1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - Short - and medium - term, medium - to high - rated bond issues in the urban investment bond and industrial bond sectors have seen a decline in liquidity. [2][9][18] - In terms of yield, the yields of high - grade liquid bonds in both urban investment and industrial bonds are mainly decreasing, with the decline ranging from 2 - 6bp, and some sub - items showing larger declines. [11][20] 3. Summary by Directory 3.1 Urban Investment Bonds - **Liquidity**: Short - term, medium - to high - rated high - grade liquid bond issues have decreased. Regionally, the number of high - grade liquid bond issues in Sichuan, Tianjin, and Chongqing remained stable, while those in Jiangsu and Shandong decreased. In terms of maturity, the number of 1 - 2 - year high - grade liquid bond issues increased, while those within 1 year and over 5 years decreased, especially within 1 year. In terms of implicit ratings, the number of high - grade liquid bond issues with an implicit rating of AA - increased, while those with ratings of AAA, AA +, AA, and AA(2) decreased. [9] - **Yield**: The yields of high - grade liquid urban investment bonds are mainly decreasing, with the decline concentrated at 2 - 5bp. [11] - **Top 20 in Liquidity Score Increase**: The main body levels are mainly AA + and AA, concentrated in regions such as Jiangsu, Zhejiang, Guangdong, and Shanghai, and mainly involve industries such as building decoration. [12] - **Top 20 in Liquidity Score Decrease**: The main body levels are mainly AA, and the regional distribution is mainly in Henan, Guangdong, Jiangsu, Zhejiang, Anhui, etc. The top 20 entities are mainly in building decoration and comprehensive industries. [12] 3.2 Industrial Bonds - **Liquidity**: Medium - and short - term, medium - to high - rated high - grade liquid bond issues have decreased. By industry, the number of high - grade liquid bond issues in transportation and coal increased, while those in real estate and public utilities remained stable, and those in steel decreased. In terms of maturity, the number of high - grade liquid bond issues increased overall, with the number within 1 year, 2 - 3 years, 3 - 5 years, and over 5 years remaining stable, and the 1 - 2 - year period decreasing. In terms of implicit ratings, the number of high - grade liquid bond issues with an implicit rating of AA increased, the number with a rating of AAA - remained stable, and those with ratings of AAA +, AAA, and AA + decreased. [18] - **Yield**: The yields of high - grade liquid bond issues are mainly decreasing, with the decline concentrated at 2 - 6bp. Some sub - items have larger declines, such as an 18bp decline in the A - grade liquid bond issues in the real estate sector, an 8bp decline in the A - grade liquid bond issues within 1 year, and an 11bp decline in the A - grade liquid bond issues with an implicit rating of AA +. [20] - **Top 20 in Liquidity Score Increase**: The industries of the top 20 entities are mainly transportation, pharmaceutical biology, building decoration, etc., and the main body levels are mainly AAA and AA +. The industries of the top 20 bonds are mainly public utilities, transportation, and commercial retail. [21] - **Top 20 in Liquidity Score Decrease**: The top 20 entities are mainly in public utilities, real estate, building decoration, transportation, machinery and equipment, etc., and the main body levels are mainly AAA and AA +. The industries of the top 20 bonds are mainly transportation, real estate, and public utilities. [21]

Core Points - The CSI Hong Kong-Shanghai-Shenzhen 500 Industrial Index reported a value of 1568.91 points, with a monthly increase of 3.27%, a quarterly increase of 5.53%, and a year-to-date increase of 2.32% [1] - The index is categorized into 11 industries based on the classification standards of the CSI Hong Kong-Shanghai-Shenzhen 500, CSI Hong Kong-Shanghai-Shenzhen Small Cap Composite, and CSI Hong Kong-Shanghai-Shenzhen Composite Index [1] Company Holdings - The top ten weighted companies in the CSI Hong Kong-Shanghai-Shenzhen 500 Industrial Index are: CATL (9.95%), Beijing-Shanghai High-Speed Railway (3.5%), Sungrow Power Supply (2.8%), Sany Heavy Industry (2.71%), Inovance Technology (2.7%), China State Construction (2.55%), SF Holding (2.47%), COSCO Shipping Holdings (2.16%), LONGi Green Energy (2.1%), and CRRC Corporation (2.01%) [1] - The market share of the index holdings is distributed as follows: Shanghai Stock Exchange 54.36%, Shenzhen Stock Exchange 36.51%, and Hong Kong Stock Exchange 9.14% [1] Industry Composition - The industry composition of the CSI Hong Kong-Shanghai-Shenzhen 500 Industrial Index is as follows: Electric Power Equipment 34.48%, Transportation 23.00%, Machinery Manufacturing 22.14%, Construction Decoration 10.55%, Aerospace and Defense 8.05%, and Commercial Services and Supplies 1.79% [2] - The index samples are adjusted biannually, with adjustments implemented on the next trading day after the second Friday of June and December [2]

Group 1 - Kangji Medical (09997) resumed trading with a nearly 1% increase, announcing a privatization agreement with Knight Bidco Limited, which will make Kangji a wholly-owned subsidiary and delist from the Hong Kong Stock Exchange after completion [1] - Tencent Music (01698) opened high with over a 15% increase, reporting a 30% year-on-year increase in adjusted net profit for Q2 ending June 30, 2025, driven by high-quality growth in its online music business [1] - Mingyuan Cloud (00909) opened over 2% higher, announcing a cash acquisition of 100% equity in ASIOT Co., Ltd. for 700 million yen by its subsidiary MytePro Japan [1] Group 2 - Yuedu Group (00772) surged over 15%, reporting a 68.5% year-on-year increase in net profit for the first half of the year, with strong performance in IP for premium films and animations, and significant growth in the emerging short drama sector [2] - Minmetals Resources (01208) rose over 9%, with net profit increasing 15 times year-on-year, attributed to higher copper production and rising prices of copper, gold, silver, and zinc [2] - Beihai Kangcheng-B (01228) increased over 31%, announcing a strategic cooperation agreement with Baiyang Pharmaceutical for exclusive commercial services in promoting several products in mainland China, Hong Kong, and Macau [2] Group 3 - Zhonghui Biotech-B (02627) surged over 25%, as its vaccine product was included in the preliminary review list of the national commercial health insurance innovative drug catalog [2] - Gilead Sciences-B (01672) rose over 5%, announcing promising efficacy results for its candidate drug ASC47 in combination with teriparatide for obesity treatment in diet-induced obesity mouse studies [3] - Dongying Travel (06882) fell over 9%, issuing a profit warning with expected net profit of approximately 6 million HKD for the first half of 2025, down about 82% from 34 million HKD in the same period last year [3] Group 4 - Kodak (KODK.US) dropped 19.91% after reporting a shift from profit to loss in Q2, raising concerns about its ability to execute critical financing measures [4] - Niu Technologies (NIU.US) rose 11.69%, reporting a turnaround to profitability in Q2 and projecting Q3 revenue between 1.433 billion to 1.638 billion CNY, a year-on-year increase of 40% to 60% [4] - Huya (HUYA.US) increased by 4.53%, preparing to release its financial report, with a strong growth trajectory in gaming-related services [4] Group 5 - ON Running (ONON.US) rose 8.95%, reporting a 32% year-on-year increase in Q2 sales and projecting annual net sales of at least 2.91 billion Swiss francs, exceeding previous expectations [6] - Micron Technology (MU.US) increased by 3.26%, significantly raising its Q4 fiscal year 2025 revenue guidance to between 11.1 billion to 11.3 billion USD, with gross margin guidance improved to 44% to 45% [6]

Core Viewpoint - The Hong Kong stock market is experiencing a collective rise, with significant inflows of capital and an increase in dividend payouts from state-owned enterprises, indicating a favorable investment environment for high-dividend sectors [1][2]. Group 1: Market Performance - As of 11:00 AM on Wednesday, the Hong Kong stock market showed collective gains, with the Hong Kong Dividend Low Volatility ETF (159569) remaining stable, having risen over 23% year-to-date [1]. - Popular stocks such as China Hongqiao, Far East Horizon, and major banks and oil companies are witnessing gains, reflecting positive market sentiment [1]. Group 2: Capital Inflows - According to Wind data, southbound capital inflows have exceeded 910 billion HKD this year, significantly surpassing the total inflow for the entire previous year [1]. - The Hong Kong Dividend Low Volatility ETF (159569) has seen a net inflow of approximately 10 million HKD over the past three months, indicating accelerated capital allocation [1]. Group 3: Policy and Dividend Increases - The Ministry of Finance has announced plans to improve the salary management system for state-owned financial enterprises, while the State-owned Assets Supervision and Administration Commission (SASAC) is pushing for increased dividend payouts from central enterprises [1]. - Several Hong Kong-listed central enterprises, including China Mobile and China National Offshore Oil Corporation, have announced increases in their interim dividend ratios, reflecting a positive response to the supportive policy environment [1]. Group 4: Investment Outlook - Western Securities suggests that high-dividend sectors in the Hong Kong stock market hold long-term investment value in the current liquidity-friendly environment, attracting low-cost capital [1]. - The stable profitability of sectors like banking, along with improved supply-demand dynamics in midstream material industries, is expected to enhance corporate earnings recovery [1].

- The report does not contain any quantitative models or factors for analysis[1][3][4]

- The report includes market data for the top ten gainers and losers in the stock market on August 12, 2025, with details such as market value, revenue, net profit, and P/E ratio [9][10] - The report provides a comparison of the average daily price changes between the Beijing Stock Exchange (BSE) and the A-share market across various industries [6][7] - The report includes a chart showing the turnover rate and transaction amount for the Beijing Stock Exchange as of August 12, 2025 [8] - The report contains a chart comparing the valuation changes (P/E and P/B ratios) of the BSE with the STAR Market and ChiNext Market as of August 12, 2025 [12][13]

Group 1 - The core viewpoint is that the Hong Kong stock market, particularly high dividend stocks, presents long-term investment value in the current liquidity easing environment [1] - The banking sector is expected to maintain stable earnings and continue existing dividend levels, which will attract low-cost funds [1] - High dividend assets are becoming an important allocation direction amid declining non-standard investment returns [1] Group 2 - The Hong Kong Dividend ETF (159331) tracks the Hong Kong Stock Connect High Dividend Index (930914), which selects 30 high dividend yield securities from companies that meet Stock Connect criteria [1] - The index focuses on large and mid-cap companies with significant dividend yield advantages and stable cash flows, covering various sectors including transportation and resources [1] - Investors without stock accounts can consider related ETFs such as the Cathay CSI Hong Kong Stock Connect High Dividend Investment ETF Initiated Link A (022274) and Link C (022275) [1]

Core Viewpoint - The issuance of new special bonds has accelerated significantly in early 2023, with a focus on early issuance and utilization to stimulate effective investment [1][2][3] Group 1: Issuance Data - On February 28, the single-day issuance of new special bonds reached 88 billion yuan, accounting for over 20% of the total issuance for the month [1][2] - In the first two months of 2023, a total of 877.5 billion yuan in new special bonds was issued, representing 60.1% of the early allocated quota of 1.46 trillion yuan [2] - The provinces with the highest issuance of new special bonds include Shandong, Guangdong, and Sichuan [2] Group 2: Investment Focus - The primary focus of the issued funds is on infrastructure projects, particularly in transportation and municipal industrial park construction, with significant allocations also directed towards agriculture, forestry, water conservancy, and ecological protection [2] - Nearly 29% of the funds allocated to infrastructure in the first two months were directed towards transportation infrastructure, 39% towards municipal and park infrastructure, and 25% towards agriculture, forestry, water conservancy, and ecological protection [2] Group 3: Future Outlook - The pace of special bond issuance is expected to continue accelerating, with projections indicating that over 90% of the early allocated quota will be issued in the first quarter of 2023 [3] - The Ministry of Finance emphasizes the importance of supporting key project construction through the reasonable arrangement of local government special bonds [3]

Group 1 - The central government and local authorities are implementing a series of policies to stabilize and expand investment, focusing on public-private partnerships (PPP) as a key strategy [1][3][5] - A significant number of major projects are being launched, with Hebei province starting 336 projects with a total investment of 104.6 billion yuan, reflecting a 10.1% year-on-year increase in planned investment for major projects across 20 provinces [2][3] - The government aims to accelerate the issuance and utilization of special bonds, with a target of 3.45 trillion yuan in special bonds to be issued by the end of June, which is expected to enhance local government financial capacity [4][5] Group 2 - There is a notable increase in private investment, with Hunan province reporting a 12.6% year-on-year growth in private investment from January to April, outpacing overall investment growth [4][5] - The government is encouraging private investment in urban infrastructure through various incentives, including investment subsidies and capital injections [5][6] - The PPP model is being emphasized to leverage government funds to attract more social capital, with 178 new projects added to the national PPP database this year, amounting to an investment of 328.1 billion yuan [6][8] Group 3 - The focus on enhancing the "pulling power" of PPP projects is crucial, especially in the current economic environment, with calls for more flexible financing solutions to attract private capital [7][8] - Local governments, such as Zhejiang and Guangdong, are promoting the PPP model for railway construction and other infrastructure projects, highlighting the advantages of existing projects over new ones in terms of quality and cash flow [8] - The need for a more competitive market environment and relaxed entry barriers for private investment in infrastructure is emphasized to stimulate economic growth [8]

Core Viewpoint - Seven listed companies under China Merchants Group, including China Merchants Shekou, China Merchants Port, China Merchants Energy, China Merchants Highway, China Merchants Jinling, Liao Port Co., and China Merchants Industry, announced a collective plan to accelerate their share repurchase programs, reflecting strong confidence in their future development prospects and intrinsic value [1] Group 1 - The companies aim to enhance shareholder rights and maintain market confidence in their listed entities [1] - The share repurchase initiative is intended to boost the investment value of the listed companies [1]