Core Viewpoint - The semi-annual review of the Hang Seng Composite Index has concluded, and a new round of adjustments to the Hong Kong Stock Connect eligible stocks is imminent, with results expected to be announced on February 20 and effective from March 9, 2025 [1][2]. Group 1: Adjustments and Market Impact - A total of 48 Hong Kong stocks are expected to be included in the Hong Kong Stock Connect eligible list based on simulated calculations [2][3]. - The market capitalization threshold for new eligible stocks has been raised to HKD 9 billion as of December 31, 2025 [3]. Group 2: Industry Distribution of New Eligible Stocks - The new eligible stocks are primarily concentrated in the following sectors: - Healthcare: 14 companies, including names like 英矽智能 and 健康160 [3]. - Information Technology: 8 companies, including 滴普科技 and 极智嘉-W [3]. - Consumer Discretionary: 8 companies, including 卧安机器人 and 轻松健康 [3]. - Industrial: 7 companies, including 京东工业 and 果下科技 [3]. - Financials: 5 companies, including HASHKEY HLDGS and 徽商银行 [3]. - Materials: 3 companies, including 创新实业 and 佳鑫国际资源 [3]. - Consumer Staples: 1 company, 乐舒适 [3]. - Telecommunications: 1 company, 经纬天地 [3]. - Conglomerates: 1 company, 周大福创建 [3]. Group 3: Detailed List of New Eligible Stocks - A detailed list of stocks expected to be included includes: - 乐舒适 (2025-11-10, average daily market cap: HKD 1.898 billion) [4]. - 经纬天地 (2024-01-12, average daily market cap: HKD 0.938 billion) [4]. - 卧安机器人 (2025-12-30, average daily market cap: HKD 1.717 billion) [4]. - 轻松健康 (2025-12-23, average daily market cap: HKD 1.335 billion) [4]. - 博泰车联 (2025-09-30, average daily market cap: HKD 1.297 billion) [4]. - 京东工业 (2025-12-11, average daily market cap: HKD 37.31 billion) [4]. - HASHKEY HLDGS (2025-12-17, average daily market cap: HKD 1.643 billion) [4].

Core Viewpoint - Beijing Zhiyu Huazhang Technology Co., Ltd. has been listed on the Hong Kong Stock Exchange, marking it as the world's first publicly traded company focused on General Artificial Intelligence (AGI) foundational models, with its listing being a significant milestone for China in the AI sector [1]. Company Information - Beijing Zhiyu Huazhang Technology Co., Ltd. was established in June 2019, with a registered capital of approximately 40.28 million RMB [1]. - The company is involved in various activities including the development of AI foundational software, application software, data processing and storage support services, IT consulting, and big data services [1]. - The legal representative of the company is Liu Debing, and the shareholders include Tang Jie, Li Juanzi, and Shanghai Feiyu Technology Co., Ltd. [1]. Market Performance - On its first trading day, the company's stock opened at 120 HKD per share, resulting in a market capitalization of 52.828 billion HKD [1]. Investment and Holdings - The company directly holds stakes in 26 enterprises, with 24 of them currently in operation, including Tianjin Zhiyu Huazhang Technology Co., Ltd. and Beijing Doushen Zhichuang Technology Co., Ltd. [1].

Trade Aspects - Hainan will implement zero tariffs on approximately 6,600 tax items, covering about 74% of imported goods starting December 18, 2025, while Hong Kong has limited tariffs mainly on tobacco, alcohol, and oil [2] - Hainan's zero tariff policy significantly reduces production costs for local processing enterprises, whereas Hong Kong lacks large-scale local processing industries due to land and labor cost constraints [2] - Hong Kong remains a key global supply chain hub with advantages in fast customs clearance and strong international connections, despite a decline in its port throughput [2] Tourism Aspects - Hainan boasts natural tourism advantages with a land area of approximately 35,400 square kilometers and a marine area of about 2 million square kilometers, featuring six national 5A-level tourist attractions [3] - Hong Kong's tourism is characterized by a blend of Eastern and Western cultures, but it does not compete effectively with Hainan in terms of tourist resources, as Hainan attracts more visitors [3] - Visitor spending in Hong Kong has decreased, with average spending for overnight visitors from mainland China dropping to 5,000 HKD, while Hainan's overnight visitors spend approximately 5,641 RMB [4] Taxation Aspects - Hainan offers significant tax incentives, with corporate income tax rates as low as 15% for encouraged industries, while Hong Kong has a two-tier tax system with a lower rate for the first 200,000 HKD of profits [5] - Tax policies are important for business decisions but are not the sole factor influencing companies' operational locations, as other strategic considerations play a significant role [5] Institutional Aspects - Hong Kong is recognized as an international financial center, benefiting from capital flow freedom, a currency pegged to the US dollar, and a common law legal system [7] - The unique operational model of Hong Kong as a "super intermediary" is crucial for its role in the global market, emphasizing its importance beyond mere financial metrics [7] Overall Perspective - The opening of Hainan's trade port marks a significant step in China's foreign trade strategy and presents new opportunities for Hainan [8] - The relationship between Hainan and Hong Kong is expected to evolve into a complementary and mutually beneficial dynamic, enhancing regional collaboration and specialization [8]

Core Insights - The overall shareholding ratio of southbound funds in Hong Kong Stock Connect stocks is 19.38%, with 252 stocks having a shareholding ratio exceeding 20% [1] - Southbound funds hold a total of 4,931.19 million shares, accounting for 19.38% of the total share capital of the stocks, with a market value of 62,848.28 billion HKD, representing 14.76% of the total market value [1] - The stocks with the highest shareholding ratios by southbound funds are China Telecom (71.61%), Gree Power (69.82%), and Kaisa New Energy (67.97%) [1] Group 1: Shareholding Distribution - 252 stocks have a shareholding ratio of over 20%, 131 stocks have a ratio between 10% and 20%, 99 stocks between 5% and 10%, 79 stocks between 1% and 5%, and 22 stocks below 1% [1] - Among the stocks with over 20% shareholding by southbound funds, 131 are AH concept stocks, making up 51.98% of that group [1] Group 2: Industry Concentration - The stocks with over 20% shareholding by southbound funds are primarily concentrated in the healthcare, industrial, and financial sectors, with 57, 38, and 34 stocks respectively [2] - Notable stocks with high southbound fund holdings include: - China Telecom: 99,384.85 million shares, 71.61% of issued shares, closing price 5.340 HKD, daily change -0.74% [2] - Gree Power: 28,236.60 million shares, 69.82%, closing price 5.360 HKD, daily change 0.75% [2] - Kaisa New Energy: 16,996.20 million shares, 67.97%, closing price 3.920 HKD, daily change 1.55% [2]

Core Viewpoint - The recent implementation of the VAT law in China has confirmed that interest expenses on loans and related fees cannot be deducted from VAT, although the use of the term "temporarily" suggests potential future changes in this policy [3][5][6]. Group 1: VAT Law Implementation - The new VAT law specifies that taxpayers cannot deduct interest expenses on loans and related fees from their VAT payable [3]. - The inclusion of the word "temporarily" in the final regulation indicates that the government may reassess this policy in the future [3][5]. - The VAT system in China generates over 6 trillion yuan annually, covering all goods and services [3]. Group 2: Impact on Businesses - The inability to deduct loan interest increases the cost of borrowing for businesses and disrupts the VAT deduction chain, leading to a situation of double taxation [4][5]. - The current VAT system creates an uneven tax burden across different industries due to varying loan demands [5]. - Businesses had hoped for the inclusion of loan interest in the VAT deduction list, but the final regulation dashed these expectations [5]. Group 3: Future Considerations - Experts suggest that the government may explore options to allow deductions for loan interest in the future, depending on the evaluation of the current policy's impact [6][7]. - A gradual approach to reforming the VAT deduction for loan interest is recommended, potentially starting with key industries [7]. - The government has the flexibility to amend the VAT law implementation regulations without needing to revise the law itself, allowing for timely reforms [7].

Overall Market Performance - In 2025, the A-share market saw a significant increase, with the Shanghai Composite Index rising from 3351.76 points at the beginning of the year to 3968.84 points by year-end, reflecting an 18.4% year-on-year growth [4][18] - The total number of A-share listed companies reached 5469 by the end of 2025, with a total market capitalization of 123 trillion yuan, marking a 22.5% increase for existing companies compared to the previous year [4][18] - The average price-to-book ratio of A-share companies increased from 3.3 at the beginning of the year to 4.4 by year-end, indicating a steady rise in market valuation [4][18] Industry Performance - Technology-driven industries, particularly high-tech manufacturing and scientific research, experienced substantial market capitalization growth, with total market values increasing by 33.3% and 32.1% respectively [5][18] - Nearly half of the listed companies in manufacturing and scientific research sectors reported a return on equity (ROE) greater than 5%, providing a solid foundation for valuation support [5][18] - Private technology companies showed remarkable performance, with an overall market capitalization growth of 37.0%, increasing their share of the A-share market from 33.6% to 37.5% [5][18] Company-Specific Performance - The top 150 companies by absolute market capitalization growth included major players such as Agricultural Bank of China, Industrial Fulian, and Contemporary Amperex Technology, indicating strong performance across various sectors [20] - The financial sector, represented by companies like Agricultural Bank and Industrial Bank, played a significant role in the overall market growth, reflecting investor confidence in the banking industry [21] - Companies in the manufacturing sector, such as Industrial Fulian and Contemporary Amperex Technology, demonstrated significant market value increases, highlighting the sector's contribution to the overall market performance [21]

Group 1: Tax Revenue Trends - Since 2013, China's tax revenue growth has consistently lagged behind GDP growth, indicating a downward trend in tax revenue[2] - Tax revenue as a percentage of GDP has declined from 18.7% in 2012 to 13.0% in 2024, marking the lowest level since 2001[15] - The average annual growth rate of tax revenue from 2013 to 2023 is only 4.4%, significantly lower than the 20.3% from 2005 to 2012[20] Group 2: Economic Factors Influencing Tax Revenue - The shift in China's economic development from supply shortages to demand insufficiency has significantly impacted tax revenue growth[22] - The transition from real estate-driven growth to new productive forces has created a mismatch between tax sources and revenue, leading to a decline in tax revenue growth[25] - The reliance on tax cuts and fee reductions has hindered the effectiveness of fiscal policies, resulting in a weak tax base expansion effect[30] Group 3: Structural Challenges - The tax system's design, characterized by overlapping taxation, exacerbates revenue volatility, especially during economic downturns[32] - The progressive nature of certain taxes can amplify revenue fluctuations, causing tax revenue to decline faster than economic value during downturns[34] - The existing tax structure has not adapted to the evolving economic landscape, particularly in the service and digital economy sectors, leading to further revenue challenges[28]

Group 1: Economic Growth and Trends - The Middle East and North Africa (MENA) region is projected to experience an economic growth of 3.3% in 2025, driven by oil-exporting countries benefiting from increased oil production, public investment, and economic diversification [1] - The Gulf Cooperation Council (GCC) countries are expected to see accelerated economic growth in 2025 due to structural reforms and digital innovation, with diversification and digital transformation being crucial for long-term stability and prosperity [2] - Turkey, as a major economy in the region, is anticipated to achieve stable growth driven by domestic consumption and the service sector [2] Group 2: Sectoral Contributions - The tourism sector is increasingly vital for economic growth in the Middle East, with Saudi Arabia expecting record tourist numbers in 2025, and Egypt's Grand Egyptian Museum seen as a catalyst for tourism upgrade [3] - The digital economy is rapidly evolving, with Saudi Arabia and the UAE emerging as leaders in this sector, supported by a vibrant startup ecosystem and strong venture capital [3] Group 3: Challenges and Inflation - The region continues to face challenges such as the negative impact of geopolitical conflicts, fiscal pressures on oil-exporting countries due to falling oil prices, and long-term issues like population imbalance and climate change [3] - Inflation, which has been a persistent issue, is expected to ease in 2025 due to tight monetary policies and lower food and energy prices [3] Group 4: China-Middle East Cooperation - China has become the largest trading partner for the Gulf region, with bilateral trade exceeding that of the Gulf's trade with the US, UK, and Eurozone combined, indicating strong economic ties [4] - Cooperation between China and Middle Eastern countries is expanding into high-tech and future-oriented industries, marking a qualitative leap in their economic collaboration [4] - The IMF forecasts a further increase in economic growth to 3.7% in 2026, supported by investments in non-oil sectors and the development of the digital economy [4]

本报讯（记者余秋兰）南宁市人力资源和社会保障局近日发布南宁市2025年人力资源市场企业从业人员 工资价位，指导企业合理确定薪酬水平，促进人力资源有序流动与优化配置。 从工资价位数据来看，金融业、建筑业、科学研究和技术服务业仍为高薪行业前三名，年薪高位数分别 为38.57万元、27.51万元、25.98万元。学历工资价位方面，应届毕业生的工资价位小幅增长。本科及以 上学历毕业生年薪中位数为8.82万元；大学专科学历毕业生年薪中位数为5.37万元；高中、中专或技校 学历毕业生年薪中位数为4.31万元。岗位级别工资方面，"技高者多得"趋势明显。以"信息和通信工程 技术人员"为例，副高级职称、中级职称、初级职称、没有取得专业技术职称的从业人员年薪中位数分 别为16.80万元、13.12万元、8.94万元、7.91万元。 本次发布的工资价位信息，基于对我市农林牧渔业、制造业、金融业、居民服务业等18个行业中的2777 家企业、25万名在岗职工的2024年度工资薪酬数据进行采集、汇总、分析和整理形成，涵盖233个部分 （工种）分职业小类、部分（工种）职业小类分等级、分行业分职业大类和3类新参加工作的企业从业 人员工资价位 ...

Economic Overview - The GDP growth rate for Q4 2025 is expected to slow to 4.6%, with a strong production sector and moderate demand recovery [1][14] - Industrial production is projected to maintain steady growth, significantly supporting the overall GDP growth target [2][15] - External demand remains resilient, with export growth expected to continue positively [1][5] Production - The industrial added value growth rate for December is estimated at 5.0%, with an annual growth rate of 5.9% for 2025, significantly higher than GDP growth [2][15] - Improvement in demand is noted, driven by pre-holiday inventory buildup and construction progress [2][16] - Manufacturing enterprises are experiencing improved production and market demand, with production growth slightly outpacing demand [2][16] Consumption - The retail sales growth rate for December is expected to be 1.5%, a slight increase from 1.3% [3][19] - Policies supporting the replacement of old products are anticipated to bolster consumer spending, particularly in durable goods [3][19] - The automotive sector continues to face challenges with declining sales and increased discounts, impacting overall retail recovery [3][20] Investment - Fixed asset investment for 2025 is projected to decline by 3.3%, with manufacturing investment showing resilience at 1.2% growth, while infrastructure and real estate investments are under pressure [4][23] - The investment environment has been notably weak since June 2025, with a focus on stabilizing growth in 2026 [4][25] - Manufacturing and broad infrastructure investments are expected to jointly drive growth in early 2026, with a projected increase of 2.5% for the year [4][25][30] Export - December export growth is anticipated at 3.9%, with an annual growth rate of 6.6% for 2026, supported by stable external demand from non-developed countries [5][5] - The stabilization of US-China trade relations and reduced trade friction with Europe and Japan are expected to benefit exports [5][5] Prices - The Consumer Price Index (CPI) growth rate for December is expected to be 0.7%, while the Producer Price Index (PPI) is projected at -1.9% [6][6] - The overall price level is expected to remain stable, with core CPI showing signs of recovery [6][6] Employment - The urban unemployment rate for December is projected to rise slightly to 5.2%, influenced by seasonal factors [7][7] - Continued policy support is expected to help stabilize employment, particularly for vulnerable groups [7][7] Monetary Policy - Financial data for December indicates continued pressure, with new loans and social financing expected to decline [8][8] - The central economic work conference emphasizes the need for flexible monetary policy to support economic stability and reasonable price recovery [8][8]