China

• Hong Kong equities found firmer footing as global semiconductor volatility picked up amid an ongoing rotation.
• Index and single stock implied vols continue to diverge and are nearing levels normally seen in periods of distress.
• Health Care was the standout sector this week, with gains spread across the full group.

• Consumer Solutions Worldwide (CSW HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The deal will be run by CMBI.
• CSW is a leading global manufacturer and exporter of decorative gardening products, primarily focusing on decorative plastic planters for indoor and outdoor use.
• CSW operates on a vertically integrated contract manufacturing model, managing the entire supply chain from in-house product design, mold development, and materials procurement to large-scale production.

• Rigol Technologies (688337 CH) is looking to raise around US$145m in its upcoming Hong Kong IPO.
• RIGOL is an electronic test and measurement instrument provider. Under its brand, RIGOL designs, manufactures, and delivers a comprehensive suite of instruments that support scientific discovery and industrial innovation.
• In this note, we talk about the company’s past performance, peer comparison and valuations.

• Guangdong DTech launched Hongkong IPO to raise nearly HK$4.7B. They provide precision manufacturing solutions, bringing together tools, materials and intelligent equipment for key process segments of PCB fabrication value chain.
• Company intends to use the proceeds for enhancing production capacity, for technology R&D, for strategic acquisition/investment, for enterprise-wide digitalization and working capital.
• The valuation that Guangdong DTech is seeking through this issue seems relatively premium, but that’s justifiable given the company’s market leadership position.

• HSCEI serves as a benchmark to reflect the overall performance of the top 50 “Mainland China” securities listed in Hong Kong.
• The reference period is now complete. We have presented our final expectations in this insight.
• We expect one ADD/DEL and we estimate one-way flows of ~US$267mn.

• The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
• In this insight, we take a look at our final ranks for potential ADDs/DELs and the resultant capping flow expectations for the HSTECH index rebal event in September 2026.
• We expect no index changes for September 2026 but we see roughly US$1.9bn in one-way capping flows.

• The Hang Seng Internet & IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
• The reference period is now complete. We have presented our final expectations in this insight.
• We expect five ADDs/DELs and we estimate one-way flows of ~US$202mn.

• Perfect Medical Health Management (1830 HK)  reported FY26 revenue of HKD 962.3mn (-14.7% YoY) and net profit attributable of HKD 178.7mn (-13.6% YoY), with improving H2 results on stabilizing sentiment. 
• The story is the H2 inflection, where revenue fell 6.1% YoY (vs -21.7% in H1), while H2 net profit rose 27.1% period-on-period to HKD 83.9mn, driven by cost cuts.
• Debt-Free, cash-rich (~HKD 523mn cash + investments) and holding a 100%+ payout for an 11th straight year (FY26 payout 102.8%), the stock offers a ~12.6% yield at ~8.2x P/E.

• Guangdong Dtech Technology launched its Hong Kong IPO at a USD 617m base deal size. CITIC and HSBC are the deal sponsors.
• We review the deal terms, cornerstone investors, sponsor track records and valuation.
• We would participate, although the implied A-H premium is above our initiation-note fair-premium view.

• RIGOL, an electronic test and measurement instrument manufacturer, passed hearing for an A+H listing. CITIC is the sole sponsor.
• We look at the company’s core segments: digital oscilloscopes and solutions.
• We discussed our preliminary thoughts on the company’s valuation based on A-H premium.

• Continental Aerospace Technologies is liquidating, with initial distributions offering 9.3%-13.7% upside; further special dividend possible.
• Cygnus Metals merger with Central Asia Metals offers a 17% spread; major shareholders support, closing expected post-September meeting.
• Tourism Holdings received a non-binding offer from BGH Capital and Trouchet family, with potential for a price increase.

• Weak Chinese steel demand and seasonal production cuts are likely to keep iron ore prices under pressure, delaying any meaningful rebound.
• Options positioning remained skewed toward calls above 100, while concentrated puts at 95 reinforced expectations of a firm downside floor.
• Negative skew remained firmly entrenched throughout June, highlighting sustained call demand despite weaker futures prices and softer market fundamentals.

• XREAL is one of the earliest companies to achieve commercial mass production of consumer-grade AR eyewear. Sales volume of high-end products soared, which drove the upgrading of overall profit structure.
• Compared with peers, XREAL has long adhered to “spatial display” strategy, focusing on audio-visual and portable large screens. It failed to enter the AI glasses market in a timely manner.
• The neutral scenario is P/S of 12-15x.Based on 2026 forecast, market value is RMB10.8 – 13.5 billion. Such valuation requires market recognition of XREAL’s scarcity and Project Aura’s growth expectations.

• Geekplus Technology (2590 HK) raised US$300m from its Hong Kong IPO in July 2025 via a primary offering at HKD 16.80/share in its IPO.
• It is a leader in the global autonomous mobile robots (AMR) market.
• In this note, we will talk about the lockup dynamics and possible placement.

• Luxshare Precision Industry (002475 CH) could raise up to HK$27.9bn (US$3.6bn) in its H-share offering if the Overallotment Option is exercised.
• The cornerstone investor allocation will be around 42% of the maximum offering size and those shares will be locked up for 6 months. Fast entry index inclusion probability is small.
• The H-shares are priced at a 17.2% discount to the A-shares last close and that is tighter than other large issues. Stock Connect from the open on 6 August.

• EACON Group Co., Ltd (1868613D CH) is looking to raise around US$293m in its upcoming Hong Kong IPO.
• EACON designs, develops, and integrates the core intelligent components, such as autonomous driving software, domain controllers, and drive-by-wire platforms. 
• In this note, we talk about the company’s past performance, peer comparison and valuations.

• Chaozhou Three-Circle (6951 HK), a key player in electronic ceramic materials and components, will benefit from the demand and scenario upgrades in downstream sectors.
• For FY25-28, it will generate an EPS CAGR of 26%, fueled by both revenue growth and margin expansion. Its 1Q26 earnings have already surged by 48.5%.
• At the maximum IPO price of HK$100.30, the H-share is priced at a steep 49% HA discount. Re-rating to the global average FY26 PER will give a 21.3% upside.

• Anker Innovations Technology (668 HK) (AIT), a global consumer electronics company, raised around US$680m in its H-share listing.
• AIT sells products across three major product lines — smart charging and power storage, smart home and innovation, and smart audio and video.
• We have looked at the past performance and valuations in our previous note. In this note, we talk about the trading dynamics.

• We consider Luxshare Precision Industry (2475 HK)‘s H-share IPO not expensive, especially given its gigantic market capitalisation which will attract interests. 
• Its 3-year EPS CAGR is forecast at 19.2%, and its position as a local and global leader in precision intelligent manufacturing solutions justify a premium to peers. 
• The IPO price is set at 17.6% discount to the A-share. It can at least trade on 10% discount, translating into a price of HK$69.12, or 9.2% upside.

• Taihe Music Group (TAIHE HK) (TMG) plans to raise around US$100m in its upcoming Hong Kong IPO. The deal will be run by DB and China Sec.
• TMG operates a Chinese-language music platform that monetizes music copyrights, artist management, live entertainment, and ticketing services.
• As per Frost & Sullivan, it operated the largest independent Chinese-language music catalogue globally in 2025 in terms of revenue.

• MiniMax (100 HK), a global AI foundation model company, raised around US$700m in its Hong Kong IPO. The lockup on its cornerstone and some pre-IPO investors is set to expire.
• Minimax’s foundation model suite includes large language models, video generation models, and models for speech and music generation.
• In this note, we will talk about the lockup dynamics and possible placement.

• Shanghai Realway is a specialized real estate fund manager in China, focusing on commercial real estate, distressed assets, and urbanization projects, but is facing significant headwinds from the protracted downturn in the Chinese property market.
• The company’s financial performance has been extremely volatile and has deteriorated significantly, with negative revenue in 2023 and persistent net losses over the past three years, reflecting severe market conditions and potential investment write-downs.
• A recent series of proposed transactions, including a major share issuance to new investors at a steep discount, signals a potential change in control and a critical need for recapitalization, introducing both significant dilution for existing shareholders and a potential strategic shift for the company.

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• Luxshare Precision launched Hongkong IPO to raise nearly HK$24.3B. They are providers of precision intelligent manufacturing solutions (PIMS) making components and modules to systems in consumer electronics, automotive electronics etc.
• Luxshare intends to use the proceeds to expand production capacity, for technology R&D, for strategic investment/acquisition, to repay loans and working capital.
• Luxshare Precision has witnessed robust growth and financial performance. The valuation sought seems fairly reasonable. Investors can surely give it a go.

• WellCell Holdings is a telecommunication network support and ICT integration services provider in China, facing a dynamic market with both growth opportunities and significant challenges.
• The company’s financial performance has shown a decline in revenue and net income in the most recent fiscal year, coupled with negative free cash flow, raising concerns about profitability and cash generation.
• High stock price volatility and recent substantial changes in shareholding structure introduce a considerable degree of uncertainty for investors, despite the company’s strategic initiatives in artificial intelligence and computing power services.

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• Luxshare Precision Industry (002475 CH) (LP), a precision intelligent manufacturer, aims to raise around US$3.1bn in its H-share listing.
• LP provides cross-sector, vertically integrated development and intelligent manufacturing solutions—from components and modules to systems—for global clients across consumer electronics, automotive electronics, communication and data centers, and other end markets.
• We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.

• Luxshare Precision, a consumer electronics precision components and EMS manufacturer, launched its IPO to raise USD 3,119m through an A+H listing. CITIC, GS, and CICC are joint sponsors.
• In this note, we look at the deal terms and provide our thoughts on valuation for the company.
• We analyze reference A+H deals, cornerstone and sponsor performance and assess the risk-reward of the deal.

• Three-Circle, an advanced electronic ceramics manufacturer, launched its IPO to raise USD 920m through an A+H listing. China Galaxy International is the sole sponsor.
• In this note, we look at the deal terms and provide our thoughts on valuation for the company.
• We analyze reference A+H transactions, cornerstone and sponsor performance and assess the risk-reward of the deal.

• Chaozhou Three-Circle (6951 HK) aims to raise up to US$800m in its Hong Kong listing.
• It is a leading integrated provider of advanced electronic ceramic materials and components, with a product portfolio spanning electronic and ceramic materials, electronic components, telecom components, and equipment components.
• In this note, we examine the IPO dynamics, and look at the firm’s valuation.

• Guangdong Dtech Technology (Dtech) aims to raise around US$612m in its H-share listing.
• Dtech is an integrated provider of precision manufacturing solutions for key process segments of the global printed circuit board (PCB) fabrication value chain.
• We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.

• Nexchip, an IC foundry focused on display driver ICs and image sensors, launched its IPO to raise USD 897m through an A+H listing. CICC is the sole sponsor.
• In this note, we look at the deal terms and provide our thoughts on valuation for the company.
• We analyze reference A+H transactions, cornerstone and sponsor performance and assess the risk-reward of the deal.

• Luxshare has adopted a dual-drive strategy of internal growth and external acquisition – The automotive and AI computing power businesses are the fruits of its twelve-year-long early planning.
• New businesses are in the investment stage and their short-term contribution to profits is limited.There’s a time lag in the transmission of cost pressure caused by the upstream price hikes.
• Luxshare’s profit CAGR of next three years is 22%. A conservative scenario is P/E of 20x. A neutral scenario is P/E of 25x. An optimistic scenario is P/E of 30x.

• Momenta Global launched Hongkong IPO aiming to raise up to HK$5.9B (~ US$ 752M). Momenta develop and commercialize driving automation technologies to improve safety and efficiency in mobility and logistics.  
• Momenta Global intends to use the IPO proceeds to enhance R&D capabilities, accelerate commercialization, product innovation, strengthen OEM partnerships and working capital etc.
• Continued R&D efforts alongside more deployment in vehicles augur well for future growth plans. Valuation might seem stretched but immense room for scalable growth very much still left.  

• China’s national semiconductor champion, government-backed by Big Fund III’s CNY 344B war chest — it will not be allowed to fail commercially, even as equity returns lag the policy mandate.
• Investors conflate “strategically important” with “attractively priced” — Fab 9A ramp and Huali Micro scale are real, but already trade at 4x SMIC’s multiple for a less profitable business.
• We initiate at SELL with TP of HK$88 on stretched valuation (>50x EV/EBITDA) and a more fragile balance sheet and weak FCFs relative to global peers. 

• Nexchip Semiconductor (688249 CH) is looking to raise up to US$882m in its upcoming Hong Kong IPO.
• It is a pure-play 12-inch wafer foundry providing comprehensive wafer fabrication services across mainstream technology nodes ranging from 150nm to 40nm, while steadily advancing 28nm platforms.
• In this note, we examine the IPO dynamics, and look at the firm’s valuation.

• Biren Technology (6082 HK) raised around US$820m in its Hong Kong IPO in January 2026. The lockup on its cornerstone investors is set to expire soon.
• Shanghai Biren Technology is a general-purpose computing on graphics processing units (GPGPU) chips and GPGPU-based intelligent computing solutions provider.
• In this note, we will talk about the lockup dynamics and possible placement.

• NetEase (9999 HK) announced on 26 Jun 2026 that its HK primary conversion will be effective on 30 Jun 2026. This note assesses the Connect eligibility path and inclusion timeline.
• NetEase has no WVR, but Alibaba’s recent regular-cycle ADD keeps September as the base case.
• Prior Connect ADD cases show southbound inflows after ADD and positive returns post inclusion.

• Momenta Global (MOMENTA HK) is looking to raise US$747m in its upcoming Hong Kong IPO.
• It is a leading autonomous driving company, focused on developing and commercializing driving automation technologies to improve safety and efficiency in mobility and logistics.
• In this note, we examine the IPO dynamics, and look at the firm’s valuation.

• MS-China June 2026 added 21 stocks and deleted 24. With the first implementation week complete, we review current-cycle performance vs history.
• A-Share ADDs split by velocity. High-vel gains centered on Yangtze, while Mid- and Low-vel names fell further after implementation.
• HK DELETEs had the weakest bridge return in the study history and partially recovered in the first implementation week. The recovery came from two names and was not basket-wide.

• Eacon Group launched its Hongkong IPO aiming to raise up to HK$2.3B (~ US$ 293M). They focus on the commercial deployment of autonomous driving solutions in the mining industry.
• Eacon Group intends to use the IPO proceeds for research & development, IT infrastructure development, overseas business expansion, strategic alliance/acquisition and working capital.
• The medium-term outlook for Eacon Group looks bright. We would recommend investors with to consider the name, given its potential.

• Guangdong Dtech Technology passed hearing for an A+H listing. CITIC and HSBC are the sponsors.
• We look at the company’s core segments: precision cutting tools and grinding and polishing materials.
• We discussed our preliminary thoughts on the company’s fair value based on A-H premium.

• The core of Qiyunshan’s business model is relying on specific production resources, focusing on a single core product, and achieving growth through deep binding to rapidly rising offline mass-sales channels.
• The core logic of mass market channels is to achieve low-priced sales through large-scale procurement/streamlined circulation, which directly leads to the dilemma of supply chain price suppression for brand merchants.
• Reasonable valuation range would be approximately RMB590 million-RMB735 million if based on FY25 net profit and 12-15x P/E. Considering big fluctuations in performance, investors may need more safety margin

• Legend Biotech reported its first quarter of 2026 financial and operational results marked by continued commercial expansion of its lead product, CARVYKTI, and advancing development of its broader pipeline, including several in vivo CAR-T therapy programs.
• During the quarter, CARVYKTI generated approximately $597 million in net trade sales, representing a 52% year-over-year increase.
• Growth drivers included a 36% increase in U.S. sales and over 200% growth internationally, with availability now expanded across 18 markets and more than 300 treatment sites globally.

• Momenta Global (6880 HK)‘s IPO is sizeable as it plans to raise HK$5.6bn. Its leadership position in the autonomous driving industry is an important strength. 
• We expect it to remain loss-making in FY26-28, but the revenue growth will reach a CAGR of 40.2%, and economies of scale will bring about stronger margins.
• At 13.1x P/S for FY27, it is significantly more expensive than the sector average. Historically, most autonomous driving IPOs have not done well.

• Pioneering Market Leader in a High-Growth Niche: 51WORLD is the largest provider of digital twin solutions in China, a market poised for explosive growth driven by Industry 4.0, smart city initiatives, and the expansion of autonomous driving.
• Persistent Unprofitability and High Cash Burn: Despite strong revenue growth, the company has a history of significant net losses and negative cash flow, driven by heavy R&D investment and a shift towards lower-margin customized projects.
• Premium Valuation Amidst Intense Competition: The company trades at a significant valuation premium compared to its peers, which may not be justified given the highly fragmented and competitive nature of the digital twin market and its declining gross margins.

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• I summarise the latest spreads and newsflow for the merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, the Philippines, Thailand, and Chinese ADRs.
• Highest spreads: Skyworth (751 HK), Qoria (QOR AU), Changhong Jiahua (3991 HK), European Lithium (EUR AU), Cygnus Metals (CY5 AU), Continental Aerospace Technologies (232 HK). 
• Lowest spreads: Accent Group (AX1 AU), Taiyo Holdings (4626 JP), Kakaku.com Inc (2371 JP), Clearview Wealth (CVW AU), Paltac Corporation (8283 JP), Kodensha Co (1948 JP). 

• Back on the 5th November 2024, Get Nice (64 HK) (GNH) announced a scrip Offer, by way of a Scheme, for 72.99%-held Get Nice Financial (1469 HK) (GNF).
• It was an uninspiring Offer; although a HK$0.50/share dividend helped the deal got up. At the time, my bet was GNH, at 0.21x P/B, was next to be privatised.
• On Friday (26th June), GNH was suspended pursuant to the Takeovers Code. Expect Hung Hon Man (chairman/founder), with 51.67% of shares out, to seek GNH’s delisting via a Scheme.

• Luk Fook (590 HK)‘s growth surpassed that of Chow Tai Fook Jewellery (1929 HK)‘s in 2H FY26, providing evidence for its underlying operational resilience.  
• CTF’s 44.1% RSV growth for 1 Apr-31 May in HK is poised well for LF, given LF’s higher exposure to HK, generating 69.4% of FY26 segment profit. 
• Luk Fook (590 HK)‘s valuations are attractive, with a PER of 5.8x, a yield of 8.8%, and a P/B of 0.8x for FY27, vs. 11.1x, 6.8%, and 3.3% for CTF.

• YOFC is the only one that has mastered all three mainstream preform technologies: PCVD, OVD, and VAD.
• The company has the top market shares globally in preforms, optical fibers, and optical cables.
• The operating margin in 1Q26 expanded to 22%, significantly higher than the 8% in 1Q25 and 5% in 1Q24.

• Guangdong Dtech Technology aims to raise around US$600m in its H-share listing.
• Dtech is an integrated provider of precision manufacturing solutions for key process segments of the global printed circuit board (PCB) fabrication value chain.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.

• Strong top-line growth in Q126, but also margin compression due to rising OpEx
• For Q2, Trip.com guided slower revenue growth and concomitant margin impacts
• An antitrust investigation into Trip.com appears to be undermining growth trajectory

• Crealights Technology (1191 HK) raised US$195m in its upcoming Hong Kong IPO.
• It is a global optoelectronic interconnection products provider with a comprehensive high-speed optoelectronic interconnection product matrix. 
• We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

• Revenue rose 6.2% to HK$4,623.4mn, driven by 11.3% sweater volume growth, but gross margin compressed 160bps to 16.4% as Vietnam labor and overhead costs intensified in H2.
• Net profit fell 16.9% to HK$295.5mn; the board cut total DPS to 11.0 HK cents (payout 83.4%), prioritizing balance sheet amid rising short-term borrowings.
• Post the massive correction, the stock trades at 5.8x FY26 earnings, offering a 14% dividend yield, with H1 earnings likely to improve as we step into the high season. 

• Jacobio’s pan-KRAS JAB-23E73 has shown comparable efficacy (38.5% ORR) and a differentiated safety profile in 2L PDAC from China phase 1 vs. daraxonrasib. Anticipate  AstraZeneca to update its global study
• Glecirasib (KRAS G12C) is expected to generate c.RMB300m sales in 2026. A phase 3 study in combination with SHP2 is ongoing. Management is excited about its STING ADC
• Sporting at a market cap of c.US$430m, Jacobio is at a net cash position (c.RMB1bn as of end-2025). Moreover, Jacobio has received the upfront payment US$100m from AstraZeneca in March

• The share price of Guangdong Investment (270 HK) has outperformed the Hang Seng Index (HSI INDEX) over the last 12 months. 
• The company recently divested one of its retail assets, which is highly cyclical and has thin margins, to focus on higher-margin, more consistent water infrastructure assets. 
• The divestment results in a marginal net income increment that helps to provide stability for Guangdong Investment (270 HK) share price. 

• iQIYI, Inc. reported its financial and operational results for the first quarter of 2026, highlighting progress in its core streaming business alongside strategic initiatives in AI-driven content creation and international expansion.
• The company’s total revenue reached RMB 6.2 billion, marking an 8% sequential decline largely due to seasonality and reduced third-party content distribution.
• Membership services revenue increased 2% sequentially to RMB 4.2 billion, fueled by strong performance of premium domestic dramas such as The Punishment 2, Pursuit of Jade, and How Dare You!?, which resonated with the platform’s key young female demographic.

• Taste Gourmet Group (8371 HK)  posted FY26 revenue of HK$1,350mn (+11% YoY) and profit attributable to owners of HK$117mn (+23% YoY), driven by 11 new restaurant openings.
• Net cash rose to HK$266mn (37% of market cap). The board declared a final dividend of 9 HK cents, bringing the full-year total to 17 cents and yielding approximately 9%.
• The stock trades at approximately 5.4x FY27e earnings. With the Truffle Donut franchise launch and several confirmed HK leases, visibility into FY27 growth is improving.

• Get Nice (64 HK)/GNH is in a trading halt “pending the release of an announcement in relation to the Hong Kong Code on Takeovers and Mergers.”
• Mr Hung (Chairman) is likely to reload his 2020 offer. The key difference is that he will seek to privatise GNH at this time.
• I use several methods to triangulate the likely offer price, which suggests an offer of HK$4.74 to HK$7.09 per share, representing a 39.5% to 109% premium to the last close.

• Momenta Global (MOMENTA HK), a leading autonomous driving company, is pre-marketing a HKEx IPO to raise US$800 million.   
• Momenta solutions had been deployed across eight of the world’s top ten OEM groups and all of China’s top ten OEM groups.
• The investment case is bullish due to strong positioning, accelerating growth, rapidly narrowing loss margins, and reducing cash burn, all supported by a strong balance sheet. 

• China’s only advanced-node foundry — China’s chipmakers relies on SMIC heavily and have no real alternative domestic manufacturer. The structural moat is real, but the Premium is over-streched. 
• CNY9.5B Southbound surge on 25 June is a Micron results read-through, not a re-rating. Momentum will likely fade in 3–7 sessions. Fundamentals sets the floor.
• Fair Value HKD 82 (-6% DOWNSIDE Potential). Global rival Foundries (UMC, GlobalFoundries) are way cheaper on every metric. Stay on the sidelines until sharer prices retracts to HKD72–76.

• Momenta Global (MOMENTA HK) is looking to raise about US$800m in its upcoming Hong Kong IPO. 
• Momenta Global is a leading autonomous driving company, focused on developing and commercializing driving automation technologies to improve safety and efficiency in mobility and logistics.
• In this note, we look at the company’s peer comparison and valuation.

• Kaifeng Millenium City Park (2663579D HK) (KMCP) plans to raise around US$150m in its upcoming Hong Kong IPO. The deal will be run by CMS.
• It is a developer and operator of a cultural theme park and tourism performances in Kaifeng City, Henan Province.
• According to CIC, the park attracted 9.6 million visitors in 2025, ranking fourth among individual theme parks in China and first among all 5A-rated tourist attractions in Henan Province.

• Datastory Artificial Intelligence Technology (2664529D HK) (DAITCL) plans to raise around US$100m in its upcoming Hong Kong IPO. The deal will be run by CSI.
• It is an artificial intelligence (AI)-native technology company that empowers businesses to accelerate growth through its suite of enterprise large model-enabled applications and solutions.
• According to CIC, it ranked third in the enterprise large model-driven business growth market in China by revenue in 2025.

• Hong Kong equities weakened sharply, with the decline from the highs approaching 20% in stark contrast to global indexes
• Single stock option activity picked up meaningfully as Put trading increased and Call share moved toward the lower end of its range.
• Implied vols were sharply higher across the board as market weakness drove a broad repricing of single stock volatility.

• Knowledge Atlas Technology (2513 HK) (Zhipu) raised around US$640m in its Hong Kong IPO in January 2026. The lockup on its cornerstone investors is set to expire soon.
• Zhipu is one of the leading players in China’s domestic LLM space. As per media reports, the company could look to undertake an H-share offering as well.
• In this note, we will talk about the lockup dynamics and possible placement.

• NetEase (9999 HK) becomes dual-primary listed on the Hong Kong Exchanges and Clearing (388 HK) from the start of trading on 30 June.
• There will be small buying from Hang Seng Index (HSI INDEX) and Hang Seng China Enterprises Index (HSCEI INDEX) trackers in June.
• More importantly, NetEase (9999 HK) should be added to Southbound Stock Connect from the open of trading on 8 September and should bring a lot of mainland flows.

• Back on the 15th May 2026, the CSRC approved SOE-backed power play China Resources Power (836 HK)‘s A-share listing of its renewable energy unit, China Resources New Energy Group (CRNE).
• CRNE’s prospectus was lodged on the 10th June, with a tentative listing early July. CRNE’s 1Q26 profit was down 28%, with a forecast drop of at least 19% in 1H26E. 
• CRNE has been priced at RM10.11/share, raising US$3.8bn, with a post-money market cap of US$20.8bn. CRNE’s peer basket is down 21% in the past month. CRP is down 10%.

• Lingyi iTech Guangdong (002600 CH, LIT), an intelligent manufacturing platform, raised around US$1bn in its H-share listing.
• LIT offers a full range of development and manufacturing capabilities that cover core materials, high-precision functional components, modules and assembled systems for diverse end products.
• We have looked at the past performance and valuations in our previous note. In this note, we talk about the trading dynamics.

• The Hang Seng TECH Index (HSTECH) has been selling off for 3 weeks in a row. Our model flagged its condition as oversold/high probability of reversal.
• Sentiment is mostly bearish and the predicted $1.25–1.75B passive inflows from June 8 index rebalancing (Zhipu AI + MiniMax additions) saw the initial euphoria fading quickly as macro concerns remained.
• However, the index has now plunged >30% from its September 2025 peak. A massive correction. The HSTECH Index may be nearing the end of this correction and reverse.

• Continental Aerospace Technologies announced liquidation, selling assets for US$500-520m, distributing HK$0.4263-0.4433/share, offering 9.3%-13.7% upside.
• Office asset sold to AVIC for HK$69.5m, yielding HK$0.0073/share; independent valuation may prompt renegotiation.
• US$535.42m sale price reduced by leakage, PPP loan settlement, and withholding tax, resulting in US$500-520m proceeds.

• DSC priced at $17.00, opened below issue price at $16.00, and closed at $9.06 after a volatile session marked by multiple trading halts. 
• Investor demand appeared weak from the outset, with little evidence of underwriter support as shares fell nearly 50% intraday. 
• China exposure, a large anchor order, and limited institutional participation contributed to one of the weakest IPO debuts of the year.

• SG Micro (3661 HK) raised US$587m in its upcoming Hong Kong IPO. 
• SG Micro is a leading comprehensive analog integrated circuit (IC) company that designs, develops, and sells high-performance analog ICs and sensors.
• We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

• Lingyi iTech (1688 HK) priced its H Share at HK$10.18, raising HK$8,264 million (US$1.1 billion) in gross proceeds. The H Share will be listed tomorrow.
• I discussed the H Share listing in Lingyi ITech H Share Listing: The Investment Case and Lingyi ITech H Share Listing (1688 HK): Valuation Insights. 
• The grey market price is up 21%, partly due to A Shares rising 14% since the prospectus was released. The 50.6% AH discount is attractive. 

• Circuit Fabology Microelectronics Equipment (9630 HK) priced its H Share at HK$252.73, raising HK$3,245 million (US$414 million) in gross proceeds. The H Share will be listed tomorrow.
• I discussed the H Share listing in Circuit Fabology H Share Listing (9630 HK): The Investment Case and Circuit Fabology H Share Listing (9630 HK): Valuation Insights. 
• The grey market price is up 76%, partly due to A Shares rising 20% since the prospectus was released. The international oversubscription rate was the highest of large AH listings.