shanghai Composite Index was 3340.69 points, down 0.18% from the previous day; the Shenzhen Component Index was 10029.11 points, down 0.61%; the ChiNext Index was 1991.64 points, down 0.68%; the CSI 300 Index was 3839.40 points, down 0.54%; the SSE 50 Index was 2685.28 points, down 0.46%; the CSI 500 Index was 5652.15 points, down 0.31%; the CSI 1000 Index was 6008.46 points, down 0.34% [14] - Also include charts on the trading volume of the Shanghai and Shenzhen stock markets and the margin trading balance [15] Stock Index Futures Tracking Charts - **Trading Volume and Open Interest**: The trading volume of IF was 75774, a decrease of 10972; the trading volume of IH was 39115, a decrease of 7003; the trading volume of IC was 74989, a decrease of 8598; the trading volume of IM was 195063, an increase of 9659. The open interest of IF was 240995, an increase of 5370; the open interest of IH was 81979, an increase of 1589; the open interest of IC was 209867, an increase of 927; the open interest of IM was 329034, an increase of 10340 [17][18] - **Basis**: The basis data of the current - month, next - month, current - quarter, and next - quarter contracts of IF, IH, IC, and IM are provided, with different changes in basis values [37] - **Inter - period Spread**: The inter - period spread data of IF, IH, IC, and IM for different periods (next - month minus current - month, next - quarter minus current - month, etc.) are provided, along with their changes [42][44][45]

Core Viewpoint - The article discusses the strategic development and success of the FICC team at Ping An Bank, highlighting its evolution from a nascent group to a leading market player in bond market making and liquidity provision in China [3][6][26]. Group 1: Strategic Development - The FICC team was established in 2015 with a long-term vision to develop a sophisticated trading and risk management system tailored for the Chinese market [2][3]. - The team recognized the impending decline in bond yields and the need for advanced trading strategies, positioning itself to fill the gap left by other institutions that were complacent with higher yields [2][3]. - Over ten years, the FICC team has become the most active trading team in the market, significantly contributing to liquidity and innovating the issuance and trading of Panda bonds [3][26]. Group 2: Market Evolution - The bond market in China has transformed, with the total bond custody balance increasing from 40 trillion yuan to nearly 180 trillion yuan, reflecting a significant rise in market liquidity [7]. - The yield on 10-year government bonds has decreased from 4.3% to 1.73%, necessitating a shift in investment strategies from buy-and-hold to active trading [7][9]. - The demand for market-making services has surged as institutional investors adapt to the changing market environment [9]. Group 3: Service Orientation - The FICC team transitioned from focusing solely on proprietary trading to providing services to a broader market, emphasizing a "customer-first" philosophy [11][13]. - The team has integrated advanced systems and AI technology to enhance trading efficiency, with 80% of customer orders processed automatically [15][18]. - This shift has allowed the team to support various stakeholders, including individuals and institutions, in managing investments and risks effectively [12][13]. Group 4: Market Impact - During market turmoil, the FICC team acted as a stabilizing force, utilizing its pricing models and trading networks to provide liquidity when other institutions paused trading [20][25]. - The team's efforts in market-making for Panda bonds have improved their liquidity and pricing, benefiting both investors and issuers [30][32]. - The FICC team has established itself as a central player in the bond market ecosystem, facilitating better communication and transactions among various market participants [26][37]. Group 5: Future Outlook - The article anticipates a more developed and efficient bond market in China, driven by the FICC team's practices and the increasing participation of global issuers [35][38]. - As the market matures, the relationship between liquidity and bond yields is expected to become more significant, leading to lower financing costs for high-quality issuers [36][38]. - The FICC team aims to continue enhancing the market ecosystem, ultimately benefiting the broader economy and investment landscape in China [38][39].