Cynthia Ho
Senior Asia Markets Reporter

Hong Kong and mainland equities plus China macro and policy. Former Greater China analyst at a foreign securities firm. Delivers insights on HK and mainland equities.

Latest

According to a Hong Kong Stock Exchange filing on May 12, Xiaomi Group repurchased 3.2 million of its Class B shares for a total of HK$100 million.

Xiaomi Buys Back 3.2 Million Shares for HK$100 Million

**Key Takeaways:** * Xiaomi Group repurchased 3.2 million Class B shares for HK$100 million on May 12, according to a Hong Kong Stock Exchange filing. * The transaction is part of a larger buyback initiative that has seen the company repurchase approximately HK$4.7 billion in shares so far in 2026. * The buybacks come as the stock remains down over 23 percent year-to-date, despite operational progress in its electric vehicle division, ahead of its May 26 earnings report.

Independent refiners in China's Shandong province are reducing fuel output as high crude costs and weak domestic demand lead to significant financial losses, defying a government directive to maintain production.

China's Teapot Refiners Cut Runs by 5% as Losses Mount

**Key Takeaways:** * Independent refiners in China’s Shandong province are cutting output in May after facing losses of 500-600 yuan per ton on high crude prices and weak domestic demand. * The production cuts defy a directive from Beijing to maintain fuel output, signaling that severe market pressure is overriding government policy for some smaller operators. * **Refinery Run Rates:** * April Average: ~55% * Current Rate: ~50% * Change: -5 percentage points

Shares in DEEPEXI TECH (01384.HK) surged by over 16% after its CEO published an article detailing the company's work on 'memory mechanisms' for large AI models.

Deepexi Tech stock soars 16% on CEO's AI memory insight

### Key Takeaways - DEEPEXI TECH shares jumped 16.29% to close at HKD72.8, hitting an intraday high of HKD77.65. - The surge followed an article by CEO Zhao Jiehui on AI "memory mechanisms" for stateful intelligent systems. - Zhao's article links the effectiveness of this memory system directly to the "token economy equation."

Bank of China International initiated equity research coverage on GPGPU manufacturer Biren Technology (06082.HK), assigning a 'Buy' rating and a price target of HK$74.43.

Biren Technology Initiated at ‘Buy’ by Bank of China on 137% Sales Forecast

**Key Takeaways** * Bank of China International starts coverage on Biren Technology with a ‘Buy’ rating and a HK$74.43 price target. * The bank forecasts a 137% compound annual growth rate for revenue between 2025 and 2028, seeing breakeven by 2027. * Valuation is based on a 20 times price-to-sales multiple on 2027 estimates, citing China’s soaring AI compute demand.

CMSI initiated coverage on KNOWLEDGE ATLAS and MINIMAX-W with 'Overweight' ratings, citing unstoppable commercialization in China's large model industry and setting high price targets for both.

CMSI Initiates 2 Chinese AI Stocks at Overweight With Bullish Forecasts

**Key Takeaways:** * CMSI initiated coverage on KNOWLEDGE ATLAS (02513.HK) and MINIMAX-W (00100.HK) with "Overweight" ratings. * The price target for KNOWLEDGE ATLAS is set at HKD 1,282, with a revenue CAGR forecast of 172% for 2025-2028. * MINIMAX-W receives a HKD 982 price target, with a projected revenue CAGR of 193% for the same period.

BOCI Securities downgraded Zai Lab to 'Hold' from 'Buy' and cut its Hong Kong price target by more than half to HKD17, citing weak first-quarter earnings and a challenging near-term growth outlook.

BOCI Downgrades Zai Lab to Hold, Slashes Price Target by 51%

**Key Takeaways** * **Rating Cut:** BOCI downgrades Zai Lab to ‘Hold’ from a previous ‘Buy’ rating, citing concerns over the company's growth and profitability. * **Price Target Slashed:** The Hong Kong dollar target price was cut by 51% to HKD17 from HKD35, with the US ADR target lowered to $22 from $45. * **Weak Earnings:** The downgrade was prompted by a 6% year-over-year revenue decline in the first quarter and a wider net loss of $51 million.

CLSA published a research report maintaining its 'High-Conviction Outperform' rating on Mengniu Dairy (02319.HK) with a target price of HKD21.1, forecasting a rebound in China's raw milk prices in the second half of 2026 due to declining dairy cow numbers and stabilizing demand.

CLSA Sets HKD21.1 Target on Mengniu Dairy, Citing Milk Price Rebound

**Key Takeaways** * Brokerage CLSA maintained its "High-Conviction Outperform" rating on Mengniu Dairy with an unchanged price target of HKD21.1. * The firm forecasts raw milk prices in China will rebound in the second half of 2026 as industry overcapacity eases. * A declining dairy cow population, which fell to 5.8 million, is expected to tighten raw milk supply and drive the price recovery.

Retail sales of passenger cars in China plunged 21.5% year-over-year in April, marking a seventh consecutive month of declines as an intense price war and cautious consumer spending hit the world's largest auto market.

China's Car Sales Plunge 21.5% in April as Price War Bites

**Key Takeaways:** * China's passenger car retail sales fell 21.5% year-on-year and 16% month-on-month in April, the seventh straight month of decline. * Even the new energy vehicle segment contracted, with sales falling 11% as intense price competition and a wave of new models deterred buyers. * Automakers are increasingly turning to exports to offset domestic weakness, with companies like BYD, Chery, and Geely reporting massive gains in overseas sales.

A China Merchants Securities International report suggests a rally in robotics stocks is imminent, driven by the expected summer 2026 mass production of Tesla's Optimus robot.

Tesla robot timeline to boost 8 stocks, says CMSI

**Key Takeaways** * A CMSI report sees a robotics rally driven by Tesla's expected Optimus robot mass production in July or August. * The firm recommends buying into the sector now, highlighting 8 key stocks including UBTECH ROBOTICS and MINTH GROUP. * Upcoming IPOs from Unitree Robotics and Yunshenchu are expected to draw more capital and attention to the industry.

The China Association of Automobile Manufacturers and 8 major NEV companies have publicly denied online rumors about being investigated for 'power locking' issues.

8 China NEV makers deny power locking investigation rumors

China's auto industry association and eight major new energy vehicle makers, including BYD and Tesla, have refuted online rumors of being summoned by regulators over "power locking" issues. Several companies announced they are pursuing legal action against the originators of the false information. The denials aim to quell investor fears amid a separate, real increase in consumer complaints and regulatory scrutiny over the practice of remotely altering vehicle battery performance.

Citibank raises its price target for Kingboard Holdings by 35%, citing massive demand for the company's copper-clad laminates driven by the artificial intelligence infrastructure boom.

Citi Lifts Kingboard Target 35% on AI Supply Squeeze

**Key Takeaways:** * Citibank raises its price target on Kingboard Holdings to HK$65 from HK$48, implying 35% upside. * The bank cites an AI-driven supply shortage in the copper-clad laminate (CCL) market. * Profit forecasts for 2026-2028 are increased by as much as 61 percent, with the laminate business expected to dominate earnings.

Deutsche Bank reiterated a 'Sell' rating on Pop Mart and cut its price target to 140 HKD, citing cooling overseas sales and domestic fatigue, creating a clash with bullish sentiment from investor Duan Yongping's recent purchases.

Pop Mart stock jumps 7% on star investor buy-in but Deutsche Bank sees 14% fall

### Key Takeaways * Deutsche Bank reiterates its "Sell" rating on Pop Mart, cutting its price target to HKD 140. * The bank forecasts a 27% quarter-over-quarter decline in Q1 overseas sales and warns of negative growth in 2026. * The bearish call comes as famed investor Duan Yongping’s disclosed buying sparked a single-day 7% rally.

Goldman Sachs issued a strong buy recommendation for Chinese A-shares, raising its 12-month CSI 300 index target to 5300 points, citing economic and policy tailwinds.

Goldman Sachs sets 5300 target for China's CSI 300 index

### Key Takeaways * Goldman Sachs has issued a "strong overweight" on Chinese A-shares, setting a 12-month price target of 5300 for the CSI 300 index, implying a 13% total return in USD. * The bank's strategists argue that A-shares are superior to H-shares due to a favorable global rotation from software to "hard tech," from which the A-share market is better positioned to benefit. * The bullish thesis is supported by China's producer price index (PPI) ending a 41-month period of deflation, upgraded earnings forecasts for 2026, and attractive shareholder yields.

CLSA initiated coverage on Montage Technology (06809.HK) with a target price of HKD447.2 and an 'Outperform' rating, citing strong server CPU demand from the AI industry's shift to inference. This action led to an 11.194% increase in the stock price.

Montage Technology Soars 11% as CLSA Cites AI Agent Demand

Montage Technology shares surged over 11 percent after CLSA initiated coverage on its Hong Kong stock with a HKD 447.2 target price. The broker cited surging server CPU demand from the artificial intelligence sector's shift toward inference and agent-based applications as a primary catalyst for the chipmaker.

UOB Kay Hian raised its target price for Yuexiu Property to HKD 4.8, citing the company's recent RMB 4.691 billion asset disposal which is expected to improve its financial structure.

Yuexiu Property Target Raised to HKD 4.8 by UOB Kay Hian

### Key Takeaways * UOB Kay Hian raises its target price for Yuexiu Property to HKD 4.8, a 14.3% increase, while maintaining a "Buy" rating. * The company's disposal of five assets for RMB 4.691 billion is expected to generate a net cash inflow of RMB 4.66 billion. * Proceeds are slated for reinvestment in residential land acquisitions, aiming to optimize the company's investment portfolio.

A surge in mainland visitor arrivals to Hong Kong during the May Golden Week holiday boosted retail, hotel, and catering revenues, though spending patterns show a shift away from luxury goods.

Hong Kong retail sees sales jump after 10% Golden Week visitor surge

**Key Takeaways:** * Mainland visitor arrivals rose 10% year-over-year to 1.01 million during the five-day May holiday period. * Prime shopping malls like K11 MUSEA saw tourist spending jump 25%, with city-wide hotel occupancy hitting 90%. * Analysts note a shift to experience-based tourism, concentrating spending in tourist hubs and less on broad luxury retail.

Brokerage firm UOB Kay Hian identified AI cloud as a key growth area in China's internet sector, naming Alibaba as its top stock pick with a 'Buy' rating and a HKD 192 price target.

UOB Kay Hian names Alibaba top AI pick with HKD 192 target

**Key Takeaways** * UOB Kay Hian named Alibaba its top pick in the Chinese internet sector, maintaining a "Buy" rating and a HKD 192 price target. * The brokerage also reiterated "Buy" ratings for Tencent and Baidu, with price targets of HKD 728 and HKD 170, respectively. * The bullish stance is driven by strong AI token demand, rising cloud pricing power, and the growth of AI super applications in China.

Shanxi Securities maintains a 'Buy-B' rating on Sansheng Pharmaceutical following a $1.5 billion upfront payment from Pfizer in a global partnership for its core dual-antibody drug.

Sansheng Pharma Gains on Buy Rating, $1.5B Pfizer Deal

**Key Takeaways** * Shanxi Securities maintains a "Buy-B" rating on Sansheng Pharmaceutical, citing a pivotal partnership with Pfizer. * The deal includes a $1.5 billion upfront payment for Sansheng's core dual-antibody drug, SSGJ-707. * Multiple innovative drugs are now entering the NDA stage, with commercialization expected to ramp up from 2026.

Guotai Junan International (GTHT) announced a plan to sell its 24.99% stake in Shanghai Securities to Orient Securities (DFZQ), which intends to acquire 100% of the firm.

GTHT to sell 24.99% stake in Shanghai Securities to DFZQ

**Key Takeaways** * Guotai Junan International (GTHT) has agreed to sell its entire 24.99% holding in Shanghai Securities. * Orient Securities (DFZQ) will pay for the stake using a combination of newly issued A-shares and cash. * The deal is a component of DFZQ's larger strategy to acquire 100% of Shanghai Securities from all shareholders.

Morgan Stanley maintained an 'Overweight' rating on CHINA COAL (01898.HK) and raised its target price, citing cost controls and a recovery in its chemical business.

China Coal Price Target Raised to HKD17.7 at Morgan Stanley

**Key Takeaways:** * Morgan Stanley reiterates its Overweight rating on China Coal, lifting the price target to HKD17.7 from HKD17.5. * The bank trims near-term EPS forecasts by 2-3% but cites resilient cost controls and a chemical business recovery. * Shares fell over 5% despite the bullish note, which implies a potential 30% upside from the stock's closing price.

Your money person, finally.

Try Ed free. No credit card. No commitment.