Financial Performance - Net interest margin grew approximately 20 basis points year-over-year to 353% [1] - Loan growth was 22% higher year-over-year, but core growth is closer to 4% quarter-over-quarter on an annualized basis when excluding the most recent acquisition [2][3][4] Market Dynamics & Strategy - The company closed one of its largest partnerships, contributing to the increase in net interest margin [2] - Strong loan growth and good deposit management also contributed to the increase in net interest margin [2] - Agriculture customers showed strength, although growth includes a recent acquisition in Minnesota [2][3] - Clients are navigating political, geopolitical, and tax uncertainties to grow their businesses [4] - Inventory builds ahead of tariffs boosted growth during the quarter [5] - Client survey suggests clients are twice as optimistic as they were at this time last year, which should bode well for the back half of the year [7][8] - The company is optimistic that farmers will have a better year, partly due to provisions in the "big beautiful bill" [9][10] Cryptocurrency - The industry is trying to figure out how stable coins will change money movement in the US and globally [11] - Crypto is expected to be here for a long time, and the company needs to find ways to help clients acquire and custody those assets [11][12] - The company views cryptocurrency as another asset class that clients want exposure to and aims to help them manage that money [13]

Core Insights - The People's Bank of China Shandong Branch reported that as of the end of May 2025, the loan balance for the elderly care industry in Shandong Province reached 13.94 billion yuan, with a year-on-year growth of 21.4%, significantly outpacing the overall loan growth rate by 12 percentage points [1] - The average interest rate for these loans was 3.93%, a decrease of 54 basis points year-on-year, indicating a favorable trend of increasing loan volume and decreasing costs in the elderly care sector [1] Group 1: Policy and Coordination - The central financial work conference in October 2023 elevated "elderly finance" as a key area for promoting high-quality financial development, providing effective financial support for the elderly care industry [4] - A coordination mechanism for elderly finance work was established in Shandong Province, involving 11 departments to enhance collaboration and implement policies effectively [4] - A comprehensive financial service plan for the elderly care sector was issued, encouraging cities with high elderly populations to innovate financing service models [4] Group 2: Financial Support and Innovation - A project database and credit product manual for the elderly care industry were created, facilitating better financing support through the Shandong Province enterprise matching service platform [5] - A financial support event focused on private elderly care enterprises resulted in 19 companies establishing cooperation intentions with financial institutions, amounting to 1.04 billion yuan [5] - The introduction of innovative financial products, such as the "Ludang Elderly Service Loan," has supported the elderly care sector with a total of 9.255 billion yuan in credit funding in the first half of the year [6] Group 3: Future Directions - The People's Bank of China Shandong Branch plans to enhance service consumption and expand elderly loans, leveraging the coordination mechanism to improve information sharing and efficient connections between government, finance, and enterprises [6] - A monitoring mechanism for service consumption and elderly loans will be established to evaluate the effectiveness of financial services and enrich the supply of specialized financial products [6]

Group 1 - Sensor Unlimited is part of the investing group Envision Early Retirement, which focuses on generating high income and growth through dynamic asset allocation [2] - The group offers two model portfolios: one for short-term survival and withdrawal, and another for aggressive long-term growth [2] - Monthly updates on holdings, tax discussions, and ticker critiques are provided to members [2] Group 2 - Sensor Unlimited has a PhD in financial economics and has spent the last decade covering the mortgage market, commercial market, and banking industry [3] - The focus areas include asset allocation and ETFs related to the overall market, bonds, banking and financial sectors, and housing markets [3]

Summary of Key Points from Morgan Stanley Research on Asia Macro Strategy Themes for 2H25 Industry Overview - The report focuses on the Asia Pacific (APAC) credit market and its dynamics, particularly in relation to USD and local currency (LC) funding strategies [2][6][133]. Core Insights 1. **USD Weakness and Economic Growth** - The USD is expected to continue weakening, with the US economy projected to grow at a pace similar to the rest of the world, ending years of outperformance [6][8]. 2. **Yield Dynamics** - The narrowing yield advantage of the USD is anticipated as the Federal Reserve lowers rates, which may erode USD's yield support [10][12]. 3. **Increased Hedging of USD Assets** - There is a potential increase in hedging of USD assets among global investors, particularly in Asia, where nearly half of European asset holdings in the US are FX-unhedged [15][17]. 4. **AXJ Economies and USD Holdings** - All AXJ economies, except China and India, have increased their holdings of US portfolio assets, with foreign currency deposits in AXJ economies ballooning to $3.7 trillion [20][24][22]. 5. **Impact of Global Trade Slowdown** - A broad slowdown in Asia's growth is noted, particularly affecting export-oriented economies, leading to narrowing current account surpluses for most trade-exposed economies [36][38]. 6. **Monetary Policy and Inflation** - Inflation remains low and within central bank targets for almost all Asia economies, providing room for potential monetary easing [40][42]. 7. **Asia Credit Market Dynamics** - The Asia credit market is characterized by high sector and issuer concentration risks, particularly with a significant exposure to China [87][98]. The report emphasizes the need for diversification to improve risk-adjusted returns [83][96]. 8. **Future Paths for Asia Credit** - Four potential paths for expanding the Asia credit benchmark are proposed, including incorporating Japan and Australia & New Zealand USD offshore bonds, which could enhance diversification and improve risk-adjusted returns [110][114]. 9. **Medium-Term Implications** - Japan and Australia & New Zealand bonds are expected to become core holdings for Asia credit investors, with a projected decline in risk premiums for these credits [119][120]. 10. **Importance of the Banking Sector** - The banking sector's weight in the Asia credit benchmark is expected to increase, necessitating greater awareness of changes in banking regulations and capital requirements [120][125]. Additional Important Insights - **Diversification Strategies** - The report suggests that Asia credit investors should set limits on issuer, sector, and economy weights in their portfolios to avoid concentration risks [132]. - **Projected Growth of APAC Credit Market** - The APAC credit market is projected to grow to $2.1 trillion by 2027, driven by nominal GDP growth and a shift towards USD funding [141][148]. - **Investor Sentiment** - A significant portion of Asia credit investors are considering Japan and Australia credit as core holdings, indicating a shift in investment strategies [179][181]. This summary encapsulates the key themes and insights from the Morgan Stanley Research report, highlighting the dynamics of the Asia credit market and the implications for investors in the region.

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the mutual fund (MF) sector in China, particularly analyzing the southbound flow of investments and movements of the "national team" in Q225 [2][4]. Core Insights and Arguments 1. **Sector Position Changes**: In Q225, mutual funds increased their positions in banks, telecom, and non-bank financials by 1.6 percentage points each, and 0.8 percentage points in non-bank financials. Conversely, positions in food & beverage and auto sectors were cut by 2.1 percentage points and 0.9 percentage points respectively [2][3]. 2. **Southbound Net Inflows**: Southbound net inflows reached RMB 273.9 billion, marking a 25% year-over-year increase. The financial sector saw the largest inflows, followed by consumer discretionary and healthcare sectors [4][52]. 3. **National Team's ETF Purchases**: The "national team" is estimated to have added over RMB 200 billion in A-share ETFs in Q225, with 65% allocated to CSI 300 Index ETFs. This action is seen as a measure to stabilize the capital market [5][15]. 4. **New MF Issuance Trends**: New issuance of actively managed mutual funds totaled 59.9 billion units in Q225, a 128% increase year-over-year, but a 73% decline from the peak in 2020-21. The performance of these funds is expected to improve with better market conditions [3][4]. 5. **Consumer Sector Dynamics**: The report highlights a shift in investor preference towards "new consumption" and innovative drugs, indicating a potential growth area for mutual funds [4][5]. Additional Important Insights 1. **Geopolitical Uncertainty**: Elevated geopolitical risks have led to a preference for defensive sectors, including national defense, which ranked fourth in MF position increases [2][4]. 2. **A/H Premium Trends**: The A/H premium has decreased significantly due to liquidity differences between A-shares and H-shares, suggesting a potential medium-term low for this premium [4][5]. 3. **Performance Evaluation Mechanism**: The new performance evaluation mechanism for mutual funds may reshape market dynamics, potentially leading to increased inflows as market performance improves [3][4]. 4. **Risks to Market Stability**: Risks facing China's equities include a hard landing in the property market and slow structural reforms, which could lead to market shocks if not adequately addressed [62]. This summary encapsulates the key points discussed in the conference call, providing insights into the mutual fund sector's performance, investor behavior, and market dynamics in China.

Report Industry Investment Rating - Not provided in the documents Core Viewpoints - Maintain a buy recommendation for HYUELEs due to SK Hynix's resilience against trade - wars, strong global market position, solid operating cash flow, and a more balanced risk - return profile [2][6] - Expect SK Hynix's revenue and operating profit growth momentum to continue in 2025, supported by strong demand for memory used in AI services [11] Summary by Relevant Catalogs Trading Desk Comments - In Chinese IGs, TENCNT 30/BABA 31 tightened 1bp, MEITUA 30 widened 1bp, ZHOSHK 28 tightened 5bps [1] - In financials, CMINLE/CSILTD/BCLMHK Float 27 - 30s were unchanged to 2bps tighter, SUMIBK/MIZUHO 30 - 31s were 1 - 2bps tighter, BBLTB 36 - 40s closed 1 - 3bps tighter [1] - In insurance, CATLIF 34 tightened 1bp, NSINTW 34 widened 1bp, MYLIFE/NIPLIF 55s were up 0.1pt [1] - In AT1s, BNP 7.75/HSBC 6.95 Perps were up 0.2 - 0.4pt, EFGBNK 5.5/INTNED 4.25 Perps were up 0.4 - 0.6pt [1] - In HK, DAHSIN/BNKEA 32 - 34s were 1 - 2bps tighter, REGH 6.5 Perp/HYSAN 4.1 Perp/LASUDE 26 lowered 0.5 - 0.9pt [1] - In Chinese properties, ROADKG 28 - 30s were 0.2 - 2.3pts lower, ROADKG Perps were unchanged. Road King launched a holder identification for all of its three perps [1] - Outside properties, WESCHI 26 was 1.7pts higher following 1H25 positive profit alert, FOSUNI 25 - 28s were up 0.1 - 0.5pt after Fosun announced early redemption [1] - In SEA, GLPSP Perps were up 0.4 - 0.5pt, VLLPM 29 was down 0.7pt [1] - In CNH space, new CNH TEMASE 1.85 30/TEMASE 2.05 35 were 0.1 - 0.2pt lower, TEMASE 2.55 55 was 0.3pt higher; new CNH CHMEDA 2 30/CHMEDA 2.3 35 were 0.2 - 0.3pt lower [2] - LGENSO 27 - 35s tightened 1 - 3bps following a 31% qoq rise in 2Q25 operating profit from 1Q25 [2] - HYUELE 1 ½ 01/19/26 and HYUELE 2 ⅜ 01/19/31 were 2 - 5bps tighter post - results announcement, while HYUELE 6 ¼ 01/17/26 and HYUELE 6 ⅜ 01/17/28 were 2 - 5bps wider [2] - ROADKG 28 - 30s were 0.2 - 2.3pts lower yesterday and unchanged this morning. Road King and CVC seek full exit from Indonesian toll road business for USD1bn [2] - In SOE perps, CHPWCN Perp was up 0.1pt, SPICPD Perp was down 0.1pt [3] Last Trading Day's Top Movers - Top Performers: WESCHI 4.95 07/08/26 price was 92.3 with a change of 1.7; GRNLGR 5 7/8 07/03/30 price was 23.2 with a change of 1.3; NSANY 7 3/4 07/17/32 price was 101.4 with a change of 0.7; NSANY 4.81 09/17/30 price was 91.4 with a change of 0.6; EFGBNK 5 1/2 PERP price was 97.2 with a change of 0.6 [4] - Top Underperformers: ROADKG 5.9 09/05/28 price was 24.8 with a change of - 2.3; ROADKG 5.2 07/12/29 price was 23.7 with a change of - 2.3; ROADKG 6.7 03/30/28 price was 25.1 with a change of - 1.4; ROADKG 6 03/04/29 price was 24.6 with a change of - 1.2; REGH 6 1/2 PERP price was 21.7 with a change of - 0.9 [4] Macro News Recap - On Thursday, S&P was up 0.07%, Dow was down 0.70%, and Nasdaq was up 0.18%. US Jul'25 S&P Global Manufacturing PMI was 49.5 (lower than the market expectation of 52.7), and US Jul'25 S&P Global Services PMI was 55.2 (higher than the market expectation of 53.0) [5] - Trump and Powell clashed at Fed headquarters. UST yield was higher on Thursday, with 2/5/10/30 yield at 3.91%/3.98%/4.43%/4.96% [5] Desk Analyst Comments - Maintain a buy recommendation for HYUELEs. Prefer HYUELE 1 ½ 01/19/26 and HYUELE 2 ⅜ 01/19/31 for lower cash prices. They were traded at YTM of 4.7%/Z + 34bps and YTM of 4.8%/Z + 117bps respectively, and provide 6 - 30bps yield pick - up over Micron's bonds [6] SK Hynix Business and Financial Analysis - SK Hynix achieved record - high revenue and operating profit in 2Q25, driven by aggressive AI investments from leading tech companies and customers accelerating inventory purchases ahead of tariff policy changes [9] - DRAM bit shipments rose by mid - 20% qoq, ASP increased by a low - single digit qoq. NAND bit shipments surged 70% qoq, but ASP declined by a high single - digit qoq [10] - SK Hynix expects DRAM bit shipments to grow by low - to - mid single digit in 3Q25, and increase in NAND bit shipments to be limited. It shipped the industry's first HBM4 samples in Mar'25 and is optimizing performance with partners [11] - As of Jun'25, cash balance increased by 19% qoq to KRW17.0tn. Capex is expected to be higher than the original plan, especially for HBM - related equipment. M15X fab will open in 4Q25 and start full - scale DRAM production in 2026. Yong - in fab (Phase 1) is on track for completion in 2Q27 [12] - SK Hynix's leverage was lower as of Jun'25. Net debts decreased by 46% qoq to KRW4.9tn. Upcoming USD bond maturities are HYUELE Float 11/17/25 of USD300mn due in Nov'25 and two USD bonds totaling USD1.75bn due Jan'26. It is expected to refinance at reasonable costs [13] Offshore Asia New Issues - No new offshore Asia issues were priced today - Pipeline issues include Dazhou Kaisheng Construction Development Group (USD, 3yr, 7.0%, Unrated), Sichuan Zigong Huidong Development (USD, 3yr, 6.8%, Unrated), and Tianjin Binhai New Area Construction & Investment Group (USD, 3yr, 5.8%, Baa2/ - / - ) [17] News and Market Color - 134 credit bonds were issued onshore yesterday with an amount of RMB137bn. Month - to - date, 1,722 credit bonds were issued with a total amount of RMB1,842bn, a 15.8% yoy increase [18] - Adani Enterprises and MetTube partner to build copper tube ecosystem; Adani Energy 1Q26 total EBITDA rises 14.5% yoy to INR20.17bn (cUSD233.5mn) [18] - China Energy Reserve and Chemicals Group adjourns meetings for six bonds due to lack of quorum; Country Garden agrees to key terms with key bank creditors on offshore restructuring [18] - Fosun unit looks to issue RMB1bn yulan bonds by mid - Aug'25; Danantara looks to buy Jiangsu Delong smelter unit in Indonesia through MIND ID [18] - JD.com in advanced talks to buy German retailer Ceconomy for EUR2.2bn (cUSD2.6bn); Mongolian Mining 2Q25 washed coking coal sales drop 25% yoy to 1.74mn tons [18] - Samsung Heavy Industries 1H25 sales rise 6% yoy to KRW5.18tn (cUSD3.76bn); Sands China eyes USD2.7bn annual EBITDA run rate [18] - Sinopec 1H25 oil and gas production rises 2% yoy to 262.81mn barrels of oil equivalent; SoftBank - backed tech startup InMobi plans India IPO at up to USD6bn valuation [18]

Performance Overview - In June 2025, Volta Finance achieved a net performance of +0.4%, bringing the cumulative performance from August 2024 to +11.2% [4] - The portfolio's CLO Debt and CLO Equity assets delivered positive returns amid a favorable credit market environment following previous volatility [4] Market Context - June saw a "risk on" environment with strong gains in U.S. equity markets and a significant weakening of the US Dollar, driven by easing trade tensions and moderating inflation [5] - The Federal Reserve maintained interest rates at 4.25%-4.50% during their June meeting, despite inflation nearing target levels [5] - In Europe, major indices ended the month flat, with the ECB cutting rates by 25 basis points and signaling a likely pause in future cuts as eurozone inflation returned to 2% [5] Credit Market Activity - Credit markets remained resilient, with the European High Yield index (Xover) settling at 283bps, down from 300bps, indicating a tight market [7] - US High Yield returned +1.9% for the month, while Euro Loans and US Loans returned +0.13% and +0.80%, respectively [7] Portfolio Composition - The median CCC assets exposure in CLO portfolios was stable at 4.5% in the US, slightly above the 4.1% exposure in European CLOs [8] - Loan maturity walls are transitioning towards 2030 and beyond, with significant refinancing deadlines in 2028 and 2031 in the US [8] Investment Activity - The month was active with CLO debt redemptions of €4.8 million, and the company replaced risk to maintain overall exposure [9] - Cash stood at 11% at the end of June, with cashflow generation slightly up at €28.3 million over the last six months, representing close to 21% of June's NAV on an annualized basis [9] Performance of Asset Classes - Volta's CLO Equity tranches returned +1.6%, while CLO Debt tranches returned +1.0% [10] - The EUR/USD exchange rate move to 1.18 impacted long dollar exposure performance by 0.4% [10] Net Asset Value - As of the end of June 2025, Volta's NAV was €273.0 million, equating to €7.46 per share [10]

Core Insights - St-Georges Eco-Mining Corp. has appointed Byron D'Silva as Chief Financial Officer and Director of its battery processing subsidiary, EVSX Corp. [1][2] - D'Silva brings over 15 years of experience in corporate finance and operational strategy, previously working at KPMG and Royal Bank of Canada [3] - His appointment is seen as a significant step in EVSX's growth as it scales its battery processing and critical mineral recovery operations [3] Company Overview - EVSX operates a battery processing line with a capacity of 12,500 tonnes per year, capable of recovering critical battery metals and repurposing materials back into the supply chain [5] - The facility is located in Thorold, Ontario, strategically positioned within a major automotive cluster in North America [5] - EVSX holds a three-year battery supply agreement with Call2Recycle and is expanding its battery supply partnerships [5] Compensation Details - As part of his compensation package, D'Silva was issued 500,000 options under the terms set for management [4] St-Georges Eco-Mining Corp. Overview - St-Georges develops new technologies and holds a diversified portfolio of assets, including several subsidiaries focused on advanced battery processing and critical minerals [6] - The company is involved in various initiatives, including metallurgical R&D, gold exploration, and technology development for methane conversion [6]

Core Insights - The First Trust NASDAQ Bank ETF (FTXO) provides broad exposure to the Financials - Banking segment and is passively managed, appealing to both retail and institutional investors due to its low costs and tax efficiency [1][3] Fund Overview - FTXO was launched on September 20, 2016, and has accumulated assets exceeding $239.54 million, positioning it as an average-sized ETF in its category [3] - The ETF aims to replicate the performance of the Nasdaq US Smart Banks Index, which focuses on US banking companies [3] Cost Structure - The annual operating expense ratio for FTXO is 0.60%, which is competitive within its peer group [4] - The ETF has a 12-month trailing dividend yield of 1.99% [4] Sector Exposure and Holdings - FTXO is fully allocated to the Financials sector, with approximately 100% of its portfolio dedicated to this area [5] - The largest holding is Jpmorgan Chase & Co. (JPM), comprising about 8.42% of total assets, followed by Citigroup Inc. (C) and Wells Fargo & Company (WFC) [6] - The top 10 holdings represent around 59.72% of total assets under management [6] Performance Metrics - Year-to-date, FTXO has returned approximately 10.90%, and it has increased by about 21.07% over the past year as of July 24, 2025 [7] - The fund has traded between $25.92 and $35.28 in the last 52 weeks [7] - FTXO has a beta of 0.94 and a standard deviation of 27.42% over the trailing three-year period, indicating effective diversification of company-specific risk with around 51 holdings [7] Investment Alternatives - FTXO holds a Zacks ETF Rank of 2 (Buy), indicating favorable expected returns and momentum [8] - Other ETFs in the banking sector include SPDR S&P Bank ETF (KBE) with $1.62 billion in assets and Invesco KBW Bank ETF (KBWB) with $4.86 billion, both having an expense ratio of 0.35% [9]

Summary of Key Points from the Conference Call on Hong Kong's Stablecoin Shift Industry Overview - The focus is on the stablecoin industry, particularly in Hong Kong, which is positioned as a testing ground for stablecoin operations amid increasing global regulatory scrutiny and competition [2][10][39]. Core Insights and Arguments 1. **Regulatory Framework**: Hong Kong's Stablecoins Bill, effective August 1, 2025, aims to enhance the stability and transparency of stablecoins, allowing for the legal issuance of CNH-pegged stablecoins [2][10][51]. 2. **Strategic Importance**: The bill positions Hong Kong as a critical player in the global stablecoin landscape, especially in light of the US GENIUS Act, which may strengthen USD dominance [2][10][19]. 3. **Market Dynamics**: Stablecoin issuers, brokers, and fintech companies with established blockchain technology are expected to benefit first from the new regulations through various fees [3][11][30]. 4. **Adoption Challenges**: The adoption of CNH stablecoins may lag due to China's capital controls and limited offshore RMB liquidity, with market acceptance expected to take time [5][20][63]. 5. **Traditional Financial Models**: Traditional banks and e-commerce platforms are likely to experience gradual transformation rather than disruption, as stablecoins serve as payment means rather than deposits [4][27][28]. 6. **Investment Opportunities**: Companies like Futu Holdings, ZhongAn Online, and HK Exchanges & Clearing are highlighted as potential beneficiaries of the stablecoin ecosystem due to their strategic positioning [3][33][31]. Additional Important Insights 1. **Global Regulatory Trends**: The global trend towards stablecoin regulation is driven by concerns over financial stability and consumer protection, with various jurisdictions introducing frameworks to govern stablecoin issuance [13][42]. 2. **Market Liquidity Risks**: The early-stage nature of stablecoins presents risks related to market liquidity and volatility, which require careful monitoring [26][37]. 3. **Integration with Traditional Finance**: The integration of stablecoins into regulated financial systems is crucial for their broader adoption, which may be hindered by existing regulatory frameworks [71][72]. 4. **Real-World Use Cases**: The HKMA emphasizes the need for stablecoins to address real-world payment inefficiencies rather than fueling speculative trading [54][39]. 5. **Potential for Cross-Border Transactions**: Stablecoins could facilitate cross-border e-commerce and financial transactions, but adoption may be slow due to existing payment systems and regulatory uncertainties [34][35][36]. Conclusion - The stablecoin landscape in Hong Kong is evolving with significant regulatory developments that could enhance its status as a global financial hub. However, challenges related to adoption, market dynamics, and regulatory compliance remain critical factors to monitor as the industry progresses.