China

• 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. 

• Chaozhou Three-Circle Group (300408 CH)  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 look at its past performance and other deal dynamics that might impact the listing.

• Luxshare Precision Industry (002475 CH) (LP), a precision intelligent manufacturer, aims to raise around US$3bn 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 company’s past performance in our previous note. In this note, we talk about the recent updates and likely A/H premium.

• Wuxi Biologics is a leading global Contract Research, Development, and Manufacturing Organization (CRDMO), providing end-to-end services for biologic drugs. Its ‘follow-the-molecule’ strategy creates sticky, long-term client relationships, driving revenue growth as projects advance from discovery to commercialization.
• The company has demonstrated robust revenue growth, driven by a strong project pipeline and increasing demand for outsourcing in the biologics sector, particularly for complex modalities like bispecific antibodies and ADCs. A significant project backlog provides good forward visibility.
• Significant geopolitical risk, primarily related to US-China tensions and legislation like the BIOSECURE Act, creates high uncertainty for the company’s outlook and has impacted investor sentiment. Other risks include foreign exchange volatility and a reliance on the biotech funding cycle.

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• The explosive growth in licensing service revenue, the significant increase in gross margin, and the narrowing of adjusted losses have verified that MOMENTA’s business model possesses the ability for self-optimization
• Core risks are high customer concentration, self-research/substitution by automakers, high R&D investment.Compared with competitors, MOMENTA has advantages in mass production/global layout, but has weaknesses in hardware/software integration and self-developed chips.
• MOMENTA, as a pure software solution provider, is expected to have a valuation lower than that of Huawei’s vehicle business unit but higher than that of ordinary SaaS companies.

• Zhejiang Laifual Drive (3952 HK) is looking to raise up to US$147m in its upcoming Hong Kong IPO.
• Zhejiang Laifual Drive (ZLD) is a provider of core components for robotic precision transmission in China.
• In this note, we talk about the company’s background, past performances and valuations.

• Shenzhen Xunce Technology (3317 HK) raised around US$140m in its Hong Kong IPO in December 2025. The lockup on the cornerstones is set to expire soon.
• Shenzhen Xunce Technology is a provider of real-time data infrastructure and analytics solutions in China.
• In this note, we will talk about the lockup dynamics and possible placement.

• Hua Hong Semiconductor is strategically positioned as a pure-play foundry focused on high-demand specialty process technologies, such as eNVM and power discretes, differentiating itself from leading-edge logic manufacturers.
• The company is in a growth phase, marked by the expansion of its 12-inch wafer fabrication capacity, which is becoming a significant revenue driver and is crucial for capturing demand from the automotive, industrial, and AI sectors.
• Financial performance is recovering, with solid year-over-year revenue growth in early 2026, though margins remain under pressure. The outlook is cautiously optimistic, balancing strong demand drivers against significant geopolitical risks, supply chain uncertainties, and intense market competition.

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• Pivoting from Cyclical Downturn to Secular Growth: China National Building Material (CNBM) is navigating a severe downturn in its core cement and concrete businesses, driven by the prolonged slump in China’s property market. Financial performance has deteriorated, with revenue declining and a shift to a net loss in the most recent fiscal year. However, the company is strategically pivoting towards its ‘New Materials’ segment, which includes high-growth products like glass fiber and composites, capitalizing on demand from sectors such as renewable energy and AI computing.
• Unattractive Growth Profile but Deep Value and High Yield: The company’s historical growth is poor, with key metrics like revenue, net income, and EPS showing significantly negative compound annual growth rates over the last 3 to 7 years. Despite this, the stock trades at a substantial discount to its peers and historical valuation, with a very low price-to-book ratio. This deep value proposition is complemented by a high dividend yield, supported by its state-owned enterprise (SOE) status, which may appeal to income-focused investors.
• Dominant Market Position and SOE Backing Provide Stability: As a central SOE and the world’s largest producer of cement, concrete, and other building materials, CNBM possesses significant scale advantages and a dominant market position. This status provides a degree of stability, access to capital, and influence in industry consolidation, which are critical competitive advantages, particularly during challenging market conditions. The government’s focus on infrastructure spending and green building materials could provide future tailwinds.

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• RemeGen (9995 HK) received marketing approval from NMPA fot the indications of IgA nephropathy and Sjögren’s Disease.
• Otsuka’s Voyxact posted positive Phase 3 results for treatment of IgA nephropathy. Telitacicept happen to have an edge in terms of dual inhibitor capability and extent of reduction of proteinuria.
• In 2025, Remegen has successfully posted profit on the back of accelerating revenue, improved margins and decelerating expenses. Approval of telitacicept for more indications will help boost revenues further.

• Shenzhen Fengyi Technology Group Co (2662576D HK) (SFTG) is looking to raise atleast US$100m in its upcoming Hong Kong IPO. The deal will be run by CICC, ABCI and CMS.
• SFTG is a China-based AI-driven smart retail company that operates a network of intelligent retail cabinets deployed in offices, commercial buildings, logistics facilities, educational institutions, and other high-frequency consumer locations.
• According to Frost & Sullivan (F&S), SFTG was the largest smart retail cabinet operator in China by both installed cabinet count and GMV (gross merchandise volume) in 2025.

• Anker Innovations Technology (668 HK), a leading global provider of core offshore wind power equipment, has launched an H Share listing to raise US$590 million.
• I discussed the H Share listing in Anker Innovations H Share Listing: The Investment Case. 
• The proposed AH discount of 25.6% (based on the close on 22 June A Share price) is attractive, and I would participate in the H Share listing.

• Anker Innovations Technology (300866 CH) (AIT), a global consumer electronics company, aims to raise around US$590m 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 likely A/H premium in our previous note. In this note, we talk about the IPO pricing.

• China’s steel sector is showing fresh signs of strain, with softer production, shrinking profitability, and growing iron ore stockpiles clouding demand prospects.
• Heavy put positioning at the 90, 95, and 100 strikes continue to anchor the downside, while growing call interest at 104 caps upside expectations.
• The sharp rise in August put positioning highlights near-term caution, though later expiries suggest options traders expect conditions to stabilise.

• The IPO of Anker Innovations (668 HK), which designs and develops consumer electronics for the global smart devices industry, appears reasonably priced.
• It ranked 1st globally in mobile charging products, and its 3-year earnings CAGR is projected to reach 20.7%. The IPO is at a 22.8% discount to the A-share.
• The stock should comfortably trade on 20% discount, meaning a fair price of HK$102.95, 3.7% upside. Aggressively, on 10% discount, the upside will reach 16.6%.

• Anker Innovations launched Hongkong IPO to raise nearly HK$4.6B. They are primarily engaged in the design and sale of consumer electronics in the global smart devices industry.  
• Company intends to use the proceeds for product innovation, enhance product categories, for R&D capabilities, for brand marketing initiatives, for global market strategy, for supply chain management and working capital.
• Anker Innovations’ market presence, brand recognition and sustainable business model paves way for future growth prospects.  The valuation sought seems fairly reasonable. Investors can surely give it a go.

• DKE has seized the favorable opportunity in e-paper industry. However, there are prominent structural weaknesses such as poor profit quality, high dependence on supply chain, and high customer concentration.
• Although the industry’s beta is high, its own alpha is weak. If DKE can only survive with marginal profits in a “tight spot”, the story is ultimately difficult to complete.
• Under the double pressure from both upstream and downstream, it is difficult to maintain or even increase gross margin in the long term. A comfortable valuation could be 20-30x P/E.

• Shanghai Seer Intelligent Technology (SSIT HK) raised around US$136m in its Hong Kong IPO.
• SIT has registered strong topline growth and narrowing losses. However, its valuation is not exactly the cheapest though its premium could be justified by faster revenue growth and higher GPMs.
• We have looked at the company’s background and pricing in our earlier note, in this note we talk about the trading dynamics.

• Insilico Medicine (3696 HK) raised around US$335m in its Hong Kong IPO in December 2025. The lockup on its pre-IPO investors is set to expire soon.
• Insilico is a global AI-driven drug discovery and development company that leverages its proprietary generative AI platform, Pharma.AI, to identify and design early-stage drug candidates.
• In this note, we will talk about the lockup dynamics and possible placement.

• Jiangxi Institute of Biological Products, the largest provider and exporter of human tetanus antitoxins (TAT) in China, has launched its HK IPO consisting of 36M H shares.
• The indicative offer price range has been fixed at HK$9.33–13.06 per share. The company intends to raise HK$473M, mainly to fund R&D and construction and expansion of new facilities.
• The subscription period will close on June 25, with shares expected to make trading debut on June 30. CICC, CMS, and Futu Securities are the joint sponsors to the issue.

• Maxicity (2295 HK), a slope engineering specialist, is currently suspended pursuant to the Takeovers Code. Maxicity is 75% held by founders Shing Kee Sieh and Ka Ki Ho.
• Maxicity was inauspiciously listed on GEM board on the 19th December 2019 at HK$0.60/share; before being transferred to the Main Board on the 31st December 2021.  
• At a guess, I can see Sieh/Ho taking the company private by way of a Scheme. 

• Beijing Zhongke WengAI Science and Technology (ZKWAI HK) is looking to raise around US$115m in its upcoming Hong Kong IPO.
• Beijing Zhongke WengAI Science and Technology (BZ) is an AI technology and service provider in China, specializing in complex data analytics and AI-assisted decision-making.
• In this note, we talk about the company’s past performance and valuations.

• Crealights Technology (1191 HK) is looking to raise up to US$191m in its upcoming Hong Kong IPO.
• It is a global optoelectronic interconnection products provider. It has established a comprehensive high-speed optoelectronic interconnection product matrix. 
• In this note, we examine the IPO dynamics, and look at the firm’s valuation.

• DSC claims over 90% market share in operating systems for China’s used-car dealers, providing software, AI applications, and transaction services across the ecosystem.
• Revenue declined sharply in 2025, although gross profit remained relatively resilient and net losses narrowed year-over-year.
• China exposure, a concentrated anchor order, and limited float size may result in heightened scrutiny and potentially volatile aftermarket trading.

• Hangzhou Qiandaohu Xunlong Sci-Tech (2633857D HK) is looking to raise US$157m in its upcoming Hong Kong IPO.
• It is the world’s largest caviar company and a fully vertically integrated player with operations spanning sturgeon breeding, aquaculture, caviar processing, and global sales and marketing.
• In this note, we examine the IPO dynamics, and look at the firm’s valuation.

• Xunlong Scitech launched Hongkong IPO to raise nearly HK$1.2B. They are in the business of caviar, known for its rarity, distinctive flavor, is widely recognized as a fine food worldwide.  
• Xunlong Scitech intends to use the IPO proceeds to expand production capacity, for brand marketing initiatives, to expand global sales channels, enhance R&D capabilities, for strategic investments and working capital.
• Xunlong Scitech’s global market leadership position alongside it seamlessly integrated business model makes it an attractive bet for investors.

• Q1FY26 results will be out on 24/Jun, consensus expectation of core EPS6.15 (+5% YoY). This is better than its global rivals whom all saw YoY declines. 
• The Middle-East war has negatively impacted on global holidays, but Trip.com’s comprehensive products offerings and discounting has largely mitigated the situation. 
• Our FV US$60 and HK$470 — premised on 14x FY26E P/E, on par with China’s consumer discretionary multiple. This implied +33% UPSIDE potential from current market price.

• Shenzhen Senior Technology Material (6067 HK) , a manufacturer of lithium-ion battery separators, aims to raise around US$171m in its H-share listing.
• SSTM’s H-share offering comes at an interesting point in the battery materials cycle. Despite posting less-than-ideal financials over the past years, the industry backdrop has started to look more constructive.
• We have looked at the company’s background and pricing in our earlier note, in this note we talk about the trading dynamics.

• True Health Medical, a commercial-stage medical device company, has launched HK IPO consisting of 3.6M H shares. The indicative offer price range has been fixed at HK$119.30–135.40 per share.
• The company intends to raise HK$483M, primarily to fund R&D activities and commercialization of the Core Product, a percutaneous puncture surgical robot.
• The subscription period will close on June 25, with the shares expected to make trading debut on June 30. CICC and DBS are the joint sponsors to the issue.

• Befar Group is a major Chinese chemical producer with leading market shares in products like caustic soda and propylene oxide, but is facing significant profitability challenges.
• The company exhibits a concerning divergence between strong top-line revenue growth and sharply declining net income and margins, driven by factors likely including raw material costs and competitive pressures.
• Strategic initiatives include global expansion, with a new ‘green’ chlor-alkali plant in Egypt, and a focus on integrating new energy with chemical production, which presents both opportunities for long-term growth and significant execution risks.

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• Knowledge Atlas Technology (2513 HK) was added to Southbound Stock Connect on 8 June and mainland investors already own 31% of the current float.
• Short interest has flattened over the last couple of months as shorts take a beating and there could be short covering on a move lower in the stock price.
• Cornerstone lock-up expiry is on 8 July and the increase in float will result in index inclusions and upweights and result in big passive buying.

• The Shenzhen Exodus: Hong Kong’s retail moat is dead. Weekend mainland visits hit 530,000, vaporizing Link’s localized consumption base and driving severe negative rental reversions across its portfolio.
• Valuation Freefall & Cap Rate Crisis: The Greater China property collapse continues. Expanding cap rates have incinerated asset values, pushing net gearing to a dangerous 23.9% as property valuations bleed.
• Yield Trap in a “Higher for Longer” Era: With US rates stuck, Link’s dividend yield spread offers zero compensation for structural decay. HK$200M cost-cut target cannot stop the NPI hemorrhage.

• Circuit Fabology Microelectronics Equipment (9630 HK), a leading Chinese lithography equipment manufacturer, has launched an H Share listing to raise US$414 million.
• I discussed the H Share listing in Circuit Fabology H Share Listing (9630 HK): The Investment Case. 
• The proposed AH discount of 55.3% to 53.0% (based on the close on 16 June A Share price) is attractive, and I would participate in the H Share listing.

• Anker’s performance maintained steady growth, but growth rate in 2025 was significantly lower than 2024 and the quality of cash flow deteriorated markedly, due to 2025 rechargeable battery recall incident
• The failure of Shallow-Sea strategy is essentially a mismatch between expansion logic and market reality. Anker attempted to conquer niche category using light-asset logic, but each category has long-standing competitors
• Considering Anker is a benchmark for Chinese consumer electronics industry, with high-quality profit performance (24% ROE)/multi-category matrix to diversify risks, reasonable valuation could be 16-20x P/E based on 2026 forecast.  

• Crealights Technology (1191 HK), an optoelectronic interconnection product provider, targets to raise HK$1.4bn from IPO. Its growth is solid, as revenue surged 6x in FY23-25.  
• For the next three years, it will ride on AI spending, with revenue growing by a CAGR of 44.3%. However, heavy investments will sustain its losses.
• At 4.5x FY26 P/S, the IPO is inexpensive relative to peers. It justifies a 20% discount to CIG Shanghai (6166 HK), or 5.1x P/S, implying at least 15% upside. 

• In this insight, we discuss the nitty-gritty details of Chow Tai Fook Jewellery (1929 HK) ‘s  FY2026 financial and operational performance.
• We analyze four points to understand about what lies ahead for the company in near term.
• Finally, we discuss about valuation and our view on the company

• Alebund Pharmaceuticals, a biopharmaceutical company focusing on renal therapies, has launched its HK IPO consisting of 57M H shares. The offer price has been fixed at HK$22.60 per share.
• The company intends to raise HK$1,283M, mainly to fund the ongoing and planned clinical development and regulatory affairs of product candidates.
• Subscription will close on June 24, with the shares expected to make trading debut on June 29. Jefferies, BofA Securities, and HTSC are the joint sponsors to the issue.  

• Zhejiang Taotao Vehicles is a prominent manufacturer of powersports and electric mobility vehicles, with a strong market position in the affordable segment, particularly in North America.
• The company is poised to benefit from the growing global demand for electric scooters and all-terrain vehicles (ATVs), driven by increasing interest in outdoor recreational activities and a shift towards eco-friendly transportation.
• While demonstrating robust revenue and profit growth, the company faces risks associated with intense competition, product liability, and evolving safety and environmental regulations in its key markets.

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• CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500 names.
• In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in December 2026.
• Currently, we see 30 ADDs/DELs for the CSI 300 index and 50 ADDs/DELs for the CSI 500 index. These are the maximum number of changes allowed per review.

• CSI 1000 represents the next 1000 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges after CSI 800.
• In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in December 2026.
• Currently, we see 100 ADDs/DELs for the CSI 1000 index.

• Taking into account the 66% ownership in Tongda Smart Tech, the market essentially is placing a negative value of the parent company business.
• Tongda Group (698 HK) case is a bit similar to Wasion (3393 HK) but operationally a little diferent. 
• Despite the valuation gap, it is relatively low-probability that management will conduct a share buyback or resume dividend payments to increase shareholders’ confidence. 

• Market weakness, poor breadth and renewed focus on lockup expiries created a fragile backdrop for Hong Kong equities.
• Single stock implied vol remained elevated relative to index implied vol, extending a trend that has led to a widening divergence.
• The recent outperformance in Financial stocks came to an end as sector breadth deteriorated sharply.

• STAR 50 and STAR 100 are tech-focused, blue-chip indices in Mainland China which track the top largest and most liquid names in the STAR market of the Shanghai Stock Exchange.
• In this insight, we look at the potential ADDs/DELs for the STAR50/STAR100 indices for the September 2026 index rebal event.
• Some of the names involved in the index changes could have multiple days to trade.

• The ChiNext index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
• The ChiNext 50 index is a subset of the ChiNext index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.
• We see 10 changes for the ChiNext index and 5 changes for the ChiNext 50 index in the next index rebal event.

• Context:Tencent (700 HK) featured heavily in HKEX’s largest traded option series, with near-term call activity offset by longer-dated put demand and a put/call ratio moving above its one-month average.
• Highlight: Multi-leg strategy flow shows a slight bearish tilt, while calendar and diagonal spreads represent a meaningful share of activity, pointing to structured views across expiry dates.
• Why Read: The breakdown of complex option strategies provides a clearer read on market sentiment, volatility positioning, and how traders are expressing views through defined-risk structures.

• CSI Medical Service represents the top 50 largest and most-liquid stocks involved in medical devices, medical care, medical informatization, and other medical theme from the Shanghai, Shenzhen and Beijing Exchanges.
• In this insight, we take a look at the potential ADDs/DELs for the semiannual index rebal event in December 2026.
• We see 6 ADDs/DELs and expect one-way flows of approximately US$236mn.

• Circuit Fabology Microelectronics Equipment (9630 HK), a leading Chinese lithography equipment manufacturer, has launched an H-Share listing to raise US$409 million.   
• It is the largest provider of printed-circuit board (PCB) direct imaging equipment globally, with a 18.8% revenue market share in 2025, according to CIC.
• The investment case is bullish due to accelerating growth, recovering margins, a shift to cash generation, and a net cash position. 

• SG Micro launched Hongkong IPO to raise up to HK$4.6B. They are a leading analog IC company in China who design, develop and sell high-performance analog ICs and sensors.  
• SG Micro intends to use the IPO proceeds to expand overseas sales network, investment & acquisition opportunities, enhance R&D capabilities and working capital.
• Prima facie, in terms of the valuation that the company is seeking, the company seems overvalued. Investors can avoid the issue for now.

• China holds significant opportunities in artificial intelligence (AI) applications despite the advanced capabilities of foreign foundational models, according to a Trip.com Group Ltd. executive.
• Amy Wei, vice president of product at the online travel agency, shared the insights at the Caixin Summer Summit in Hong Kong on Friday.
• The remarks highlight how Chinese companies are pivoting toward practical AI implementation and leveraging the country’s mature digital ecosystem to commercialize the technology.

• Dominant Market Position with Strong R&D Focus: Jiangsu Boqian is a leading domestic producer of ultrafine metal powders, a critical component in high-growth sectors like consumer electronics (specifically for MLCCs), automotive, and aerospace. The company’s commitment to R&D, including a collaboration with Shanghai Jiaotong University, underpins its technological edge and ability to provide customized, high-performance materials.
• Robust Financial Turnaround and Growth Trajectory: The company has demonstrated a significant financial recovery, moving from a net loss in 2023 to strong profitability in 2024 and 2025. This is supported by impressive revenue growth, expanding margins, and a stellar 5/5 Smartscore for both Growth and Momentum, indicating strong operational performance and market sentiment.
• Strategic Exposure to High-Growth End Markets: Boqian is well-positioned to capitalize on secular trends such as vehicle electrification, 5G proliferation, and the miniaturization of electronic components. The increasing demand for advanced materials in these applications provides a long-term tailwind for the company’s specialized product portfolio.

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• Hangzhou Qiandaohu Xunlong Sci-Tech (2633857D HK) aims to raise up to US$200m in its Hong Kong listing.
• It is the world’s largest caviar company and a fully vertically integrated player with operations spanning sturgeon breeding, aquaculture, caviar processing, and global sales and marketing.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.

• Carote is a rapidly growing, digitally native kitchenware brand with a strong presence on major e-commerce platforms, successfully disrupting the market with its value-for-money proposition.
• The company’s dual-pronged strategy, combining a high-margin branded business with a stable ODM segment, provides a diversified revenue stream and operational flexibility.
• While demonstrating impressive historical growth, the company faces near-term headwinds from macroeconomic factors, including potential tariffs and shifts in consumer spending, which could impact profitability and growth targets.

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• There is a 15-20% correction occurring in the HK-Listed Apparel Universe (due to a weak market), which we have been tracking over the last two years, with yields at 9.1%.
• With only Texwinca (321 HK) so far reporting strong results, offset by weak performances by Pacific Textiles (1382 HK) (flagged in profit warning)/ Eagle Nice (2368 HK) 
• We await the results of Nameson (1982 HK) to be declared on 22nd June, which we expect to be seasonally weak for H2.

• Lingyi iTech (1688 HK), a leading intelligent manufacturing platform for electronic devices, has launched an H Share listing to raise US$1.1 billion.
• I discussed the H Share listing in Lingyi ITech H Share Listing: The Investment Case. 
• The proposed AH discount of 44.0% (based on the close on 16 June A Share price) is attractive, and I would participate in the H Share listing.

• Lingyi iTech Guangdong (002600 CH) , an intelligent manufacturing platform, aims to raise 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 likely A/H premium in our previous note. In this note, we talk about the IPO pricing.

• SG Micro (3661 HK) is looking to raise 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.
• In this note, we examine the IPO dynamics, and look at the firm’s valuation.

• Kingboard Laminates (1888 HK)‘s relative outperformance versus its parent peaked at the May 29 global index inclusion and has since retraced 40% of the divergence built up since March.
• The second block placement of 155 million shares at HK$76.00, combined with Kingboard (148 HK) probable August index inclusion, structurally favors continued convergence of the parent-subsidiary spread.
• We apply our proprietary pattern analysis on the two stocks relative performance series: previous historical analogues suggest the current relative ‘outperformance rebound’ may stall soon and the convergence trend resume.

• SG Micro (3661 HK), a leading analog IC company in China, has launched an H Share listing to raise US$587 million.
• I discussed the H Share listing in SG Micro H Share Listing: The Investment Case. 
• The proposed AH discount of 42.3% (based on the close on 16 June A Share price) is attractive, and I would participate in the H Share listing.

• Circuit Fabology Microelectronics Equipment Co Ltd (2643044D HK) is looking to raise up to US$413m in its upcoming Hong Kong IPO.
• It is the world’s largest provider of PCB direct imaging equipment, delivering PCB direct imaging and semiconductor direct-writing lithography equipment. 
• In this note, we examine the IPO dynamics, and look at the firm’s valuation.

• Wasion (3393 HK) and Ten Pao Group (1979 HK) operate in a similar segment, but they are not exactly the same type of companies. 
• Wasion Management recently initiated a share buyback program of HKD 200 million that will provide a price floor for the share price. 
• Ten pao is much cheaper than Wasion but that’s because Wasion’s earnings have grown more too. 

• With an aim to raise HK$8.2bn of net proceeds, Lingyi iTech (1688 HK)‘s H-share IPO is a sizeable one and should attract interest. 
• Earnings record for this high-precision intelligent manufacturing platform is volatile, but should improve in FY27-28. 1Q26 profit drop is distorted by huge exchange losses.  
• Priced at 44.6% discount to its A-share and 27.7x PER, the IPO is inexpensive. Assuming a discount of 26.9%, the fair price (HK$13.43) implies a 32% upside.

• Lingyi iTech launched its Hongkong IPO aiming to raise up to HK$8.3B (~ US$ 1.1B). They are are a leading high-precision intelligent manufacturing platform for electronic devices.  
• Lingyi iTech intends to use the IPO proceeds for expanding production facilities, scale overseas infrastructure, investment & acquisition opportunities, enhance R&D capabilities and working capital.
• We would recommend investors with a near to medium-term investment horizon to consider the name, given the scale and prospects.