Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>The Hong Kong Alpha portfolio beat the Hong Kong indexes in June and was flat to its benchmark with a loss of 6.98%.</li>
<li>The Hong Kong market experienced heavy selling in the second half of June, as both foreign and mainland investors reduced their exposure.</li>
<li>At the end of June, we sold positions in the electric utilities, technology, consumer, and property sectors. We added positions in the broker, biotech, telecom, and industrial sectors.</li>
</ul>


The Hong Kong Alpha portfolio beat the Hong Kong indexes in June and was flat to its benchmark with a loss of 6.98%.
The Hong Kong market experienced heavy selling in the second half of June, as both foreign and mainland investors reduced their exposure.
At the end of June, we sold positions in the electric utilities, technology, consumer, and property sectors. We added positions in the broker, biotech, telecom, and industrial sectors.


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.


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: Supermarkets in China Hawk Own-Brand Goods in Bid to Diversify</li><li>EU Shifts Toward Stricter Controls on Chinese Investment, Industry Group Says</li><li>China Financial Stocks Slump Despite Massive Dividend Payout</li></ul>

In Depth: Supermarkets in China Hawk Own-Brand Goods in Bid to DiversifyEU Shifts Toward Stricter Controls on Chinese Investment, Industry Group SaysChina Financial Stocks Slump Despite Massive Dividend Payout

CX Daily: Supermarkets in China Hawk Own-Brand Goods in Bid to Diversify 

<ul>
<li>The Hong Kong market continued its downtrend over the last month.  The technology, materials, consumer, and healthcare sectors have declined in 2026, with the industrials sector showing the best performance.</li>
<li>Dividend and value factors have outperformed in 2026, while growth and momentum have declined.  </li>
<li>
<a href="https://www.smartkarma.com/entities/contemporary-amperex-technology-co-limited-class-h" target="_blank" data-smartkarma-citation="entities:45179:1" rel="noopener">Contemporary Amperex Technology (3750 HK)</a> was initiated as OVERWEIGHT by Barclays, with a target price implying 35% upside.
</li>
</ul>


The Hong Kong market continued its downtrend over the last month.  The technology, materials, consumer, and healthcare sectors have declined in 2026, with the industrials sector showing the best performance.
Dividend and value factors have outperformed in 2026, while growth and momentum have declined.  

Contemporary Amperex Technology (3750 HK) was initiated as OVERWEIGHT by Barclays, with a target price implying 35% upside.



BUY/SELL/HOLD: Hong Kong Market Update (6/22/26)

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>The HSTECH Index tracks the performance of the top technology companies listed in Hong Kong that have high business exposure to certain technology themes.</li>
<li>The market consultation results have been announced. All proposed changes will be adopted in full with two additional requirements to avoid low-liquidity and low-revenue names.</li>
<li>We expect 20 ADDs and no DELs in December 2026. We estimate one-way flow of around US$4bn with 11 expected ADDs having more than 3x ADV to buy.</li>
</ul>


The HSTECH Index tracks the performance of the top technology companies listed in Hong Kong that have high business exposure to certain technology themes.
The market consultation results have been announced. All proposed changes will be adopted in full with two additional requirements to avoid low-liquidity and low-revenue names.
We expect 20 ADDs and no DELs in December 2026. We estimate one-way flow of around US$4bn with 11 expected ADDs having more than 3x ADV to buy.


Quiddity Leaderboard HSTECH Dec26: New Rules Confirmed with Some Modifications; Latest Expectations

China

Contemporary Amperex Technology Co., Limited (CATL) is a Chinese battery manufacturer and technology company specializing in lithium-ion batteries for electric vehicles and energy storage systems. It is the world's largest producer of EV and energy storage batteries, also offering battery materials and recycling services. The company was founded in 2011 and is headquartered in Ningde, Fujian province, China.

Contemporary Amperex Technology (3750 HK)

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Contemporary Amperex Technology (3750 HK)

HONG KONG ALPHA PORTFOLIO: (June 2026)

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EVs: THE NEW AI TOKEN FACTORIES

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CX Daily: Supermarkets in China Hawk Own-Brand Goods in Bid to Diversify

TOP STORIES In Depth: Supermarkets in China Hawk Own-Brand Goods in Bid to Diversify From global giants to local supermarket chains,...

Caixin Global

BUY/SELL/HOLD: Hong Kong Market Update (6/22/26)

The HK market continued its downtrend over the last month. The technology, materials, consumer, and healthcare sectors have declined in 2026, with...

David Mudd

Quiddity Leaderboard HSTECH Dec26: New Rules Confirmed with Some Modifications; Latest Expectations

There could be more than 5x ADV to buy for the top 5 expected ADDs. Many other names have more than 1x ADV to trade. The flow expectations can...

Janaghan Jeyakumar, CFA

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52-week Range

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