In today’s briefing:
- Tencent/Netease: One Approval for Tencent in June
- [IO Technicals 2025/26] Bearish Momentum Intensifies
- Regencell Holdings (RGC US) And the New Ramp-And-Dump Schemes
- Zijin Mining (2899 HK): Fair Value Still 25% Higher Despite IPO Discount Risks
- Hong Kong Single Stock Options Weekly (June 23 – 27): Breadth Snaps Back and Option Volumes Surge
- Anjoy Food Group IPO: Buy It Now Frozen, Savor, and Anjoy It Later
- Downgrading Germany and Ireland; Global Technology Still Leading; Crucial Base Supports Holding
- Unisound AI IPO (9678.HK): Pricing and Hong Kong Debut, Low Float and High Valuation
Tencent/Netease: One Approval for Tencent in June
- China announced game approval for the June batch. The number of games approved remained at a higher level than 2023.
- The pace of China game approval appears to have accelerated to the same level as pre-tightening.
- In June, Tencent received approval for a domestic game. The company, with Netease and Kingsoft, also received approval for one imported game each.
[IO Technicals 2025/26] Bearish Momentum Intensifies
- Iron ore prices weakened due to rising Australian and Brazilian exports and subdued Chinese demand, while the UK prepares tighter steel import restrictions.
- Rio Tinto and Hancock Prospecting have secured approvals for a $1.6bn joint initiative in Western Australia, expected to produce 31 million tonnes of iron ore annually.
- Prices are still trading beneath critical moving averages, suggesting ongoing downside momentum, while the MACD below its signal line confirms the prevailing bearish trend.
Regencell Holdings (RGC US) And the New Ramp-And-Dump Schemes
- The absurd valuation the market has placed on Hong Kong-based biotech Regencell Holdings (NASDAQ: RGC), which claims to be devising Traditional Chinese Medicine (TCM) cures for ADHD, autism, and other neurocognitive disorders, has metastasized since our April 2 newsletter.
- RGC rose 12,980% (on a split-adjusted basis) from the time of our publication to the peak on June 17.
- The stock has fallen a good deal from its $78 value on June 17, but, at $22.95 as of this writing, there is still much more distance for RGC to fall.
Zijin Mining (2899 HK): Fair Value Still 25% Higher Despite IPO Discount Risks
- Zijin plans to IPO its overseas gold unit, targeting 85t output in 2025; timeline not yet disclosed.
- SOTP values copper business at RMB 592 bn, gold at RMB 190–200 bn, lithium adds RMB 18–28 bn.
- Stock trades ~15–20% below intrinsic value, offering ~25–26% upside even without IPO re-rating.
Hong Kong Single Stock Options Weekly (June 23 – 27): Breadth Snaps Back and Option Volumes Surge
- Breadth rebounded sharply after last week’s weakness, with most single stocks posting gains.
- Single stock option volumes surged, reaching the highest levels seen since early April.
- Xiaomi stood out this week across multiple contract and volume statistics.
Anjoy Food Group IPO: Buy It Now Frozen, Savor, and Anjoy It Later
- Anjoy Food Group launched its Hong Kong IPO aiming to raise up to HK$2,639 million (US$336 million). The company plans to sell 39.9 million shares at HK$66 per share.
- Anjoy is the largest quick-frozen food company in China, with a market share of 6.6% and 39 signature products, each generating revenue exceeding RMB 100 million.
- Pricing pressure due to intense market competition is the concern that seems will persist in the near term. However, the company has long-term growth opportunities.
Downgrading Germany and Ireland; Global Technology Still Leading; Crucial Base Supports Holding
- We discussed in last week’s June 19 report how bullish price and RS trends on Israel’s TA-125 was our tell that global equities were looking past Israel-Iran tensions.
- Now completely in the rear-view mirror. We also discussed how we were expecting short-term support on ACWI-US at $123-$123.50 (6.5-month base support), and ACWI-US bottomed at $123.20 on Monday.
- As a result, we remain near-term bullish since our 4/22/25 Compass, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass).
Unisound AI IPO (9678.HK): Pricing and Hong Kong Debut, Low Float and High Valuation
- Unisound AI Technology, Chinese AI startup with focus on intelligent voice and speech processing technologies, priced its IPO at HK$205.00 per share, top of a range.
- Beijing based AI company raised ~HK$320M in this offering, of which cornerstone investors acquired ~HK$95M worth of shares or ~30% of the total offer H shares.
- The claw-back was triggered due to strong retail demand. The HK offering was ~92 times oversubscribed, and the allocation was increased to 624,400 H shares.
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