Group 1 - The core viewpoint of the report indicates a recovery in the leasing market for Grade A office spaces in Guangzhou during the first half of 2025, with increased inquiry and viewing activity compared to the end of 2024 [1] - The supply of Grade A office spaces in Guangzhou slowed down in Q2 2025, with only one new project delivered, leading to a total stock of 6.937 million square meters [1] - The net absorption in the city recorded 152,000 square meters, a year-on-year decrease of 13.3%, while the vacancy rate increased by 0.9 percentage points to 19.8% [1] Group 2 - In terms of regional performance, Haizhu District's Pazhou became the most active leasing area in Q2, with a vacancy rate decreasing by 1.7 percentage points quarter-on-quarter and 3.6 percentage points year-on-year to 23.2% [1] - The average rent for office spaces in the city decreased by 1.4% to 123.5 yuan per square meter per month, with the decline narrowing by 3.3 percentage points compared to the previous quarter [1] - The TMT sector led the leasing demand with a 30.2% share of the total leased area, followed by the financial sector at 16.8% and trade and retail at 16.3% [2] Group 3 - The report highlights the potential of emerging business districts, particularly Guangzhou International Financial City, where infrastructure improvements are attracting financial institutions to establish headquarters [2] - The establishment of a conducive office environment in new business districts is expected to enhance market attention and resource attraction [2]

Group 1 - The core viewpoint is that Hong Kong stocks are expected to outperform A-shares in terms of earnings growth due to a more technology-oriented industry structure and lower sensitivity to price fluctuations [1] - In 2024, Hong Kong's net profit attributable to shareholders is projected to grow by 10.2% year-on-year, significantly higher than A-shares' decline of 3%. Excluding financials, Hong Kong's growth rate is 11.7%, while A-shares (non-financial) are at -13% [1] - Hong Kong's valuation is more attractive, with the Hang Seng Index trading at a PE ratio of 10.6, compared to 19.3 for the Wind All A Index. The technology sector's PE of 20 is also notably lower than the ChiNext Index's 31 [1] Group 2 - Foreign capital is accelerating its allocation to Hong Kong stocks due to low valuations, improving earnings, and advantages from regulatory openness, with an average daily net inflow of southbound funds reaching 6.1 billion yuan, up from 3 billion yuan last year [1] - The Hong Kong Technology ETF (code: 513020) tracks the Hong Kong Stock Connect Technology Index (code: 931573), which selects up to 50 high-quality companies from the TMT sector listed within the Stock Connect range, aiming to reflect the overall performance of technology companies available for investment through the Stock Connect [1]

Core Viewpoint - The joint statement from the China-U.S. Geneva trade talks indicates a significant reduction in tariffs imposed by both sides, leading to improved market sentiment and expectations for constructive negotiations to continue [1] Market Sentiment Improvement - Following the joint statement, market institutions expressed heightened interest, with Huaxia Fund noting that the tariff reductions exceeded expectations, positively impacting market reactions and injecting confidence into global markets [2] - UBS analysts highlighted the attractiveness of Chinese assets, citing a median price-to-earnings ratio of 25 times for A-shares, which remains below the central level, indicating strong investment value [2] - Morgan Stanley's research showed that U.S. hedge funds increased bullish bets on Chinese stocks due to optimism regarding trade negotiations, with China being the most underweight region in emerging market portfolios [2] Export Data Expectations - Analysts predict a notable improvement in China's export data in the near term, as the significant tax cuts may stimulate a wave of suppressed exports that were delayed in April [3] - Goldman Sachs analysts indicated that both Chinese exporters and U.S. importers would likely rush to place orders during the tariff suspension period, emphasizing the urgency in the market [4] Sector Opportunities - Multiple institutions expressed optimism regarding investment prospects in the technology sector, with Huaxia Fund suggesting that the recovery in market risk appetite could favor technology growth [5] - UBS Wealth Management identified leading internet companies driving AI development as attractive investment opportunities, with the semiconductor supply chain also presenting appealing prospects [6] - Morgan Stanley noted China's advancements in AI, humanoid robots, and electric vehicles, enhancing global investor confidence in Chinese enterprises [6] Ongoing Trade Relations Monitoring - Institutions emphasized the need to continuously monitor international trade relations, with a balanced outlook on market sentiment, neither overly pessimistic nor optimistic [7] - UBS indicated that despite reduced tariff risks, the controversial policies of the Trump administration could lead to more frequent shifts in market risk appetite, maintaining gold's appeal as a traditional safe-haven asset [7] - UBS projected strong mid-term demand for gold, supported by central bank purchases, as market uncertainties persist [8]