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.


<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: As Retired Battery Wave Approaches, China Moves to Clean Up Recycling</li><li>China Retail Sales Shrink for First Time Since 2022 in Blow to Economy</li><li>China Industrial Output Beats Estimates as AI Boom Offsets Property Drag</li></ul>

In Depth: As Retired Battery Wave Approaches, China Moves to Clean Up RecyclingChina Retail Sales Shrink for First Time Since 2022 in Blow to EconomyChina Industrial Output Beats Estimates as AI Boom Offsets Property Drag

CX Daily: As Retired Battery Wave Approaches, China Moves to Clean Up Recycling 

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

Fujian Haixi Pharmaceuticals / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/fujian-haixi-pharmaceuticals-co-ltd-class-h" target="_blank" data-smartkarma-citation="entities:48969:1" rel="noopener">Fujian Haixi Pharmaceuticals (2637 HK)</a> was listed in Oct 2025, when it raised around US$126m in its HK IPO. The lockup on its pre-IPO investors is set to expire soon.</li>
<li>Fujian Haixi Pharma is a commercial stage innovative pharmaceutical company that integrates research and development, clinical research, production and sales capacities.</li>
<li>In this note, we will talk about the lockup dynamics and possible placement.</li>
</ul>



Fujian Haixi Pharmaceuticals (2637 HK) was listed in Oct 2025, when it raised around US$126m in its HK IPO. The lockup on its pre-IPO investors is set to expire soon.
Fujian Haixi Pharma is a commercial stage innovative pharmaceutical company that integrates research and development, clinical research, production and sales capacities.
In this note, we will talk about the lockup dynamics and possible placement.


Aequitas: Fujian Haixi Pharma IPO Lockup - Half of the Company’s Shares Worth US$800m to Be Released

China

WuXi AppTec Co., Ltd. manufactures medical products. The Company produces biological agents, antibodies, biological diagnostic reagents, and other products. WuXi AppTec also provides biological analysis, technical study, and other services.

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WuXi AppTec (603259 CH)

HONG KONG ALPHA PORTFOLIO: (June 2026)

At mid-month, we note that pc makers are passing on higher chip and component costs to consumers. For this reason, we sold our positions in Lenovo...

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: As Retired Battery Wave Approaches, China Moves to Clean Up Recycling

TOP STORIES In Depth: As Retired Battery Wave Approaches, China Moves to Clean Up Recycling China is bracing for a wave of batteries coming to...

Caixin Global

Aequitas: Fujian Haixi Pharma IPO Lockup - Half of the Company’s Shares Worth US$800m to Be Released

Fujian Haixi Pharmaceuticals (2637 HK) was listed in Oct 2025, when it raised around US$126m in its HK IPO. The lockup on its pre-IPO investors is...

Sumeet Singh

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