The Hong Kong stock market experienced a significant and robust rally not seen in a long time, with the Hang Seng Index advancing steadily to close up 2.52% today, which also helped stabilize the declining trend in A-shares.
As previously mentioned, the absence of major escalations between the US and Iran is viewed positively by the market, which has become desensitized to the political rhetoric from both sides.
The real driver remains the technology sector.
On June 1st, Alphabet, Google's parent company, announced plans to raise up to $80 billion through equity financing.
This financing consists of three parts: a $40 billion at-the-market offering, a $30 billion underwritten offering including mandatory convertible preferred shares, and a $10 billion private placement to Berkshire Hathaway.
This investment is seen as one of the most significant bets made by Greg Abel since succeeding Warren Buffett as CEO at the beginning of the year.
Berkshire Hathaway's embrace of AI underscores the prevailing investment trend.
The prolonged weakness in Hong Kong stocks has been partly due to the sluggish performance of its major tech giants.
Today, these giants finally made a strong push in the AI direction.
According to media reports, TENCENT is set to launch a WeChat AI Agent for Chinese users, designed to help users complete various tasks within the app.
The company is currently testing a prototype and plans to initiate compliance procedures for a formal launch as early as this month.
Following regulatory approval, Tencent will conduct a limited external user beta test before a full, phased rollout.
This deeply integrated AI agent, accessible with a right swipe, can coordinate millions of mini-programs for convenient services like ordering food, hailing rides, booking tickets, and shopping.
Targeting WeChat's 1.4 billion users, it transforms the platform from a social tool into an AI super-ecosystem with immense commercial potential.
Successful deployment of this national-level application could help Tencent achieve a leapfrog advancement, significantly boosting its valuation, leading to a surge of over 10% today.
Another major player, MEITUAN-W, released its Q1 2026 results.
Revenue for the quarter reached RMB 91 billion, a year-on-year increase of 5.6%, while operating losses narrowed sharply from RMB 16.1 billion last quarter to RMB 6.5 billion, an improvement of RMB 9.6 billion.
Meituan's CEO Wang Xing stated that growth driven by subsidies is unsustainable and expects the "food delivery war" to return to rationality.
Furthermore, the collaboration between its AI assistant "Xiaomei" and Tencent's Yuanbao is set to launch soon.
The stock also rose over 9% today.
BABA-W also made moves today, with its Alibaba Cloud's Tongyi Qianwen team officially releasing the multimodal Agent model Qwen3.7-Plus.
This model deeply integrates visual perception with code generation, tool invocation, and GUI control, achieving a screen understanding score of 79, surpassing GPT-5.4 and Gemini-3.1 Pro.
Its shares gained over 6%.
The collective strength from these tech giants propelled the Hang Seng Index significantly higher.
Yesterday's discussion on NVIDIA firing on all cylinders continued to resonate in the market today.
The most sustained momentum was seen in the AI PC hardware segment, where the replacement cycle offers considerable benefits.
LENOVO GROUP is undoubtedly a primary beneficiary, rising over 4% again today, while LEGENDHOLDING surged over 9%.
Another mentioned stock, VSTECS, performed even more strongly, up over 14%, driven by expectations of a significant boost in AI PC sales.
Additionally, the company has formed a strategic partnership with Tongyou Technology and has been officially appointed as its national sales general agent.
This collaboration allows VSTECS to rapidly enter the B2B market, targeting clients like Alibaba, Tencent, and Kuaishou.
With storage products in short supply and rising prices, the company has attracted a large number of new customers.
At the GTC at COMPUTEX event in Taipei, NVIDIA unveiled Cosmos3 and simultaneously introduced new capabilities for autonomous driving and Physical AI, such as Alpamayo2Super, AlpaGym, and OmniDreams.
These moves reinforce the industry trend of autonomous driving R&D upgrading towards "world models + synthetic data + closed-loop verification."
51VR is a core partner in NVIDIA's Physical AI ecosystem and the sole Chinese collaborator in intelligent driving simulation.
It holds a 53.5% market share in domestic high-level driving simulation, covering 80% of major automakers.
The mandatory simulation testing for L3 autonomous driving entry is catalyzing an explosion in Physical AI and world models, with the industry growing over 30% annually, projecting a Chinese market size exceeding RMB 180 billion by 2030.
Its stock soared over 25% today.
Robotaxis with L4 autonomous driving capabilities have begun generating revenue.
Pony.ai recently released its Q1 2026 financial report, showing total revenue of RMB 236 million, a 145% year-on-year increase, and gross profit of RMB 38.36 million, up 140.1%.
Its Robotaxi business set a new quarterly revenue record of RMB 59.12 million, a 395.4% increase, exceeding half of its business revenue from last year.
The company raised its 2026 Robotaxi business target, expecting annual revenue to reach over 3.5 times the 2025 level, with a fleet size exceeding 3,500 vehicles.
Analysts expect Pony.ai, which has a weighted voting rights structure, may meet listing time requirements for inclusion in the Southbound Stock Connect around June 4th.
Its shares rose over 8% today.
Cao Cao Mobility announced plans to establish five global operation centers over the next decade, expanding Robotaxi services to 100 cities, with a target of deploying 100,000 fully customized Robotaxis by 2030.
Its inclusion in the Hang Seng Tech 100 Index contributed to a gain of over 9%.
Recently, China Telecom announced the start of a centralized pre-qualification for bulk procurement projects including outdoor optical cables, drop cables, primary trunk optical cables, and trunk cable splice closures.
This marks the first large-scale optical cable procurement project at the group level for operators this year, drawing significant attention.
Bid price limits for some provincial procurements were raised from RMB 2,500 per core-kilometer to RMB 2,600, indicating that demand elasticity remains strong in the short term compared to volume-price negotiations.
Yangtze Optical Fibre and Cable surged over 10%.
Automotive stocks discussed yesterday continued their strength today, with NIO and XPeng both rising over 6%.
Other automakers also joined the rally.
On June 1st, BYD announced its May production and sales data, selling 383,453 new energy vehicles for the month, maintaining its position as the top-selling new energy vehicle automaker in China.
Eight models achieved monthly sales exceeding 20,000 units, with the Song and Yuan models surpassing the 50,000 mark.
The performance was quite solid, leading to a gain of over 6% today.
Li Auto delivered 33,350 new vehicles in May.
Affected by product transitions, sales saw a slight year-on-year and month-on-month decline.
However, the Li i6 model has consistently sold over 20,000 units per month for three consecutive months, securing a top-three position in pure electric SUV sales, contributing to a nearly 6% rise today.
The US Department of Commerce is required to submit a latest copper market assessment report to former President Trump by June 30th, with recommendations on whether to impose import tariffs on refined copper.
The latest COMEX copper futures rose over 2%, and LME copper prices also increased nearly 2%, climbing above $13,800.
Copper's fundamentals appear stronger than other non-ferrous metals due to its extensive use in AI-related applications.
Jiangxi Copper surged over 10%, while other stocks like Zijin Mining, China Molybdenum, China Nonferrous Mining, and MMG all gained over 6%.
Yesterday's sector focus mentioned Macau's May gross gaming revenue exceeding expectations.
Today brought a new catalyst with media reports that US media and entertainment mogul Barry Diller proposed a $18 billion acquisition of gaming giant MGM Resorts International, including debt, representing a premium of approximately 64%.
MGM China rose 7.74%, lifting Wynn Macau over 4%.
Key Sector Watch
On the second day of the Computex conference in Taipei (this morning), Matt Murphy, Chairman and CEO of AI custom chip, optical communications, and data center interconnect company Marvell, delivered a keynote speech.
NVIDIA CEO Jensen Huang made a surprise appearance as a special guest.
During the speech, Huang emphasized that Marvell could become the next trillion-dollar company (current market cap around $200 billion).
While reaching a trillion is uncertain, the statements of influential figures like Jensen Huang, Elon Musk, and Warren Buffett demand market attention.
Related Hong Kong stocks include: Yangtze Optical Fibre and Cable, Montage Technology, and Foxconn Interconnect Technology.
Stock Spotlight
AAC Technologies (02018)
Market Share Expansion and Sustained Growth in Core Product Shipments
The company reported 2025 revenue of RMB 31.817 billion (up 16.4% YoY), net profit attributable to shareholders of RMB 2.512 billion (up 39.8% YoY), operating cash flow of RMB 7.183 billion (up 38.1%), and a gross margin of 22.1%.
Analysis: The company achieved a record high in revenue with sustained growth in shipments of core products.
Acoustics revenue grew steadily at a mid-to-high single-digit rate, with double-digit shipment growth for premium products like the SLS Master Speaker and coaxial speakers.
In automotive acoustics, the company generated revenue of RMB 4.12 billion in 2025 (up 16.1% YoY), continuing to gain market share and now ranking among the global top ten automotive audio suppliers.
Multiple products have been adopted in flagship models.
With the acceleration of automotive intelligence, the automotive acoustics business is expected to contribute incremental performance.
Electromagnetic drive and precision mechanics revenue reached RMB 11.77 billion in 2025 (up 21.3% YoY), primarily driven by increased market share for horizontal linear motors, innovative side keys, and the large-scale adoption of VC vapor chambers in the latest models of a major client.
Comprehensive AI Thermal Management Layout: The company has a dual-track layout covering ultra-thin VC for consumer electronics and liquid cooling for servers.
Its acquisition provides entry into server cold plates.
With an annual VC vapor chamber capacity of 300 million units, it ranks first globally and is a main thermal supplier for both Apple and leading Android smartphones.
Its computing power liquid cooling solutions have entered the supply chains of cloud providers.
The optics business achieved revenue of RMB 5.73 billion in 2025 (up 14.5% YoY) with a gross margin of 11.5% (up 5.0 percentage points YoY), showing significant profit improvement.
This is attributed to continued market share expansion for high-end lenses and mass production of 7P lenses, OIS, and periscope modules, highlighting the success of its premiumization strategy.
WLG lens shipments are experiencing rapid growth, with several clients' mainstream flagship series adopting its 1G6P lenses and micro-prisms, suggesting potential for逐年逐年 growth in subsequent demand.
Consumer electronics order books are full.
For the Apple supply chain: Mass production orders for acoustics, linear motors, and VC thermal solutions for the entire iPhone 17 series and Pro models have been secured.
Design wins for acoustics and thermal solutions for the foldable iPhone, with procurement plans raised by 20%, are expected to ramp up in H2 2026.
For Android flagships: Design wins for WLG glass-plastic hybrid lenses and premium acoustics for the entire Xiaomi 17 and Huawei P80 series.
Orders for ultra-thin VC thermal frames for OPPO/vivo 2026 flagship models, with over 50% share in the Android VC head segment.
Foldable phone增量: Design wins for motors and speakers for the next-generation large foldable phones from Honor, OPPO, and Xiaomi, with per-unit value increasing over 60% compared to bar-type phones.
AAC Technologies has deep expertise across acoustics, haptic motors, optics, precision mechanics, and XR.
Its leading products like WLG hybrid lenses, metal frames, and foldable phone hinges are well-positioned to drive the company's long-term growth.
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