There was HKD7.5 billion, HKD1.6 billion and HKD1.2 billion Southbound Trading net inflow to TRACKER FUND (02800.HK), SMIC (00981.HK) and TENCENT (00700.HK).

There was HKD493.5 million and HKD102.2 million Southbound Trading net outflow from YOFC (06869.HK) and POP MART (09992.HK).

For Southbound Trading of Shanghai-Hong Kong Stock Connect, TRACKER FUND (02800.HK) was the most active stock with highest net inflow of HKD5.7 billion, while LENOVO GROUP (00992.HK) was the most active stock with highest net outflow of HKD874 million.

For Southbound Trading of Shenzhen-Hong Kong Stock Connect, TRACKER FUND (02800.HK) was the most active stock with highest net inflow of HKD1.8 billion, while YOFC (06869.HK) was the most active stock with highest net outflow of HKD509.2 million.

At close, Southbound Trading net outflow totaled HKD0 , representing 45.07% of the total transaction amount of HKD145.53 billion.
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PICC P&C (02328.HK) announced that it received the approval of qualification of Zhang Daoming issued by the National Financial Regulatory Administration (NFRA) today.

Pursuant to the Approval, the qualification of Zhang as the President of the Company has been approved by the NFRA. The term of office of Zhang as the President of the Company commenced on 2 June 2026.
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MEITU (01357.HK)'s Meitu Design Studio announced a partnership with WPS Office, under which its AI design capabilities will be integrated into the Docer ecosystem.

Users can complete design tasks such as posters, product images and short videos directly within WPS Office without leaving the office environment.

The collaboration enhances design efficiency within office scenarios, marking the gradual integration of AI design capabilities into mainstream office settings and enabling users to implement creative ideas more efficiently.
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Spot USD/CNY lost 98 bps to close at 6.7720 today (3rd). As of 4:47 pm, USD/CNY in the night session dropped 108 bps. USD/CNH plummeted 150 bps to 6.7751, 31 bps below USD/CNY.
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HSBC Asset Management released its outlook for 2H26. Although geopolitical tensions may wreak short-term uncertainties, Asian equities are still expected to trend positively in 2H. AI remains a key structural driver, with the investment cycle supporting demand across the technology hardware supply chain, a considerable portion of which is manufactured and assembled in Asia.

Beyond AI, Asia is entering a broader upcycle in industrial capital expenditure, driven by energy transition and rising defense spending. These factors are expected to bolster employment, wage growth and consumption, thereby expanding opportunities beyond the technology sector.

Meanwhile, enhanced shareholder value initiatives across Asia are gradually strengthening corporate governance and improving cash returns, helping to narrow valuation discounts versus global peers and creating opportunities for companies best positioned to benefit from such reforms.

Beth Wong, Asian Equities Product Specialist at HSBC Asset Management, said valuations in the AI sector are backed by earnings growth, indicating that elevated valuations are supported by tangible profits. Regarding the outlook for Chinese and Asian equity markets, she remains optimistic on certain semiconductor companies, including some leading domestic Chinese chipmakers, as well as equipment names within the supply chain. Optical network-related stocks are also viewed favorably.
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Thanks to iterative upgrades in electrification technology by leading carmakers and the concentrated launch of several blockbuster new models, NEV wholesale volumes of multiple major carmakers in Mainland China hit record highs for the same period in May, highlighting the tangible results of domestic automakers' electrification transformation, the China Passenger Car Association (CPCA) said.

Carmakers including BYD COMPANY (01211.HK), CHERY AUTO (09973.HK), Tesla China, LEAPMOTOR (09863.HK), SAIC-GM-Wuling, NIO-SW (09866.HK), Arcfox, SAIC-GM, Dongfeng Nissan, GAC Toyota, and GAC Trumpchi, all recorded their best-ever NEV wholesale results for the month of May.

Among the top 10 passenger vehicle manufacturers in terms of NEV wholesale volume in mainland China in May, eight were listed carmakers. BYD COMPANY, GEELY AUTO (00175.HK), CHERY AUTO, Tesla and LEAPMOTOR ranked in the top five, with BYD COMPANY leading by a wide margin at 376,990 units, data showed.

Cui Dongshu, Secretary General of the CPCA, estimated that national passenger vehicle manufacturers NEV wholesale volume reached 1.36 million units in May, up 12% YoY and 11% MoM.
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PaXini, a haptics technology and humanoid robot manufacturer, is weighing a listing in Hong Kong and may submit a listing application to HKEX (00388.HK) in the coming months, Bloomberg reported, quoting people with the knowledge of the matter.

Backed by BYD COMPANY (01211.HK) and JD-SW (09618.HK), PaXini raised over RMB1 billion in a funding round in March, giving it a valuation of over RMB10 billion. The company's products include haptic sensors, dexterous robotic hands and the humanoid robot Tora.
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The Qwen APP announced that it will fully open to third-party Agents and Skills. All enterprises can operate their own branded Agents on Qwen, with the ability to customize Agent personas and service boundaries in the future, providing various forms of products and services to users through conversational interactions.

In the meantime, Agents are equipped with memory and proactive planning capabilities, enabling them to actively offer services in specific scenarios, such as itinerary reminders, benefit expiry alerts, and repeat purchase recommendations.

At present, Luckin Coffee, KFC, MIXUE GROUP (02097.HK) and CHINA EAST AIR (00670.HK), among others, are conducting initial Agent service trials on Qwen, with gradual rollouts to follow.

In the future, the CHINA EAST AIR Agent, after gaining a deep understanding of users travel plans and preferences, will be able to intelligently recommend itinerary options tailored to travelers needs, providing one-stop travel solutions.

On the Luckin Coffee Agent, users may be proactively notified, for example, that "queues are long at noon and it is advisable to place orders half an hour in advance."
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The State Council of China announced new regulations (No. 837) targeting outbound investments by Mainland investors, including investments into Hong Kong, Macau and Taiwan, which will take effect from 1 July 2026, UBS said in its report. Under the new rules, outbound investments will be subject to additional procedures and reviews, although specific implementation details have yet to be released.

The broker noted that the new regulation was introduced alongside the recently issued "Implementation Plan for Comprehensive Rectification of Illegal Cross-border Securities, Futures and Fund Business Activities", which sets a two-year target to clean up illegal cross-border activities. The potential impact on capital flows will depend on the implementation details and enforcement intensity.

As the MSCI Hong Kong Index is mainly composed of sectors sensitive to capital flows, including property developers, insurers, banks, brokers and Macau casinos, the index could face pressure if the new rules lead to material changes in cross-border capital inflows into Hong Kong and Macau.

UBS further quantified the exposure of relevant Hong Kong sectors to Mainland cross-border capital flows. For residential property developers, in 1Q26, Mainland buyers (identified by surname pinyin) accounted for 49% of primary market transaction value and 32% of total transaction value. However, not all Mainland buyers will be subject to regulation, as those who have become Hong Kong permanent residents are exempt.

In the insurance sector, Mainland visitors contributed approximately 50% of the NBV of AIA (01299.HK). In the banking sector, non-bank Mainland exposure accounted for around 40% of bank loans. For the securities industry, in 1Q26, Mainland clients contributed 13% of total funded accounts according to UBS estimates, 17% of client AUM and 20% of revenue of Futu Holdings Limited (FUTU.US).

For the Macau gaming sector, UBS estimated that about 60% of GGR is driven by the premium segment, including VIP and premium mass.
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ByteDance has restructured its Seed architecture, with Zhou Chang, head of multimodal, further expanding his management scope, according to LatePost, citing sources.

The Seed Robotics team, previously led by Li Hang, has been reporting to Zhou for more than a month. Li has now taken on an advisory role focusing on academic collaborations.

ByteDance is also recruiting a head of embodied intelligence technology to oversee the overall planning of its robotics business. The position is designated at L8 level, benchmarking against Alibaba's P10-P11, and will report to Zhou.

Robotics-related work is currently undertaken by multiple teams responsible for hardware, data and models, sources divulged. However, there has been a certain degree of capability overlap during execution, particularly in model development.

Following the adjustment, robotics-related R&D resources will be managed in a more centralized manner, which is expected to enhance collaboration.
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The share price of TENCENT (00700.HK) once mushroomed as much as 10% yesterday amid news that the company is gradually approaching the launch of an AI Agent for its 1.4 billion WeChat users, CLSA said in its report.

The feature would help users complete various tasks within the app. According to reports, TENCENT is testing an AI Agent prototype and plans to initiate the compliance process ahead of a formal launch as early as this month.

The broker noted that it is not yet clear whether the news is accurate, but believes it is only a matter of time. It expects TENCENT to roll out a trillion-parameter model first before launching AI agent for WeChat, with both likely to be realized within the year.

BABA-W (09988.HK) and ByteDance's To-C AI chatbots are adopting similar strategies, but both lack a sizable merchant and services ecosystem, CLSA said. ByteDance's Doubao AI chatbot has begun charging a monthly subscription fee but lacks transaction scenarios. ChatGPT has also attempted to monetize through business features, though with limited success.
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Tencent Cloud announced that the 2026 Tencent Cloud AI Industry Application Conference will be held in Beijing on Friday (5th). Dowson Tong, Senior Executive Vice President of TENCENT (00700.HK) and CEO of Cloud and Smart Industries Group, will join Tencent AI Chief Scientist Yao Shunyu for a dialogue to interpret Tencent's latest strategic deployment and thinking in the AI arena in the second half of AI development.

The 2026 Tencent Cloud AI Industry Application Conference is Tencent's most important annual AI product launch platform. A series of new agent-based application products will be unveiled, and new progress on infrastructure upgrades, including infra and other foundational capabilities, will also be announced.
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NEW WORLD DEV (00017.HK) said its commercial and retail businesses in mainland China delivered promising performance. The office portion of its large-scale integrated project K11 ELYSEA in Shanghai achieved a pre-leasing rate of nearly 70%, with tenants expected to gradually move in from October 2026.

During the May Day Golden Week, footfall and sales at various K11 projects in mainland China charted growth. Shenzhen K11 ECOAST recorded average daily footfall of nearly 150,000 during the holiday, marking a new high for the year.

At Hanxi K11 Art Mall in Guangzhou, footfall during the May Day Golden Week rallied 30% MoM, while the number of consumers arriving by car jumped up nearly 57% MoM. Overall sales grew 63% MoM, with retail sales recording an average upsurge of 1.04x.

In Hong Kong, K11 Art Mall maintained a 100% occupancy rate over the long term, while K11 MUSEA's occupancy rate is almost 98%. According to the group, tourist spending at K11 MUSEA leaped 1.25x YoY during the first four days of the May Day Golden Week, with the largest single transaction close to $2 million.

On the residential front, the sales arrangements for "PAVILIA ROSA" in Kowloon Tong have been uploaded. The project provides 109 units, mainly comprising three- and four-bedroom standard units and duplex units. A total of 65 units will be launched for sale by tender this Thursday.
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Tiger Brokers announced compliance adjustments to its services for existing investors in mainland China. Starting next Friday (12th), for domestic trading services, it will suspend new position openings and additional position increases for stocks and all other products, and will only support sell and position-closing transactions. For domestic fund transfer services, fund deposits will be suspended, while withdrawal functions will remain normal, with full efforts to safeguard client fund security.

The company stated that this adjustment will not affect services provided to existing investors overseas, nor will it affect the safety of existing client assets. Clients can continue to access their accounts, review holdings and sell existing positions as usual.
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Beijing recorded 16,008 existing home online signings in May, up 12.1% YoY, marking the second consecutive month at a five-year high for the same period, according to monitoring by China Index Academy.

In terms of transaction pace, after reaching a peak of 19,057 units in March, transactions moderated in April and May. Zhang Dawei, Chief Analyst at Centaline Property, said existing home transactions in Beijing in May edged down 10.5% MoM, while derailing from the usual pattern of a rapid cooldown after the traditional peak season in previous years.

Transaction resilience has been well above levels seen in the same period of prior years, indicating that the current property market recovery is not a short-term spike, but a sustained rebound driven by the continuous release of demand.
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TENCENT (00700.HK) is currently impossible to determine when the WeChat AI agent will be launched, Chinese media reported, citing people with the knowledge of the matter.

Its rollout timeline largely hinges on the progress of regulatory approval for AI agents, TENCENT said. Given WeChat's user base of 1.4 billion, the compliance process may be more stringent than for other products.

The WeChat AI agent has so far been TENCENT's "top-priority confidential project," with preparations having started as early as 1H25, according to early rumor. TENCENT sources confirmed the news to the Chinese media.

TENCENT last quoted at HKD466.4, down 3.16%, with turnover of 18.8665 million shares, involving HKD8.941 billion.
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TENCENT (00700.HK)'s QQ will expand into the comic drama by launching a new "QQ Comic Drama" business, Tech Planet, citing sources, reported.

Leveraging QQ's broad base of young users, the initiative aims to build a content gateway and creator platform, enhance its pan-entertainment content ecosystem, and capture the next-generation content consumption market.

Within QQ's "Novels and Animation" section, a "Comic Drama" tab has already been embedded. However, the content currently comes from TENCENT's "Comic Drama" mini program, where users must switch to the mini program to watch, resulting in cumbersome operations and a limited viewing experience that makes it difficult to achieve content retention and immersive binge-watching.

As a dedicated streaming portal, "QQ Comic Drama" is expected to lower operational barriers for viewing.
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In May, RatingDog China General Services PMI elevated to 54.4 from 52.6 in April, further exceeding the 50 threshold and topping market expectations of 52.3, indicating the sharpest expansion in services activity in three months. The current expansion period, which began in January 2023, continued to extend.

Entering the second quarter, business activity expanded at a faster pace, while new business growth accelerated further. Over the past five months, demand growth in the services sector accelerated four times, broadly in line with the survey's long-term average.

Respondents attributed higher new orders to rising client demand, business innovation and expansion, acquisition of new customers, improved market conditions and new project development. New orders have so far grew for 41 straight months, marking the second-longest growth streak in the survey's history.

RatingDog China Composite Output Index registered 54 in May, above the 50 neutral mark and higher than April's 53.1. Composite output growth was the fastest since February and the second-highest in two years. Supported by services activity, overall growth accelerated from April, while manufacturing output continued to expand steadily.

Total new business ascended at the strongest pace in three months, while backlogs heightened for a fourth straight month. Employment grew marginally, mainly concentrated in the services sector.
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There was HKD950.8 million, HKD344.4 million and HKD32 million Southbound Trading net inflow to SMIC (00981.HK), AKESO (09926.HK) and BABA-W (09988.HK).

There was HKD2.1 billion, HKD916.6 million and HKD716.4 million Southbound Trading net outflow from TENCENT (00700.HK), XIAOMI-W (01810.HK) and MEITUAN-W (03690.HK).

For Southbound Trading of Shanghai-Hong Kong Stock Connect, AKESO (09926.HK) was the most active stock with highest net inflow of HKD694.8 million, while TENCENT (00700.HK) was the most active stock with highest net outflow of HKD3.3 billion.

For Southbound Trading of Shenzhen-Hong Kong Stock Connect, TENCENT (00700.HK) was the most active stock with highest net inflow of HKD1.2 billion, while MEITUAN-W (03690.HK) was the most active stock with highest net outflow of HKD560.4 million.

At close, Southbound Trading net outflow totaled HKD0 , representing 40.62% of the total transaction amount of HKD151.84 billion.
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