24 February 2025 REMD Michelle Kwok* Head of Asia Real Estate and HK Equity Research The Hongkong and Shanghai Banking Corporation Limited michellekwok@hsbc.com.hk +852 2996 6918 Oliver Yu* Analyst, Asia Real Estate The Hongkong and Shanghai Banking Corporation Limited oliver.y.o.x.yu@hsbc.com.hk +852 2288 2050 China Real Estate Equities 10 signs the market has bottomed China We highlight 10 signals that the China housing market has bottomed. Three years on, national new home sales have shrunk 48% vs the 20 ...

China (PRC) | Industrials Humanoid Robot – Expert Call Takeaways on DeepSeek Impact on Embodied AI We invited Victor Deng, former head of robot value chain investment at Kinzon Capital, on 18 Feb to share his knowledge about how DeepSeek is accelerating embodied AI development in the humanoid robot and potential value chain segment upon the breakthrough he sees in DeepSeek. See key takeaways below. Embodied AI critical to commercial value of humanoid robot: Embodied AI empowers humanoid robots with intellig ...

Summary of Key Points from the Conference Call Industry and Company Involved - **Industry**: Global Economics and Strategy - **Companies**: BAE Systems, Mitsubishi Heavy Industries Core Insights and Arguments 1. **German Election Outcomes**: Preliminary results indicate a two-party coalition, with CDU/CSU, SPD, and Greens failing to secure a two-thirds majority for constitutional changes, potentially leading to market disappointment regarding fiscal stimulus [3][4] 2. **US Economic Indicators**: Anticipation of a benign US core PCE release, with a forecasted year-over-year decrease from 2.8% to 2.5% [4] 3. **Global Growth Forecast**: Expected slowdown in global growth for 2025/2026, primarily due to US tariffs on China, which may negatively impact an already struggling economy [7] 4. **Defence Spending in Europe**: EU Commission's suggestion to exempt defence spending from fiscal rules could lead to increased defence budgets, supporting a bullish outlook on European equities and non-US defence stocks [7] 5. **BAE Systems Valuation**: BAE faces risks including government defence budget uncertainties, contract execution capabilities, and political risks in Saudi Arabia, with approximately 40% of its business derived from North America [11] 6. **Mitsubishi Heavy Industries Risks**: Risks include sluggish capital expenditure due to economic downturns in major markets, rising costs, and yen appreciation [12] Additional Important Content 1. **Market Dynamics**: The report highlights the potential for fiscal easing in Germany and the implications of higher defence spending on market narratives, particularly for bond yields and equity spreads [3][7] 2. **Investment Ratings**: Both BAE Systems and Mitsubishi Heavy Industries are rated as "Buy," indicating positive expectations for their stock performance [26][33] 3. **Geopolitical Considerations**: The report emphasizes the need for increased self-reliance in European defence spending, with current EU spending at 2.0% of GDP compared to 3.4% in the US, suggesting a significant gap that needs to be addressed [7] 4. **Emerging Market Sentiment**: Optimism in China tech equities is noted, with MSCI China gaining 25% since mid-January, although the broader emerging market sentiment remains mixed [7] This summary encapsulates the critical insights and data points from the conference call, providing a comprehensive overview of the current economic landscape and specific company outlooks.

February 25, 2025 Global | Sustainability & Transition Strategy What's the Market Paying For? February 2025 1) EU ETS has had the strongest performance over 12M (+41%), while Bloomberg Commodity Index (+9%) has been strongest YTD (i.e. 2025). 2) Improvers in our universe over the last 1M include Solar (TAN), Global Alternative Energy (MS700750), and Global Clean Energy (ICLN), up 6.8%, 3.5%, and 4%, respectively, vs the S&P 500. 3) For 4/4/24-2/21/25, the 100 Best Companies to Work For 2024 list has underpe ...

24 February 2025 | 7:18AM HKT The 720: China Autos, A vs. H shares, Miniso, Hengli downgrade, China Insurance, NetEase, Global growth vs. inflation/tariffs In Focus | China Autos China Autos - 4Q24E Preview: volume & margin improvement in 4Q24, with autopilot to be the focus in 2025. We preview 4Q24E results for our China auto OEMs coverage and roll forward our valuation by one year across the space. For this set of results, we expect investor focus to be on (1) Gross margin: the strong sales volume in 4Q s ...

Summary of Key Points from the Conference Call Industry Overview - The focus is on the **Autos & Shared Mobility** sector, particularly regarding **China-US cooperation on electric vehicles (EVs)** [1][8]. Core Insights and Arguments - **Sino-US Relations**: Current relations between the US and China in the auto industry are at a low point, but there is potential for cooperation in EV technology despite ongoing national security concerns [1][2]. - **Market Transformation**: The transition from traditional vehicles to AI-enabled EVs is reshaping the global auto market, supply chains, and regulatory frameworks. Cooperation between US and Chinese automakers is deemed necessary for mutual benefit [2][3]. - **EV Adoption Forecast**: Short-term EV sales are influenced by policies and tariffs, but a significant increase in adoption is expected from 2027 to 2030. EVs are seen as essential for integrating AI technologies into vehicles [3][4]. - **China's Competitive Edge**: China is perceived to have a lead in producing affordable EVs, which may need to be manufactured in the US to meet local market demands. Tariffs may be used to incentivize localization of production [4][5]. - **Capital Efficiency**: Traditional US automakers like GM and Ford are expected to seek more capital-efficient strategies in the EV market, potentially collaborating with Chinese firms to optimize their investments [5][6]. - **IRA Restructuring**: The Inflation Reduction Act (IRA) may require significant changes, particularly regarding the definition of Foreign Entity of Concern (FEOC), to facilitate joint ventures that utilize US-based resources while relying on Chinese technology [6][9]. Additional Important Insights - **Strategic Partnerships**: Increased frequency of strategic announcements, joint ventures, and consolidations between legacy Western and Chinese EV companies is anticipated [11]. - **Stock Ratings**: Companies such as Tesla (TSLA), Rivian (RIVN), and Lucid (LCID) may see continued support, while traditional internal combustion engine (ICE) companies may face stagnation [11][62]. - **Investment Opportunities**: Analysts suggest reconsidering investments in Chinese EV-exposed companies and highlight potential benefits for EV-exposed suppliers [11][62]. This summary encapsulates the critical insights and implications for the auto industry, particularly regarding the evolving dynamics between US and Chinese automakers in the context of electric vehicle technology and market strategies.

Flash | 23 Feb 2025 16:27:43 ET │ 13 pages Citi Research is a division of Citigroup Global Markets Inc. (the "Firm"), which does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Certain products (not inconsistent with the author's published research) are ...

V i e w p o i n t | 25 Feb 2025 05:26:19 ET │ 17 pages For DASH — while TKWY would help launch and accelerate new geographies, we believe DASH is more focused on organic international expansion (we note DASH has held talks with Deliveroo, per press reports (see here. Reuters, 25 June 2024) and we note the difficulty in competing in competitive markets with scaled logistics players (across the board). Not to mention a greater focus and attention on new vertical adoption (like grocery), in our view. Many prev ...

Equity Research 24 February 2025 Data Center View Still cautious, but context matters We remain more conservative than most on DC growth – but there are nuances to our perspective. MSFT's own commentary, more so than purported lease cancellations, is reason to be cautious on the AI ecosystem, in our view. Barclays Capital Inc. and/or one of its affiliates does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of ...

Asia Economics Comment Economics Tariff cascade in action Asia Facts On 20 February 2025, Korea announced provisional anti-dumping tariffs (27.91% to 38.02%) on Chinese steel plates used in shipbuilding and construction, set to take effect after the finance ministry approves. 1 On 21 February 2025, Vietnam announced temporary anti-dumping tariffs (up to 27.83%) on hot-rolled steel products from China for 120 days, from 7 March 2025. 2 According to media reports from 23 February 2025, US trade officials urge ...