Group 1 - The core inquiry from investors revolves around Wanlin Shulian's technical capabilities to engage in RWA (Real World Asset) business, questioning the viability of its IPO without strong technological advantages [2] - Hangzhou Garden (300649.SZ) responded on the investor interaction platform, clarifying that Wanlin Shulian's main business focuses on blockchain application services, specifically including product blockchain traceability and certification services, as well as digital professional technical services [2]

Core Viewpoint - The company has not yet implemented RWA (Real World Assets) business but is actively following the development of the blockchain industry, policy trends, and application scenarios [1] Group 1: Company Developments - The company is focusing on the development of blockchain technology and its potential applications in the RWA sector [1] - The company has reserved relevant technologies and business models to support future developments in the blockchain space [1] Group 2: Technology Application - The company's blockchain technology can be applied in the RWA field, providing reliable technical support for asset confirmation, circulation, and traceability [1]

Core Insights - The report highlights the potential impact of rumors regarding Trump's possible dismissal of Powell, which has led to significant market volatility across stocks, bonds, and currencies [2][11] - The defense and military industry is expected to see a performance turning point, with 48 key companies projected to report a total of approximately 6.768 billion yuan in Q2 2025, reflecting a year-over-year decline of 11.2% [10][12] Market Performance - The Shanghai Composite Index closed at 3534 points, with a daily increase of 0.5% and a monthly increase of 0.69% [1] - The Shenzhen Composite Index closed at 2154 points, with a daily increase of 0.36% and a monthly increase of 1.74% [1] - The large-cap index showed a 6-month performance increase of 6.72%, while the small-cap index increased by 11.95% over the same period [1] Industry Performance - The small metals sector experienced a significant increase of 25.75% over the past 6 months, while energy metals rose by 14.3% [1] - Conversely, the animal health sector saw a decline of 33.8% over the past 6 months, indicating a stark contrast in performance across different industries [1] Defense and Military Industry Insights - The military industry is entering a growth cycle driven by domestic demand, particularly due to ongoing military modernization efforts [15][24] - The report emphasizes the importance of military trade, which is expected to resonate strongly with domestic supply and demand dynamics, creating a new landscape for military exports [15][24] - Key companies in the defense sector are recommended for investment, including those involved in next-generation equipment and precision-guided munitions [26]

Summary of Key Points from Conference Call Industry or Company Involved - The conference call discusses the non-bank financial sector in China, focusing on the impact of Real World Assets (RWA) and the performance of various financial institutions, particularly insurance companies and securities firms. Core Insights and Arguments 1. **RWA Business Growth**: The RWA business is expected to become a significant growth point for non-bank institutions, with major Chinese securities firms actively pursuing virtual asset trading licenses and tokenized securities issuance, indicating a shift in valuation dynamics for these firms [2][1]. 2. **Incremental Capital Sources**: Large state-owned insurance companies will allocate 30% of their new premiums to A-shares starting in 2025, alongside the expansion of private equity stock investment funds, which will inject significant capital into the market in the second half of the year [3][1]. 3. **Current State of Non-Bank Sector**: The non-bank sector is currently in a low point but has substantial potential for reallocation, with many public funds under-allocated to this sector. Key firms like Ping An and Taikang are highlighted as being undervalued [4][1][5]. 4. **Equity Financing in Securities Firms**: Equity financing remains a case-by-case basis, with high participation from major shareholders. Policy changes are slightly easing restrictions on private placements, but the market impact is limited due to the high involvement of controlling shareholders [6][1]. 5. **Performance of Non-Bank Sector**: Over 60% of listed securities firms reported over 40% growth in performance for the first half of 2025, with some firms like Huaxi Securities and Guolian Minsheng showing exceptional growth rates [8][9]. 6. **RWA On-Chain Development**: The integration of RWA with blockchain technology is seen as a crucial catalyst for growth, with companies like China Taiping Asset Management collaborating to enhance asset tokenization and improve valuation potential [11][1]. 7. **Market Performance and Future Expectations**: The non-bank financial sector is expected to perform strongly, driven by RWA business developments and favorable market conditions, with a recommendation to focus on leading firms in the Hong Kong market [10][1]. 8. **Valuation of China Taiping**: China Taiping is currently undervalued, with a PEB ratio around 0.6 and a significant drop in the cost of liabilities, indicating potential for future growth [18][1]. Other Important but Possibly Overlooked Content 1. **2DB Market Potential**: The 2DB market is projected to have significant growth potential, with compliance and asset transparency being key focus areas [12][1]. 2. **The Pack's Initial Strategy**: The Pack's investment strategy includes various funds and has established partnerships with significant financial institutions, indicating a robust ecosystem for RWA issuance and distribution [13][1]. 3. **Hong Kong Virtual Asset Market**: Hong Kong is actively developing its virtual asset market, with stablecoins playing a crucial role in enhancing market infrastructure [14][1]. 4. **Global Tokenization Trends**: The global market for tokenization of non-liquid assets is expected to reach $16 trillion by 2030, with Blackrock's BITO serving as a case study for successful implementation [15][1]. 5. **Insurance Product Performance**: Dividend insurance products are performing well, positively impacting the reduction of rigid liability costs for insurance companies [20][1]. 6. **Recommendations for Insurance Stocks**: The recommended order for insurance stocks includes Xinhua Insurance and China Life, with a focus on companies with strong ties to virtual assets [22][1]. 7. **Future Logic for Non-Bank Sector Growth**: The future growth of the non-bank sector is expected to be driven by improvements in asset quality and increased allocations to equities, particularly from insurance premiums [23][1].

Investment Rating - The report maintains a "Positive" outlook on the non-bank financial industry, indicating an expectation for the sector to outperform the overall market [1]. Core Insights - The report emphasizes the positive catalytic effect of the development of RWA (Real World Assets) business in Hong Kong on valuations, highlighting strategic collaborations and the potential for significant market expansion [4][7]. - It notes that the insurance sector is experiencing a favorable environment with a focus on undervalued companies and mid-year performance opportunities, recommending several key players [4][11]. - The brokerage sector is also highlighted, with a recommendation for firms benefiting from improved competitive dynamics and those with strong earnings elasticity [4][11]. Summary by Sections Market Review - The Shanghai Composite Index closed at 4,058.55 with a weekly change of +1.1%, while the non-bank index closed at 1,921.37 with a change of -1.2% [7]. - The brokerage, insurance, and diversified financial sectors reported respective changes of -1.1%, -1.4%, and -2.4% [7]. Non-Bank Industry Insights - The report discusses the strategic partnership between GCL-Poly and Taiping Asset Management in Hong Kong, focusing on RWA infrastructure development and digital asset investment [4]. - It highlights the significant growth potential in the tokenization of non-liquid assets, estimating a market size of $16 trillion by 2030 [4]. - The report also notes the performance of various insurance companies, with significant year-on-year growth in premium income for several key players [35][32]. Brokerage Sector Analysis - The report indicates that 30 out of 51 listed brokerages have reported positive earnings forecasts, with net profit growth exceeding 40% for those that disclosed results [4]. - The average daily trading volume in the Shanghai and Shenzhen markets reached 1.26 trillion yuan, reflecting a 52% year-on-year increase [22]. - The report recommends several brokerage firms based on their competitive positioning and earnings potential, including Guotai Junan and CITIC Securities [4][11].