Core Viewpoint - The insurance capital's participation as cornerstone investors in Hong Kong IPOs has surged significantly this year, with subscription amounts exceeding HKD 3.44 billion, approximately three times that of the same period last year, indicating a shift in investment strategy amidst low interest rates and asset scarcity [1][2]. Group 1: Investment Trends - Insurance funds are increasingly focusing on "hard technology" and new consumption sectors, including automotive, digital solutions, home appliances, semiconductors, and energy storage devices [3][10]. - Major insurance companies like Taikang Insurance and China Pacific Insurance have actively participated in multiple IPOs, with Taikang alone investing over HKD 1.4 billion across five companies [2][3]. Group 2: Market Dynamics - The Hong Kong IPO market has seen a revival, with a total fundraising amount of HKD 182.9 billion in the first three quarters of 2025, making it the highest globally [10]. - The number of IPO applications being processed has reached a record high of 289, reflecting a robust market environment [10]. Group 3: Risks and Challenges - Despite the potential for increased returns, cornerstone investments carry risks such as market volatility, liquidity constraints due to lock-up periods, and uncertainties related to the Hong Kong dollar's exchange rate and interest rate environment [1][11]. - The rapid technological changes in the hard tech sector pose challenges for insurance companies' existing research and investment frameworks, making it difficult to adapt to fast-evolving market conditions [11].

Core Viewpoint - Aux Electric is set to go public on the Hong Kong Stock Exchange from August 25 to 28, aiming to issue 207 million shares, with a focus on the air conditioning market and a significant growth trajectory in revenue and profit over the next few years [3][4]. Company Overview - Aux Electric is a subsidiary of Aux Group, which already has two listed companies: Sanxing Medical in A-shares and Aux International in Hong Kong [3]. - The main business of Aux Electric includes the research, production, and sales of household and central air conditioning systems, serving various applications such as residential, commercial, and industrial [3]. Market Position - As of 2024, Aux Electric ranks as the fifth largest air conditioning provider globally, holding a market share of 7.1% [4]. - The company has projected revenues of RMB 195.28 billion, RMB 248.32 billion, and RMB 297.59 billion for the years 2022, 2023, and 2024 respectively, reflecting a compound annual growth rate (CAGR) of 23.5% [4]. Financial Performance - Net profits for Aux Electric are expected to be RMB 14.42 billion, RMB 24.87 billion, and RMB 29.10 billion for the years 2022, 2023, and 2024 respectively, with a first-quarter net profit of RMB 9.25 billion in 2025, showing a year-on-year growth of 23.0% [4]. - The company’s revenue for the first quarter of 2025 is projected at RMB 93.52 billion, marking a 27.0% increase compared to the previous year [4]. IPO Details - The IPO price range is set between HKD 16.00 and HKD 17.42 per share, with a minimum subscription amount of HKD 3,519.14 [8]. - The total market capitalization is estimated to be between HKD 24.915 billion and HKD 27.126 billion [8]. - The offering consists of 207 million shares, with 5% allocated for Hong Kong and 95% for international investors, and a green shoe option is available [5][8]. Investor Sentiment - The large issuance volume and the use of the A mechanism may indicate a lack of confidence from the company, as the market valuation for the industry is generally low [8]. - If the maximum clawback is triggered, it is possible for investors to achieve a 100% success rate in share allocation [9].

Group 1 - The Shenzhen Stock Exchange and Hang Seng Index Company jointly launched the Guozhen Hang Seng Greater Bay Area Digital Economy Index and Guozhen Hang Seng Greater Bay Area Consumption Index to provide distinctive cross-border investment targets and better serve investors' cross-border asset allocation needs [1][2] - The indices focus on core leading companies in the digital economy and consumption sectors, reflecting significant investment value and providing a solid foundation for index compilation and product development [1][2] - The Guozhen Hang Seng Greater Bay Area Digital Economy Index includes 50 companies with large market capitalization and good liquidity from sectors such as electronic components, telecommunications equipment, digital solutions, internet services, infrastructure, and semiconductors, featuring representatives like Tencent Holdings and Luxshare Precision [1][2] Group 2 - The Guozhen Hang Seng Greater Bay Area Consumption Index comprises 50 companies from consumer sectors such as household appliances, consumer electronics, packaged food, furniture, and personal care, including industry leaders like Gree Electric and TCL Technology [1][2] - The collaboration between the two index institutions aims to enhance the representation and investment guidance of the index market, facilitating the continuous expansion of the mutual connectivity mechanism between Shenzhen and Hong Kong [2] - The companies plan to develop more diverse indices to provide comprehensive index solutions for domestic and international market participants, helping them seize economic development and market opportunities in the Shenzhen-Hong Kong region [2]

Group 1 - The core focus of the Shenzhen Stock Exchange's 2025 Global Investor Conference is to promote cross-border investment opportunities in the Greater Bay Area, emphasizing the digital economy and consumption sectors [1][2] - The collaboration between Shenzhen Securities Information Co. and Hang Seng Index Co. resulted in the launch of the National Index Hang Seng Greater Bay Area Digital Economy Index and the National Index Hang Seng Greater Bay Area Consumption Index, aimed at providing distinctive cross-border investment targets [1][2] - The digital economy index includes 50 companies with high market capitalization and liquidity from sectors such as electronic components, telecommunications equipment, and internet services, featuring major players like Tencent Holdings and ZTE Corporation [2][3] Group 2 - The consumption index also comprises 50 companies from sectors like home appliances and personal care, including industry leaders such as Gree Electric Appliances and TCL Technology [2] - The initiative is seen as a positive innovation practice to enhance the interconnectivity between Shenzhen and Hong Kong's capital markets, facilitating high-level bilateral openness [2][3] - The CEO of Hang Seng Index expressed enthusiasm for the collaboration, highlighting the potential for increased liquidity and dual development between Hong Kong and mainland capital markets [3]