Research from Quam Securities, Quam Securities

Quam Securities Research

Research from Quam Securities

Quam Securities

Since its inception in 1986, Quam Securities Limited (Quam Securities) has grown to become one of the few mid-tier securities brokerages in Hong Kong with global execution capabilities for both private and institutional clients. It boasts a well-established network in Greater China including Taiwan and in major world markets through the Global Alliance Partners (GAP). Quam Securities is well-positioned not only to harness and drive business within the China Tonghai International Financial Limited but also between China and the world markets.

Thematic (Sector/Industry)

<ul><li>In 1H26, the Hang Seng Index (HSI) has shown a moderate correction but highly distorted signal, declining by ~3,450 points from 26,338 to 22,881 between Jan 2 and Jun 30, 2026.</li><li>However, we believe the headline index performance fails to capture the true market dynamics, particularly the ongoing AI-driven structural rally across AI foundation model, semiconductor memory and PCB names.</li><li>As a result, we believe that HSI is no longer a reliable benchmark for capturing “growth beta” in Hong Kong equities.</li></ul>

In 1H26, the Hang Seng Index (HSI) has shown a moderate correction but highly distorted signal, declining by ~3,450 points from 26,338 to 22,881 between Jan 2 and Jun 30, 2026.However, we believe the headline index performance fails to capture the true market dynamics, particularly the ongoing AI-driven structural rally across AI foundation model, semiconductor memory and PCB names.As a result, we believe that HSI is no longer a reliable benchmark for capturing “growth beta” in Hong Kong equities.

Market Strategy – When the Index Falls Behind – HSI Distortion in an AI-Driven Market

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>The Hang Seng Internet &amp; IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).</li>
<li>In this insight, we take a look at the December 2026 index capping flows.</li>
<li>We have also presented our index change expectations for the next semiannual index review which will take place in March 2027.</li>
</ul>


The Hang Seng Internet &amp; IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
In this insight, we take a look at the December 2026 index capping flows.
We have also presented our index change expectations for the next semiannual index review which will take place in March 2027.


Quiddity Leaderboard HSIII Dec26/Mar27: Two ADDs/DELs Expected in Mar27, Third Change Possible

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

<ul>
<li>We tracked AI models, infrastructure, and M&amp;A; this week: Fable 5 launched, then Anthropic suspended foreign access after a jailbreak claim.</li>
<li>China labs launches GLM-5.2, Kimi K2.7-Code; MiniMax M3 opened parameter; Tencent's WeChat AI beta, and Xiaomi developer tools.</li>
<li>Moonshot sought a $30bn valuation, Mistral pursued funding, and OpenRouter showed 44.7T weekly tokens with Anthropic leading estimated revenue.</li>
</ul>


We tracked AI models, infrastructure, and M&amp;A; this week: Fable 5 launched, then Anthropic suspended foreign access after a jailbreak claim.
China labs launches GLM-5.2, Kimi K2.7-Code; MiniMax M3 opened parameter; Tencent's WeChat AI beta, and Xiaomi developer tools.
Moonshot sought a $30bn valuation, Mistral pursued funding, and OpenRouter showed 44.7T weekly tokens with Anthropic leading estimated revenue.


This Week in AI (Jun 8-14): Claude's Fable 5 Launched, Jailbreaked, Export Banned; GLM-5.2/Kimi 2.7

<ul>
<li>We tracked AI models, infrastructure, and M&amp;A: Anthropic paired its Series H with Opus 4.8, while MiniMax pushed A-share plans.</li>
<li>MiniMax disclosed USD 300m ARR, previewed M3, and started CITIC Securities counselling. Xiaomi cut API pricing to match DeepSeek.</li>
<li>OpenRouter data showed Anthropic revenue dominance even as DeepSeek and Tencent topped token usage, while Cognition and Fireworks extended private-market comps.</li>
</ul>


We tracked AI models, infrastructure, and M&amp;A: Anthropic paired its Series H with Opus 4.8, while MiniMax pushed A-share plans.
MiniMax disclosed USD 300m ARR, previewed M3, and started CITIC Securities counselling. Xiaomi cut API pricing to match DeepSeek.
OpenRouter data showed Anthropic revenue dominance even as DeepSeek and Tencent topped token usage, while Cognition and Fireworks extended private-market comps.


This Week in AI (May 24-30): Anthropic Raises $65bn and Launches Opus 4.8; MiniMax's H+A and M3

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>The Hong Kong market has recovered from its drawdown during the Iran war and is now trading above its long-term support levels.  Energy remains the top-performing sector YTD.</li>
<li>Value and dividend factors continue to provide the best returns in Hong Kong; momentum has returned since the beginning of April.
</li>
<li>
<a href="https://www.smartkarma.com/entities/lenovo-group-ltd" target="_blank" data-smartkarma-citation="entities:13359:1" rel="noopener">Lenovo (992 HK)</a> had a reversal breakout technical pattern from a U-shaped bottom.  The company is benefiting from growth in both the AI and data center industries.  
</li>
</ul>


The Hong Kong market has recovered from its drawdown during the Iran war and is now trading above its long-term support levels.  Energy remains the top-performing sector YTD.
Value and dividend factors continue to provide the best returns in Hong Kong; momentum has returned since the beginning of April.


Lenovo (992 HK) had a reversal breakout technical pattern from a U-shaped bottom.  The company is benefiting from growth in both the AI and data center industries.  



Technically Speaking Breakouts & Breakdowns - HONG KONG (April 2026)

China

Xiaomi is a Chinese multinational corporation specializing in consumer electronics and technology, primarily known for its smartphones (Mi, Redmi, POCO series) and a wide range of AIoT (Artificial Intelligence of Things) devices, including smart home products, wearables, and laptops. The company also provides internet services, including its MIUI operating system. Xiaomi was founded in 2010 and is headquartered in Beijing, China.

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Xiaomi (1810 HK)

Market Strategy – When the Index Falls Behind – HSI Distortion in an AI-Driven Market

In 1H26, the Hang Seng Index (HSI) has shown a moderate correction but highly distorted signal, declining by ~3,450 points from 26,338 to 22,881...

Quam Securities

Quiddity Leaderboard HSIII Dec26/Mar27: Two ADDs/DELs Expected in Mar27, Third Change Possible

We continue to see two ADDs/DELs for HSIII in March 2027. One more potential ADD remains close to the addition border and if it outperforms other...

Janaghan Jeyakumar, CFA

This Week in AI (Jun 8-14): Claude's Fable 5 Launched, Jailbreaked, Export Banned; GLM-5.2/Kimi 2.7

This week in AI: Fable 5 launched then faced US export control; GLM-5.2 and Kimi K2.7-Code launched; OpenRouter shows 44.7T weekly tokens.

Ke Yan, CFA, FRM

This Week in AI (May 24-30): Anthropic Raises $65bn and Launches Opus 4.8; MiniMax's H+A and M3

This week in AI: Anthropic raised $65bn and launched Opus 4.8; MiniMax seeks A-share listing and previews M3; Huawei shows Tau roadmap.

Ke Yan, CFA, FRM

Technically Speaking Breakouts & Breakdowns - HONG KONG (April 2026)

We highlighted Lenovo's significant technical breakout pattern in our April insight, and the shares have more than doubled since the report....

David Mudd

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