Compared to the average decline of over 1.8% for the three major US stock indices overnight, today's performance in both mainland and Hong Kong markets was relatively mild, with the Hang Seng Index down only 0.65%.
Just as it seemed tensions between the US and Iran had subsided, hostilities flared again. Former US President Trump posted a stern threat on Wednesday evening Beijing time, warning Iran would "pay a price" for delaying a deal. At 5:15 PM ET on June 10th, US Central Command launched a new round of attacks on Iran. Iran swiftly retaliated: the Revolutionary Guard Corps conducted two waves of strikes using missiles and drones against US bases in Bahrain, Kuwait, and Jordan, claiming to have hit 18 targets. The current situation is that for every US attack, Iran retaliates. Without ground forces, the US cannot force Iran to sign an agreement through air and missile strikes alone, unless it lowers its demands. Indeed, the US is making concessions, such as only requiring the dilution of enriched uranium. However, Iran holds the strategic advantage with control over the Strait of Hormuz. As long as the conflict persists, funds flow into stocks like Shandong Molong Petroleum Machinery Co., Ltd. (HKEX: 00568), which rose over 9% again today.
The highly anticipated US May Consumer Price Index (CPI) rose 4.2% year-on-year, breaking the 4% mark for the first time in three years and marking the fastest pace since May 2023. However, core CPI, excluding food and energy costs, rose only 0.2% month-on-month, below market expectations. JPMorgan believes May is likely the cyclical peak for inflation in this round, as US gasoline prices have fallen 9% from their May 20th high, evidence of easing cost pressures. Based on this data, it is highly probable the Federal Reserve will hold steady again.
As discussed yesterday, the decline in tech stocks was related to a recent report from SemiAnalysis, which suggested delays for both 800VDC and CPO implementation. NVIDIA (NASDAQ: NVDA) issued an urgent clarification on June 10th (ET) at Computex/GTC, stating that 800VDC is not delayed and its roadmap remains unchanged, emphasizing that 400VDC will land as scheduled in the second half of 2026; the long-term plan for 800VDC remains, just implemented in phases. Morgan Stanley also explicitly stated that the news contradicts its supply chain research, confirming the mass production process for 800V DC power cabinets has not been interrupted. Shanghai Tyche Technologies Co., Ltd. (HKEX: 02631) rose over 6%.
Funds became active again today, with the 2X Long SK Hynix ETP leading gains. GigaDevice Semiconductor (Beijing) Inc. (HKEX: 03986): On June 10th, the company launched the new GD32E512 and GD32E252 series of optical module-specific MCUs, precisely covering diverse application scenarios from traditional low-speed to next-generation high-speed optical modules. The stock rose over 5%. Montage Technology Co., Ltd. (HKEX: 06809): On June 10th, the company announced successful customer sampling of its DDR5 6th Generation RCD06 chip, supporting 9200MT/s data transfer rates, a 15% performance improvement over the previous generation, strengthening its technology leadership. The stock rose nearly 6% today. TSMC's CFO stated chip prices might rise, but not by a "four or five-fold" surge. Semiconductor Manufacturing International Corporation (HKEX: 00981) and Shanghai Huahong Grace Semiconductor Manufacturing Corporation (HKEX: 01347) rebounded from lows, while ASM Pacific Technology Ltd. (HKEX: 00522) rose over 3%.
The semiconductor materials segment remains strong. Sino ICT Holdings Limited (HKEX: 02768), a June top pick, surged nearly 14% again. With the Middle East conflict ongoing, PPE resin supply disruptions are directly pushing up the production costs of copper-clad laminates (CCL) and PCBs. Leading CCL manufacturers with upstream material self-supply capabilities and PCB leaders deeply tied to AI computing demand strengthened again. Kingboard Laminates Holdings Ltd. (HKEX: 01888) surged nearly 11%, and Kingboard Holdings Limited (HKEX: 00148) rose nearly 5%. Shenghong Technology Co., Ltd. (HKEX: 02476): High-end PCB capacity is in short supply. The company is actively expanding capacity, with a total annual planned investment of RMB 200 billion, of which approximately RMB 148 billion is directed towards capacity expansion and high-end production line upgrades. The Huizhou AI PCB base is expected to commence production in the second half of 2026. The stock rose over 5% today.
The AI application sector is exploring Agent use cases again. CaoCao Inc. (HKEX: 02643): Announced it recently integrated into ByteDance's Doubao ecosystem, officially launching an AI ride-hailing test feature. Users can identify travel needs through Doubao voice dialogue, automatically completing route planning, car type recommendation, fare estimation, and one-click ordering. By the end of 2025, CaoCao operated in 195 cities across China, making it a leading tech mobility platform in Hong Kong stocks, while Doubao's monthly active users exceeded 300 million. The collaboration can open new customer acquisition channels and help Doubao iterate its Agent capabilities. The stock rose over 16% today.
At 3:00 AM Beijing time on June 12th, the 2026 FIFA World Cup opening match will begin. Hisense Home Appliances Group Co., Ltd. (HKEX: 00921), appearing at its third consecutive World Cup, holds a "dual role" this tournament: as both a global official sponsor and the official VAR display technology partner. During the event, Hisense RGB-MiniLED TVs will be installed in the 2026 World Cup Video Assistant Referee Center to assist with accurate officiating. The World Cup is expected to catalyze its brand enhancement and sales growth. The stock rose over 8% today.
The World Cup boosts demand for snacks. Ming Ming Hen Mang Co., Ltd. (HKEX: 01768): Its traditional core business of physical stores continues to expand. By the end of 2025, the store count reached 21,948, a year-on-year increase of 52.48%, with about 60% located in counties and towns, indicating deep market penetration. By the end of May, the number of operating stores reached nearly 24,000 (vs. 21,948 at the end of 2025), and the annual target of opening 5,000 stores is expected to be achieved. The company focuses on store potential, introducing AI visual recognition technology and self-checkout equipment to improve single-store operational efficiency and customer experience. Institutions forecast the company's 2026-2028 operating revenue at RMB 88.0/104.6/119.0 billion and net profit attributable to shareholders at RMB 3.5/4.4/5.5 billion. The stock rose over 8% today on its steady development trend.
Media reports indicate Apple's first foldable screen iPhone, the iPhone Fold, will officially enter mass production on June 25th. Tiangong International Company Limited (HKEX: 00826): The company's titanium powder production is on a countdown to June start-up. Expectations for Apple's foldable screen are heating up, with 3D-printed titanium alloy frames becoming a consensus. Tiangong is a core upstream material supplier. Its powder metallurgy high-boron steel material is entering the nuclear fusion field. It has also entered the supply chain of Siasun Robot & Automation. The stock rose over 9% today.
The "Regulations for the Implementation of the Mineral Resources Law" take effect on June 15th. Tungsten is listed among the 36 critical strategic minerals, with full-chain control over mining, export, and stockpiling. Mining quotas have been reduced for two consecutive years (cumulative -14%), with strict crackdowns on illegal mining, leading to rigid supply contraction. According to monitoring, the current price in China for 99.999% pure tungsten hexafluoride is RMB 1,670-1,810 per kg, a 232.7% increase from the same period last year (RMB 523 per kg). Jiaxin International Resources Holdings Limited (HKEX: 03858), which owns world-class tungsten resources, rose over 5%.
Sector Spotlight
On June 10th, IGO released an announcement stating that a fire occurred on June 9th at the Phase 3 CGP3 plant of the Greenbushes lithium mine. The fire has been extinguished with no casualties. Talison Lithium has initiated a comprehensive investigation into the cause and damage, and will complete an impact assessment and develop necessary repair plans. According to monitoring, current subsequent plans for the Greenbushes lithium mine are normal and have not been directly affected for now. However, Phase 3 is crucial for the mine's incremental output. If its capacity release is hindered, it will revise future supply expectations for spodumene concentrate. Today, rare metals ETFs from GF Fund, ICBC Credit Suisse, E Fund, Harvest Fund, Huafu Fund, Fullgoal Fund, and ChinaAMC all rose over 3%. Rare metals ETFs track the CSI Rare Metals Theme Index, covering strategic resources like lithium, rare earths, tungsten, and molybdenum. Key Hong Kong stock varieties: Ganfeng Lithium Group Co., Ltd. (HKEX: 01772) and Tianqi Lithium Corporation (HKEX: 09696).
Stock Deep Dive
Ganfeng Lithium Group Co., Ltd. (HKEX: 01772): Large Battery Cells are the 2026-2027 Growth Engine; Bottom Presents Value Re-rating Opportunity. The company's Q1 2026 revenue reached RMB 9.196 billion (up 143.81% year-on-year, up 102% quarter-on-quarter); net profit attributable to shareholders was RMB 1.837 billion (up 616.34% year-on-year); adjusted net profit was RMB 1.419 billion (up 685.83% year-on-year).
Analysis: The company turned profitable last year and achieved high growth in Q1, primarily due to lithium prices doubling year-on-year, with lithium salt shipments of approximately 50,000 tonnes. Both volume and price increases drove gross margin higher. The company is a global lithium industry leader with over 45 million tonnes of LCE resources, ranking among the top globally. Its moat lies in its full-industry-chain lithium ecosystem. Upstream: Global layout of lithium mines/salt lakes in Australia, Argentina, Mali, and Ireland. In 2025, the Mali Goulamina project produced 336,600 tonnes of lithium concentrate, and the Argentina Mariana salt lake commenced production. Midstream: Lithium salts (lithium carbonate/lithium hydroxide) + lithium metal with a global market share >40%, leading in high-purity lithium salt/lithium metal technology. Downstream: Power batteries + energy storage cells + solid-state batteries + recycling, forming a closed-loop synergy.
Upcoming catalysts include: 1) Solid-state batteries: The only global company with a full-chain solid-state battery (sulfide + oxide) capability: Sulfurized lithium (99.9%) is already in mass production; 500Wh/kg lithium metal cells are in small batches; the Chongqing 20GWh solid-state base is completed. 2) Energy storage direction: Large battery cells are the 2026-2027 growth engine, with self-developed 588Ah/648Ah large cells setting industry benchmarks; the 588Ah production line ramps up in Q3, with volume by year-end; the company is adding 35–40GWh of energy storage capacity. Energy storage business revenue is expected to more than double in 2026. 3) Capacity: Argentina salt lake + Mali mine capacity ramping up. Lithium salt capacity will exceed 250,000 tonnes LCE in 2026, increasing self-sufficiency and lowering costs. 4) Order backlog: Fully booked for all of 2026 and the first half of 2027, with new capacity pre-sold. If lithium prices can stabilize and recover, a bottom value re-rating is worth anticipating.
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