Core Viewpoint - The market showed strong performance in the afternoon, particularly in the technology sector, with the Guozheng Growth 100 Index rising by 5.1%, indicating a robust interest in growth-style investments [1]. Group 1: Market Performance - The Guozheng Growth 100 Index increased by 5.1%, while the Guozheng Free Cash Flow Index rose by 1.2%, and the Guozheng Value 100 Index went up by 0.8% [1]. - The trading volume for the Growth ETF (159259) reached approximately 130 million yuan, significantly higher than previous days, reflecting active market participation [1]. Group 2: Index Composition - The Guozheng Growth 100 Index focuses on A-share stocks with a strong growth style, with over 70% of its weight concentrated in the electronics, communications, and computer sectors, aligning with the core areas of AI computing power [1]. - The Growth ETF (159259) is the only product tracking this index, providing investors with opportunities to capitalize on growth-style investments [1]. Group 3: Sector Analysis - The Guozheng Growth 100 Index consists of 100 stocks, with the information technology and materials sectors accounting for over 65% of the index, highlighting a significant emphasis on technology [3]. - The Guozheng Value 100 Index, which tracks 100 value-style stocks, has over 65% of its weight in consumer discretionary, financial, and industrial sectors, with consumer discretionary having a high proportion [3]. - The Guozheng Free Cash Flow Index includes 100 stocks with high free cash flow levels, with industrial, materials, and consumer discretionary sectors making up over 70%, combining high dividends and growth potential [3].

Core Viewpoint - The technology sector experienced a pullback today, with popular concepts such as CPO, optical chips, and optical communication collectively declining over 3%. Despite this, there was a counter trend in funding, with the Growth ETF (159259) seeing a net subscription of 30 million shares throughout the day [1]. Group 1: Index Performance - The National Securities Value 100 Index fell by 0.9% [1]. - The National Securities Free Cash Flow Index decreased by 1.2% [1]. - The National Securities Growth 100 Index dropped by 2.1% [1]. Group 2: Growth ETF Details - The Growth ETF (159259) tracks the National Securities Growth 100 Index, which focuses on A-share stocks with prominent growth styles [3]. - Over 70% of the index's weight is concentrated in the electronics, communication, and computer sectors, aligning with the core aspects of AI computing power [1][3]. - The Growth ETF is the only product that tracks this index, providing investors with opportunities to capitalize on growth-style investments [1].

证 券 研 究 报 告 11月中国与新兴市场流入加速，发达市场流入减速 全球资产配置资金流向月报（2025年11月） 3 证券分析师：金倩婧 A0230513070004 冯晓宇 A0230521080005 林遵东 A0230524100005 涂锦文 A0230525070006 王胜 A0230511060001 2025.12.11 摘要 www.swsresearch.com 证券研究报告 2 ◼ 11月，美国政府关门宣告结束，经济数据开始逐步披露。11月21日，美国劳工局数据显示，9月，新增非农就业人数11.9万人，远超市场预期的5万人，失业率上升0.1个百分点至4.4%， 续创2021年11月以来的最高水平。市场在美元的强弱摇摆中寻找新的线索。12月10日，美联储如期降息25BPs，年内累计下调75BPs，但是本次降息出现3票反对，美联储内部分歧加 大。从11月1日到12月10日，分资产类别来看，1）权益方面，美元计价下，巴西和越南股市领涨全球，美元计价下分别上涨4.5%和4.7%，而纳斯达克和沪深300则出现下跌；2）固收 层面，10年美债收益率和美元指数先下后上，美联储降息当天下行5BPs， ...

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) has confirmed a joint letter with the Hong Kong Securities and Futures Commission (SFC) to IPO sponsors regarding concerns over the declining quality of recent listing applications and non-compliance issues [8]. Market Performance - On December 10, the Hong Kong stock market saw a rebound, with the Hang Seng Index rising by 0.42% to close at 25,540.78 points, and the Hang Seng Tech Index increasing by 0.48% to 5,581.10 points. The market turnover was HKD 1,933.92 billion, down from HKD 2,102.36 billion the previous trading day [2]. - Among the constituents of the Hang Seng Index, 43 stocks rose while 42 fell. Notable gainers included WH Group, which rose by 5.01%, Haidilao by 3.45%, and CSPC Pharmaceutical by 3.19% [3]. Individual Stock Highlights - WH Group (Code: 0288) closed at HKD 8.590, up 5.01% with a year-to-date increase of 65.77% [4]. - Haidilao (Code: 6862) closed at HKD 14.100, up 3.45%, but has seen a year-to-date decline of 6.10% [4]. - CSPC Pharmaceutical (Code: 1093) closed at HKD 7.770, up 3.19%, with a year-to-date increase of 67.18% [4]. - Alibaba (Code: 9988) had a turnover of HKD 93.22 billion, rising by 1.52% with a year-to-date increase of 89.04% [5]. Vanke Enterprises - Vanke Enterprises experienced a significant surge, with its stock price reaching a maximum increase of 18.56% on December 10, closing at HKD 3.78 per share, up 13.17% for the day [10]. - The company held a bondholders' meeting on December 10 to discuss the extension of its first bond, "22 Vanke MTN004." The company announced that it would not adjust the interest rate of "21 Vanke 02," maintaining it at 3.98% [12]. ETF Launch - The Southern Eastern UK Index Covered Call Option Active ETF is set to launch on December 11 on the Hong Kong Stock Exchange. This ETF will primarily invest in the constituents of the Hang Seng China Enterprises Index and aims to generate income through option premiums [15]. Investment Opportunities - UBS Wealth Management highlighted that the Chinese technology sector represents one of the most significant global opportunities, driven by ample liquidity and expected corporate earnings growth of up to 37% in 2026 [16].

- The report highlights the performance of the A-share market, with the CSI A50 leading the gains and the ChiNext Index showing strong performance[1][6] - The Dividend Enhanced Portfolio outperformed the CSI Dividend Total Return Index, with the Central SOE High Dividend 30 Portfolio and the Balanced Dividend 50 Portfolio achieving weekly excess returns of approximately 0.41% and 0.75%, respectively[6][21] - The Electronic Enhanced Portfolio also outperformed the Electronic Total Return Index, with the Electronic Balanced Allocation Enhanced Portfolio and the Electronic Sector Preferred Enhanced Portfolio achieving weekly excess returns of approximately 1.78% and 1.53%, respectively[6][29]

Industrial Sector - Raw material production is recovering, with steel and building materials output rebounding this week[2] - The average daily pig iron production has decreased compared to the previous week[4] - The operating rate of asphalt and cement clinker has increased, while the float glass operating rate has declined[2][10] Real Estate - New home sales in 30 major cities decreased by 35.8% year-on-year as of December 5, with a 5.0 percentage point decline from the previous week[2] - The year-on-year decline in second-hand home listing prices narrowed to -0.66% as of November 24[22] Domestic Demand - Movie box office revenue increased significantly, with a year-on-year growth of 291.2% as of December 5[2] - National retail sales of passenger cars in November were 2.263 million units, down 7% year-on-year, contrasting with a 6% increase in October[28] - The volume of postal express deliveries increased by 6.4% year-on-year as of November 30[30] External Demand - Port cargo throughput increased by 3.2% year-on-year as of November 30, while container throughput rose by 9.6%[32] - South Korea's export value grew by 8.4% year-on-year in November, with a 4.8 percentage point increase from October[32] Price Trends - The Nanhua Industrial Index rose by 0.4%, with the non-ferrous metal index increasing by 2.4% this week[2] - The futures price of rebar increased by 1.5%, while the spot price rose by 0.9%[39]

Group 1 - The report maintains an optimistic outlook for the Hong Kong stock market in 2026, predicting that the current bull market will continue to extend further and last longer, with the Hang Seng Index expected to reach 30,100 points by the end of 2026, based on a forecasted P/E ratio of 13.0 times [2][33] - Key investment opportunities are identified in areas such as strengthening the real economy, promoting technological innovation, developing new productive forces, and expanding domestic demand, which are critical directions outlined in the 14th Five-Year Plan [2][36] - The report emphasizes that sectors related to technological innovation and new productive forces are likely to be the most important investment themes in the coming years, suggesting a focus on consumer leading companies, undervalued high-yield state-owned enterprises, and domestic brands benefiting from accelerated substitution processes [2][36] Group 2 - The Hong Kong stock market showed strong performance in the first 11 months of 2025, with the Hang Seng Index rising by 28.9% and the Hang Seng Tech Index increasing by 25.3%, placing it among the top global stock markets [3][4] - All industry sectors within the Hang Seng classification experienced gains, with materials, healthcare, and information technology sectors performing particularly well, increasing by 134.3%, 74.1%, and 39.7% respectively [4][7] - The report notes that the average daily trading volume in the Hong Kong stock market reached HKD 2,558 billion, a 95% increase year-on-year, and net inflows from southbound trading amounted to RMB 12,806 billion, significantly higher than the previous year's RMB 6,543 billion [3][21] Group 3 - The report indicates that liquidity in the Hong Kong financial market remains ample, with the banking system's surplus rising significantly due to interventions by the Hong Kong Monetary Authority [15][16] - It highlights that southbound trading has played a crucial role in supporting the stability and recovery of the Hong Kong market amid rising geopolitical risks, with companies with mainland backgrounds accounting for 80.59% of the total market capitalization [21][22] - The report anticipates that southbound trading will achieve a net inflow of RMB 1.5 trillion in 2026, surpassing the expected net inflow of RMB 1.33 trillion in 2025 [21][22] Group 4 - The report discusses the normalcy of significant pullbacks during a bull market, noting that the Hang Seng Index experienced a 6.1% decline and the Hang Seng Tech Index a 16.6% decline from late September to late November 2025, which is considered a typical adjustment within historical bull markets [25][29] - It attributes the recent market adjustments to increased internal and external uncertainties, including geopolitical tensions and economic slowdowns, which have led to cautious investor sentiment [26][27] - Historical data shows that during past bull markets, the Hang Seng Index has experienced average pullbacks ranging from 6% to 20%, indicating that the current adjustments do not fundamentally alter the upward trend of the market [29] Group 5 - The report emphasizes the importance of economic construction as a central focus, suggesting that the recent political statements will boost confidence among entrepreneurs and investors, thereby enhancing the fundamentals of listed companies [33][36] - It outlines that the 14th Five-Year Plan prioritizes the strengthening of the real economy, technological self-reliance, and the expansion of domestic demand, which are expected to drive future market growth [35][36] - The report concludes that the increasing recognition of China's AI technology and the presence of high-quality investment targets in the Hong Kong market will attract both domestic and international capital, fostering a positive investment environment [37]

Core Insights - The Ministry of Industry and Information Technology and five other departments have announced the first batch of 15 leading smart factories, covering key industries such as equipment manufacturing, raw materials, electronics, and consumer goods, providing a clear path for the intelligent transformation of manufacturing enterprises [1] - Leading smart factories represent the pinnacle of smart manufacturing in China, serving as benchmarks for future manufacturing models and global competitiveness [1][2] - The cultivation of smart factories follows a gradient approach, categorized into four levels: basic, advanced, excellent, and leading, allowing enterprises at different stages to set achievable goals [1][2] Group 1 - Leading smart factories have an intelligent penetration rate exceeding 80% and are accelerating integration into high-value upstream and downstream supply chain segments [1] - The gradient cultivation strategy aims to prevent ecological imbalance by fostering a broad base of basic smart factories, enabling small and medium-sized enterprises to keep pace with technological advancements [2] - Advanced and excellent smart factories act as a core force, disseminating experiences from leading factories to specialized fields, creating a ripple effect [2] Group 2 - To enhance global competitiveness, leading smart factories must leverage artificial intelligence, with a requirement for at least 60% of their applications to involve AI technology [2] - Small and medium-sized enterprises face challenges in transformation due to high costs, risks, and a lack of technology and talent, necessitating low-cost transformation solutions and shared service platforms [3] - The evolution of smart manufacturing in China has progressed from isolated breakthroughs to systemic collaboration, indicating a significant historical leap towards becoming a manufacturing powerhouse [3]

Core Insights - The Ministry of Industry and Information Technology and five other departments have announced the first batch of 15 leading smart factories, covering key industries such as equipment manufacturing, raw materials, electronic information, and consumer goods, providing a clear path for the intelligent transformation of manufacturing enterprises [2] - Leading smart factories represent the pinnacle of smart manufacturing in China, with a high entry threshold requiring companies to be industry leaders with globally competitive core products and smart manufacturing capabilities [2] - The penetration rate of intelligence in the selected leading smart factories exceeds 80%, accelerating penetration into high-value chain segments [2] Summary by Categories Smart Factory Classification - Smart factories in China are categorized into four levels: basic, advanced, excellent, and leading, with each level having distinct goals to facilitate a structured growth path [2][3] - Basic smart factories exceed the average level of their industry within their province, while leading smart factories must achieve global leadership [2] Role of Leading Smart Factories - Leading smart factories serve as industry benchmarks, tasked with exploring cutting-edge technology applications and overcoming key bottlenecks [3] - The focus is not solely on selecting top performers but also on fostering a broad base of basic smart factories to support the overall ecosystem [3] Importance of Artificial Intelligence - To enhance global competitiveness, excellent smart factories must apply artificial intelligence in at least 20% of their scenarios, while leading smart factories must achieve a minimum of 60% [3] - Artificial intelligence is seen as a crucial tool for overcoming traditional manufacturing challenges and optimizing the entire production chain [3] Challenges for Small and Medium Enterprises (SMEs) - SMEs face significant barriers to transformation, including high costs, risks, and a lack of technology and talent, necessitating low-cost, lightweight transformation solutions [4] - Establishing shared service platforms led by the government and major enterprises can help SMEs transition from bystanders to active participants in the smart factory ecosystem [4] Future of Smart Manufacturing - The evolution of smart manufacturing in China is marked by a shift from isolated breakthroughs to systemic collaboration, aiming for comprehensive upgrades across the manufacturing sector [5]

Group 1 - The Ministry of Industry and Information Technology and five other departments have announced the first batch of 15 leading smart factories, covering key industries such as equipment manufacturing, raw materials, electronic information, and consumer goods, providing a clear path for the intelligent transformation of manufacturing enterprises [2] - Leading smart factories represent the pinnacle of smart manufacturing in China, serving as benchmarks for future manufacturing models and requiring companies to be industry leaders with globally competitive core products and smart manufacturing capabilities [2] - The smart factory cultivation approach is structured in a gradient manner, categorizing factories into four levels: basic, advanced, excellent, and leading, allowing enterprises at different stages to have clear and achievable goals [2] Group 2 - The cultivation of smart factories is not just about selecting top performers; it aims to prevent ecological imbalance by widely nurturing basic smart factories, enabling small and medium-sized enterprises to keep pace with technological advancements through digital transformation [3] - Advanced and excellent smart factories act as a backbone, disseminating experiences from leading factories and creating a ripple effect in specific sectors, ultimately forming a robust and dynamic smart factory pyramid [3] - To enhance global competitiveness, leading smart factories must effectively utilize artificial intelligence, with a requirement that at least 60% of their applications involve AI technology [3] Group 3 - To strengthen the foundation of smart factories, it is essential to address the transformation challenges faced by small and medium-sized enterprises, which often struggle due to high costs, risks, and a lack of technology and talent [4] - Proposals for lightweight and low-cost transformation solutions are necessary to lower the barriers for small and medium-sized enterprises, alongside the establishment of shared service platforms to facilitate access to technology and resources [4] - The evolution of smart manufacturing in China has progressed from isolated breakthroughs to widespread implementation, indicating a significant historical leap towards becoming a manufacturing powerhouse [5]