Daily Investment Strategy
Daily focus：AIA（1299）
Strong core performance in the first half of the year, with new business value growing 14% to US$2.8bn and record-high return on equity (ROE) and return on equity (ROE), demonstrating exceptional value creation and capital management. The company returned US$3.7bn to shareholders and increased its interim dividend by 10%. Growth was broad across Asia, with VONB growth of 24% in Hong Kong, 10% in Mainland China, and 36% in nine new regions. Leveraging its industry-leading distribution network and focus on affluent middle-class customers, 90% of VONB comes from protection and long-term savings products, offering a hedge against volatility. Looking ahead, AIA will continue expanding into emerging markets and strengthening its leadership position in Asia.
Daily trading volume of Shanghai and Shenzhen exchanges has exceeded RMB 2 trillion for nine consecutive days
The Chinese stock market has performed exceptionally well recently, with the Shanghai Composite Index hitting a ten-year high since 2015, and the CSI 300 Index breaking through four-year highs. This rally reflects the convergence of multiple macroeconomic factors. First, abundant domestic liquidity has become the main driving force. As bank deposit rates and bond yields continue to decline, household savings have massively flowed into the stock market seeking higher returns. The daily trading volume of Shanghai and Shenzhen exchanges has exceeded 2 trillion yuan for nine consecutive days, setting the longest historical record. Second, policy stimulus expectations continue to strengthen. Meanwhile, the easing of China-US trade relations has also injected optimistic sentiment into the market, with Trump’s extension of the tariff truce agreement reducing external uncertainties. Additionally, the strengthening expectation of Federal Reserve rate cuts has further boosted expectations of capital flows from the United States to China, creating a favorable external financial environment.
Hong Kong Stock Connect saw a net outflow of HK$1.37 billion on Monday, with Alibaba (9988) seeing the largest net inflow of HK$590 million, followed by Kuaishou (1024). Meanwhile, Tracker Fund of Hong Kong (2800) saw the largest net outflow of HK$2.3 billion, followed by Xiaomi Group (1810).
Leung Kai Tong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to: https://apps.sfc.https://apps.sfc.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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