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.

Macroeconomics

<ul><li>The HSI finished the day at 24,340, up 127 pts or 0.52%, rebounding from morning losses as investors digested stronger-than-expected China trade data.</li><li>June exports and imports both exceeded forecasts, pointing to resilient external demand.</li><li>China recorded its second-largest trade surplus on record at USD125.6bn, supported by robust global demand for AI-related hardware and firmer semiconductor prices.</li></ul>

The HSI finished the day at 24,340, up 127 pts or 0.52%, rebounding from morning losses as investors digested stronger-than-expected China trade data.June exports and imports both exceeded forecasts, pointing to resilient external demand.China recorded its second-largest trade surplus on record at USD125.6bn, supported by robust global demand for AI-related hardware and firmer semiconductor prices.

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

<ul><li>Hong Kong stocks elevated on the back of AI concepts, with the HSI opening 54 points higher.</li><li>Risk appetite was also supported by easing oil prices after Iraq reached a deal to resume exports via Turkey’s Ceyhan port.</li><li>The computing power concept and component sectors also rallied, with multiple stocks including Delton Technology (001389 CH) hitting the daily limit.</li></ul>

Hong Kong stocks elevated on the back of AI concepts, with the HSI opening 54 points higher.Risk appetite was also supported by easing oil prices after Iraq reached a deal to resume exports via Turkey’s Ceyhan port.The computing power concept and component sectors also rallied, with multiple stocks including Delton Technology (001389 CH) hitting the daily limit.

Hong Kong

Delton Technology (Guangzhou) Inc. manufactures and distributes printed circuit board products. The Company produces high speed server boards, large data memory circuit boards, high frequency mixing boards, security circuit boards, and more. Delton Technology (Guangzhou) provides its products for communications, automotive electronics, medical, and other areas.

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Delton Technology (1989 HK)

Quam Morning Note

The HSI finished the day at 24,340, up 127 pts or 0.52%, rebounding from morning losses as investors digested stronger-than-expected China trade...

Quam Securities

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

Quam Morning Note (19 Mar)

Hong Kong stocks elevated on the back of AI concepts, with the HSI opening 54 points higher. Risk appetite was also supported by easing oil prices...

Quam Securities

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