Kevin Ip
HK & China Markets Correspondent

Focusing on HK equities, A-shares, and China macro. Leverages seven years of experience at HKEX to provide expert financial journalism.

Latest

Morgan Stanley maintained its Overweight rating on AAC Tech with a HKD 42 price target, citing the mass production of new cooling units for AI data centers as a key growth driver.

AAC Tech Rises Over 4% as Stanley Eyes AI Cooling Unit Growth

**Key Takeaways** * Morgan Stanley reiterates its "Overweight" rating on AAC Technologies, setting a price target of HKD 42. * The rating is supported by the mass production of new cooling units for AI data centers by AAC's subsidiary. * The new products are seen as a significant strategic move, positioning AAC to capture growth from global AI infrastructure spending.

MTT GROUP (02350.HK) proposed a 2-for-5 rights issue of 250 million shares at a subscription price of HKD0.275 each, a 64.29% discount to the closing price, to raise net proceeds of approximately HKD65.8 million.

MTT Group to raise HKD66 million in deeply discounted rights issue

**Key Takeaways:** * Proposes a 2-for-5 rights issue to raise approximately HKD65.8 million in net proceeds for business expansion and working capital. * Subscription price of HKD0.275 represents a 64.3% discount to the last closing price, signaling significant potential dilution for existing shareholders. * The company plans to allocate 78% of the funds to expand its system integration solutions business, with the rest for general corporate use.

Impact Therapeutics (07630.HK) saw its stock price surge by 76.6% to open at $35.5 on its first day of trading on the Hong Kong Stock Exchange.

Impact Therapeutics stock debuts with a 77% surge to $35.5

**Key Takeaways:** * Shares opened at $35.5, a 76.6 percent premium to the listing price. * The company's stock was priced at $20.1 for its initial public offering. * The debut follows a 60 percent gain in gray market trading on the prior day.

Morgan Stanley raised its GDP growth forecasts for China for 2026 and 2027, reflecting a significant improvement in market sentiment and a global repricing of risk.

Morgan Stanley Lifts China 2026 GDP Outlook on Improving Sentiment

**A significant repricing of global risk sees investor confidence in China rebound, prompting Morgan Stanley to upgrade its GDP growth forecasts.**

Shenzhen Biwin Storage Technology Co., Ltd. submitted an application for an Initial Public Offering (IPO) to the Hong Kong Stock Exchange (HKEX).

Biwin Storage files for 1 Hong Kong IPO to fund growth

**Key Takeaways:** * Shenzhen Biwin Storage Technology has formally submitted its IPO application to the Hong Kong Stock Exchange. * The company is a key player in China's domestic storage and semiconductor technology sector. * Proceeds are expected to fund research and development, though deal size remains undisclosed.

JD INDUSTRIALS (07618.HK) announced its Board has authorized a share repurchase program of up to USD200 million over a 24-month period from the open market.

JD Industrials to Buy Back $200 Million in Shares After 54% Profit Jump

**Key Takeaways** * JD Industrials (07618.HK) board authorizes a share repurchase program of up to $200 million. * The buyback will be conducted on the open market over a 24-month period. * The announcement follows a reported 54.4% year-over-year increase in first-quarter net profit.

JD Logistics (02618.HK) has approved a share repurchase plan of up to USD 1.2 billion to be executed over the next 48 months, signaling confidence despite high short interest.

JD Logistics to buy back up to $1.2 billion in shares

**Key Takeaways:** * JD Logistics board authorizes a share repurchase plan of up to $1.2 billion, to be executed over a 48-month period. * The company stated the move reflects confidence in its long-term business outlook and that it has the financial resources to fund the buyback. * The announcement comes amid notable short-selling activity, with the short-sell ratio recently standing over 120%.

JD Health's Board of Directors authorized and approved a plan to repurchase up to $1 billion of its shares from the open market over a 48-month period.

JD Health to buy back $1 billion in shares over 48 months

- JD Health's board approved a share buyback of up to $1 billion. - The repurchase program will span a 48-month period. - The move signals confidence and could boost the company's stock price.

Metis TechBio-P (07666.HK) saw its shares surge by as much as 205% in grey market trading ahead of its official Hong Kong Stock Exchange listing on May 13.

Metis TechBio-P stock soars 205% in grey market debut

**Key Takeaways:** * Metis TechBio-P (07666.HK) shares surged as much as 205% in grey market trading ahead of its May 13 listing. * On the Futu platform, the stock opened at HKD32 against a listing price of HKD10.5, a 204.8% premium. * Combined grey market volume on the Futu and Phillip platforms exceeded 20 million shares, worth over HKD673 million.

HSBC Research maintained 'Buy' ratings on SANDS CHINA LTD, GALAXY ENT, and MGM CHINA, forecasting Macau's May Gross Gaming Revenue (GGR) to grow by 2-10% year-over-year.

HSBC backs 3 Macau casinos as May gaming revenue to grow up to 10%

* HSBC Research maintains Buy ratings on Sands China, Galaxy Entertainment, and MGM China, citing positive long-term fundamentals for Macau. * Macau's gross gaming revenue for the first 10 days of May was MOP7.8 billion, with average daily mass revenue up 17-20% from April. * The bank forecasts full-month May gaming revenue to grow between 2% and 10% year-over-year, reaching up to MOP23.3 billion.

On May 12, 2026, C&D INTL GROUP (01908.HK) stock extended its rally to a seventh consecutive day, rising over 3.25%, after HSBC Research reiterated its 'Buy' rating and HKD19.9 target price, citing potential for accelerated land replenishment and strong project sales.

C&D International stock gains for 7 days on HSBC buy call

**Key Takeaways:** * C&D International Group's stock rose for a seventh straight day, gaining over 3% after an optimistic HSBC Research report. * HSBC reiterated its "Buy" rating and HKD 19.9 target price, citing strong sales momentum and an attractive valuation. * The bank sees potential for the stock to catch up to the industry average, supported by accelerated land acquisition.

Galaxy Entertainment Group reported an 11% year-over-year increase in first-quarter revenue, driven by a rise in Macau tourism.

Galaxy Entertainment Q1 revenue climbs 11% to HKD 12.4 billion

**Key Takeaways** * Galaxy Entertainment Group reported HKD 12.4 billion in net revenue for the first quarter of 2026, an 11% increase year-over-year. * Adjusted EBITDA rose 8% to HKD 3.6 billion, though both revenue and earnings saw sequential declines from the previous quarter. * The company attributed the quarter-over-quarter dip to HKD 2 million in unfavorable luck, a stark contrast to the HKD 730 million in favorable luck from Q4 2025.

Galaxy Entertainment (0027.HK) reported first-quarter 2026 financial results, showing a year-over-year increase in adjusted EBITDA and VIP gaming revenue that surpassed analyst estimates.

Galaxy Entertainment Q1 EBITDA rises 8.5% to HK$3.58 billion

**Key Takeaways:** * Adjusted EBITDA for the first quarter was HK$3.58 billion, an 8.5% increase from the prior year. * Q1 VIP gaming revenue reached HK$2.3 billion, beating consensus estimates of HK$2.1 billion. * The results point to continued recovery in Macau's high-end gaming segment.

UBS raised its target price for CKH HOLDINGS (00001.HK) to HKD 84.6, citing undervalued earnings from its Cenovus Energy stake and upcoming gains from asset disposals.

UBS lifts CKH Holdings target 26% on energy, asset sale gains

**Key Takeaways:** * UBS raised its price target on CKH Holdings by 26% to HKD 84.6, reiterating a "Buy" rating. * The bank believes the market is underestimating earnings from the company's Cenovus Energy stake amid high oil prices. * Future earnings are also expected to be boosted by HKD 19.2 billion in gains from asset disposals.

TOPNC, China's 'first commercial aerospace stock,' has launched its Hong Kong initial public offering, aiming to raise approximately HKD1.606 billion.

TOPNC seeks HKD1.6 billion in Hong Kong aerospace IPO

**Key Takeaways:** * TOPNC is offering 65.33 million shares at HKD26.39 each, aiming to raise approximately HKD1.606 billion in its Hong Kong IPO. * The offering attracted a strong cornerstone lineup, including Goldman Sachs and UBS AM, collectively subscribing for USD110 million in shares. * Trading is expected to begin on the Hong Kong Stock Exchange's Main Board next Wednesday under the ticker 07688.HK.

TIME INTERCON's stock slumped over 8% after it announced a placement of 138 million new shares at a 13.6% discount to raise HKD2.89 billion.

Time Intercon slumps 8% on discounted HKD2.89 billion placement

**Key Takeaways** * TIME INTERCON shares fell more than 8% after the company announced a deeply discounted share placement to raise capital. * The company raised net proceeds of approximately HKD2.885 billion to fund global expansion, repay debt, and pursue acquisitions. * The placement of 138 million new shares at HKD21 each represented a 13.58% discount to the previous closing price.

BJ Sports & ENT (01803.HK) announced a proposal to place 282 million shares to an independent third party, raising approximately HKD 20.5 million in net proceeds and causing a significant stock price increase.

BJ Sports & ENT Surges 64% After Share Placement Deal

**Key Takeaways:** * BJ Sports & ENT announced a plan to raise approximately HKD 20.5 million through a private share placement to an independent investor. * The deal involves issuing 282 million new shares at HKD 0.073 each, representing an 18.89% discount to the previous day's close. * Shares of the company surged 64.4% on the news, signaling strong investor approval of the capital injection despite the dilution.

EWPT, the world's fifth-largest precision components maker by revenue, has submitted an application for a Hong Kong listing with CICC as the sole sponsor.

EWPT files for Hong Kong IPO with RMB49 billion market cap

**Key Takeaways:** * EWPT has formally submitted its application for an IPO on the Hong Kong Stock Exchange. * The company's A-share market capitalization recently exceeded RMB49 billion. * Last year's revenue grew 11% to RMB18.819 billion, while profit fell 20.3% to RMB670 million.

China Hongqiao Group (1378.HK) executed a significant share buyback, purchasing 17.21 million shares for HKD 573 million, reflecting a trend among Hong Kong firms to support valuations.

China Hongqiao Spends HKD 573 Million on Major Share Buyback

* China Hongqiao repurchased 17.21 million shares for approximately HKD 573 million in a single day. * The move is seen as a move to support the stock price and signal that management views the shares as undervalued. * The buyback follows a similar trend among other Hong Kong-listed companies using capital to boost shareholder value.

Convergence Technology placed 138 million new shares at a 13.6% discount, raising HK$2.9 billion and creating potential dilution for existing shareholders.

Convergence Technology Raises HK$2.9 Billion in Discounted Share Sale

**Key Takeaways** * Convergence Technology raised approximately HK$2.9 billion (US$370 million) in a new share placement. * The 138 million new shares were priced at HK$21, a 13.6 percent discount to the previous close. * The move is expected to dilute existing shareholdings and could place near-term pressure on the stock price.

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