【Top Headline】China and US Agree in Principle to Discuss Reciprocal Tariff Reduction Framework, Each Side Covering $30 Billion or More In response to inquiries regarding the progress of China-US tariff negotiations, Ministry of Commerce spokesperson He Yadong stated at a regular press conference on May 28 that tariffs have consistently been a key issue in bilateral economic and trade relations. Guided by the strategic leadership of the two heads of state, the economic and trade teams of both countries have engaged in in-depth communication regarding tariff matters, making arrangements concerning bilateral tariffs. He reiterated the hope that the US side will honor its commitments to create positive conditions for expanding bilateral economic and trade cooperation. Furthermore, both sides have agreed in principle to discuss a framework for reciprocal tariff reductions on products of equivalent scale, each covering $30 billion or more, under the Trade Council. The economic and trade teams will maintain close communication to finalize specific arrangements and expedite their implementation.
【Market Outlook】Overnight US Stocks Close Higher; Most Major Tech Stocks Rise Overnight, US stocks closed higher. The Dow Jones Industrial Average rose 24.69 points, or 0.05%, to close at 50,668.97. The S&P 500 gained 43.27 points, or 0.58%, to finish at 7,563.63. The Nasdaq Composite increased by 242.74 points, or 0.91%, to settle at 26,917.63. Most major technology stocks advanced, with ARM Holdings (ARM.O) surging over 10% and Advanced Micro Devices (AMD.O) climbing over 4%, both reaching record highs. The SaaS sector saw significant gains, with Snowflake (SNOW.N) soaring over 36%, ServiceNow (NOW.N) rising over 6%, and Microsoft (MSFT.O) increasing over 3%. The quantum computing sector also rose, with D-Wave (QBTS.N) up over 7% and IBM (IBM.N) gaining over 3%. The optical communications sector generally declined, with Lumentum (LITE.O) and Corning (GLW.N) falling over 4%. Most popular Chinese concept stocks declined, with the Nasdaq Golden Dragon China Index dropping 0.48%. Hong Kong's Hang Seng Index ADRs rose, indicating a projected opening increase of 293.91 points, or 1.18%, to 25,300.07. The front-month WTI crude oil futures contract on the New York Mercantile Exchange fell $0.15, or 0.17%, to settle at $88.53 per barrel. The front-month COMEX gold futures contract rose $45.80, or 1.02%, to close at $4,527.3 per ounce.
【Key Developments】State Council Issues "Urban Renewal 15th Five-Year Plan" The State Council issued a notice on May 28 regarding the issuance of the "Urban Renewal 15th Five-Year Plan." The plan calls for a comprehensive inventory of urban stock assets and resources, promoting the categorized disposal of supplied but undeveloped land and projects under construction, and revitalizing idle or inefficient assets such as old factories, commercial office buildings, commercial housing, and public housing. It aims to accelerate the establishment of a new model for real estate development, improving fundamental systems for commercial housing development, financing, and sales. The plan also seeks to optimize the supply of affordable housing, strengthen housing security for low-income urban families, better meet the basic housing needs of working-class groups with housing difficulties and modest incomes, and gradually address the transitional housing challenges faced by new urban residents and young people. It advocates for city-specific policies to increase the supply of improved housing and standardize the development of the housing rental market. The plan encourages real estate development enterprises to transform and participate in urban renewal. It also calls for deepening the reform of the housing provident fund system, expanding its scope of use, striving to meet the diverse housing needs of contributors at different stages, and supporting flexible employment personnel in participating in the system. Additionally, it emphasizes strengthening and standardizing the management of existing urban infrastructure assets.
BYD (01211.HK) Launches 4nm Autonomous Driving Chip At the BYD Intelligent Strategy Launch on May 28, Wang Chuanfu announced the official release of the company's self-developed 4nm autonomous driving chip, the "Xuanji A3." Three Xuanji A3 chips can support a total vehicle computing power exceeding 2,100 TOPS. He stated, "A 4nm automotive-grade autonomous driving chip is equivalent to a 2nm consumer-grade chip, which presents significant challenges." This marks BYD's first self-developed high-computing-power autonomous driving chip, which has already entered mass production. The self-developed "Xuanji A3" 4nm process autonomous driving chip supports L3 and L4 autonomous driving.
Innovent Biologics (01801.HK) and Pfizer Reach Global Strategic Collaboration to Accelerate Innovative Oncology Drug Development Innovent Biologics announced that the group, including its subsidiaries Innovent Biologics (Suzhou) Co., Ltd. and Fortvita Biologics (USA), Inc., has entered into a global strategic licensing and collaboration agreement with Pfizer Inc. (PFE.N) for 12 oncology early-stage and pioneering R&D projects with breakthrough potential. The agreement encompasses various collaboration models, including licensing, co-development, and co-commercialization. The portfolio includes multiple antibody-drug conjugates (ADCs) with novel differentiated payloads and multi-specific antibodies featuring differentiated immunomodulatory properties and unique structural designs.
MicroPort NeuroTech (02172.HK) and OYI Sign Strategic Cooperation Agreement to Promote Deep Integration of Brain-Computer Interface and Exoskeleton Robot Systems MicroPort NeuroTech announced that on May 28, its wholly-owned subsidiary, MicroPort NeuroTech (Shanghai) Co., Ltd., entered into a strategic cooperation agreement with Shanghai OYI Information Technology Co., Ltd. Through this collaboration, the group and OYI aim to jointly promote the innovative application of brain-computer interface technology in the fields of medical rehabilitation and human-machine interaction.
CITIC Securities (06030.HK) Plans to Issue New H Shares to CITIC Financial Holdings to Raise RMB 16 Billion CITIC Securities announced that on May 28, its board approved a private placement of H shares. Accordingly, the company has entered into a share subscription agreement with CITIC Financial Holdings to issue new H shares to CITIC Financial Holdings at the H share issue price of HK$23.13 per share. The number of shares to be issued will be calculated by dividing the total final fundraising amount of RMB 16 billion by the H share issue price, rounding down to the nearest whole number.
XPeng (09868.HK) Reports Q1 Net Loss of RMB 1.78 Billion, Widening 168.7% Year-on-Year XPeng announced its unaudited financial results for the first quarter of 2026. Total revenues were RMB 13.03 billion, representing a year-on-year decrease of 17.6% and a quarter-on-quarter decrease of 41.4%. Vehicle sales revenue was RMB 11.00 billion, down 23.5% year-on-year and 42.3% quarter-on-quarter. Gross margin was 20.6%, an increase of 5.0 percentage points compared to the same period in 2025. Net loss was RMB 1.78 billion, widening by 168.7% year-on-year. Total vehicle deliveries for the quarter were 62,682 units, a decrease of 33.3% year-on-year. The company stated that the year-on-year and quarter-on-quarter decline in vehicle sales revenue was primarily due to a decrease in vehicle deliveries.
Modern Dental Group (03600.HK) Reports Q1 Total Revenue of Approximately HK$988 Million, Up About 12.1% Year-on-Year Modern Dental Group announced that for the three months ended March 31, 2026, supported by the ongoing digitalization trend in the dental industry, the group's multi-dimensional strategy enabled it to achieve a record high revenue for the period. Total revenue for the three months ended March 31, 2026, was approximately HK$988 million, representing an increase of approximately 12.1% compared to the approximately HK$881 million for the three months ended March 31, 2025.
Johnson Electric Holdings (00179.HK) Releases Annual Results; Profit Attributable to Shareholders Declines 23% to $202 Million Johnson Electric Holdings announced its annual results for the year ended March 31, 2026. Turnover was $3.65 billion, essentially flat compared to the previous year. Gross profit was $840 million, representing 23.0% of turnover (compared to $843 million or 23.1% last year). Profit attributable to shareholders was $202 million, a decrease of 23% compared to the previous year. Diluted earnings per share were 21.59 US cents. A proposed final dividend of 44 HK cents per share was announced.
Autohome (02518.HK) Reports Q1 Total Net Revenue of RMB 1.0484 Billion; Announces Substantial RMB 500 Million Dividend to Reward Shareholders Autohome announced its unaudited financial results for the first quarter of 2026. Total net revenues were RMB 1.0484 billion. Net profit attributable to Autohome was RMB 44.3 million, while adjusted net profit was approximately RMB 179 million. Furthermore, the board has approved a cash dividend of $0.66 per ADS (or $0.1650 per ordinary share), to be paid in US dollars to holders of ADSs and ordinary shares of record as of the close of business on July 2, 2026.
National Integrated Circuit Industry Investment Fund Co., Ltd. Reduces Stake in SMIC (00981.HK) by 7 Million Shares at Average Price of HK$86.69 Per Share Latest data from the Hong Kong Stock Exchange shows that on May 26, the National Integrated Circuit Industry Investment Fund Co., Ltd. reduced its stake in SMIC (00981.HK) by 7 million shares at an average price of HK$86.69 per share, involving a total amount of approximately HK$607 million. Following the reduction, its latest shareholding is approximately 640 million shares, representing a stake of 7.99%.
New Stock Grey Market | Creality (03388.HK) Grey Market Closes Up Over 60%; Profit of HK$1,716 Per Board Lot Creality (03388.HK) is scheduled to list in Hong Kong on May 29 (Friday). At the close of grey market trading, the indicative price was HK$30.24, representing an increase of 60.85% compared to the offer price of HK$18.8. Based on a board lot of 150 shares, this translates to a profit of HK$1,716 per board lot before fees.
【Stock Focus】Sun.King Tech (00580.HK): Company Actively Advances Data Center Business Amid Industry-Wide Power Chip Price Hikes A wave of price increases is sweeping the power chip industry. Infineon announced it will raise prices for some products again starting July 1, marking its second price hike in 2026. Texas Instruments also plans to increase prices starting July 1, affecting products including power management integrated circuits (PMICs) and MOSFETs, which also represents its second price increase in 2026. Chinese suppliers such as Maxic Technology and Jiangsu Jiejie Microelectronics have also joined the price hike trend. Notably, Sun.King Tech is actively advancing the development of its data center business. The company previously stated that in 2026, it will actively lay out R&D for data center-related products, launching new products serving data center solid-state transformers (SST) – solid-state DC circuit breakers (two voltage platforms of 800V and 1500V, totaling 8 specifications), 2300V silicon carbide MOSFET chips and modules, aiming to secure high-value orders in the Chinese and US data center markets.
Comments