Market Performance Overview - The domestic equity market showed mixed performance during the week of December 8 to December 12, 2025, with the ChiNext Index rising by 2.74% [4] - In terms of sectors, telecommunications, national defense and military industry, and electronics sectors led the gains, while coal, oil and petrochemicals, and steel sectors experienced the largest declines [4] Fund Product Issuance - A total of 28 new funds were established in the domestic market this week, with a combined issuance of 18.218 billion units. This includes 9 bond funds, 10 stock funds, 4 FOF funds, 3 mixed funds, 1 international (QDII) fund, and 1 money market fund [5] - Overall, 38 new funds were issued across the market, categorized as 13 stock funds, 8 FOF funds, 8 bond funds, 8 mixed funds, and 1 international (QDII) fund [5] Fund Product Performance Tracking - The defense and military industry theme funds outperformed this week, while cyclical theme funds saw a net value correction. As of December 12, 2025, the net value changes for various theme funds were as follows: defense and military industry (3.39%), TMT (3.17%), industry balanced (1.08%), industry rotation (0.50%), new energy (0.12%), pharmaceuticals (-0.42%), financial real estate (-0.66%), consumption (-0.67%), and cyclical (-1.12%) [6] ETF Market Tracking - Stock ETFs experienced a slight outflow of funds this week, primarily from TMT, financial real estate, and ChiNext theme ETFs, while large-cap broad-based ETFs saw significant inflows from passive funds. Hong Kong stock ETFs also experienced notable inflows [7] - The median return for stock ETFs this week was 0.19%, with a net outflow of 2.974 billion yuan. In contrast, Hong Kong stock ETFs had a median return of -1.42% and a net inflow of 8.865 billion yuan. Cross-border ETFs had a median return of -0.11% with a net inflow of 1.115 billion yuan, while commodity ETFs had a median return of 0.81% and a net inflow of 241 million yuan [7] Broad-based ETF Insights - Broad-based ETFs saw a significant net inflow of 9.058 billion yuan this week. Additionally, the new energy theme ETFs also experienced notable net inflows totaling 778 million yuan [8] ESG Financial Products Tracking - This week, 28 new green bonds were issued, with a total issuance scale of 29.152 billion yuan. The domestic green bond market has steadily developed, with a cumulative issuance scale of 5.12 trillion yuan and a total of 4,396 bonds issued as of December 12, 2025 [8] - As of December 12, 2025, there were 211 ESG funds in the domestic market, with a total scale of 150.981 billion yuan. The median net value changes for various ESG fund types this week were as follows: active equity funds (0.60%), passive stock index funds (-0.01%), and bond funds (0.05%). Funds focused on low-carbon economy, carbon neutrality, and social responsibility performed well [8]

Core Points - The Hong Kong Securities and Futures Commission (SFC) has officially issued licenses to 11 digital asset trading platforms as of early July 2023, with an additional 9 applications currently being processed [1][3] Group 1: Licensing and Regulation - The licensing process for digital asset trading platforms is influenced by various factors, including the completeness of the applicant's information and the adequacy of supporting documents [3] - The SFC is continuously reviewing and optimizing its procedures to help applicants better understand regulatory expectations, aiming to shorten the time required for license evaluations [3] - Following the implementation of the digital asset trading platform licensing system in June 2023, the "Stablecoin Regulation" will come into effect on August 1, 2023 [3] Group 2: Future Developments - The Hong Kong government and the SFC are consulting the public on licensing systems for digital asset service providers and custodians, with the goal of proposing legislative recommendations soon [3] - Once the legislative work is completed, the regulatory framework in Hong Kong will comprehensively cover major aspects of the digital asset industry [3] Group 3: Green Bonds - The Hong Kong government has issued tokenized green bonds in 2023 and 2024, which have been well-received in the market, marking them as some of the world's first government tokenized green bonds and multi-currency digital native tokenized bonds [4] - The latest budget announcement indicates that the issuance of tokenized bonds will become a regular practice, with preparations underway for a third issuance of tokenized green bonds by the Hong Kong Monetary Authority [4]

Macro Strategy - The report indicates that the US non-farm payrolls for June exceeded expectations, leading to a delay in interest rate cut expectations to September. The 10-year US Treasury yield rose by 6.89 basis points to 4.346% during the week [1][15][17] - The ISM services PMI returned above the expansion line, reflecting strong economic data, while the unemployment rate decreased, contributing to a positive market sentiment [1][15][17] - The signing of Trump's "One Big Beautiful Bill" (OBBB) increased the debt ceiling by $5 trillion to $41 trillion, which may lead to a "buy the rumor, sell the news" trading pattern [1][15][17] Fixed Income - In the week of June 30 to July 4, 12 green bonds were issued in the interbank and exchange markets, totaling approximately 34.961 billion yuan, an increase of 3.531 billion yuan from the previous week [4] - The secondary market saw a total trading volume of green bonds amounting to 56.2 billion yuan, a decrease of 17.3 billion yuan from the previous week [4] Industry Analysis Robotics and Automation - The report highlights that the human-like robot sector is entering a year of mass production, with supply chain adjustments and component innovations being crucial. Tesla's Musk has set a production target of 5,000 to 10,000 units for the year [7][8] - The report emphasizes the importance of component innovations such as dexterous hands and lightweight materials in enhancing robot capabilities [7][8] Insurance Industry - The insurance sector is expected to see improvements on both the liability and asset sides, with low valuations and low holdings providing a balanced risk-reward profile. The estimated valuation for the insurance sector is between 0.61-0.96 times PEV and 0.98-2.21 times PB, indicating historical lows [9] REITs - The report discusses the potential of REITs in a low-interest-rate environment, highlighting the importance of policy support and structural optimization to enhance investment value. The diversification of asset types is expected to accelerate, with new assets like data centers and wind power emerging [10] Engineering Machinery - The domestic engineering machinery market is at the beginning of an upward cycle, with a projected demand growth of 0-3% for the year. The report notes that the export market remains strong, contributing to high industry sentiment [11] Unmanned Forklift Industry - The report suggests that the unmanned forklift sector is poised for rapid growth driven by AI technology and smart logistics. It recommends investing in leading companies in the smart forklift space [12] Consumer Services - The analysis of consumer spending in China indicates that the overall consumption rate is low, with both service and goods consumption needing improvement. The service consumption rate in China was 21.1% in 2019, compared to an average of 28.4% across 43 countries [20][21]

Market Overview - In the week from May 6 to May 9, 2025, oil prices surged, domestic equity market indices generally rose, while US stocks experienced a pullback [3] - All primary industries in the Shenwan classification saw an increase, with defense, military industry, telecommunications, and electric equipment sectors leading the gains [3] Fund Issuance - A total of 15 new funds were established in the domestic market this week, with a combined issuance of 6.345 billion units. This included 13 equity funds, 1 bond fund, and 1 mixed fund [4] - Overall, 27 new funds were issued across the market, comprising 18 equity funds, 6 bond funds, and 3 mixed funds [4] Fund Performance Tracking - The defense and military industry theme fund performed notably well, rising by 4.46%, while the pharmaceutical theme fund saw a decline [5] - As of May 9, 2025, the weekly performance of various theme funds was as follows: defense and military (4.46%), financial real estate (2.54%), new energy (2.27%), cyclical (1.30%), industry rotation (1.25%), consumption (1.23%), industry balance (1.20%), TMT (-0.28%), and pharmaceuticals (-1.45%) [5] ETF Market Tracking - This week, equity ETFs experienced a net outflow of 8.514 billion yuan, with broad-based ETFs being the primary direction of outflow. In contrast, commodity ETFs, represented by gold ETFs, saw continued inflows [6] - The median return for equity ETFs was 1.86%, while Hong Kong stock ETFs had a median return of 2.19% with a net outflow of 1.683 billion yuan [6] - The median return for cross-border ETFs was 2.12%, with a net outflow of 1.009 billion yuan, while commodity ETFs had a median return of 0.67% and a net inflow of 2.025 billion yuan [6] Fund Positioning - The estimated position of actively managed equity funds decreased by 0.50 percentage points compared to the previous week (as of April 30, 2025) [8] - In terms of industry allocation, sectors such as electronics, computers, and pharmaceuticals received increased funding, while telecommunications, defense, military, and electric equipment sectors faced reductions [8] ESG Financial Products Tracking - The green bond market saw a slowdown this week, with 6 new green bonds issued, totaling 6.641 billion yuan. Cumulatively, the green bond market has issued 4.43 trillion yuan across 3,822 bonds as of May 9, 2025 [9] - In terms of fund performance, the median return for actively managed equity, passive equity index, and bond ESG funds was 1.54%, 2.04%, and 0.14%, respectively, with low-carbon, sustainable development, and environmental governance themes performing particularly well [9] - As of May 9, 2025, there were 287 existing bank ESG wealth management products, with 2 new fixed-income ESG products launched this week, characterized by lower risk levels [9]