Core Insights - The city of Dezhou has made significant progress in its technology initiatives as part of the "2025 Vision" strategy, focusing on innovation-driven development and the construction of a technology-driven city [3] Group 1: Technology Innovation and Projects - Six projects have been approved as major provincial technology innovation projects, with five receiving central funding support, and a total of 57 provincial-level projects undertaken, securing funding of 144 million yuan [3] - The city has implemented 70 targeted municipal technology projects to address critical industrial challenges in key sectors such as green food, biomedicine, high-end equipment, and new materials [3] Group 2: Innovation and Enterprise Growth - A total of 483 new high-tech enterprises have been registered, with the total expected to exceed 1,100; 1,914 technology-based small and medium-sized enterprises have been recorded, marking a 14.95% increase, the second highest in the province [3] - The intensity of R&D investment in society has reached 2.99%, surpassing the provincial average by 0.35 percentage points, with enterprise R&D investment accounting for 97.6% of the total [3] Group 3: Infrastructure and Platforms - The establishment of 144 new municipal technology innovation platforms has been completed, bringing the total to 1,317, covering all 11 key industrial chains [5] - Three new municipal clinical medicine research centers have been established, totaling nine, focusing on critical areas such as malignant tumors and traditional Chinese medicine [5] Group 4: Technology Transfer and Financial Support - The city has introduced and transformed 53 technology achievements through collaboration with the Chinese Academy of Sciences, optimizing the layout and management of pilot bases [5] - A total of 1.958 billion yuan in technology transfer loans has been issued, reflecting a year-on-year growth of 39.2%, benefiting 388 technology-based small and medium-sized enterprises [5] Group 5: Talent Development and Recruitment - Four individuals have been selected for national key talent programs, the highest in the province, along with ten for provincial key talent programs and 52 foreign experts recruited [5] - The city has initiated the "Ten-Hundred-Thousand" action to empower technology talent, with 99 "technology vice presidents" assigned to support enterprises [5] Group 6: Future Directions - The city plans to continue implementing the central, provincial, and municipal economic work meeting spirit, focusing on empowering the modern industrial system and integrating technological innovation with industrial innovation [6]

Group 1: Innovation and Development Plans - China has entered the top 10 in the global innovation ranking for 2025, marking a significant achievement in its development strategy [1] - The completion of the 14th Five-Year Plan (2021-2025) has set the stage for the new development blueprint as the country transitions into the 15th Five-Year Plan [2] - The 15th Five-Year Plan is viewed as a critical stage for reinforcing social and economic foundations, aiming for modernization by 2035 [4] Group 2: Governance and Policy Making - The governance process for the 15th Five-Year Plan has been characterized by inclusive and consultative approaches, with Xi Jinping leading a high-level strategy team [5][6] - Public opinions were solicited through a month-long online consultation campaign, ensuring citizen voices were considered in the planning process [7] - Xi's field visits and leadership meetings prior to the October plenum reflect a governance philosophy that balances strategic vision with practical realities [8] Group 3: Global Engagement and Diplomacy - The year 2025 was marked by China's proactive role in global governance, highlighted by the Global Governance Initiative (GGI) which received support from over 140 countries [12] - China hosted international leaders to commemorate significant historical events, reinforcing its contributions to global stability and the post-war order [13] - The country announced its 2035 climate action contributions and established the International Organization for Mediation, showcasing its commitment to global peace and development [14]

Investment Rating - The report assigns an "Overweight" (OW) rating to HK Exchanges & Clearing (0388.HK) with a new price target of HK$500, reflecting a 24% upside potential from the current price of HK$402.40 [6][31]. Core Insights - The report highlights increased confidence in the financial system cycle bottom, which is expected to support trading volume and market sentiment in Hong Kong [9][44]. - Strong year-to-date (YTD) performance is noted, with average daily trading value (ADV) reaching HK$240 billion as of June 6, 2025, an 82% increase from HK$132 billion in 2024 [2][9]. - The report anticipates a robust IPO recovery, with funds raised reaching HK$78 billion in the first five months of 2025, up over 700% year-on-year [15][17]. Summary by Sections Financial Performance - The report raises ADV assumptions to HK$220 billion for 2025 and HK$240 billion for 2026, reflecting a more favorable market environment and increased IPO activity [4][26]. - Earnings forecasts have been adjusted upward, with EPS estimates increasing by 9.4% for 2025 and 10.6% for 2026 [27][30]. Market Dynamics - The financial system is believed to be in a properly regulated development mode, reducing market volatility and supporting capital market activity [3][10]. - The report identifies key drivers for trading volume, including a shift to an innovation-driven development model in China and easing trade tensions, which are expected to enhance market sentiment [11][14]. IPO Activity - A solid IPO pipeline is anticipated, with 138 deals in process as of May 30, 2025, and expectations for IPO volume to rise to HK$180 billion in 2025 and HK$310 billion in 2026 [15][19]. - The loosening of IPO criteria by the China Securities Regulatory Commission (CSRC) is expected to further stimulate market activity [15][44]. Valuation and Price Target - The new price target of HK$500 is derived from applying a P/E multiple of 37.4x to the 2026 EPS estimate of HK$13.38, reflecting a bullish outlook on market conditions [31][38]. - The report outlines different valuation scenarios, with the base case target increasing to HK$468 and the bull case target rising to HK$630 [32][33].