Frost & Sullivan Insights Data from the Shanghai Shipping Exchange shows that on July 8th, China's Export Container Freight Index (CCFI) was at 3232.18 points, a decrease of 1.2% compared to the previous period (July 1st), with prices across all popular routes falling. Among them, European routes dropped by 2% compared to the previous period, with freight rates in Europe having fallen by a cumulative 14% since February; US West Coast routes fell by 2.5%, and US East Coast routes fell by 1.7%. Frost & Sullivan (Frost & Sullivan, hereinafter referred to as 'Frost & Sullivan') Executive Director for Greater China, Xiang Wei, was interviewed by Securities Daily to discuss the current situation and future development of the shipping industry under the backdrop of the pandemic. Securities Daily 'Recently, popular routes, including futures freight rates, have fallen. On one hand, domestic export orders have decreased year-on-year; on the other hand, the supply chain in the container market has gradually recovered, and the super cycle caused by structural supply-demand mismatches may be coming to an end. The frenzy of 'grabbing seats and containers' that preceded it is no longer there.' A freight forwarder told a Securities Daily reporter.   After two years of 'super seasonality,' the container industry seems to have reached a 'turning point.' Data from the Shanghai Shipping Exchange shows that on July 8th, China's Export Container Freight Index (CCFI) was at 3232.18 points, a decrease of 1.2% compared to the previous period (July 1st), with prices across all popular routes falling. Among them, European routes dropped by 2% compared to the previous period, with freight rates in Europe having fallen by a cumulative 14% since February; US West Coast routes fell by 2.5%, and US East Coast routes fell by 1.7%. Does this mean that the 'turning point' of the container industry has arrived?   Xiang Wei Executive Director for Greater China, Frost & Sullivan In response, Xiang Wei, Executive Director for Greater China at Frost & Sullivan, told Securities Daily: 'Overall, CCFI remains stable, but as the domestic epidemic prevention and control situation improves and related commodity transportation demand recovers, coupled with uncertainties in US port supply and commodity demand, it is expected that shipping prices will remain high and volatile in the short term.'   Spot freight rates have fallen below long-term contract rates, Sea shipping giants have withdrawn ships to protect freight rates Recently, a freight forwarder posted an advertisement on WeChat Moments 'discounting containers' for sale, attracting attention, and the scene of 'hard-to-find containers' in the container market seems to be happening just yesterday. A CEO of an export-oriented enterprise in Yiwu told Securities Daily: 'Currently, finding seats and containers is easier than last year, and sea shipping prices have also dropped significantly compared to last year, but foreign trade factories are facing the unfavorable situation of reduced orders from Europe and America.' The latest World Container Index (WCI) released by Drewry, an international shipping research and consulting firm, shows that spot freight rates from Shanghai to Los Angeles dropped by 4%, or $300 to $7652 per FEU, a 16% decrease compared to the same period in 2021; spot freight rates from Shanghai to New York dropped by 2%, or $10154 per FEU, a 13% decrease compared to the same period in 2021. Looking at the first half of 2022, container freight rates from Shanghai to Europe and America showed a downward trend, with spot freight rates even falling below long-term contract rates. Market rumors suggest that some shippers have proposed renegotiating long-term contract rates with freight forwarders. A freight forwarder told Securities Daily: 'Many long-term contract prices were signed at the end of last year and early this year. At that time, the market was hot and freight rates were high. For example, the highest sea shipping price on US routes last year reached $20,000 per FEU, but now it is about to fall below $7,000 per FEU, and European routes are also expected to fall below $10,000 per FEU, which is already lower than some shippers' previously signed long-term contract prices.' Regarding the volatile decline in container freight rates, Fangzheng Futures reported that 'global inflation remains high, central banks in Europe and America have accelerated their monetary tightening steps, marginal demand growth has sharply slowed down, or even decreased month-on-month. Many countries around the world have gradually lifted full pandemic control measures since January, and vessel punctuality rates and turnover efficiency have significantly rebounded. With increased seat supply and a significant slowdown in demand growth, freight rates have continued to fall.' With the decline in spot prices, some shipping companies have also lowered their freight rates under government guidance. International container giant CMA CGM said that starting from August 1st this year, large French retailers can receive a discount of 500 euros for each standard 40-foot container when importing consumer goods through CMA CGM, which is roughly equivalent to a 10% discount. For all containers destined for overseas territories of France, they can also receive a discount of 500 euros, with the discount range being about 10% to 20%. Facing the decline in sea shipping prices, international maritime giants have begun 'withdrawing ships' to reduce effective capacity and maintain sea shipping prices stable. Drewry's latest data released on July 8th shows that in the next five weeks (weeks 27 to 31), the three major global shipping alliances will cancel 61 voyages one after another. Among them, the Alliance 2M and THE Alliance, which cancel the most voyages, both reach 23 voyages; the Ocean Alliance cancels 15 voyages. Among the 760 scheduled voyages on major routes such as trans-Pacific, trans-Atlantic, Asia to Northern Europe, and Asia to the Mediterranean, 86 voyages were cancelled between weeks 27 and 31, with a cancellation rate of 11%. In addition, Drewry data also shows that in the next five weeks, 66% of empty voyages (empty ships) will occur on trans-Pacific eastward trade routes, mainly to the west coast of the United States.   Container freight rates are volatile in the short term, Industry prosperity is uncertain in the future   Xiang Wei analyzed: 'Looking at this year, overall container market freight rates remain relatively high. The intensification of inflation in the United States may affect residents' daily consumption habits, bringing changes in commodity demand and supply. At the same time, consumers' shopping methods are also gradually changing, with more people turning to online platforms, and the expansion of cross-border e-commerce may further drive demand growth in the container market.' In addition, a research report by Industrial Securities believes that domestic exports will continue to grow, and the demand for container markets will remain stable. As the domestic epidemic prevention and control situation improves, there is room for freight rates in the container market to recover and rise. Yu Nan, an analyst at Haitong Securities, said in his analysis that the high prosperity continued at the beginning of this year, and supply-demand balance is still in a relatively fragile stage. After experiencing the hot market of global container shipping in 2021, freight rates at the beginning of this year dropped but still remained high. On the demand side, according to IMF forecasts, the global trade volume growth rate in 2022 is 6.7%, and import demand in developed countries has not weakened. It is expected that the import volume growth rate in developed countries will be 7.3%. At the same time, as a popular route in 2021, the Asia to North America route still has room for upward movement due to the current low retail inventory-sales ratio in the United States, coupled with rising retail sales in the United States, which is expected to continue to drive up freight demand on US routes. 'As of mid-May, the proportion of global container ship capacity in port operations was nearly 37%, still higher than the average level of 31% before the pandemic.' Yu Nan believes that this means that with further resumption of work and production, as well as traditional consumption seasons in Europe and America, container congestion may continue. In addition, Yu Nan also said that currently, the industry is clearly polarized, which has a certain stabilizing effect on freight rates. For example, the three major shipping alliances (Alliance 2M, Ocean Alliance, THE Alliance) currently occupy more than 80% of the market share and can effectively control capacity supply to cope with changes in the demand side. 'We believe that the possibility of short-term freight rates continuing to fluctuate at high levels is greater, and medium- to long-term freight rates may stabilize at reasonable levels.' However, a research report by Guotai Junan Securities issued a warning that although the volume of container freight on US routes has remained high since the beginning of the year, with a slightly slower growth rate compared to 2019, considering the weakening impact of the US epidemic and the shift from physical consumption to service consumption, it is recommended to pay special attention to the risk of demand turning points. On the supply side, congestion at US West Coast ports has significantly improved. With the weakening impact of the US epidemic and the improvement in inland supply chain efficiency, the disorderly state of the supply chain is gradually easing. It is expected that the net profit margin of container companies in the first half of the year may continue to remain high, and there is uncertainty risk regarding the sustainability of high industry prosperity in the second half of the year. *This article is reprinted from Securities Daily, with reporters Jiao Yue and Shi Lu. The original article was titled 'From Hard-to-Find Containers to Discounted Ones: Is the 'Super Seasonality' in the Container Industry Over?'

Recently, “Oriental Meigoo”, located in the Shanghai Hangzhou Bay Economic and Technological Development Zone, announced that it will initially build 720 The first launch site and pilot zone for the nucleic acid industry. The nucleic acid industry here does not refer to nucleic acid testing, but rather to new biotechnologies including vaccines and drugs.   From a global perspective, innovation capability has always been the foundation for the biopharmaceutical industry to thrive and is also the source of continuous development for the industry. Frost & Sullivan Frost & Sullivan, Dr. Wang Xin, Global Partner and President of Greater China at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), was interviewed by CBN to discuss the current state and future development of the nucleic acid drug market industry. CBN Nucleic acid vaccines and drugs have sparked a third wave of biotechnology innovation globally. Recently, 'Oriental Biotech Valley' in Shanghai Hangzhou Bay Economic and Technological Development Zone announced that it will initially build 720 The first launch site and pilot zone for the nucleic acid industry per mu. It should be emphasized that the nucleic acid industry here refers not to nucleic acid testing, but to new biotechnologies including vaccines and drugs. From a global perspective, innovation capability has always been the foundation for the biopharmaceutical industry's survival and the source of sustainable development. Shanghai has significant advantages in the fields of life health and vaccine innovation. The new industrial pilot zone also reflects an increasing enthusiasm for nucleic acid drug research and development, with continuous development and maturation of upstream and downstream enterprises in the industrial chain, which will promote the commercialization process of nucleic acid drugs. According to a reporter from CBN, the park has gathered a group of nucleic acid drug companies, including mRNA Vaccine manufacturer Sinovac Biotech and its supplier Vector Biologics. Sinovac Biotech's factory in Fengxian is expected to be operational 2 The annual production of hundreds of millions of doses. According to official information, Zhaowei Biotech, as the world's largest oligonucleotide and gene monomer manufacturer, supplies about 70% , with an annual output value reaching 15 Yuan; this year 7 Month, Zhaowei Biotech Investment 25 The R & D and production base for billion-yuan small nucleic acid drugs will also start construction.   According to the latest report released by research institution Frost & Sullivan, nucleic acid drugs developed using the translation or regulatory functions of nucleic acid molecules can address unmet clinical needs brought about by 'undruggable' targets and are expected to become the third major type of drug following small molecule and antibody drugs.   Globally, nucleic acid drugs have been developed for many years, and several blockbuster nucleic acid drugs have been launched, among which mRNA Mainly composed of small nucleic acid and two other types of nucleic acid drugs, mRNA Vaccines are a typical example.   According to the statistical data from Frost & Sullivan, 2021 Year, Pfizer /BioNTech and Moderna Two developed by the company mRNA Global sales revenue from COVID-19 vaccines reached 587 billion dollars.   In addition to vaccines, mRNA There is also great potential in the field of tumor treatment. BioNTech and Moderna All have entered the clinical stage with corresponding pipelines. " Dr. Wang Xin, Global Partner at Frost & Sullivan and President of the Greater China Region, told CBN reporters: “ mRNA The application of drugs in tumor vaccines is currently still in the concept validation phase; there are still key technical bottlenecks that need to be overcome, including two major obstacles: poor targeting and unstable expression. Small nucleic acid drugs have also been a key focus in the biopharmaceutical field in recent years.   According to Frost & Sullivan data, as of this year 5 months, globally 14 A small nucleic acid drug has been approved for marketing.   The global market scale of small nucleic acid drugs has grown from 2016 year 1000 Ten thousand US dollars grew to 2021 year 32.5 billions, with an annual compound growth rate as high as 217.8% and entered the field of chronic disease treatment, such as between Novartis and Alnylam A long-acting lipid-lowering drug developed by the company. " "Compared with traditional drugs, small nucleic acid drugs have multiple advantages such as a rich array of candidate targets, a wide range of indications, simple drug design, short development cycles, strong targeted specificity, and long-lasting effects," Wang Xin told CBN reporters. However, small nucleic acid drugs also face issues such as how to efficiently enter target cells, release into the cytoplasm, and exert their effects efficiently and for a long time. 'Among them, the most critical core technology is nucleic acid drug delivery technology. Drug delivery protection RNA It plays an important role in aspects such as structure, enhancing targeting ability, reducing dosages, and minimizing toxic and side effects." he told a reporter from CBN. Wang Xin introduced that the industrial chain of nucleic acid drugs includes upstream raw materials, midstream R&D and production, distribution and transportation, and downstream end-user use. Currently, domestic companies deploying nucleic acid drugs are mainly concentrated in the midstream R&D and production sector. Listed companies include Shengnuo Medicine, Ruibo Biotechnology, and Tengsheng Bopharm; self-developing companies include Aibo Biotechnology and Agnabio. Academician Gao Fu of the Chinese Academy of Sciences mentioned our country mRNA The industry outlook has also been mentioned to CBN reporters, mRNA There is great room for imagination, but currently, key core technologies are still in the hands of a few North American companies. Chinese researchers should keep up with the forefront of biotechnology and solve the problems of 'neck-sticking' and 'brain-sticking'.   * This article is reprinted from "CBN Financial News". The reporter is    Qian Tongxin,    Original title:    Shanghai has increased its investment, setting off a third wave of biopharmaceutical research and development globally    ">

Since the outbreak of the COVID-19 pandemic, global demand for masks, gloves, protective clothing, etc. has surged, leading to a severe shortage of personal protective equipment. To promote the market development of the glove industry and ensure an upstream and downstream supply balance and stable production by factories, organized by Yimao and in collaboration with national protective equipment enterprises, 2022 year 7 month 7 - 9 Held in Qingdao, Shandong Province 2022 (Tenth) International Hand Sanitization and Protection Products Fair   Frost & Sullivan Frost & Sullivan Liu Weiqi, Executive Director of Frost & Sullivan's Greater China Region, was invited to attend the conference and delivered a speech on the current market situation and development trends of disposable gloves. As a commonly used protective item, disposable gloves can effectively prevent cross-infection and are suitable for various occasions. According to quality grades and uses, they can be divided into medical-grade and non-medical-grade. Medical-grade gloves refer to products that need to meet the quality certification system or access standards of the target country's medical market. They are mainly used in fields such as medical surgery, medical examinations, and medical care. Disposable medical gloves are currently mainly classified into PVC There are three categories: gloves, latex gloves, and nitrile gloves. Liu Weiqi stated that following the surge in volume and price during the outbreak period, the variant strain has led to a new round of epidemic spread. While accelerating the inventory consumption cycle, it has once again released the demand for disposable gloves, driving steady market growth.   Among them, disposable medical gloves are the main category, with a higher overall market average price. Sales volume and sales revenue have remained at 75% and 85% left and right. After the outbreak of the pandemic, the demand for disposable gloves significantly decreased. Both supply and demand relationships as well as market conditions have changed. Enterprises are experiencing lower revenue and profits. Some small and medium-sized manufacturers that entered during the pandemic will be gradually phased out.   However, in the long run, with the improvement of people's health awareness, it is expected that market demand will experience permanent growth, and the market will continue to grow steadily in the future. Liu Weiqi pointed out that after the easing of the epidemic, the market demand for disposable gloves has declined, and local outbreaks cannot be reproduced. 2020 At the beginning of the year, there was a severe imbalance between supply and demand. However, the industrial reshaping hindered by the pandemic and the permanent increase in glove demand have had varying degrees of impact on regions around the world: Developed countries such as Europe and America have a higher population living standard and income level. Coupled with strict public health regulations, they have always been the largest consumers of gloves globally. The COVID-19 pandemic has driven growth rates in mature markets. As a major producer hub for latex gloves and nitrile gloves, Malaysia has always been a major exporter of disposable gloves. Affected by the pandemic, Southeast Asian suppliers were unable to ensure continuous and stable production for some time, leading to a decline in short-term capacity. This provided an opportunity for orders to be transferred to China during a certain period due to the reduced production capacity. China is PVC The largest producer of gloves, in comparison, has a production volume of nitrile gloves that is less than that of Malaysia.   However, domestic enterprises are gradually expanding the production capacity of nitrile gloves and are expected to seize market share in the future with their strong supply chain advantages.   For emerging markets such as the Middle East and South America, the objective demand for medical supplies continues to rise, with public health protection awareness being continuously strengthened. The incremental demand during the pandemic is also expected to settle into a long-term increase over the coming years.   In the post-pandemic era, as major export countries relax their epidemic prevention policies and digest past inventory, domestic manufacturers have seen a reduction in new orders, leading to a corresponding decline in the export volume of disposable gloves. According to data from the General Administration of Customs, among the main categories of disposable gloves exported from China, the United States holds an absolute advantage and ranks first.   2020 In 2020, the United States exempted some Chinese medical protective products from tariffs, significantly increasing purchases of Chinese products.   21 As the epidemic gradually subsided in the year, export unit prices peaked in the first half of the year, and Q1 quarter After reaching the peak export amount, affected by factors such as changes in supply and demand relations, the average selling price of disposable gloves dropped sharply. Although the total export amount was significantly adjusted, it has gradually stabilized.   22 In the beginning of the year, it was affected by various aspects such as the epidemic, market, and policies. Although export volume is still 21 About half of the same period last year, but the total amount is only 21 During the same period of the year 17% Higher than the same period before the epidemic 50% Above. "Under the impact of tariff policies, it is evident that the quantity of disposable nitrile gloves exported to the US has dropped sharply. The EU has not yet introduced new policies and further observation is needed." " 'Liu Weiqi said. Subsequently, Liu Weiqi analyzed the production and sales environment of disposable gloves. He pointed out that during the pandemic, domestic companies were more aggressive in expanding production scale compared to several foreign companies, continuously narrowing the gap in capacity and having already risen to the forefront globally.   Subsequently, due to the easing of the pandemic, manufacturers have seen a reduction in new orders, resulting in underutilization of current capacity. However, looking ahead, cost advantages and economies of scale will accelerate market integration. In the past three years, the outbreak of global health events has led to a surge in demand for disposable gloves. Coupled with rising raw material prices and a shortage of production capacity, disposable gloves ASP （ Average selling price The average selling price (ASP) once surged sharply. After the easing of the pandemic, with accelerated capacity deployment, the average selling price of disposable gloves returned to a rational range. Among the three types of gloves, nitrile gloves have achieved a higher market share than ASP Although prices have returned, domestic manufacturers are further pressured by the tariff policy and the resumption of production by Malaysian counterparts. PVC Glove prices are relatively low, and the vast majority of production capacity comes from China. Keeping a thin profit margin while selling in large quantities remains a long-term strategy.   Overall, current production costs remain high, and sales prices have returned to pre-pandemic levels, having a significant impact on the profits of many enterprises.   However, due to the impact of the pandemic, many visionary companies have utilized the ample cash flow brought about by their high profits over the past two years to adopt various methods to cope with market fluctuations. These include expanding production capacity and reducing unit costs; investing in upstream raw material enterprises to ensure stable supply of their own raw materials; and taking advantage of local preferential policies in Vietnam to build new production lines.   Currently, in addition to reserve procurement for government actions, routine nucleic acid testing has also generated more demand for disposable gloves. At the same time, the pandemic has heightened people's awareness of protection, leading to an increase in the use of disposable gloves in non-medical scenarios. This is more conducive to manufacturers exploring domestic markets. Some existing manufacturers have expanded their visibility through various methods such as optimizing product design, establishing their own brands, and promoting sales on e-commerce platforms.   Liu Weiqi stated that after the market returns to normalcy, a new round of industry development should be centered around lean management, taking into account both global market demand changes and the continuous implementation of corporate development strategies.

7 month 7 On the day of 2022 The Symposium on Cell and Gene Therapy Technologies was held in Shanghai.   Frost & Sullivan Frost & Sullivan, Li Dongyi, the consulting director of Frost & Sullivan's Greater China Healthcare Team, was invited to attend the event and deliver a speech.        Li Dongyi stated that cell and gene therapy CGT ) has become one of the hottest fields in China's biopharmaceutical industry, China CGT The amount of field financing is from 2020 year 117.4 RMB 10 billion rose to 2021 year 162.0 100 billion RMB, driven by capital injection CGT The industry is booming and expanding. CGT Use cases, acceleration CGT The pace of commercialization in the field. At the same time, domestically CGT The industry has formed a relatively complete industrial chain, mostly focusing on the development of downstream treatment products. In the upstream field of key raw materials and production processes, imported brands still dominate, leaving significant room for domestic substitution. Immunocyte therapy mainly includes CAR-T, TCR-T, TIL and CAR-NK It is a highly promising tumor immunotherapy strategy and has become the fourth major technology for tumor treatment after surgery, radiotherapy, and chemotherapy.   Data shows that the number of clinical trials for immune cell therapy products in China has been growing rapidly in recent years. It is expected that with the increasingly clear regulatory system, gradually increasing R&D investment, and the overall vigorous development of innovative industries, more immune cell therapy products will enter the clinical research and development stage in the future. CAR-T Therapies, as a hot research and development field in recent years, have brought hope to patients with malignant hematological tumors. As of now, there are 2 model CAR-T The products have been launched, namely WuXi AppTec's Benoxa and Fosun Kite's Yikaida, but in China CAR-T The development of the market lags behind that of global markets.   china CAR-T The market is expected to be at 2025 The annual market scale reached 11.5 Billion US dollars. In the future, driven by factors such as an increase in the number of cancer patients, positive policy incentives, and improved patient affordability, the market size is expected to be 2030 Year-on-year growth to 41.9 billion dollars. "The development of stem cell therapy in China has moved from disorder to order, and now the research on stem cell applications in our country is entering a virtuous development track under the scientific supervision of national policies," said Li Dongyi.   Based on multiple mechanisms of action, the development potential of stem cell-based pharmaceuticals is enormous, offering new treatment options for many complex diseases that are ineffective with traditional therapies. It is reported that pluripotent stem cells have significant advantages over adult stem cells in terms of drug development. Existing studies have demonstrated good efficacy and safety, which will promote the rapid development of 'stem cell drugs'. 2017 Since the beginning of this year, CDE Clear clinical research principles were put forward for live cell products developed and registered for drugs, and 2018 Clinical registration applications for stem cell therapies were newly accepted in the year. Since then, the number of clinical trial approvals for stem cell products Volumes have seen concentrated growth in the past three years. Most stem cell products are still in their early stages, and several companies have made corresponding arrangements, currently covering multiple therapeutic areas such as digestive diseases, immune diseases, musculoskeletal system diseases, and blood diseases.   Li Dongyi believes that, under the general trend of rapid growth in the global and US stem cell therapy market scale, coupled with favorable policies and increased R&D investment, the market scale of stem cell-based drugs in China will also achieve rapid expansion. Currently, all approved gene therapy drugs in China are for tumor treatment. The ongoing gene therapy clinical trials are concentrated on tumors and blood diseases. / In the fields of circulatory system, ophthalmic diseases, and neurological diseases, tumors account for more than 70% Most of the gene therapy clinical pipelines are oncolytic viruses, with adenovirus and herpes simplex virus vectors being used in most cases, and poxvirus vectors used in a few. 25% Clinical trials for gene replacement therapies, most of which are AAV Carrier drug, oncolytic virus and based AAV Gene replacement therapy with vectors remains the mainstream treatment strategy. On the other hand, carrier optimization and large-scale production remain challenges in the research, development, and production of gene therapy.   In the future, gene therapy in China will expand from tumors and rare diseases to common diseases, with more diverse vectors and technical approaches, which will drive gene therapy CDMO Rapid development. Li Dongyi pointed out that there is still a gap in the clinical research progress of gene therapy drugs in China compared to developed countries such as the United States. In recent years, the global market for gene therapies has grown rapidly. 2016 Year to 2020 The compound annual growth rate for the year reached 153% .   Under this major trend, along with favorable policies and continuous growth in R&D investment, the market scale of gene therapy in China will also experience rapid expansion. It is estimated that 2020 Year to 2025 The annual compound annual growth rate will reach 276% The overall market has great potential for future development.

Frost & Sullivan insights 7 month 4 On the evening of the same day, Anqi Yeast disclosed a plan to split its subsidiary for listing, proposing to spin-off its holding subsidiary Hongyu Packaging Materials into a separate company listed on the Beijing Stock Exchange. 2019 year 12 Since the introduction of the rules for domestic listings of subsidiaries spun off by listed companies in a certain month, “ A take apart A "Continuously, nearly a hundred listed companies have released plans for spin-offs," 10 Yu's company successfully listed its spun-off subsidiary, with the ChiNext becoming the main destination for spin-offs, followed by the STAR Market. Today, the Beijing Stock Exchange has also become a new option.   " A take apart A "Why is it sought after by listed companies? What role does it play in the long-term development of the capital market? Why is the ChiNext most favored by companies?" Frost & Sullivan Frost & Sullivan, Dr. Wang Xin, Global Partner and President of Greater China at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), was interviewed by Securities Daily to discuss the pros and cons of split listing and look ahead to the future development of the Beijing Stock Exchange. Securities Daily " A take apart A "The camp will be expanded." 7 month 4 On the evening of the same day, Anqi Yeast disclosed its plan to split its subsidiary for listing, proposing to spin off its holding subsidiary Hongyu Packaging Materials into a separate company listed on the Beijing Stock Exchange. The reporter comprehensively sorted out Tonghuashun iFinD Data and announcements from listed companies show that since 2021 year 2 Since the first split-share listed stock was issued at the end of the month, as of 7 month 5 day A shares already 17 Only listed shares are split, among which those listed on the ChiNext and STAR Market are 8 only with 7 Only, otherwise 2 Only listed on the main board. Further analysis shows that this year, through “ A take apart A "Listed ones 8 only, 7 Listed only on the ChiNext 1 Only on the motherboard. "Diverging into separate listings can help parent companies and subsidiaries focus on their core businesses, improve the valuation of subsidiaries, enhance financing capabilities, introduce strategic investors, and better implement management equity incentives." Wang Xin, a global partner at Frost & Sullivan and President of Greater China, analyzed for Securities Daily that listing as separate entities is an important way for capital markets to optimize resource allocation. For listed companies, it helps alleviate financial pressure by allowing the parent company to choose business segments with stronger profitability for separate listing, ensuring a smoother process for stock issuance and financing. "The split listing allows listed companies to improve management efficiency, focus on their main business, and expand financing space through the capital market platform. Most of the businesses spun off by the parent company are technology innovation businesses in a period of rapid growth. The listing of subsidiaries spun off by the parent company can alleviate financial pressure, effectively motivate the management of subsidiaries, and enhance valuation levels," said Fu Rao, executive director of the International New Economy Research Institute, to the Securities Daily reporter. From a sector perspective, the main destination for spin-offs this year is the ChiNext. In fact, in addition to those that have been listed this year 7 Outside the home, there is also 20 Several listed companies of Yu's Group are queuing up to list their subsidiaries on the ChiNext board.   Wang Xin stated that compared to the main board market, the listing conditions for the ChiNext are more relaxed, offering a higher degree of inclusiveness to enterprises, which helps potential small and medium-sized enterprises obtain financing opportunities. A take apart A Subsidiaries under '” generally possess high potential and strong profitability. Therefore, the ChiNext has become the choice for most companies. It is worth noting that the Beijing Stock Exchange has now become a new option for spin-off listings, with the potential to achieve a zero-based breakthrough. In addition to the aforementioned Angel Yeast, several listed companies such as Nanjing Iron and Steel Co., Ltd. have also designated the Beijing Stock Exchange as a subsidiary's intended split listing destination. However, to date, there has been no ' A take apart A "Cases of listed companies on the Beijing Stock Exchange." Zhou Yunan, founder of Beijing Nanshan Investment, analyzed to the Securities Daily reporter that the reason why the Beijing Stock Exchange has become a new choice mainly stems from the following aspects: In terms of financial thresholds, the financial requirements for listing on the Beijing Stock Exchange are lower than those for the main board, ChiNext, and STAR Market; in terms of queuing time, currently among the three exchanges in Shanghai, Shenzhen, and Beijing, there are fewer companies waiting to list on the Beijing Stock Exchange, and the average time from acceptance to listing is also shorter; moreover, listed company subsidiaries are already an important component of the New Third Board. If a subsidiary happens to be an enterprise on the Innovation Layer of the New Third Board, applying for listing on the Beijing Stock Exchange has a natural first-mover advantage. Zhou Yunnan further stated that as the Beijing Stock Exchange continues to develop and grow, and its financing, pricing, trading, and mergers and acquisitions functions are continuously improved, more and more listed companies will turn their attention to the Beijing Stock Exchange. They are willing to spin off their subsidiaries for listing on the New Third Board or enter the innovation layer, and apply to join the Beijing Stock Exchange at an opportune time. This can not only transport more high-quality enterprises to the New Third Board but also achieve interconnectivity between listed companies on the Shanghai and Shenzhen stock exchanges with the New Third Board and the Beijing Stock Exchange. Of course, not all listed companies are suitable for spin-off listings. "Regulatory authorities usually have clear requirements and detailed reviews for companies' listing applications, and companies should also comprehensively assess whether they need to split up for listing based on their own circumstances," Wang Xin said. Typically, companies that choose to split up for listing have diversified businesses with high-profitable subsidiaries. Another category is incubator companies, where the equity investment portfolio of the parent company is distributed across different industries. After the subsidiaries go public, the parent company can choose to exit its equity."   * This article is reprinted from Securities Daily, with the reporter being    Xing Meng,    Original title:    within the year 8 home“ A take apart A "Listed company implementation The Beijing Stock Exchange is becoming a new destination for spin-offs.    ">  

Frost & Sullivan insights On June 29, Premier Li Keqiang of the State Council presided over an executive meeting of the State Council, calling for improving the level of medical and health services through reform and innovation in the efficient coordination of epidemic prevention and control with economic and social development, so as to better protect the health of the people. At the same time, it was decided to carry out pilot projects to enhance the clinical research and achievement transformation capabilities of high-level hospitals, promote the improvement of medical and health service levels, and support the construction of research platform bases. Why does the national level attach such importance to enhancing the clinical research and achievement transformation capabilities of high-level hospitals? What are the specific implementation measures? How are they implemented? Wang Siyi, an analyst from Frost & Sullivan's Healthcare Group, recently interviewed by a reporter from China Times The current situation of low investment in collaborative medical technology, as well as future development trends after policy support. The State Council has decided to launch a pilot project to enhance the clinical research and achievement transformation capabilities of high-level hospitals. Huaxia Times On June 29, Premier Li Keqiang of the State Council presided over an executive meeting of the State Council, calling for improving the level of medical and health services through reform and innovation in the efficient coordination of epidemic prevention and control with economic and social development, so as to better protect the health of the people. At the same time, it was decided to carry out pilot projects to enhance the clinical research and achievement transformation capabilities of high-level hospitals, promote the improvement of medical and health service levels, and support the construction of research platform bases.   According to statistics from Peking Union Medical College Hospital, China has a population of 1.4 billion, but the investment in medical technology only accounts for 1.2%, far lower than the 44% in the United States and 33% in Europe. In fact, enhancing the clinical research and achievement transformation capabilities of high-level hospitals has been a major policy that the national health sector has continuously implemented in recent years. Previously, departments such as the General Office of the State Council, the National Development and Reform Commission, the National Health Commission, the Administration of Traditional Chinese Medicine, and the National Disease Prevention and Control Center have all organized the issuance of relevant policy documents. So, why does the national level attach such importance to enhancing the clinical research and achievement transformation capabilities of high-level hospitals?   In response, Liang Jialin, convenor of the Population Health Strategy Communication Committee of the Chinese Population Society, told the China Times: 'Large research hospitals, as institutions that possess vast amounts of patient medical and multi-omics data, have the opportunity to gain significant opportunities in scientific research capabilities and revenue generation through the national pilot program for enhancing clinical research and outcome transformation capabilities.'   Chen Linhai, Deputy Secretary-General of the Private Hospitals Branch of the Chinese Hospital Association, told the Huaxia Times reporter that 'The national level has decided to carry out a pilot project to enhance the clinical research and achievement transformation capabilities of high-level hospitals. The aim is to select institutions with excellent scientific research capabilities from public tertiary hospitals, establish large-scale clinical research and achievement transformation centers, thereby promoting the localization process in this field. After improving the scientific research structure, China will gradually achieve full coverage in the life science industry.'   attach importance to In recent years, enhancing the clinical research and achievement transformation capabilities of high-level hospitals has become a frequently discussed keyword in China's healthcare industry.   Unlike previous times, this regular State Council meeting pointed out that pilot projects to enhance clinical research and achievement transformation capabilities will be carried out in some high-level hospitals. In five areas—implementing scientific research autonomy, salary incentives, ownership of scientific and technological achievements and their distribution of benefits, procurement of scientific research instruments and equipment, and so on—the same policies as those supporting innovation in universities and research institutes will be adopted. In particular, there will be an increase in funding for clinical and translational research, simplification of scientific research and funding management approval processes, reports, etc., while support will also be provided for the construction of research platform bases.   In fact, this concept has not been elevated to the national level for the first time. In 2019, the National Health Commission held a series of press conferences under the theme 'A Tour of the 13th Five-Year Plan - Towards Universal Health', focusing on introducing the specific implementation details around the 'National Medical Service and Medical Quality and Safety Report 2019'.   In addition, departments such as the General Office of the State Council, the National Development and Reform Commission, the National Health Commission, the Administration of Traditional Chinese Medicine, and the National Disease Prevention and Control Center have all organized the issuance of relevant policy documents. On June 4, 2021, the General Office of the State Council issued the 'Opinions on Promoting the High-Quality Development of Public Hospitals', once again placing emphasis on strengthening clinical specialty construction, proposing that 'the development of specialties drives the improvement of diagnosis and treatment capabilities and levels'.   On July 1, 2021, the National Development and Reform Commission, the National Health Commission, the National Administration of Traditional Chinese Medicine, and the National Disease Prevention and Control Center jointly compiled the 'Implementation Plan for the Construction of a High-Quality and Efficient Healthcare Service System during the 14th Five-Year Plan Period.' It proposes to strive to ensure that the general public enjoys fair and accessible, systematic, and continuous high-quality healthcare services nearby.   Shi Wankui, deputy director of the Pharmaceutical and Medical Business Department at Hejun Consulting, told the Huaxia Times reporter, "It is very necessary to enhance the clinical research and achievement transformation capabilities of high-level hospitals. This is conducive to promoting innovation, expanding the group of innovative talents, and facilitating cross-border integration between frontline diagnosis and treatment with professional research institutions, pharmaceutical companies, etc."   Vitality In the early days of the founding of New China, the average life expectancy in our country was only 35 years. By 2020, it had increased to 77.3 years, with maternal mortality and infant mortality rates falling to 16.9 per 100,000 and 5.4 per 1,000, respectively. Our main health indicators rank among the top in countries with medium to high incomes.   In recent years, with the continuous advancement of deepening the reform of the medical and health system, hierarchical diagnosis and treatment, and modern hospital management systems have been continuously improved, significantly enhancing the capacity of medical services. National healthcare insurance, centralized volume-based procurement, healthcare negotiation, drug supply guarantee, comprehensive supervision systems, etc., which benefit the country and its people, have basically established the framework of China's basic healthcare system serving all citizens. The problems of 'difficulty in seeing a doctor' and 'high cost of seeing a doctor' are gradually being resolved, and it is becoming a reality that people can afford to see a doctor.   Even so, there are still some urgent issues to be resolved in the development of China's healthcare industry. Public data from the National Health Commission and the Big Data Development Department of the National Information Center show that from a supply-side perspective, structural problems in the healthcare service system remain prominent.   Chen Linhai believes that 'this new policy can be regarded as an extension of the tiered diagnosis and treatment medical reform system, aiming to emphasize the integrated functions of public medicine at the top echelons in clinical strength, improving the integration of teaching, research, industry, and academia. This is intended to help China establish its own scientific research data, reshape its scientific research capabilities, and combine medical engineering with R&D to develop cutting-edge pharmaceuticals and medical devices.'   The reporter learned that compared to universities and research institutes, public hospitals are subject to stricter anti-corruption management restrictions, resulting in a lower rate of scientific research achievement transformation compared to these institutions; moreover, the overall level of clinical research achievement transformation in China is also lower than that of developed countries. According to statistics from Peking Union Medical College Hospital, with a population of 1.4 billion, China only allocates 1.2% of its medical technology investment, far less than the 44% in the United States and 33% in Europe. China's independent R&D capability for innovative drugs is weak, and the localization rate of large-scale medical devices needs to be improved. The patent ratio (8%) of China's biopharmaceutical industry is much lower than that of the United States (48%) and Japan (12%).   Liang Jialin told the reporter from China Times: 'Life sciences are the science of the 21st century, just as information sciences were in the 20th century. Large research hospitals, as institutions that possess massive amounts of patient medical and multi-omics data, have the opportunity to gain significant opportunities in enhancing their scientific research capabilities and revenue-generating abilities through pilot projects aimed at improving national clinical research and outcomes transformation capabilities. For the leading (research-oriented) echelons within public hospitals, the effective incentive mechanism for the transformation of clinical scientific and technological achievements (i.e., 'patenting to support healthcare') can boost the return of diagnosis and treatment services to a public welfare nature.'   Wang Siyi Analyst from Frost & Sullivan Healthcare Wang Siyi, an analyst from Frost & Sullivan's Healthcare Group in Greater China, told a reporter from China Times that 'The State Council has specifically emphasized increasing funding for clinical and translational research, adopting policies equivalent to those for innovation by universities and research institutions, which is conducive to the transformation of medical scientific achievements and promotes the development of high-quality healthcare services.'   Shi Wankui stated, 'The State Council has specifically clarified the encouragement for doctors and departments to carry out scientific research. In addition to performance incentives for talent and innovation, we believe that related support policies such as evaluation, transformation, promotion, and financing of innovative achievements will be introduced gradually. Hospitals with distinctive innovative achievements will have priority in gaining multiple benefits such as low costs, high brand recognition, patient aggregation for a single disease type, and advantages in scientific research data, directly supporting the enhancement of hospital competitiveness.'   *This article is reprinted from 'Huaxia Times', with reporters Guo Yilin and Yu Na. The original title was 'Medical Technology Investment Accounts for Only 1.2%! The State Council Decides to Launch a Pilot Project to Enhance the Clinical Research and Achievement Transformation Capabilities of High-Level Hospitals'.

Frost & Sullivan insights 3 month 24 day, “the “ninth 31 Global Financial Centres Index Report ( GFCI 31 "The official release has been made. Hong Kong's overall ranking remains third globally. Despite the impact of the Asian financial crisis, global economic crisis, and COVID-19 pandemic, Hong Kong's international competitiveness and global influence have not only not been affected by slow economic growth but have achieved leapfrog development. Hong Kong's core competitiveness and development foundation as an international financial center remain solid." Hong Kong financial market upon return 25 What changes have taken place over the past year? Frost & Sullivan   What businesses have been carried out in Hong Kong and what achievements have been made? In the global financial competition, what competitive advantages does Hong Kong still possess and what major challenges has it faced? Frost & Sullivan Frost & Sullivan, Dr. Wang Xin, Global Partner and President of Greater China at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), was interviewed by China Economic Weekly to discuss the advantages and challenges Hong Kong faces in global financial competition. China Economic Weekly 2022 year 3 month 24 On the day, the China (Shenzhen) Comprehensive Development Research Institute, a national high-end think tank, and the UK think tank Z/Yen Group-compiled 'The “ 31 Global Financial Centres Index Report ( GFCI 31 ) ”Official release. Hong Kong's overall ranking remains at third place globally. Since the return, Hong Kong's socio-economic system has shown strong resilience against the backdrop of the robust support from the motherland's economy. The international competitiveness and global influence of the financial industry have not only been unaffected by slow economic growth but have also achieved leapfrog development. Hong Kong's core competitiveness as an international financial center and its development foundation remain solid. 25 In the year, Hong Kong's financial industry developed vigorously. Bank deposits 1997 year 1.6 Trillion Hong Kong dollars grew to what it is today 7.5 Trillion Hong Kong dollars, cumulative increase 3.7 times; total market value of the stock market from 1997 year 4.6 Trillion Hong Kong dollars, increasing to 38 Trillion Hong Kong dollars, with a cumulative increase of 7 times; foreign exchange reserves from 1997 year 800 billion dollars, increasing to 4600 billions, with a growth rate of 4.7 times... Yu Wai-man, Chief Executive of the Hong Kong Monetary Authority, said in a media interview that in the past 25 In the development process over the years, Hong Kong's status as an international financial center has been continuously growing and becoming more stable. Its role as a bridge connecting the mainland with the international market has become increasingly important. Although there have been various changes or financial cycle evolutions of different sizes, with market fluctuations and even different crises breaking out, Hong Kong's financial system has "always remained very stable and resilient." 01 How valuable is the international financial center? Finance is a pillar industry of Hong Kong. 25 In 2019, Hong Kong's financial system has remained stable and operating in an orderly manner, largely due to its strong 'internal strength'. In an exclusive interview with the reporter of China Economic Weekly, Eddy Koo, Chief Economist at BOC Hong Kong, stated that Hong Kong's financial center has been leading the world for many years and this is inseparable from two pillars: first, the continuously strengthening economic and trade ties between the mainland and Hong Kong; second, Hong Kong's favorable business environment, simple low-tax system, free capital account, judicial system in line with Western standards, efficient financial supervision, and being one of the freest economies. The organic combination of these two is the solid foundation for Hong Kong to maintain long-term economic prosperity and stability and continuously enhance its status as an international financial center. "The strong economic growth momentum and development opportunities in the Mainland are highly attractive to overseas investors, with more and more funds seeking to enter the mainland capital market through Hong Kong's interconnected mechanisms with the Mainland. On the other hand, Hong Kong maximizes its advantages as a free port, effectively attracting a large amount of overseas funds to dock in Hong Kong, providing unlimited liquidity for the Hong Kong financial market. In addition, Hong Kong adheres to the principle-based approach ( Principle-based supervision The financial supervision concept, which sets forth principled guidelines for the operation of financial markets and allows financial institutions to formulate their own operational details, provides a relaxed business environment for financial institutions and is conducive to the innovative development of the financial industry.' E Zhihuan said.   At Frost & Sullivan Frost & Sullivan According to Wang Xin, Global Partner and President of Greater China, the establishment of Hong Kong's status as an international financial center is inseparable from its effective macroeconomic policies, sound regulatory frameworks, and legal systems. These combined efforts have helped build a robust and resilient financial system.   Firstly, in terms of economic policy and legal system, Hong Kong has a dual positioning that other international financial centers do not possess. It connects the financial infrastructure and market systems between the Chinese mainland and financial centers such as London and New York; at the same time, Hong Kong has continued 26 The Hong Kong SAR has been ranked as the world's freest economy for two consecutive years.   In addition to illegal activities such as money laundering and counter-terrorism, which are subject to regulation, capital and information can flow and interact freely in Hong Kong. This degree of freedom makes Hong Kong a regional and global financial hub and transit point, connecting extensive economic and financial interests across different countries and regions. Moreover, Hong Kong's free port status and low tax policy have greatly enhanced this advantage.   Secondly, as an important platform for global venture capital, the Hong Kong financial market attracts funds from around the world due to its openness, diversification, moderate regulation, and active trading.   International investors conduct equity investments and asset management businesses in the Greater Bay Area and inland China through Hong Kong's international financing platform, which is conducive to mainland enterprises attracting overseas funds outside of traditional bank financing channels. Hong Kong provides an important channel for international capital to enter the Chinese market, and it is of great significance for attracting global funds to actively participate in China's independent technological innovation, stimulating entrepreneurial vitality, and smoothing the domestic and international circulation. "The unique position of Hong Kong as an international financial center is the result of long-term institutional construction and evolution. Its core competitiveness lies in efficiently connecting the Chinese market with the global business network by providing world-class software and hardware infrastructure, as well as an open, rule-of-law-based, transparent, and secure business environment." Wang Xin told China Economic Weekly that Hong Kong is an important bridge for multinational companies to deeply penetrate the Chinese mainland market and an ideal platform for Chinese companies to "go global" and explore international markets. In recent years, with the rise of trade protectionism and the impact of the COVID-19 pandemic, global economic and trade activities have faced shocks. Against the backdrop of tense geopolitical situations and increasing uncertainties in global economic development, the status of Hong Kong as an international financial center has become even more important. "The functional positioning of the International Financial Center is an important entry point for Hong Kong to integrate into national development and also reflects Hong Kong's greatest value to national development," said E Kip Kwok. During the 14th Five-Year Plan period, China's financial industry enters a new era led by openness, with Hong Kong becoming the main channel for mainland financial markets to connect with the outside world, providing diverse options for interconnectivity. "For a long time, the Chinese economy has been accelerating the promotion of development concepts that emphasize innovation, coordination, green development, openness, and sharing. 'Openness' occupies a prominent position among these five development concepts. Hong Kong's functional positioning is closely related to the above new development concepts, especially in the field of China's opening up to the outside world. Hong Kong has played a positive and irreplaceable role for a long time. In terms of financial market openness, the international financial center status established by Hong Kong through long-term efforts has unique advantages," said E Zhihuan. In the face of increasingly complex external risks, Hong Kong, as a free port, has been significantly affected, and its status as an international financial center is also under challenge.   Wang Xin analyzed that, on the one hand, Hong Kong's financial system faces more complex external risks and challenges. On the other hand, within Hong Kong itself, there are issues such as insufficient upward mobility among young people and industrial hollowing out. Therefore, exploring the depth and breadth of financial industry applications to better inject development momentum into the real economy is one of the important measures for Hong Kong to face risks and challenges as an international financial center in the future. 02 The level of financial interconnection between the two places is constantly improving In E J Huan's view, Hong Kong has gone through three important stages of development in its international financial centre. The first is in 20 century 70 In the 1980s, seizing the opportunity of Western financial globalization, the country opened up markets and initially established regional financial centers based on the Asian time zone. Secondly, after Hong Kong as a regional financial center had taken firm ground, it witnessed 20 century 90 In recent years, with the wave of financial reform and opening up in the Chinese mainland, the financial center has achieved transformation and upgrading, expanding into the international arena; thirdly, upon entering 21 After the century, Hong Kong took advantage of the internationalization of the RMB and capitalized on the establishment of a RMB offshore financial center to accelerate its development into one of Asia's leading international financial centers. "Hong Kong has seized the once-in-a-century historical opportunity of RMB internationalization and rapidly developed into a true international financial center. Offshore RMB business has become a new engine for the development of Hong Kong's international financial center." E Zhihuan told China Economic Weekly reporters that over the past decade, Hong Kong's offshore RMB business has made significant progress. The RMB funds pool has continued to accumulate, trading activities have become increasingly active, product choices have become more diverse, and a virtuous cycle from demand to supply and back to demand has gradually formed, effectively promoting the development of markets such as foreign exchange trading and derivatives in Hong Kong. 2003 In [year], the People's Bank of China appointed CITIC Hong Kong as the first offshore RMB clearing bank, marking the official inception of the Hong Kong offshore RMB market. 2011 In [year], the 'RMB Qualified Foreign Institutional Investor' ( RQFII The plan for the official implementation has seen the Hong Kong offshore RMB market transform from an early one-way cash flow back to the mainland to a two-way RMB capital flow in terms of design concept and development model. It has become a pioneer and central hub for global development of RMB products and promotion of widespread use of the RMB. In recent years, with the opening of cross-border RMB trade settlements, direct investment, and the wider application of the RMB in cross-border investments, Hong Kong's offshore RMB business has been leading markets around the world, playing the role of an offshore RMB business hub. At present, Hong Kong has the world's largest offshore RMB fund pool, with over 8000 RMB 10 billion, providing liquidity support for global RMB businesses. The scale of the RMB swap agreement signed between the Hong Kong Monetary Authority and the People's Bank of China reaches 5000 RMB 10 billion, the largest in the world. From a traffic perspective, offshore RMB transactions have also remained active. Hong Kong's RMB payment system supports various cross-border and offshore RMB transactions, with an average daily settlement exceeding 1.5 trillion yuan. SWIFT Data shows that globally, more than 75% Offshore RMB payment activities are conducted through Hong Kong. "The national 14th Five-Year Plan clearly supports Hong Kong in strengthening its role as a global offshore RMB business hub, deepening cross-border connectivity between the two places, and has clearly put forward the direction of opening up markets and steadily advancing the internationalization of the RMB. With favorable policies and the increasing demand for overseas investors to allocate RMB assets, there is still vast room for development in Hong Kong's offshore RMB market," said Yu Wai-man, President of the Hong Kong Monetary Authority, in an interview with the media recently. In addition, 1997 In the year, Hong Kong's bond market's total annual issuance fell short of 200 billions, by now 2021 In [year], this number has risen to 4000 billion US dollars, with a cumulative increase approaching 20 times. "In everyone's impression, Hong Kong has not developed very well in the debt market, but I often encourage people to look at the numbers." Yu Weiwén cited the International Capital Markets Association ( ICAM According to a report by (), Hong Kong ranked first in the Asia-Pacific region in terms of international bond issuance, 34% Its market share remains the highest, exceeding that of the United States 22% ), United Kingdom 17% ) and Singapore 5% The development of offshore RMB bonds and green bonds in Hong Kong has also been good in recent years. In the view of Yu Weiwen, the development of Hong Kong's bond market today is inseparable from its interconnection with the mainland capital market. In recent years, with the launch and rapid development of 'Shanghai-Hong Kong Connect', 'Shenzhen-Hong Kong Connect', and 'Bond Connect', trading volumes have been increasing day by day. Taking stock connect as an example, 2014 and 2016 In [year], the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect were officially launched. At that time, the average daily trading volume was only 56 RMB 10 billion and 16 RMB 10 billion 2021 In [year], the average daily trading volume of the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect has climbed to 553 RMB 10 billion and 650 RMB 10 billion, with increases reaching 9 Double sum 40 times. The growth of Bond Connect is also gratifying. 2017 In the year, the average daily turnover amount of bond Connect Northbound was 22 RMB 10 billion. Today, this number has risen 11 times, 2021 Increase to 260 RMB 20 billion. Yu Weiwen stated that the bond market's southbound development is initially slow but heating up, and based on past experiences with cross-border connectivity, it is believed that the next few years will be a major trend. It is expected that related transaction volumes will gradually increase. "Compared with the stock market, the Hong Kong bond market has developed more slowly. On one hand, under the current HKD linked exchange rate system, local large enterprises prefer to raise funds in the US dollar bond market. On the other hand, the Hong Kong SAR government has a perennial fiscal surplus and rarely needs to issue public bonds, making it difficult to establish a risk-free pricing benchmark for the bond market. "E Zhihuan said." 3 The total market value of mainland enterprises accounts for Hong Kong stocks 7 become 1993 year 7 In January, the first mainland company, 'Tsingtao Brewery', went public in Hong Kong, thus kicking off the prelude to mainland enterprises listing in Hong Kong. Historical data shows that before the return of Hong Kong, the number of mainland companies listed in Hong Kong was not sufficient. 100 home. 1997 year 10 In the month, China Mobile entered the Hong Kong market, raising a sum as high as 323.63 HK$10 billion, becoming the first deal after Hong Kong's return IPO listing At that time, there were a total of 658 Home, the proportion of mainland enterprises is insufficient 15% . 2003 In [year], the Mainland and Hong Kong signed the 'Arrangements on Establishing Closer Economic and Trade Relations between the Mainland and Hong Kong and Macao' ( Abbreviation “ CEPA " ) It supports further strengthening of cooperation between the two parties in the banking, securities, and insurance sectors. CEPA It has opened the 'doors' to policy cooperation between the Mainland and Hong Kong, and has also accelerated the pace of mainland enterprises going public in Hong Kong. 25 Over the past year, the Hong Kong stock market has gradually developed into an important financing platform for mainland Chinese enterprises and one of the key options for mainland investors and financial institutions to allocate overseas assets. Statistical data shows that as of 2022 year 4 Month, Mainland Enterprises Listed on the Hong Kong Stock Market 1370 Number of family-owned enterprises listed on the Hong Kong Stock Exchange 53.3% , accounting for the total market value of Hong Kong stocks 77.7% . In the view of E Zhihuan, the large number of high-quality mainland enterprises listing in Hong Kong can, on one hand, fully utilize the liquidity of the Hong Kong market to attract overseas capital, and on the other hand, it also helps to rapidly enhance the fundraising function of the Hong Kong financial market, promoting Hong Kong to become the 'preferred overseas fundraising center' for mainland enterprises. The following set of numbers may better illustrate the prosperity of the Hong Kong stock market over the years: 1997 Total market value of Hong Kong stocks at the end of the year 3.2 trillion Hong Kong dollars 2021 In , this number peaked at 58.6 Trillion Hong Kong dollars. Average daily turnover of Hong Kong stocks 25 Growth of nearly 10 times, from 1997 year 154.65 HK$10 billion (main board only) grew to 2021 year 1667.3 HK$10 billion. Since 2009 Since the beginning of the year, Hong Kong has ranked first globally for seven consecutive years IPO listing Ranked first in fundraising amount. The global leadership Hong Kong has gained in new share listings and the rapid expansion of the stock market are direct results of the continuous strengthening of economic and trade ties between the mainland and Hong Kong. They also further demonstrate Hong Kong's unique advantages in financial market infrastructure. As mainland enterprises flock to list on the Hong Kong stock market, they obtain development funds, injecting vitality into the Hong Kong economy and creating a good development situation where capital markets in both places complement each other, consolidating and enhancing Hong Kong's status as an international financial center. If it's about launching H The share structure change is the first reform made by the Hong Kong Stock Exchange to welcome mainland enterprises to list on the Hong Kong market. The allowance for biotech companies without revenue and new economy companies adopting different voting structures to list in Hong Kong is the biggest reform since the establishment of the exchange, driven by mainland enterprises. With the rapid development of internet technology in the Mainland, new economy companies represented by technology and the internet began to thrive. At that time, the rules of the Hong Kong Stock Exchange did not allow such companies to list on the Hong Kong market. After missing out on internet companies such as Alibaba one after another, the Hong Kong Stock Exchange 2018 In 2021, the listing system was reformed. Three new chapters were added to the listing rules, allowing biotech companies without revenue and those adopting different voting structures to list in Hong Kong for the first time, thus opening the door to a large number of new economy enterprises from the Chinese mainland. According to incomplete statistics by reporters from China Economic Weekly, since then 4 year 2018 Year to 2022 year 4 At the end of the month), the Hong Kong Stock Exchange welcomed 128 Jiashine Economy Co., Ltd., including 28 Home Biotechnology Company and 10 The listed company is a secondary issuer, with a total financing amount reaching 5537 HK$10 billion. Currently, the Hong Kong Stock Exchange has become an internationally leading financing market for new economy companies and the second-largest biotech financing center globally. 2021 At the end of the year, the Hong Kong Stock Exchange announced the introduction of new rules again, establishing a new type of special purpose acquisition company SPAC The listing mechanism has been in place for some time. As of now, two shell companies have successfully listed on the Hong Kong stock market. Meanwhile, the Hong Kong Stock Exchange has optimized its second-tier listing system to attract more Chinese concept stocks that have returned from overseas, granting issuers of dual primary listings greater flexibility. The industry predicts that the Hong Kong capital market will see a tide of returns from overseas investors from the second half of this year to next year.   Wang Xin told the reporter from China Economic Weekly that in the next few years, Hong Kong's capital market will still maintain its attractiveness to mainland enterprises for a long time. On one hand, Hong Kong's financial market infrastructure is complete and information transparency is high, and being backed by the motherland makes mainland Chinese companies more inclined to list on the Hong Kong Stock Exchange; on the other hand, multinational companies that value the mainland market often place their Asia-Pacific regional headquarters in Hong Kong, making Hong Kong an even more open and active international financial center. "For many years, Hong Kong has had unique advantages in overseas financing for Chinese enterprises and offshore RMB business. These advantages are built on close economic and trade exchanges and geographical relations between Hong Kong and the mainland. It is difficult to change this objective advantage overnight," said Wang Xin. 04 The development of fintech has entered a fast lane 2000 year 5 In January, the Hong Kong Monetary Authority issued the 'Recognition of Virtual Banks' industry guideline, proposing for the first time that there would be no opposition to the establishment of virtual banks in Hong Kong. For over a decade following this, the matter sank into oblivion, without causing any stir within the Hong Kong financial industry. 2018 In [year], the Hong Kong Monetary Authority (HKMA) issued a revised version of the 'Recognition of Virtual Banks' guideline, bringing virtual banking back onto the agenda. 2019 year 3 month Livi VB Limited , SC Digital Solutions Limited Hecom Virtual Finance Co., Ltd. has obtained the first batch of virtual bank licenses. This is now more than a year after the initial proposal for virtual banks was made. 19 year. As an international financial center, Hong Kong's financial system has always been known for its prudence and stability. However, it has also been criticized for being backward and conservative, especially in the development of fintech. 2004 In [year], mainland netizens began using Alipay, while mobile payment did not arrive until 2015 It has only just begun to be widely available in Hong Kong. Although it lost at the starting line, Hong Kong's fintech has been striving to catch up with this wave of development in recent years. "Compared with the mainland, Hong Kong's fintech start-up scene is indeed a bit later, basically starting from 2016 In [a certain year], the government began to take the lead and fully launched relevant work on the development of fintech. "Liang Hanjing, the fintech supervisor at the Hong Kong Investment Promotion Department, said in an exclusive interview with a reporter from China Economic Weekly." 2016 At the beginning of the year, the Hong Kong Monetary Authority established a Financial Technology Promotion Office to coordinate services for the development of the fintech industry and promote fintech products. The Hong Kong Investment Promotion Department also set up a dedicated fintech team during the same period, launching globally for several consecutive years Express Track Plan to provide comprehensive assistance to fintech companies, thereby attracting more fintech startups to set up in Hong Kong. According to Leung Hang-kim, over the past few years, the SAR Government has launched a series of fintech infrastructure and measures, achieving many milestone advancements in Hong Kong's fintech sector. For example, the launch of the 'QuickPass' fast payment system, the issuance of virtual bank licenses, the implementation of open banking application interfaces, and the promotion of the blockchain-based trade financing platform 'Trade Link', among others. As Hong Kong regulatory authorities actively attract fintech investment into the market, there is also an upward trend in the penetration rate of fintech within the local financial community. Hong Kong Monetary Authority 2020 Surveys released annually show, 35 % to 56 % of banks view fintech as an opportunity for development, 86 % of banks are gradually integrating fintech into various financial services. After five years of development, Hong Kong currently has 600 Home fintech companies and startups have become one of the preferred cities for global startups to expand rapidly, as well as one of the markets with the highest consumer fintech penetration. Ernst & Young 2019 The Global Fintech Adoption Rate Index released in [year] shows that the fintech adoption rate among consumers in Mainland China is 87% , ranking first globally. The adoption rate index of fintech in Hong Kong has reached 67% It is much higher than developed economies such as France, the United States, and Japan. "In the global financial center index report released at the beginning of this year, Hong Kong ranked third globally in terms of financial centers and eighth globally in fintech centers. Compared to global economies, we are doing quite well. However, there is still much room for improvement in the future. We hope that by continuously developing the level of fintech in Hong Kong, we can better enhance Hong Kong's competitiveness as an international financial center," said Leung Hang-kwong. Unlike other countries and regions in the world, Hong Kong, as an economy dominated by finance, 700 With a population of over ten thousand, however, there is 160 Multiple banks, 160 Multiple insurance companies, 800 Multiple securities companies and hundreds of insurance intermediary firms. For those focusing on 2B For financial institutions that are primarily engaged in business, it is tantamount to a natural financial market. Moreover, Hong Kong's unique geographical advantages enable fintech companies to connect with the world's largest, fastest-growing markets, as well as those in Southeast Asia, which offer long-term development opportunities. In recent years, an increasing number of overseas fintech companies have hoped to use Hong Kong as a springboard to enter the mainland cities within the Greater Bay Area. "There are many fintech institutions in Hong Kong that handle cross-border payments. The reason for choosing to set up operations here is the connection between Hong Kong and the mainland. In this process, fintech has played a bridging role. On one hand, it helps more mainland enterprises go global, and on the other hand, it also provides more room for development and progress in fintech in Hong Kong," said Leung Hang-king. The reporter learned that in the past two years, although the COVID-19 pandemic has had a certain impact on Hong Kong's economy, it has also accelerated the promotion and application of fintech to a certain extent. 2018 year 9 Since the Hong Kong Monetary Authority launched “Quick Transfer Numbers”, the number of registrations reached 960 Ten thousand, and the trading volume is also 2018 Year-on-year growth is nearly 10 times.   * This article is reprinted from China Economic Weekly. , Reporters: Zhang Yan, Xie Wei , Does Hong Kong still have an advantage as an international financial center? ? "> Frost & Sullivan Insight & Extended Readings Q Frost & Sullivan has long been committed to serving Chinese companies seeking listing in Hong Kong. What businesses have it carried out in Hong Kong and what achievements have been made? What are the key areas of development? What is the future development strategy? A : as A global growth consulting firm, Frost & Sullivan with a global footprint 61 years of consulting experience, 24 Over the past year, we have wholeheartedly served the booming Chinese market. With a global perspective, we have helped clients accelerate their business growth and achieve leading benchmarks in industry growth, innovation, and technology leadership. As early as 2003 In [year], Dr. Wang Xin, Global Partner and President of Frost & Sullivan Greater China, led the Frost & Sullivan team to pioneer industry advisory services for Hong Kong listings and overseas listings. He also took the lead in establishing and standardizing the business processes and service standards for industry advisors in the investment and financing sector. Today, industry advisors have become one of the important service institutions for companies seeking Hong Kong listings. Frost & Sullivan has long cooperated closely with globally renowned investment banks, financial audit firms, law firms, top investment institutions, and leading enterprises in the industry. As 20 As a witness to the recent surge in corporate listings in Hong Kong over the past few years, Frost & Sullivan has demonstrated its ability to 15 We provide professional services for various demand scenarios, helping nearly a thousand companies broaden their international financing channels, gain capital favor, strengthen investor relations and public relations, successfully list on the Hong Kong capital market, and have made outstanding contributions to Hong Kong's economic prosperity. 2014 till 2021 In the year, Frost & Sullivan retained its leading position as the industry research advisor with the largest market share for Chinese companies listing in Hong Kong. 2022 In 2018, Frost & Sullivan and TradeGo's China-based affiliate jointly established Frost & Sullivan TradeGo China. ( shenzhen ) Yuntech Co., Ltd. (referred to as Yuntech). Yuntech provides precise promotional roadshows, public offering assistance, one-stop full-cycle investor relations management services, and comprehensive investment and financing support for Hong Kong-listed companies planning to go public or those that are already listed. 18A Since the implementation of the policy, Hong Kong has become the largest biotech fundraising centre in Asia and the second largest globally. Earlier this year, Frost & Sullivan, in collaboration with TradeGo, cloud technology and LeadLeo, jointly authored and published 'Hong Kong Stock Market 18A Biotechnology companies issue investment activity reports". Subsequently, they have also jointly released 2022 Hong Kong stocks for the year SaaS Industry Activity Report》,《 2022 China's Consumer Healthcare Series Report: Hair Transplant Industry Living Report 2022 China's Specialized Hospital Service Series Reports: Assisted Reproduction Industry Activity Report 2022 China Property Management Industry Investment Activity Report for 2019, etc. past 24 In [year], Frost & Sullivan's Greater China region leveraged its global collaborative capabilities to assist a large number of Chinese enterprises in entering the international capital market, as well as helping a multitude of domestic and foreign investment and financing institutions understand and invest in Chinese enterprises. In the future, we will base ourselves on China, provide long-term services, delve into the global capital market and corporate consulting services, and offer comprehensive investment and financing as well as various other professional consulting services for enterprises, including due diligence services, valuation services, assessment services, strategic consulting, management consulting, planning consulting, technical consulting, financial consulting, industry consulting, etc. We will always focus on the theme of innovation and technology, aim for growth, help clients gain a leading position, and add value to corporate capital operations with our professional knowledge, energize industry prosperity, and serve national development.

Frost & Sullivan insights On June 28, FinTech 1Q Holdings, a listed company on the New York Stock Exchange, disclosed its listing documents on the Hong Kong Stock Exchange, applying for dual primary listing in Hong Kong under the introduction route. Since the beginning of this year, there has been another wave of Chinese concept stocks returning to Hong Kong, with several companies announcing their intention to do so through an introduction route. What are the differences between the method of 'introducing a listing' and the form of IPO issuance and listing on the Hong Kong stock market? Generally speaking, what are the reasons for choosing an introduction listing? Can going public on the Hong Kong stock market promote the valuation restoration of Chinese concept stocks? For other Chinese concept stocks in the fintech industry, what changes need to be considered for listing on the Hong Kong stock market? Does the dual listing through introducing a listing and then going public on the Hong Kong stock market by Fin16 this time have any reference value for other Chinese concept stocks in the fintech industry? Lu Jing, Partner and Managing Director of Frost & Sullivan's Greater China region, was interviewed by 21st Century Business Herald to analyze the reasons for the current upsurge in Hong Kong listings and discuss its impacts. Financial OneConnect will officially 'return to Hong Kong' on July 4th. Can the experience of 'introducing a new listing' be referenced? 21st Century Economic Report On June 28, Financial One (NYSE: OCFT), a listed company on the New York Stock Exchange, disclosed its listing documents on the Hong Kong Stock Exchange, applying for dual primary listing in Hong Kong under an introduction-based listing scheme. It is expected to commence trading on the main board of the Hong Kong Stock Exchange on July 4, with Goldman Sachs and HSBC serving as joint sponsors.   As a result, FinTech OneConnect has become the first fintech Chinese company listed on both the US stock market and the Hong Kong stock market.   In April this year, FinTech One was included in the 'pre-exemption' list by the US SEC. At that time, FinTech One stated that it has been actively exploring possible solutions to best protect the interests of its stakeholders. On February 28, 2022, the company submitted an application for dual primary listing on the Hong Kong Main Board with ordinary shares to the Hong Kong Stock Exchange, without involving any new issuance or sale of shares.   The latest financial report data shows that in the first quarter of 2022, Financial One Finance achieved operating income of RMB 1.019 billion, a year-on-year increase of 19.55%. The gross profit was RMB 349 million, a year-on-year increase of 20.19%. Operating losses amounted to RMB 355 million, an expansion of 2.47% year-on-year. After adjustment, the operating loss was RMB 318 million, narrowing by 8.09% year-on-year.   In the past three years from 2019 to 2021, Financial One Connect achieved revenues of 2.328 billion yuan, 3.312 billion yuan, and 4.132 billion yuan respectively, with gross profits of 767 million yuan, 1.243 billion yuan, and 1.437 billion yuan. The gross profit margin in 2021 was 34.8%, a decrease of 2.7 percentage points compared to 2020. As of now, the company has not yet achieved profitability. During the reporting periods from 2019 to 2021, the losses attributable to equity holders were 1.661 billion yuan, 1.354 billion yuan, and 1.282 billion yuan respectively.   Behind 'Introducing a Listing': There Is a Belief That the Stock Price is Undervalued It is reported that Finacle One Connect has returned to Hong Kong this time through the method of 'introducing a listing', which, compared to an IPO through public offering, merely involves reapplying for listing and trading on the Hong Kong Stock Exchange with the shares held by the company on the New York Stock Exchange.   Financial One Connect mentioned in its application that having dual primary listing status on the Hong Kong and New York stock exchanges allows it to seize opportunities for fundraising in two different markets, attracting investors from diverse backgrounds and helping to increase the liquidity of shares. In addition, it also helps to enhance the company's visibility and synergize with the business expansion underway in Southeast Asia and other regions.   Lu Jing, Partner and Managing Director of Frost & Sullivan Greater China, told reporters that since listing does not require the issuance of new shares, there is no need for new capital raising. Capital can be raised through the issue or sale of company shares six months after listing to achieve refinancing. "Introduction to listing" is not common. Public information shows that before 2022, only seven companies went public through an introduction process. Since the beginning of this year, there has been another upsurge in Chinese concept stocks returning to Hong Kong. Many companies have announced their intention to return to Hong Kong through an introduction process. Before FinTech1Chong, NIO (NYSE:NIO) had already returned to Hong Kong's Main Board through an introduction process. Tencent Music also announced in March that it plans to list on the Hong Kong Stock Exchange Main Board for a second time through an introduction process after obtaining regulatory approval.   Lu Jing told reporters that compared to traditional IPOs, the introduction of a listing approval process is faster and also conducive to improving transaction convenience. In terms of the approval process, since the prerequisite for an introduction to listing is that the company already has a certain number of public investors in different sectors on other exchanges or within the same exchange, and there are complete listing records filed during previous listings, the approval process will be quicker. As for transaction convenience, an introduction to listing can provide investors with more trading location options and more flexible trading hours in two local markets without diluting the shares of existing shareholders. Additionally, there are views that listing in an introductory manner may be due to dissatisfaction with the current market valuation by the company.   In December 2019, Finanzium was listed on the New York Stock Exchange in the United States. At that time, the issue price per share was $10. As of the close on June 28th, Eastern Time, the company's stock price was $1.68, a 83.2% decrease from the issue price. "The company may feel that the current stock price is too low. If it continues to issue new shares, it could lead to dilution of the stock price, but if the pricing is too high, it would be difficult to raise funds. Therefore, they chose not to raise capital and go public," a relevant person from a leading investment bank told reporters.   It is worth mentioning that, before the official return to Hong Kong stock market listing, on June 9th, Fintech 1 Account announced that its board of directors had approved an expansion of the company's share repurchase plan by 1%. After this increase in holdings, the company can purchase up to 3% of the total issued ordinary shares by September 30, 2022. Fintech 1 Account expects to provide funds for the repurchase from its existing cash balance.   At that time, Ye Wangchun, Chairman and Director of the Financial One Connect Board of Directors, publicly stated: 'The expansion of the stock repurchase program scale indicates that we still have confidence in long-term business growth, and at the same time, we believe that the current market has underestimated our American depositary receipts.'   Why are Chinese fintech stocks listed in Hong Kong seeking to 'return to Hong Kong' In addition to Fintech 1QiaoTong, many fintech Chinese concept stocks have also been rumored to go public on the Hong Kong stock market.   In March 2021, 360 Digital Finance (NASDAQ: QFIN) admitted during a performance call that it was preparing to go public in Hong Kong but that it was still dealing with some technical issues and was in the preliminary stage of an application for listing (A1). At that time, Xu Zuoli, Chief Financial Officer of 360 Digital Finance, stated that the requirements of the Hong Kong Stock Exchange regarding VIE structures were very different from those in the United States. 'So we need to make some changes and carry out some minor reorganizations under these new requirements in certain cases. We are doing this while talking about it, and these processes take time because some require regulatory approval. Once we solve these technical issues, we will promote the listing to some extent.'   Lu Jing believes that for other fintech Chinese companies listed on the Hong Kong stock market, going public in Hong Kong requires meeting the listing requirements and regulatory standards of both the Hong Kong and US exchanges. It is necessary to comprehensively consider factors such as the company's own situation, market environment, regulatory requirements, and listing review time, to choose a form of listing that better suits their needs. Similar to FinTech 1Corp, the exploration of many fintech Chinese companies to return to Hong Kong for listing is driven by the desire to restore their valuation.   "Many fintech Chinese companies listed in the US initially chose this market not only because of its more relaxed listing requirements but also to obtain a higher valuation on the US stock market. However, after experiencing policy uncertainty in the past two years, the valuations of fintech Chinese companies have significantly declined. Listing back in Hong Kong can provide fintech Chinese companies with a series of favorable conditions such as increased liquidity, avoidance of policy risks, and expanded financing channels," Lu Jing told reporters. CICC has released a research report indicating that, against the backdrop of stable industry growth, regulatory guidance to lower interest rates, and the introduction of credit reporting management measures, China's consumer credit technology companies will enter a 'deep-water zone' of transformation. With efficient completion of rectification, Chinese fintech stocks listed in Hong Kong can explore new markets, new customer groups, new models, and new products based on their existing endowments, promote diversified revenue to support future performance growth, and actively apply for financial licenses to achieve valuation restoration.   The valuation repair of fintech Chinese concept stocks has received positive regulatory signals, and the stock prices of several companies have slowly rebounded since March this year.   At a press conference held by the State Council Information Office in March, Guo Shuqing, Chairman of the China Banking and Insurance Regulatory Commission (CBIRC), stated that the standardized rectification and improvement of platform-based enterprises involved in financial business are progressing smoothly, and various innovative financial services are gradually being incorporated into supervision.   On April 29, the Political Bureau of the Central Committee of the Communist Party of China held a meeting requiring the promotion of the healthy development of the platform economy, the completion of special rectifications for the platform economy, the implementation of regular supervision, and the introduction of specific measures to support the standardized and healthy development of the platform economy.   On May 31, the State Council issued the 'Notice on a Package of Policy Measures to Solidly Stabilize the Economy', proposing to 'promote the standardized and healthy development of the platform economy' and clarifying specific measures to support and promote the standardized and healthy development of the platform economy.   On June 22nd, the 26th meeting of the Central Comprehensively Deepening Reforms Committee deliberated and approved the 'Opinions on Building a Data Infrastructure System to Better Utilize the Role of Data Elements' and the 'Work Plan for Strengthening the Supervision of Large Payment Platform Enterprises to Promote the Standardized and Healthy Development of Payments and Financial Technology', and put forward detailed requirements for several contents.   In response, several securities firms have stated in research reports that the platform economy has already recovered. For example, Huaxi Securities stated in its research report 'The spring breeze of the platform economy has arrived, and fintech is fully blossoming.' It pointed out that the stage of key rectification by platforms has gradually ended, and the policy stance towards the platform economy has shifted from 'strengthening supervision' to 'supporting development,' with the development of the platform economy entering a virtuous cycle.   Frost & Sullivan Insight & Extended Reading   Q: Can the listing on the Hong Kong stock market promote the valuation restoration of Chinese concept stocks?   A: In recent years, due to the uncertainty in Sino-US political relations and the policies of US regulatory authorities regarding Chinese technology stocks, there has been an increase in doubts among US investors about investing in these stocks. Chinese technology stocks have experienced multiple rounds of decline in the US market. However, returning to Hong Kong provides an alternative trading location for enterprises, reducing market uncertainties brought about by geopolitical risks; at the same time, it is conducive to attracting more domestic investment institutions that understand the local market better. For outstanding companies, listing on Hong Kong will help promote valuation restoration.   *This article is reprinted from the 21 Finance client, authored by Li Lanqing, edited by Zhou Yanyan. The original title was 'Can We Learn from the Financial One Account's Official 'Return to Hong Kong' and 'Introduction to Listing' on July 4th?'.

  To implement the special action deployment for capital market business training of ten thousand enterprises by the Anhui Provincial Government, enhance enterprises' awareness of listing and financing on the Hong Kong Stock Exchange, assist more enterprises in going public on the Hong Kong Stock Exchange, continuously grow and strengthen through the capital market, and better serve the high-quality development of the economy, 6 month 27 day -28 On the same day, Anhui Provincial Local Financial Supervision and Administration Bureau held a special training session for Anhui enterprises going public in Hong Kong, themed 'Relying on the Hong Kong Stock Exchange Listing for Financing, Anhui Enterprises Set Sail Again',    Frost & Sullivan Frost & Sullivan Zhang Jian, Partner and Managing Director of Frost & Sullivan's Greater China Region, was invited to attend and delivered a speech on precisely positioning industry characteristics to enhance corporate valuation.   Zhang Jian stated that financial performance, legal compliance, and investor stories are the three main drivers of overseas listings. Among them, finance and compliance are fundamental requirements, while investor stories are the highlight. For enterprises going global IPO listing During the listing process, the business and industry sections of the prospectus, as well as roadshow presentation materials, are the main materials for presenting investors' stories. How should enterprises tell investment stories well? In this regard, Zhang Jian pointed out that there are mainly three elements to telling investment stories well.   First is precise positioning and segmentation.   Deeply analyze the business characteristics, industry features, and business model characteristics of enterprises, uncover their strengths, and accurately locate investment stories and highlights. Based on the enterprise positioning, segment the market in which the enterprise operates to provide fundamental support for its future development.   Second is market ranking,   Benchmarking against domestic and international competitors in the same industry within the segmented market, it more accurately reflects a company's competitive advantages, market share, and market position; compared with benchmark companies 360 Compared with other similar enterprises, it fully explores the differentiated competitive advantages of the enterprise.   The last element is the expected future development,   It is necessary to make predictions about the company's own business and industry, providing investors and the market with external expectations. At the same time, these external predictions and expectations support the company's investment narrative and valuation. The aforementioned work is carried out by the enterprise IPO listing The 'Industry Advisor' role in the process is facilitated by the company, sponsor, and bookrunner lawyers.   As the industry advisor most highly recognized by the Hong Kong Stock Exchange, Frost & Sullivan on enterprises IPO listing The project provides one-stop support and services throughout the entire process. During the document preparation phase, we work with the company and various intermediary teams to determine the research framework, assist in uncovering the company's strengths and highlights, endorse investment stories, write industry reports, and assist in writing the industry overview for prospectuses. After the company submits its listing application, we assist the issuer in professionally answering inquiries from the Hong Kong Stock Exchange and the Securities Regulatory Commission. We will also help the issuer respond to questions about the industry, ensuring that investment institutions recognize industry data. Finally, we assist the company in providing and endorsing industry data in roadshow promotion materials, assist the company in answering further questions during the hearing session, and contribute to the company's smooth listing. Subsequently, Zhang Jian introduced the stories of clients and investors that Frost & Sullivan has previously served to the attendees.   Frost & Sullivan has served over 1,000 Home, occupying all walks of life heading to Hong Kong IPO listing Market Industry Advisors hold an absolute leadership position, especially in industries such as pharmaceuticals, consumer goods, education, environmental protection, technology, and new economy, assisting the majority of high-quality enterprises in these sectors with listing and financing. As a global growth consulting company, Frost & Sullivan has 61 years of consulting experience, with business coverage nearly 50 Major countries and regions. 1998 Since entering the Chinese market in 2015, Frost & Sullivan has established offices in Beijing, Shanghai, Hong Kong, Shenzhen, Nanjing, Chengdu and Taipei in Greater China, and has set up a Frost & Sullivan Big Data Research Institute in Nanjing and Shenzhen.   2014 till 2021 In FY2019, Frost & Sullivan retained its position as the leading global provider of analytics and advisory services for outbound e-commerce. IPO listing The market industry research advisor holds the leading position with the largest market share.

Frost & Sullivan insights In recent years, the capital market has strongly supported and encouraged green industries, with green bonds developing vigorously, and 'green stocks' also beginning to emerge. What are the differences between green equity investments compared to ESG investments? Currently, green securities in China, including green bonds, green ETFs, and green stock indices, are developing rapidly. In this context, is it necessary to introduce green stocks? What is the significance of introducing green stocks? From the perspectives of market environment, institutional foundation, and market demand, does China currently possess the conditions to introduce green stocks? Dr. Wang Xin, Global Partner and President of Greater China at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), was interviewed by Securities Daily to discuss green equity investments. The multi-level green finance system is taking shape, and the conditions for launching “green stocks” are basically in place.   Securities Daily For a long time, China's green financial market has mainly relied on green credit, which is indirect financing. The proportion of direct financing such as debt and equity financing is not significant. However, in recent years, the capital market has strongly supported and encouraged green industries, leading to the vigorous development of green bonds, and 'green stocks' have also begun to emerge. "At present, China has initially formed a multi-level green financial market system, with main products including green credit and green bonds. In terms of 'green stocks', there is no unified concept or standard in China," said Chen Li, chief economist and director of the research institute at Sichuan Finance Securities, in an interview with the Securities Daily reporter.   "Green stocks" In the primary development stage Currently, China's equity and bond markets are guiding more funds towards green and low-carbon industries, with green bonds occupying a mainstream position. Data from the official website of the Shanghai Stock Exchange shows that in terms of green securities, as of June 24, there were 454 green bonds listed on the exchange, with a custody scale reaching 308.3 billion yuan. Among them, there are 318 green corporate bonds, with a custody scale of 243 billion yuan; and 135 green enterprise bonds, with a scale of 64.3 billion yuan.   Public information shows that the concept of 'green stocks' was first developed jointly by the Swedish Bank and the international climate research center, an institution based in Norway. It was introduced and promoted in the European market in 2020. According to the official website of the Swedish Bank, 'green stocks' are a supplement to bonds, commercial paper, and loans. Companies labeled as green are required to have at least 50% of their income and investments coming from green activities.   "Unlike green bonds, which focus more on specific aspects, 'green stocks' are an evaluation standard for a company's 'green, low-emission, and low-carbon' levels, providing an authoritative 'qualification certification'. 'Green stocks' can convey a clearer assessment of the business status to investors by reflecting the company's specific performance, thereby enhancing the transparency of corporate information," said Wang Xin, Global Partner at Frost & Sullivan and President of Greater China, to the Securities Daily reporter. "In recent years, 'green stocks' have made certain progress globally. However, due to the lack of a unified standard for concepts related to 'green stocks' and equity valuation worldwide, they are still in their initial development stage," Chen Li said. "As a new financial tool and product, 'green stocks' are highly relevant to low-carbon transformation and sustainable development and have significant growth potential in the future."   Securities market Green equity financing has developed rapidly At present, there is no separate classification of 'green stocks' in China. In a popular sense, 'green stock' financing (green equity) mostly refers to the equity financing of companies engaged in green and low-carbon industries, and has seen rapid development in recent years.   The 2021 Social Responsibility Report released by the Shanghai Stock Exchange indicates that the exchange has optimized green equity financing services, supported equity financing for green and low-carbon industries, and facilitated listing and refinancing for enterprises engaged in energy conservation, environmental protection, clean production, and clean energy. Relevant data shows that in 2021, there were 87 companies listed on the main board of the Shanghai market, raising a total of 1625 billion yuan, including five new energy and energy conservation enterprises such as Three Gorges Energy and Taihe Water, which raised 258 billion yuan through initial public offerings; there were 162 companies listed on the Sci-Tech Innovation Board, raising a total of 2029 billion yuan, including 20 new energy and energy conservation enterprises, which raised 328 billion yuan through initial public offerings.   "Green stock" investment places more emphasis on evaluating environmental friendliness and whether a company's operations comply with low-carbon standards, with clear directional requirements for energy conservation, emission reduction, low-carbon environmental protection, etc. Its rise is driven by both the gradual improvement of information disclosure systems and the fact that issuing quantifiable and comparable operational indicators is much more attention-worthy than proposing related concepts," Wang Xin told reporters. Meanwhile, regulatory authorities are also broadening investment channels, launching green stock indices, and increasing support for green and low-carbon industries. The 'Opinions on Deepening the Reform of the Ecological Protection Compensation System' issued in September 2021 emphasize the establishment of 'green stock indices'. For example, the Guozheng Xiangmihu Green Finance Index released by the Shenzhen Stock Exchange is the first stock index in China that reflects the development of the green finance industry, further presenting the operational characteristics of listed companies in the green finance sector.   Basically available Three major conditions for implementing "green stocks": It can be seen that although 'green stocks' have not been officially launched, the securities market has already accumulated considerable exploration and practice in this area.   "From the perspectives of market environment, institutional foundation, and market demand, China has basically met the conditions to launch 'green stocks'," Wang Xin analyzed for reporters. In terms of the market environment, "since the release of the dual carbon policy, the awareness of green investment in the entire investment market has been continuously increasing. Many industries have taken significant steps into this field and gained sufficient experience. Under the window period of overall national industrial upgrading and transformation, investing in green industries means better imagination space and profit opportunities."   He stated that from the perspective of institutional foundation, the policy system regarding green finance is in a period of rapid development. Since 2020, the issue of financing for green industries has gradually been extended to the financial sector for consideration, and the overall importance has become self-evident. Most importantly, in advancing the 'dual carbon' goal, industrial transformation is an inevitable trend, and the continuous improvement of various guiding opinions is also foreseeable.   "From the perspective of market demand, the emergence of 'green stocks' is beneficial to all participants in the market," Wang Xin further analyzed. For enterprises with urgent financing needs, they require a 'label' that can clearly display their green characteristics and industrial advantages to investors in the financing market, thereby distinguishing them from non-green enterprises and attracting special investment to achieve their financing objectives.   Wang Xin believes that for investors, how to effectively distinguish whether the companies they invest in are truly 'green' or 'greenwashing' is a practical pain point. It is often difficult to make an effective judgment using existing evaluation criteria, which may lead to misallocation of green funds. The introduction of 'green stocks' can greatly solve this problem and help investors make effective decisions. *This article is reprinted from the 'Securities Daily' news section, with reporter Xing Meng. The original article was titled 'Multi-level Green Financial System Gradually Taking Shape, Conditions for 'Green Stocks' Basically Met'.