Michael MENG (852) 3988 6433 michael.meng@bocigroup.com Index Performance | | Last close | % 1D | % YTD | | --- | --- | --- | --- | | HSI | 25,960 | 2.2 | 1.3 | | HSCEI | 8,710 | 1.5 | (2.3) | | HSCCI | 4,318 | 0.1 | 7.5 | | MSCI HK | 15,100 | 2.9 | 10.3 | | MSCI CHINA | 81 | 2.5 | (2.3) | | FTSE CHINA A50 | 14,722 | 1.1 | (3.8) | | CSI 300 | 4,675 | 1.3 | 1.0 | | TWSE | 32,772 | 2.1 | 13.1 | | SENSEX | 77,566 | (1.7) | (9.0) | | NIKKEI 225 | 54,248 | 2.9 | 7.8 | | KOSPI | 5,533 | 5.3 | 31.3 | | ASX 200 | 8 ...

Core Driving Areas: High Growth and Strong Demand Support - The technology and digital economy sector is experiencing deep integration of AI and hard technology, with a surge in demand for AI applications in various industries such as healthcare, finance, and manufacturing [2][3] - The biotechnology and innovative medical sector is transitioning from R&D-driven to commercialized applications, with many biotech companies expected to enter the III phase of clinical trials or commercialization by 2025 [3][4] - The new energy and green economy sector is witnessing a shift from scale expansion to technological upgrades, driven by China's carbon neutrality goals and global energy transition [3][4] Policy Support Directions: Key Areas of National Strategy and Regional Development - The Chinese government's "14th Five-Year Plan" emphasizes the transformation of traditional manufacturing towards intelligent and high-end production, with a focus on "specialized, refined, characteristic, and novel" enterprises [5] - The "Digital China" strategy is promoting the integration of the digital economy with the real economy, accelerating domestic substitution in hard technology sectors such as semiconductors and robotics [3][5] Potential Risks: Variables to Watch - The global liquidity environment may face pressure if the Federal Reserve's interest rate cuts do not meet expectations, potentially leading to foreign capital outflows from the Hong Kong market [5] - Geopolitical tensions, particularly in US-China technology competition and the Taiwan Strait situation, could impact the financing environment for technology and high-end manufacturing companies [5] - Regulatory policies in various industries, such as antitrust measures in the internet sector and drug pricing negotiations, may impose constraints on profitability for certain companies [5] Conclusion: The Golden Tracks for Hong Kong IPOs in 2025 - The primary opportunities for Hong Kong IPOs in 2025 will be concentrated in three major directions: technology (AI and hard technology), biotechnology (innovative drugs and devices), and new energy (energy storage and electric vehicle supply chains) [4] - High-end manufacturing and consumer recovery also present structural opportunities, with companies needing to possess a combination of technological barriers, commercialization capabilities, and alignment with policy directions to achieve high valuations and investor recognition [4]