Core Viewpoint - The company, Baize Medical (02609), has been selected to be included in various Hang Seng Index series components effective from September 8, 2025, reflecting increased investor recognition of its operational performance and growth potential [1] Group 1: Index Inclusion - Baize Medical will be included in the Hang Seng Composite Index, Hang Seng Composite Industry Index - Healthcare, Hang Seng Composite Small Cap Index, Hang Seng Healthcare Index, and other related indices [1] - The Hang Seng Composite Index covers the top 95% of total market capitalization of companies listed on the Hong Kong Stock Exchange, serving as a comprehensive market benchmark [1] Group 2: Market Impact - Inclusion in the Hang Seng Composite Index will qualify the company's shares for trading through the Hong Kong Stock Connect programs, enhancing accessibility for mainland Chinese investors [1] - The board anticipates that this inclusion will increase the company's visibility in the capital markets, improve trading liquidity, and further enhance its investment value [1]

Core Viewpoint - The company, Baize Medical (02609.HK), has been selected to be included in various Hang Seng Index series, effective from September 8, 2025, reflecting increased recognition of its operational performance, investment value, and growth potential by investors [1] Group 1: Index Inclusion - The company will be included in the following Hang Seng Index series: 1. Hang Seng Composite Index; 2. Hang Seng Composite Industry Index - Healthcare; 3. Hang Seng Composite Small Cap Index; 4. Hang Seng Composite Mid Cap Index; 5. Hang Seng Healthcare Index; 6. Hang Seng Hong Kong Stock Connect Healthcare Equipment and Services (Investable) Index; 7. Hang Seng Hong Kong Stock Connect Healthcare Equipment and Services Index [1] Group 2: Market Impact - The board believes that inclusion in the Hang Seng Composite Index and the aforementioned indices will enhance the company's visibility in the capital market, improve the liquidity of its shares, and further increase its investment value [1]

Core Viewpoint - The company, Baize Medical (02609), has been selected to be included in various Hang Seng Index series, effective from September 8, 2025, reflecting increased investor recognition of its operational performance and growth potential [1] Group 1: Inclusion in Hang Seng Index - Baize Medical will be included in the Hang Seng Composite Index, Hang Seng Composite Industry Index - Healthcare, Hang Seng Composite Small Cap Index, Hang Seng Healthcare Index, and other related indices [1] - The Hang Seng Composite Index covers the top 95% of total market capitalization of companies listed on the Hong Kong Stock Exchange, serving as a comprehensive market benchmark [1] Group 2: Impact on Market Presence - Inclusion in the Hang Seng Composite Index will qualify the company's shares for trading through the Hong Kong Stock Connect programs, enhancing accessibility for mainland Chinese investors [1] - The board anticipates that this inclusion will increase the company's visibility in the capital markets, improve trading liquidity, and further enhance its investment value [1]

Group 1 - The core viewpoint indicates that the earnings expectations for the Hong Kong technology sector have been revised upward, with the information technology industry's earnings expectations seeing the highest increase of 7.8% compared to US and European markets [1] - The Hong Kong stock market has shown a significant recovery in trading volume, with continued inflow of southbound funds amid a global market uptrend [1] - The valuation of the Hong Kong information technology sector stands at a PE ratio of 31.9, while the healthcare sector has the highest valuation in the market at 49.9 [1] Group 2 - The Hong Kong Technology ETF (513020) tracks the Hong Kong Stock Connect Technology Index (931573), which focuses on 30 large-cap technology companies listed in Hong Kong that have high R&D investment and revenue growth [1] - The index is primarily composed of sectors such as information technology, electronic components, and interactive media and services, reflecting the characteristics of high-end manufacturing and hardware infrastructure [1] - Investors without stock accounts can consider the Cathay CSI Hong Kong Stock Connect Technology ETF Initiated Link A (015739) and Link C (015740) [1]

Core Viewpoint - The company has signed a placement agreement with a placement agent to issue up to 5 million shares at a price of HKD 0.60 per share, representing an approximate 11.76% discount to the previous closing price of HKD 0.680 [1] Group 1 - The maximum net proceeds from this placement are expected to be HKD 2.7 million [1] - The company plans to utilize the entire net proceeds to support the development of its healthcare business, which includes hiring talent, covering daily expenses of Shandong Guoen, conducting marketing activities, and developing sales platforms [1]

Group 1 - The core viewpoint is that both domestic and foreign capital are flowing into the Hong Kong stock market, leading to an increase in consensus among investors [1] - Southbound funds have net bought a total of 902 billion HKD in Hong Kong stocks this year, with technology stocks being the main focus of investment [1] - The Hong Kong local ETFs have seen a net inflow of 32.4 billion HKD as of August 8 this year [3] Group 2 - Over the past week, the information technology sector had the highest net inflow of 9.061 billion HKD, followed by non-essential consumer goods at 7.299 billion HKD and the financial sector at 7.266 billion HKD [2] - Since September 2022 until August 8, overseas funds have net flowed into Hong Kong stocks totaling 10.2 billion USD [5]

Group 1 - The chief economist of Moody's, Mark Zandi, stated that over half of the industries in the U.S. have begun layoffs, indicating a potential economic downturn [1] - Zandi emphasized that the official determination of the start and end of a recession is made by the National Bureau of Economic Research, which defines a recession as a significant decline in economic activity lasting several months [1] - Employment data is highlighted as the most critical single data point, with stagnation observed since May, and July's non-farm payrolls adding only 73,000 jobs, significantly below the expected 110,000 [1] Group 2 - The unemployment rate in the U.S. rose by 0.1 percentage points to 4.2% in July, with substantial downward revisions to previous months' job additions [1] - Zandi noted that over 53% of industries are currently laying off workers, with only the healthcare sector showing significant job growth [1] - A report from JPMorgan indicated that private sector hiring has averaged 52,000 over the past three months, with hiring stagnating in all sectors except healthcare and education, signaling a warning for economic recession [2]

Quantitative Models and Construction Methods 1. Model Name: Hong Kong Stock Selection Portfolio Strategy - **Model Construction Idea**: The strategy is based on a dual-layer selection process that integrates fundamental and technical analysis. It aims to identify stocks with both fundamental support and technical resonance from an analyst-recommended stock pool[13][14] - **Model Construction Process**: 1. **Analyst Recommendation Pool**: Constructed using three types of analyst recommendation events: upward earnings forecast revisions, initial analyst coverage, and research reports with unexpected positive titles[14] 2. **Dual-Layer Screening**: - **Fundamental Screening**: Select stocks with strong fundamental support - **Technical Screening**: Identify stocks with technical resonance 3. **Portfolio Backtesting**: The backtesting period spans from January 1, 2010, to June 30, 2025. The portfolio assumes a fully invested position and accounts for transaction costs[14] - **Model Evaluation**: The strategy demonstrates strong performance, with an annualized return of 19.11% and an excess return of 18.48% relative to the Hang Seng Index over the backtesting period[14] 2. Model Name: Stable New High Stock Screening - **Model Construction Idea**: This model leverages the momentum effect, which is particularly significant in the Hong Kong stock market. It identifies stocks that have recently reached a 250-day high and exhibit stable price paths[19][21] - **Model Construction Process**: 1. **250-Day High Distance Calculation**: $ 250\text{-Day High Distance} = 1 - \frac{\text{Close}_{\text{latest}}}{\text{ts\_max}(\text{Close}, 250)} $ - $\text{Close}_{\text{latest}}$: Latest closing price - $\text{ts\_max}(\text{Close}, 250)$: Maximum closing price over the past 250 trading days[21] 2. **Screening Criteria**: - **Analyst Attention**: At least five "Buy" or "Overweight" ratings in the past six months - **Relative Strength**: Top 20% in 250-day price change within the sample pool - **Price Stability**: Top 50% based on a composite score of price path smoothness and new high persistence[22] - **Trend Continuation**: Top 50 stocks based on the average 250-day high distance over the past five days[22] - **Model Evaluation**: The model effectively identifies stocks with strong momentum and stable price paths, making it a useful tool for trend-following strategies[19][21] --- Model Backtesting Results 1. Hong Kong Stock Selection Portfolio Strategy - **Annualized Return**: 19.11% - **Excess Return (Relative to Hang Seng Index)**: 18.48% - **Maximum Drawdown**: 23.73% - **Information Ratio (IR)**: 1.22 - **Tracking Error**: 14.55% - **Return-to-Drawdown Ratio**: 0.78[18] 2. Stable New High Stock Screening - **Sector Distribution**: - **Healthcare**: 16 stocks - **Finance**: 9 stocks - **Technology**: 8 stocks - **Consumer**: 8 stocks - **Cyclicals**: 3 stocks[21][22]

Group 1 - The U.S. labor market showed unexpected weakness in July, with non-farm payrolls increasing by only 73,000 jobs, significantly below the market expectation of over 140,000 jobs [1] - The unemployment rate rose to 4.2%, an increase of 0.1 percentage points from the previous month [1] - The U.S. Labor Department revised down the employment figures for May and June, with a total downward revision of 258,000 jobs, indicating growing concerns about the slowdown in the U.S. economy [1] Group 2 - Job growth in July was primarily driven by the healthcare and social services sectors, which added 55,000 and 18,000 jobs respectively, while federal government employment continued to decline [1] - The average hourly wage for non-farm employees in July was $36.44, reflecting a month-over-month increase of 0.3% and a year-over-year increase of 3.9% [1] - The Federal Reserve officials expressed concerns about the labor market, noting that private sector job growth is nearly stagnant and that the labor market is showing signs of vulnerability [2]

Stock Market Performance - In July 2025, global stock markets rose, with the KOSPI increasing by over 5%, and the NASDAQ rising nearly 4%[4] - The Hang Seng Index and Hang Seng Tech Index both saw monthly gains of nearly 3%[4] Hong Kong Stock Sector Performance - The healthcare sector surged by 22.8%, while the industrial and energy sectors also performed well with increases of 9.9% and 9.7% respectively[8] - The overall performance of the Hang Seng industry indices showed positive growth across all sectors in July 2025[8] IPO and Financing Overview - In July 2025, the Hong Kong IPO market saw 9 new listings, raising approximately HKD 17.63 billion, with a first-day loss rate of only 22.2%[13] - The major sectors for IPO financing included TMT, finance, consumer, and healthcare[13] - A total of 86 companies announced share placements in July, expected to raise around HKD 40.89 billion, primarily in the healthcare, TMT, and real estate sectors[13] U.S. Economic Indicators - The U.S. labor market remains resilient, with initial jobless claims dropping to 217,000, marking a six-week decline[15] - Despite weak home sales, the median home price increased by 1.97% year-on-year, indicating price stability in the real estate market[15] China Economic Policies - China continues to implement policies to combat "involution," with new regulations in various sectors including agriculture and healthcare[16] - The Yarlung Tsangpo River hydropower project has commenced, with a total investment of approximately CNY 1.2 trillion[16] - The AI industry is receiving new catalysts, with the government advocating for global cooperation in AI governance[16] Market Outlook - The U.S. economy shows resilience, with the Federal Reserve maintaining interest rates between 4.25% and 4.50%[18] - The Hong Kong market is expected to maintain an upward trend, supported by favorable domestic policies and improved U.S.-China relations[18] - Investment focus is recommended on technology assets, consumer sectors, and stable dividend-paying stocks[18]