Rachel Tang
HK & China Markets Correspondent

Focuses on Hong Kong and mainland capital markets, corporate earnings, and macro trends. Previously stationed as a correspondent in both Beijing and Hong Kong. Expert at translating macro policies into market signals.

Latest

Wuwanshengxin (Aihuishou) Group reported its Q1 2026 earnings on May 19, 2026, showing revenue of 6.16 billion RMB (+32.4% YoY) and non-GAAP net profit of 140 million RMB (+79.6% YoY), driven by growth in its self-operated (1P) refurbished electronics ToC business.

Aihuishou Profit Surges 80% on Refurbished iPhone ToC Shift

**Key Takeaways:** * Q1 non-GAAP net profit reached 140 million RMB, a 79.6% increase year-over-year. * Total revenue grew 32.4% to 6.16 billion RMB, driven by its self-operated (1P) division. * Direct-to-consumer sales of refurbished products jumped nearly 150%, now 45.1% of product revenue.

KE Holdings (Beike) announced its first-quarter financial results on the Hong Kong Stock Exchange, reporting a net revenue of ¥18.9 billion, a 19% decrease year-over-year, and an adjusted net profit of ¥1.61 billion, a 15.7% increase year-over-year.

KE Holdings profit jumps 16% despite revenue slide

**Key Takeaways:** * KE Holdings reports a 19% year-over-year revenue decline to RMB 18.9 billion for the first quarter. * Adjusted net income rose 15.7% to RMB 1.61 billion, beating analyst estimates on improved margins. * Gross transaction value fell 15.6%, weighed down by a 37.2% drop in new home transactions.

Able Engineering Holdings won a tender for a residential site in Tung Chung, Hong Kong, with a HKD 1.63 billion bid that was nearly 70% above market expectations.

Able Engineering wins Hong Kong site with a 70% premium bid

### Key Takeaways * **Aggressive Bid:** ABLE ENG HLDGS secured a Tung Chung residential site for HKD 1.63 billion, a price nearly 70% higher than the market's HKD 960 million valuation. * **Price Per Square Foot:** The transaction translates to an accommodation value of approximately HKD 3,052 per square foot, indicating a strong bet on the area's future value. * **Market Signal:** The unexpectedly high bid may suggest renewed developer confidence in the Hong Kong property market, potentially fueled by rising demand from mainland buyers.

Vobile Group (03738.HK) reported a 21% year-over-year increase in total revenue for the first quarter of 2026, driven by strong performance in its Mainland China business.

Vobile Group Revenue Jumps 21% in Q1 on China Business Growth

**Key Takeaways:** * **Total Revenue:** Increased by approximately 21% year-over-year for the three months ended March 31, 2026. * **China Business Growth:** Revenue from Mainland China operations grew by about 22% compared to the same period in 2025. * **Recurring Revenue:** Monthly recurring revenue saw a significant 29% year-over-year increase, indicating strong business momentum.

A subsidiary of Asia Standard International Group is facing difficulty refinancing a HK$1.36 billion loan due on May 27, 2026, after suffering multi-million dollar losses from its investments in China Evergrande's bonds.

Asia Standard Hotel struggles to refinance HK$1.36 billion loan

**Key Takeaways** * Asia Standard Hotel Holdings is struggling to refinance a HK$1.36 billion ($174 million) loan due on May 27. * The difficulty stems from multi-million dollar losses on the company's investments in defaulted China Evergrande bonds. * The situation highlights the continuing credit contagion from China's property crisis, affecting investors and creditors outside the mainland.

Chinese robotics startup Linkerbot is reportedly planning an initial public offering in Hong Kong that could happen as early as this year, targeting a raise of several hundred million dollars.

Linkerbot eyes Hong Kong IPO to raise several hundred million dollars

**Key Takeaways:** * Chinese robotics firm Linkerbot is reportedly exploring a Hong Kong IPO for this year. * The offering could raise several hundred million US dollars for the company. * CMBI, CITIC Securities, and HSBC have been hired to manage the share sale.

Fosun International has hired BNP Paribas, HSBC, and JPMorgan to arrange a Hong Kong IPO for its subsidiary, Club Med, with a potential fundraising target of at least $500 million.

Fosun's Club Med targets over $500 million in HK IPO

* Fosun International plans a Hong Kong IPO for its Club Med resort business. * The listing could raise at least $500 million for the holiday operator. * BNP Paribas, HSBC, and JPMorgan have been hired to manage the offering.

Tianqi Lithium CEO Xia Juncheng stated that lithium demand forecasts are too conservative, underestimating emerging demand from electric trucks, ships, and mining equipment.

Tianqi Lithium CEO sees demand from 3 new sectors underestimated

**Key Takeaways** * Tianqi Lithium's CEO warns that even the most optimistic lithium demand forecasts are too conservative, underestimating new industrial applications. * Electric trucks, mining equipment, and ships are highlighted as major new demand drivers not yet fully factored into most projection models. * **Lithium Demand Forecasts:** | Source | 2034 Est. (tonnes) | | :--- | :--- | | Wood Mackenzie | 4,500,000 | | Project Blue | 6,300,000 | | Fastmarkets | 3,600,000 | | Current (2023) | 1,100,000 |

Chinese AI company Moonshot AI (月之暗面) is reportedly restructuring its corporate architecture to prepare for an Initial Public Offering (IPO) in Hong Kong.

Alibaba-Backed Moonshot AI Taps Banks for Hong Kong IPO

**Key Takeaways:** * Moonshot AI, an Alibaba-backed startup, is reportedly preparing for a Hong Kong IPO by restructuring its corporate framework. * The company recently secured $2 billion in funding and reached over $200 million in annual subscription revenue from its Kimi chatbot. * The listing could signal a revival for Hong Kong's technology IPO market and will test investor appetite for Chinese AI firms.

Goldman Sachs reiterated a 'Buy' rating on Meitu (01357.HK) with a HKD14.3 target, causing the stock to rally over 5% on expectations of AI-driven revenue growth and cost savings.

Meitu Surges Over 5% as Goldman Sachs Sees 200% Upside on AI

**Key Takeaways:** * Goldman Sachs reiterates a Buy rating on Meitu with a HKD14.3 price target, implying over 200% upside from its recent price of HKD4.75. * The bank sees significant ARPU growth from AI-driven features and expects margin improvement from the use of in-house AI models instead of third-party APIs. * Meitu shares rallied more than 5% on the news, with trading volume swelling to over 58 million shares.

On May 18, China National Petroleum Corporation (CNPC) announced a strategy to develop 'new quality productive forces' by establishing two new pillar industries: 'heat, electricity, and hydrogen' and 'bio-refining and materials'.

PetroChina pivots to 2 green pillars under new national strategy

**Key Takeaways** * State-owned oil giant CNPC is launching two new pillars: "heat, electricity, and hydrogen" and "bio-refining and materials." * The pivot is a direct response to Beijing's call to develop "new quality productive forces," signaling policy-driven industrial change. * The move aims to create new growth drivers beyond fossil fuels and could reshape China's domestic green energy landscape.

Water Oasis Group (01161.HK) issued a positive profit alert, forecasting a significant increase in its interim net profit for the fiscal year ending March 2026, driven by strong performance in its treatment services segment.

Water Oasis Group forecasts interim profit to jump nearly 30%

**Key Takeaways** * **Profit Guidance:** Expects interim net profit of HKD 68 million to HKD 72 million for the six months ending March 2026, a nearly 30% increase year-over-year. * **Growth Driver:** The anticipated profit growth is primarily attributed to higher revenue from the company's treatment services segment. * **Market Reaction:** The company's stock price surged by more than 9% in response to the positive profit guidance.

Tencent repurchased 1.112 million of its shares for HKD 500 million on May 18, its first buyback since securing a new mandate.

Tencent Buys Back HKD 500M of Shares as Tech Giants Pivot From Growth

**Key Takeaways** * Tencent repurchased 1.112 million shares for HKD 500 million, its first buyback since securing a new mandate on May 13. * The buyback comes as Chinese tech firms like ByteDance are abandoning the growth-at-all-costs playbook, citing unsustainable AI expenses. * Baidu’s latest results show a surge in AI infrastructure demand but flat revenue from AI applications, highlighting the industry’s strategic shift.

Liquidators for China Evergrande Group are seeking 57 billion yuan ($8.4 billion) in damages from PricewaterhouseCoopers in a Hong Kong lawsuit, alleging audit negligence.

Evergrande liquidators seek $8.4 billion from PwC in negligence lawsuit

**Key Takeaways:** * Liquidators for China Evergrande are suing PricewaterhouseCoopers for 57 billion yuan ($8.4 billion) in a Hong Kong court, alleging audit negligence. * The claim is one of the largest ever filed against an auditor in Hong Kong and adds to significant regulatory penalties PwC already faces over its work for the developer. * The lawsuit is a critical test for global auditor liability and a key part of the liquidators' efforts to recover funds for creditors owed an estimated HK$350 billion.

BOCI maintains a 'Buy' rating on Bilibili, forecasting a 31% compound annual growth rate in adjusted net profit from 2025 to 2028, despite market concerns over a potential stake sale by Tencent.

Bilibili Price Target Set at HK$244 by BOCI on 31% Profit Growth Forecast

**Key Takeaways:** * BOCI maintained its “Buy” rating on Bilibili, setting a US target price of $31 and an H-share target of HK$244, implying a 59% upside. * The rating comes amid market concerns that major shareholder Tencent may sell its 10.5% stake in the company. * The bank forecasts a 31% compound annual growth rate in Bilibili's adjusted net profit between 2025 and 2028, citing strong fundamentals.

Hong Kong pharmacy chain Lung Fung Group is moving forward with a Main Board IPO after reporting an 85.8% year-over-year increase in profit to HKD 148 million for the first eight months of its fiscal year.

Lung Fung Group files for Hong Kong IPO after profit soars 86%

**Key Takeaways:** * **Financial Growth:** Reported profit of HKD 148 million for the first eight months of FY2026, an 85.8% increase year-over-year, on revenue of HKD 2.035 billion. * **Market Position:** Ranks as Hong Kong's largest pharmaceutical retailer by retail sales value with a 5.2% market share in 2024, according to Frost & Sullivan. * **Expansion & Payout:** Plans to open up to 18 new stores over three years and intends to pay out at least 50% of distributable profits as dividends post-listing.

Tencent Music Entertainment Group reported Q1 2026 earnings, where strong revenue growth from its IP-driven strategy and a positive analyst rating overshadowed a slight miss in earnings per share.

Tencent Music Rises 7% as IP Growth Offsets EPS Miss

**Key Takeaways** * Revenue grew 7 percent year-over-year to 7.9 billion RMB, beating estimates, while earnings per share of 1.34 RMB missed forecasts. * Music-related services revenue jumped 12 percent, with offline concerts delivering triple-digit growth, signaling a strategic shift toward IP monetization. * Dongfang Securities maintained a “Buy” rating with a HK$52.39 price target, citing the Ximalaya deal and WeChat integration as key catalysts.

Brokerage firm CLSA issued a research report forecasting weak 1Q26 results for XIAOMI-W (01810.HK) and cut its target price on the stock to HKD41 from HKD45.

CLSA cuts Xiaomi target to HKD41 on weak 1Q26 forecast

**Key Takeaways** * CLSA lowered its price target on Xiaomi to HKD41 from HKD45, maintaining an Outperform rating. * The brokerage forecasts Xiaomi's 1Q26 revenue to fall 10.7% and adjusted EBIT to drop 41% year-over-year. * Surging memory costs and a 19% drop in smartphone shipments were cited as primary reasons for the bearish outlook.

Hong Kong-listed furniture maker Man Wah Holdings' stock fell nearly 4% after its full-year 2026 profit missed expectations by 15%, prompting a price target cut from Citigroup.

Man Wah Falls 4% as Citi Cuts Target to HK$5.6 on Margin Woes

**Key Takeaways:** * Fiscal year 2026 net profit of HK$1.81 billion missed market estimates by 15 percent * Citi cuts price target to HK$5.6 from HK$6.5, citing rising raw material costs * Shares fell nearly 4 percent to HK$3.82, a low not seen since April 2025

Citi forecasts Meituan's Q1 2026 Core Local Commerce operating loss will narrow to ¥4.6 billion, maintaining a Buy rating and HKD 110 target price.

Citi Sees Meituan Q1 Loss Narrowing by ¥5.5 Billion

**Key Takeaways** * Citi forecasts Meituan's Q1 core local commerce operating loss will narrow to ¥4.6 billion. * The figure represents a ¥5.5 billion improvement from the previous quarter, Citi's report said. * The bank maintained its Buy/High Risk rating and HKD 110 price target on the stock.

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