There was HKD1.7 billion and HKD236.6 million Southbound Trading net inflow to TENCENT (00700.HK) and YOFC (06869.HK).

There was HKD2.8 billion, HKD318.7 million and HKD115.3 million Southbound Trading net outflow from SMIC (00981.HK), HUA HONG SEMI (01347.HK) and VGT (02476.HK).

For Southbound Trading of Shanghai-Hong Kong Stock Connect, SMIC (00981.HK) was the most active stock with highest net inflow of HKD942.7 million, while KB LAMINATES (01888.HK) was the most active stock with highest net outflow of HKD333.9 million.

For Southbound Trading of Shenzhen-Hong Kong Stock Connect, TENCENT (00700.HK) was the most active stock with highest net inflow of HKD940.2 million, while SMIC (00981.HK) was the most active stock with highest net outflow of HKD3.7 billion.

At close, Southbound Trading net outflow totaled HKD0 , representing 36.80% of the total transaction amount of HKD126.14 billion.
~




AAStocks Financial News
Web Site: www.aastocks.com

China's State Council announced the appointment of Ding Xiangqun as Director of the National Financial Regulatory Administration (NFRA), making her the first female director of the regulator.

Prior to this new appointment, Ding served as Party Secretary and Chairman of PICC GROUP (01339.HK).
~

AASTOCKS Financial News
Website: www.aastocks.com

GIGADEVICE (03986.HK) and NIO-SW (09866.HK) officially signed a strategic cooperation agreement. Both parties will establish a long-term and in-depth partnership, focusing on collaborative innovation across the entire automotive chip value chain to support the iterative upgrades of NIO-SW's intelligent electric vehicles.

Under the agreement, both sides will leverage their respective expertise in chip design and vehicle manufacturing to jointly advance the co-development of automotive-grade chips and next-generation electronic and electrical architectures.

This strategic cooperation not only represents a two-way integration of technology and business between two industry leaders, but also marks a key step toward deeper upstream and downstream collaboration to build a robust industry ecosystem.
~

AASTOCKS Financial News
Website: www.aastocks.com

Spot USD/CNY added 56 bps to close at 6.7712 today (5th). As of 4:42 pm, USD/CNY in the night session lifted 39 bps. USD/CNH grew 33 bps to 6.7701, 11 bps above USD/CNY.
~

AASTOCKS Financial News
Website: www.aastocks.com

PricewaterhouseCoopers (PwC) informed retired partners that proceeds from the 2022 sale of a business unit, which had originally been earmarked for distribution to partners at the time, will now be retained for the firm’s “operations and investments”, Financial Times reported, citing an email it obtained.

Partners in Hong Kong are expected to collectively lose compensation amounting to hundreds of thousands of US dollars, after PwC was hit with a record fine over audit failures related to China Evergrande.

The policy change will purportedly affect certain current and former partners. Weeks earlier, PwC had agreed to pay a total of HKD1.3 billion (USD166 million) in fines and compensation for failing to detect fraud that led to Evergrande’s collapse.

Hong Kong partners had previously been promised a share of the proceeds from PwC’s USD2.2 billion sale of its global mobility business in 2022 to US private equity firm Clayton Dubilier & Rice.
~

AASTOCKS Financial News
Website: www.aastocks.com

RANGE TECHNOLOGY (300442.SZ) is seeking a loan of approximately HKD20 billion to build Hong Kong's largest computing facility, Bloomberg reported, citing people with the knowledge of the matter.

RANGE TECHNOLOGY is purportedly in preliminary discussions with multiple banks regarding a one-year loan, which may be structured as a syndicated loan or several bilateral financings.

In March this year, the Sha Ling Data Park project of Runze (Hong Kong), a subsidiary of RANGE TECHNOLOGY, officially commenced construction. The total investment over the next three years is expected to reach HKD23.8 billion.
~

AASTOCKS Financial News
Website: www.aastocks.com

At the Tencent Cloud AI Industry Application Conference held today (5th), Dowson Tong, Senior Executive Vice President of TENCENT (00700.HK), engaged in a dialogue with Yao Shunyu, Chief AI Scientist.

Regarding the second half of AI development, Yao stated that AI is a long-term endeavor and, in a sense, the second half has only just begun. He does not believe that ChatGPT and Claude Code will be the only Super Apps, confident that new opportunities will continue to emerge.
~

AASTOCKS Financial News
Website: www.aastocks.com

At the 2026 Huawei Cloud INSPIRE Conference, Huawei Cloud officially launched the "Industry AI DreamWorks - Embodied Intelligence Zone" and announced that its first full-process embodied intelligence development platform, CloudRobo, will begin public beta within June.

The zone purportedly provides a one-stop platform for embodied intelligence data synthesis, model development, and simulation validation. It offers developers millions of ready-to-use data assets and more than 20 Ascend-compatible model assets to support embodied intelligence application development.

Meanwhile, Huawei Cloud introduced CloudRobo, the first full-process embodied intelligence development platform, featuring a secure and trusted PB-level data foundation and development pipeline, the industry’s first cloud-native embodied model production engine, and the first fully domestically developed Real-Sim data production and model evaluation system.

The platform enables robots to migrate to the cloud within hours and deploy models within minutes. The public beta is scheduled to commence on June 30.
~

AASTOCKS Financial News
Website: www.aastocks.com

Tencent Cloud AI Industry Application Conference was held today (5th), where TENCENT (00700.HK) Senior Executive Vice President Dowson Tong held a dialogue with TENCENT Chief AI Scientist Yao Shunyu.

At the event, Tong responded directly to market comments such as "Tencent AI has been slow". He said TENCENT is a company with highly diversified business lines, with many products operating across different tracks, and numerous teams advancing various projects and initiatives.

Therefore, in such a complex organization, some areas may move faster, some slower, and some projects may fail or remain exploratory. He acknowledged that there are indeed areas where TENCENT can improve, but emphasized that this is a long-distance race, a marathon.

He believed TENCENT has very rich application scenarios and diverse products across different tracks, each capable of providing useful information to models and generating value. In this long-term race, he expressed confidence that models will continue to iterate, user demands will keep evolving, and new product formats will emerge.
~

AASTOCKS Financial News
Website: www.aastocks.com

The 2026 Tencent Cloud AI Industry Application Conference was held in Beijing, where TENCENT (00700.HK) officially unveiled its "Efficiency Agent Toolkit" for the first time. The toolkit targets three major categories of needs - personal efficiency improvement, office efficiency improvement, and enterprise efficiency improvement - offering differentiated agent solutions across more than 20 vertical scenarios.

For individual users, the local AI assistant QClaw pioneered a "WeChat Direct Connect" model and integrates with Tencent Docs, Tencent Meeting, ima, and QQ Mail. The personal knowledge agent ima supports the creation of dedicated agents and continuously understands users through its memory system.

Targeting professionals such as white-collar workers, developers, OPC personnel, and designers, Tencent introduced the "Buddy" product family to address high-frequency productivity scenarios including code development, document processing, and creative design.

For enterprise users, Tencent also officially launched WorkBuddy Enterprise and the office agent suite Agent Suite, while upgrading the enterprise agent governance platform ClawPro and the agent development platform ADP 4.0.
~

AASTOCKS Financial News
Website: www.aastocks.com

The majority of TENCENT (00700.HK)'s code this year has been generated by AI, and TENCENT engineers may spend more time on architectural design, delegating coding tasks to AI while regularly guiding and refining AI-generated output, according to a dialogue at the Tencent Cloud AI Industry Application Conference held today (5th) between Dowson Tong, Senior Executive Vice President of TENCENT, and Yao Shunyu, Chief AI Scientist of TENCENT.

Addressing the industry's strong focus on AI cost optimization, Yao stated that cost-effectiveness primarily depends on performance. If performance is inadequate, cost-effectiveness will be weak. Secondly comes cost, and he noted that China is already leading the world in AI cost optimization.

He added that one of the most important factors in cost control is how to use smaller models to accomplish higher-value tasks effectively. On this basis, further architectural innovation and other improvements are still required.
~

AASTOCKS Financial News
Website: www.aastocks.com

After CATL (03750.HK) announced its 1Q26 results, Citi updated its financial model and raised its earnings forecasts for FY2026-28 by 9%/ 9%/ 7% to RMB103 billion/ RMB126 billion/ RMB149 billion, respectively. Although unit gross profit forecasts were lowered, the broker raised its battery sales projections and expected battery production and sales to reach milestones of 1.2 terawatt-hours (TWh) and 1.0 TWh, respectively, in FY2026, representing YoY growth of 61% and 54%.

Despite a high base, the broker expected CATL’s battery production and shipments to remain strong in 2H26, with demand for ESS serving as a key highlight. Citi also noted that lithium carbonate prices above RMB200,000 per tonne will not destroy demand in the short term; instead, higher lithium prices would signal resilient demand.

Citi expected the company’s net profit in 2Q26E to reach RMB24.3 billion, corresponding to battery sales of 260 gigawatt-hours, representing YoY growth of 77% and QoQ growth of 29%, respectively.

Citi raised the A-share TP of CONTEMPORARY AMPEREX (300750.SZ) from RMB576 to RMB603. Meanwhile, based on a historical H/A share premium of 28% (reflecting its scarcity as a global battery leader in offshore markets), the broker lifted the H-share TP from HKD621 to HKD888 and maintained a Buy rating, continuing to list it as the sector’s top pick.
~

AASTOCKS Financial News
Website: www.aastocks.com

Amundi, Europe’s largest asset manager, said that the rally in Asian equities driven by the AI boom will still have further room to run, unless a shift in US interest-rate expectations rattles the hyper-scalers underpinning the investment cycle.

Shares of South Korean and Taiwanese technology companies such as Samsung Electronics and SK Hynix have repeatedly hit record highs, Amundi noted. However, it did not yet see signs of a bubble, as earnings expectations for these companies are very high, suggesting that current valuations may remain at reasonable levels.

These valuations are unlikely to hinder the upward momentum of Asian semiconductor, hardware, and supply chain companies. AI infrastructure spending is projected to reach USD5 trillion by 2030, and hardware suppliers supporting these networks still have substantial upside.

South Korea’s KOSPI has proliferated nearly 100% YTD, while gains in stocks such as SK Hynix and Samsung Electronics have been even more striking. Amundi believed the investment outlook remains highly dependent on interest rate changes by the Federal Reserve.
~

AASTOCKS Financial News
Website: www.aastocks.com

On June 4 (yesterday), Citi invited a senior pharmaceutical innovation policy expert to host an expert conference call. According to the expert, authorities recognize that the core competitive advantage of the industry lies in efficient clinical validation rather than in the invention of technology itself. Therefore, regulators will continue to encourage compliant out-licensing of innovative drugs.

Stricter regulatory measures would only target extreme cases involving the export of critical core technologies. The expert also noted that companies with offshore IP structures, offshore clinical trial data, and a single-asset out-licensing model will be best positioned.

Citi’s top picks in the pharmaceuticals/biotechnology sector are HENGRUI PHARMA (01276.HK), CSPC PHARMA (01093.HK), ASCLETIS-B (01672.HK) and INNOVENT BIO (01801.HK).

The broker believed the market has overreacted to potential policies restricting biopharmaceutical technology exports, creating good buying opportunities for investors.
~

AASTOCKS Financial News
Website: www.aastocks.com

Over the past year, Huawei Cloud had more than 50,000 partners, over 8.5 million developers and more than 39,000 university talents, mentioned Peter Zhou, Director of Huawei and CEO of Huawei Cloud, at the Huawei Cloud INSPIRE Conference.

It also served more than 2,600 enterprise clients, deeply engaged in over 30 industries and implemented more than 500 application scenarios.

He noted that Huawei Cloud ranks first in market share in China’s government cloud and financial private cloud infrastructure segments, being way ahead. Among global cloud service providers, it has also been recognized as a leader.
~

AASTOCKS Financial News
Website: www.aastocks.com

Since May, the Hang Seng Biotech Index has underperformed the HSI by about 1,300 bps, becoming the biggest laggard sector and marking the industry’s entry into a downturn phase, CMSI said in its report. The broker summarized three reasons for the evident recent underperformance of Hong Kong-listed pharma/biotech stocks: liquidity constraints, rising policy uncertainty over overseas BD cooperation, and valuation markdowns for certain clinical assets.

On the macro level, amid increasing market polarization, liquidity has continued to flow into AI-related themes, driving strong outperformance in those sectors, while other sectors have experienced notable valuation compression. Meanwhile, overseas BD deals for China’s innovative drugs are facing heightened policy uncertainty.

John Moolenaar, the Chairman of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, proposed including biotechnology-related technologies in the COINS Act to restrict cross-border intellectual property licensing. He specifically noted that multinational pharmaceutical companies, including Bristol Myers Squibb, have recently stepped up out-licensing and co-development partnerships with Chinese companies.

The broker believed that recent macro disturbances and sector volatility provide a good opportunity for long-term investors to accumulate leading high-quality Chinese biopharmaceutical companies at lower levels. Its top picks were INNOVENT BIO (01801.HK), HANSOH PHARMA (03692.HK) and KEYMED BIO-B (02162.HK). It was also watchful of AKESO (09926.HK) and HENGRUI PHARMA (01276.HK), which are not yet under its coverage.
~

AASTOCKS Financial News
Website: www.aastocks.com

Chinese President Xi Jinping, at the invitation of North Korean leader Kim Jong Un, General Secretary of the Workers' Party of Korea and President of the State Affairs Commission, will pay a state visit to North Korea from June 8 to 9, a spokesperson for the International Department of the CPC Central Committee announced today (5th).
~

AASTOCKS Financial News
Website: www.aastocks.com

Mainland China has ramped up its crackdown on cross-border investment. Some Hong Kong banks have purportedly suspended the opening of Hong Kong bank accounts for Chinese customers that can be used for overseas investment.

Meanwhile, Hong Kong’s insurance sector may also be affected, particularly companies that heavily rely on Chinese visitors coming to Hong Kong to purchase insurance products.

AIA (01299.HK) plunged 6.75% yesterday (4th); with extended losses this morning (5th), it last quoted at HKD73.7, down 3.91%, with turnover of 23.5093 million shares, involving HKD1.766 billion.

PRU (02378.HK) last quoted at HKD103.3, down 4.35%. HSBC HOLDINGS (00005.HK) was depressed, last quoted at HKD143, down 2.32%. STANCHART (02888.HK) last quoted at HKD205, down 3.21%.
~

AASTOCKS Financial News
Website: www.aastocks.com

China Foreign Exchange Trade System (CFETS) announced on Friday (5th) that the central parity of USD/ RMB added 46 bps from the previous day to 6.8157.
~

AASTOCKS Financial News
Website: www.aastocks.com

Futu Holdings Limited (FUTU.US) announced that the company will make corresponding adjustments to its services for existing investors in mainland China, in order to comply with regulatory requirements in mainland China during the two-year rectification period and to promote the standardized development of cross-border securities business.

With effect from next Friday (June 12), trading services in mainland China will suspend buy (open position) orders for stocks and all other product categories, while sell (close position) orders will remain unaffected. Fund deposit services will also be suspended.

The adjustments will not affect services provided to existing investors outside mainland China, nor will they affect the safety of client assets. Clients may continue to access their accounts, review holdings and sell existing positions as usual.
~

AASTOCKS Financial News
Website: www.aastocks.com