Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Thematic (Sector/Industry)

<ul>
<li>Vehicle-To-Grid (V2G) technology is rapidly expanding, and China is at the forefront, with the world's largest EV market.  Utilizing large onboard batteries and AI chips, NEVs could soon generate tokens.</li>
<li> China holds 60% of the global ESS market and targets 180GW of new capacity by 2027. NDRC is mandating V2G integration and targets 10+GW of flexible EV storage by 2030.</li>
<li>CATL Chairman Zeng stated in June 2026 that many EVs could be turned into "token factories" by tapping their batteries and AI chips to handle AI model inference workloads.</li>
</ul>


Vehicle-To-Grid (V2G) technology is rapidly expanding, and China is at the forefront, with the world's largest EV market.  Utilizing large onboard batteries and AI chips, NEVs could soon generate tokens.
 China holds 60% of the global ESS market and targets 180GW of new capacity by 2027. NDRC is mandating V2G integration and targets 10+GW of flexible EV storage by 2030.
CATL Chairman Zeng stated in June 2026 that many EVs could be turned into "token factories" by tapping their batteries and AI chips to handle AI model inference workloads.


Cross Asset Strategy

<ul>
<li>The Trump Administration is determined to continue and wage a "tech war" against China. The battlefield has expanded beyond the chips to power AI and the equipment to produce them.</li>
<li>The Pentagon's Section 1260H "Chinese Military Company" (CMC) list expanded significantly in early 2026, now encompassing some of China's most prominent technology and platform companies.</li>
<li>In response to US actions, China added 10 US defense contractors to its export control list, targeting drone, robotics, aerospace, and strategic minerals sectors to prohibit exports of rare earths.</li>
</ul>


The Trump Administration is determined to continue and wage a "tech war" against China. The battlefield has expanded beyond the chips to power AI and the equipment to produce them.
The Pentagon's Section 1260H "Chinese Military Company" (CMC) list expanded significantly in early 2026, now encompassing some of China's most prominent technology and platform companies.
In response to US actions, China added 10 US defense contractors to its export control list, targeting drone, robotics, aerospace, and strategic minerals sectors to prohibit exports of rare earths.


CHINA/US: Trump Wages Another Losing War, This Time in Tech!

<ul>
<li>The HSI broke support at the 24500 level as market breadth and momentum declined.  Southbound net buying turned negative in June as the Beijing strengthened enforcement efforts on overseas investments.</li>
<li>The industrials sector is the top performing sector in Hong Kong YTD, up 16%. <a href="https://www.smartkarma.com/entities/kingboard-holdings-limited" target="_blank" data-smartkarma-citation="entities:8122:1" rel="noopener">Kingboard (148 HK)</a> is the best performing stock in the sector since the Iran war ceasefire.</li>
<li>
<a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-class-h" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec (2359 HK)</a> rallied along with the entire biotech sector as investors scooped up shares in the IPO of Alebund Pharmaceuticals Jiangsu (APJ HK), which doubled on its debut.
</li>
</ul>


The HSI broke support at the 24500 level as market breadth and momentum declined.  Southbound net buying turned negative in June as the Beijing strengthened enforcement efforts on overseas investments.
The industrials sector is the top performing sector in Hong Kong YTD, up 16%. Kingboard (148 HK) is the best performing stock in the sector since the Iran war ceasefire.

WuXi AppTec (2359 HK) rallied along with the entire biotech sector as investors scooped up shares in the IPO of Alebund Pharmaceuticals Jiangsu (APJ HK), which doubled on its debut.



The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (June 2026)

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

<ul><li>In Depth: Chinese Carmakers Push Deeper Into Europe Despite Rising EU Trade Barriers</li><li>China Central Bank-Linked Official Placed Under Investigation</li><li>China Factory-Gate Inflation Hits Nearly Four-Year High</li></ul>

In Depth: Chinese Carmakers Push Deeper Into Europe Despite Rising EU Trade BarriersChina Central Bank-Linked Official Placed Under InvestigationChina Factory-Gate Inflation Hits Nearly Four-Year High

CX Daily: Chinese Carmakers Push Deeper Into Europe Despite Rising EU Trade Barriers 

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

Shenton Research

Shenton 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.

Equity Capital Markets

Hunan Yuneng New Energy Battery Material / Equity Capital Markets

Hunan Yuneng New Energy Battery Material (YNEM HK)

<ul>
<li>Hunan Yuneng, a lithium iron phosphate cathode material supplier, is seeking an A+H listing. CSC and HSBC are the joint sponsors.</li>
<li>We look at the company's core business, lithium iron phosphate cathode materials for power batteries and energy storage batteries.</li>
<li>We discuss our preliminary thoughts on the company's valuation based on the A-H premium.</li>
</ul>


Hunan Yuneng, a lithium iron phosphate cathode material supplier, is seeking an A+H listing. CSC and HSBC are the joint sponsors.
We look at the company's core business, lithium iron phosphate cathode materials for power batteries and energy storage batteries.
We discuss our preliminary thoughts on the company's valuation based on the A-H premium.


Hunan Yuneng (湖南裕能) A+H Pre-IPO: Early Thoughts

China

BYD Company Limited manufactures automotive products. The Company produces ordinary passenger cars, commercial vehicles, and other products. BYD also operates battery making, rail transportation construction, and other businesses.

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BYD (002594 CH)

EVs: THE NEW AI TOKEN FACTORIES

Guoxia Tech (2655 HK) has surged 53% over 2 days on high volume. The driver is a continuation of the AI-linked energy storage re-rating that began...

David Mudd

CHINA/US: Trump Wages Another Losing War, This Time in Tech!

Under a law taking effect Tuesday, the Defense Department will be barred from working with any company represented by lobbyists who also work for...

David Mudd

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (June 2026)

WuXi AppTec (2359 HK) rallied along with the entire biotech sector as investors scooped up shares in the IPO of Alebund Pharmaceuticals Jiangsu...

David Mudd

CX Daily: Chinese Carmakers Push Deeper Into Europe Despite Rising EU Trade Barriers

TOP STORIES In Depth: Chinese Carmakers Push Deeper Into Europe Despite Rising EU Trade Barriers Chinese carmakers are expanding in Europe,...

Caixin Global

Hunan Yuneng (湖南裕能) A+H Pre-IPO: Early Thoughts

Hunan Yuneng is seeking an A+H listing. In this note, we look at the company's business and its industry, and give our early thoughts on valuation.

Ke Yan, CFA, FRM

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52-week Range

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