1、 Disclosures&Disclaimer This report must be read with the disclosures and the analyst certifications in the Disclosure appendix,and with the Disclaimer,which forms part of it.Issuer of report:HSBC Qianhai Securities Limited View HSBC Qianhai Securities at:https:/ Equity Research Report Listen to our

2、 insightsFind out moreHSBC Global Research Podcasts Aprils economic data weakened across the board;we expect more policy support to be rolled out in July The recovery in mutual fund issuance continued;southbound inflows muted since mid-April;foreign fund inflows lukewarm US labour market resilient a

3、nd inflation below consensus;Fed Funds futures imply two 25bp rate cuts in 2025 Weaker growth,stronger policy support.Growth in April was softer across the board retail sales(+5.1%y-o-y),industrial production(+6.1%y-o-y),and FAI(+3.5%y-o-y,with all three constituents slowing).CPI was also muted(-0.1

4、%y-o-y)and PPI fell further(-2.7%y-o-y).In the property sector:1)based on high frequency data,house sales in 30 major cities have weakened since late March;2)monthly sales by the top 100 developers declined 8.8%y-o-y in April;3)secondary housing prices fell 0.4%m-o-m in April(-0.2%in tier-1 cities).

5、Against this backdrop,policy support increased,especially for monetary policy and capital markets(see China Equity Strategy:Major policy support offers investment opportunities,7 May 2025).We expect more policy support to be rolled out during the July Politburo meeting,especially in areas such socia

6、l security and consumption.Data highlights.1)Labour Day holiday tourism traffic and revenue in 2025 reached 136%of 123%of the 2019 level,respectively,indicating 10%lower per capita spending;2)new mutual fund issuance continued to recover,up 88%y-o-y;3)the southbound channel recorded net inflows of H