Group 1 - The 21st China (Shenzhen) International Cultural Industries Fair (CICIF) is being held in Shenzhen for five days, concluding on May 26 [1] - Multiple listed companies are participating in the fair, showcasing their products and technologies across various sectors including film, media, publishing, artificial intelligence, robotics, gaming, and trendy toys [1] - AI and virtual reality technologies remain focal points at the fair, attracting numerous domestic and international visitors [1] Group 2 - Listed company Fantawild (301313) is participating in the fair, presenting its latest products such as VR large space, AI 3D reconstruction, virtual digital humans, AI knowledge graphs, and digital cultural creations [1] - Another listed company, Wankang Technology (300624), is showcasing its new video creative software and AI innovations at the fair [1] - Guoxing Optoelectronics (002449), part of the Guangsheng Holdings Group's electronic information sector, is presenting under the theme "Light Shows the Future" [1] Group 3 - The unique appeal of China's trendy toy IP has been highlighted, with the Hong Kong-listed company Pop Mart also participating in the fair [2] - Pop Mart is utilizing a dual exhibition model with "Beijing + Hong Kong" to showcase its popular products and enhance consumer experiences [2] - The company aims to stimulate urban cultural consumption and promote the deep integration and innovation of IP with urban cultural tourism [2]

Investment Rating - The industry rating is "Recommended" [5] Core Insights & Investment Recommendations - Trade uncertainties have resurfaced, with President Trump threatening a 50% tariff on EU imports, which may disrupt market risk appetite temporarily. However, China's core assets still hold low-positioning value due to domestic demand resilience, industrial chain upgrades, and policy support [2][25] - OpenAI's acquisition of the AI hardware startup io for $6.5 billion marks its entry into the hardware sector, indicating a strategic shift from a "pure software ecosystem" to an "end-side closed-loop" strategy. This move is expected to lower the technical usage threshold and accelerate the commercialization of AI applications in consumer scenarios [2][25] - Investment opportunities include: 1) Hong Kong internet leaders benefiting from consumption promotion and employment stability; 2) The gaming industry, which is expected to see growth due to policy incentives and technological empowerment; 3) The film and cultural tourism industry, which will benefit from consumption policies promoting cinema recovery [3][26] Industry Data - The top three films at the box office are "Dumpling Queen" with 31.83 million yuan (21.10% market share), "Hunting Gold: Game" with 29.16 million yuan (19.40% market share), and "Life Opens the Door" with 25.13 million yuan (16.70% market share) [4][63]

重庆市发展改革委副主任凌健表示，推动香港的生产性服务业与重庆乃至西部地区的先进制造业和现代 服务业有机融合，加强经贸、金融、物流等领域合作，必将释放经济增长新动能。 2018年建立川港合作会议机制，2023年成立渝港合作会议机制，2024年签署深化陕港交流合作协议…… 香港参与西部大开发的脚步还在提速，合作范围也从经贸拓展至人文交流等更多领域。香港微型艺术 展、"香港厨房@陕西"等活动在陕西陆续举行，渝港澳三地电影、音乐、书法等文学艺术活动举办，香 港位列重庆入境游客来源地首位…… "国家正在推动产业链、创新链、人才链和资金链的深度融合。香港作为国际科创中心和高端人才聚集 地，希望与内地更多地区加强合作，共同开拓全球市场，实现互利共赢。"钟永喜说。 今年西洽会上，香港首次成为主宾城。在设置主题展馆的同时，还举行了多个渝港创新合作专题活动； 两地成功签约金融服务、资本合作、金融科技等领域7个项目。 香港特区政府商务及经济发展局局长丘应桦说，香港作为国家双循环连接平台，积极担当"超级联系 人"和"超级增值人"的角色，是内地企业"走出去"和把海外企业"引进来"的双向跳板；西洽会则是国家 在西部地区的重要贸易合作和投 ...

Group 1 - The 78th Cannes International Film Festival concluded on May 24, with Chinese director Bi Gan winning the Special Prize for his film "Wild Times" [1] - "Wild Times" is the only Chinese film competing in the main competition section this year, featuring actors Yi Yangqianxi and Shu Qi, and tells a story set in a world where humans no longer dream [1] - The film was praised by jury chair Juliette Binoche for its uniqueness and poetic nature, with the jury unanimously agreeing to award Bi Gan [1] Group 2 - The festival's top award, the Palme d'Or, was awarded to Iranian director Jafar Panahi for his film "No Bears" [2] - Other notable awards included the Jury Prize for the Spanish-French co-production "Close" and the German film "The Falling Voice," as well as Best Director for Brazilian director Kleber Mendonça Filho for "The Secret Agent" [2] - The festival is recognized as one of the three major European film festivals alongside the Berlin International Film Festival and the Venice Film Festival [2]

Core Viewpoint - The 21st China (Shenzhen) International Cultural Industry Expo's sub-venue focuses on the theme "Ultra Clear Vision · Gathering Co-creation," showcasing the integration of ultra-high-definition technology with the cultural industry for high-quality development [1][3]. Group 1: Event Overview - The sub-venue is organized by Shenzhen Broadcasting Film and Television Group and marks a significant step for the digital creative industry in the Guangdong-Hong Kong-Macao Greater Bay Area [1]. - The event features the unveiling of four major industry platforms: Micro Short Drama Center, Costume and Prop Center, Industry-Academia-Research Center, and Event Release Center, aimed at fostering collaborative innovation [2]. Group 2: Investment and Partnerships - The park has invested over 100 million yuan to create a public service platform for ultra-high-definition content production and an intelligent computing power platform, collaborating with Huawei Cloud to build the "Digital Film Companion" public service platform [1]. - Strategic partnerships have been established with various enterprises, including a collaboration with the national cultural tourism data element registration platform to create a regional node in Guangdong, and a credit line exceeding 1 billion yuan with Shenzhen Rural Commercial Bank and Hanyuan Film Industry [1][2]. Group 3: Industry Development - The ultra-high-definition video industry is a key development direction for the country, with 2025 designated as the "Year of Ultra-High Definition Development" [3]. - Shenzhen is actively positioning itself as a hub for the ultra-high-definition industry, promoting deep integration with culture, tourism, and education sectors [3].

Core Viewpoint - The Guangdong Provincial Government has launched the "Guangdong Film and Television Policy 15 Measures" to promote high-quality development in the film and television industry, focusing on talent cultivation and addressing industry pain points [1][2][10]. Group 1: Talent Cultivation - The policy outlines a comprehensive approach to talent cultivation across the entire film and television industry chain, including measures for education, practical training, and project support [3][4]. - It encourages collaboration between universities and film institutions to establish training bases, scholarships, and investment platforms, allowing students to participate in real projects [4][5]. - The "Star Plan" and the establishment of a youth talent pool aim to discover and nurture new talent, providing a practical environment for students to gain experience [5][6]. Group 2: Addressing Industry Pain Points - The policy addresses three core pain points in the Guangdong film industry: high-end talent shortage, structural contradictions between production, academia, and research, and a gap in skilled labor [6][7]. - It proposes a dual-track system for talent introduction and youth incubation, along with financial incentives such as rent subsidies and project funding to attract talent [7][8]. - The establishment of a "one-stop service" platform and green channels aims to facilitate efficient collaboration between educational institutions and enterprises [8][9]. Group 3: Regional and Global Integration - The policy introduces the "Pearl River Delta Film Industry Belt" to attract film equipment manufacturing companies by offering tax incentives [10]. - It emphasizes the need for dynamic evaluation mechanisms to track the effectiveness of talent training and project outcomes [10]. - The establishment of the Guangdong-Hong Kong-Macao Greater Bay Area Film Alliance aims to integrate resources from the three regions, promoting co-production projects and aligning technical standards [10].

Core Viewpoint - The Guangdong government has introduced the "Guangdong Film New Policy 15 Articles" to promote high-quality development in the film industry, addressing existing weaknesses and aiming to enhance the overall competitiveness of the industry in the region [2][6][11]. Group 1: Policy Initiatives - The new policy includes measures to establish a film creation topic library, improve support and incentive mechanisms, and promote the integration of cutting-edge technology in film production [2][6][9]. - The policy aims to create a film industry cluster around the Pearl River Delta, enhancing collaboration between cities like Guangzhou and Shenzhen to drive regional development [8][9]. Group 2: Industry Performance - Guangdong has maintained its position as the top film market in China for 23 consecutive years, with a box office of 5.16 billion in 2024, accounting for 15.3% of the national total [2][6]. - Despite its leading position, the industry faces challenges such as a lack of influential works and a mismatch between industry scale and the province's economic status [2][6]. Group 3: Technological Integration - The film industry is increasingly leveraging advanced technologies such as VR, AR, AI, and big data to enhance production processes and viewer experiences [3][4]. - A notable innovation is the introduction of a film-grade underwater robot capable of operating under challenging conditions, which has already been utilized in several films [4][5]. Group 4: Talent Development - The new policy emphasizes the importance of talent cultivation and attraction, proposing support for both external recruitment and internal training of film professionals [11][12]. - There is a focus on establishing a youth talent pool and encouraging local governments to create favorable conditions for talent retention and development [11][12]. Group 5: Industry Infrastructure - Guangdong's film industry benefits from a robust infrastructure, including numerous production bases and a significant number of film-related enterprises [7][9]. - The policy aims to enhance the film industry ecosystem by encouraging the establishment of specialized film parks and attracting leading production companies [9][10].

Group 1 - The 21st China (Shenzhen) International Cultural Industries Fair (CICIF) opened on May 22, showcasing Guangdong's commitment to high-quality cultural industry development through a series of policy initiatives [1] - Guangdong released a comprehensive policy package targeting six key areas: film and television, concerts, animation, online games, esports, and live streaming [1] Group 2 - The article discusses the implications of these policies for the cultural industry, emphasizing the potential for growth and innovation within these sectors [1]

Market Performance - The Hong Kong stock market showed mixed results with the Hang Seng Index up by 0.24%, the Hang Seng China Enterprises Index up by 0.31%, and the Hang Seng Tech Index down by 0.09% [1] Sector Highlights - The film sector saw significant gains, with Alibaba Pictures (01060.HK) rising by 8.45% and a total increase of 63.83% over the past four trading days. Citi noted that the potential of its IP products has not been fully realized, with "Chiikawa" and "Crayon Shin-chan" expected to contribute in FY2026 [1] - Solar energy stocks also performed well, with Fuyao Glass (03606.HK) up by 4.64% and Rainbow New Energy (00438.HK) up by 2.5%. Additionally, some nuclear power stocks saw notable increases, such as CGN Mining (01164.HK) up by 8.5% and CGN Power (01816.HK) up by 1.72% [1] - The automotive supply chain, including Tesla-related stocks and lithium battery companies, experienced upward movement. Nexperia (01316.HK) rose by 4.4%, Yongda Auto (03669.HK) by 2.37%, Brilliance China (01114.HK) by 3.13%, and Great Wall Motors (02333.HK) by 2.42%. According to the China Passenger Car Association, the retail market for narrow passenger cars is expected to reach approximately 1.85 million units this month, representing a year-on-year increase of 8.5% and a month-on-month increase of 5.4% [1] Active Stocks - The pharmaceutical outsourcing sector was active, with Tigermed (03347.HK) up by 8.35%, Zai Lab (06127.HK) up by 7.34%, and other related companies also showing gains. Institutions noted a fundamental turning point in the CXO sector, with continued growth expected in small molecule and large molecule CDMO orders [2] - Other sectors with notable gains included pork, agriculture, tobacco, and beer [3] Declining Stocks - The luxury goods, Hong Kong retail, dairy, department store, food, and airline sectors faced declines, with stocks like Eslon (01856.HK) down by 5.43% and China Wangwang (00151.HK) down by 2.11% [3] - SaaS stocks generally underperformed, with Huizhongda Network (09878.HK) down by 9.22% and other related companies also declining [3] - Apple-related stocks experienced pullbacks, including Q Technology (01478.HK) down by 3.06% and GoerTek (01415.HK) down by 2.88% [3] Other Notable Movements - Cement stocks and property management stocks showed poor performance, while education and semiconductor stocks also weakened [4] - Specific cement companies like China National Building Material (00691.HK) fell by 6.6% [5] - Heng Rui Pharmaceutical (01276.HK) saw a significant increase of 25.2% on its first day of trading [6] - FIH Mobile (02981.HK) rose by 22.62% after being included in the Hong Kong Stock Connect following a share consolidation [7]

Core Viewpoint - The Hong Kong stock market experienced fluctuations, with the Hang Seng Index closing up by 0.24% at 23,601.26 points, driven by the strong performance of newly listed stocks, particularly 恒瑞医药 (Hengrui Medicine) which surged over 25% on its debut [1] Market Performance - The Hang Seng Index recorded a trading volume of 203.67 billion HKD [1] - The Hang Seng Technology Index declined by 0.09%, closing at 5,246.87 points [1] Sector Performance - The innovative drug sector saw significant gains due to the listing of 恒瑞医药, contributing to a broader rally in the market [1] - The automotive parts and film sectors also showed strong performance, while the clothing retail sector faced declines [1] Individual Stock Highlights - Mirxes-B (02629.HK) rose by 28.76% on its first trading day [1] - 恒瑞医药 (01276.HK) increased by 25.2% [1] - BYD Company (01211.HK) saw an increase of nearly 2% [1] - Alibaba Pictures (01060.HK) rose by 8% [1] - China Health Group (00673.HK) resumed trading and surged over 110% [1] - Tmall (06110.HK) fell by over 9.4% [1] - Chow Tai Fook (01929.HK) decreased by 3.3% [1] - Xpeng Motors (09868.HK) dropped by 3.9% [1]