China: An Equity Strategist’s Diary (H): Weekly wrap (4-8 May): Risk appetite holds, AI and property lead

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China: An Equity Strategist’s Diary (H): Weekly wrap (4-8 May): Risk appetite holds, AI and property lead

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China: An Equity Strategist’s Diary (H)

Weekly wrap (4-8 May): Risk appetite

holds, AI and property lead

Equity Strategy

Weekly index performance 11 May 2026

HSCEI +2.4%/CSI 300 +1.3%: Risk-on sentiment looked intact this week. H-shares Equity Strategy

regained momentum from end-Apr weakness, supported by renewed confidence in large- China

cap tech, domestic semis and property, while A-shares staged a rebound post-holiday at

over RMB3tn daily turnover, highlighted by strong domestic AI themes (eg CPO, fiber, Table of Contents

PCB). Property stocks outperformed on the back of solid Apr and holiday home sales,

Indices vs RRR cut 2

while IT and materials also delivered relative strength. Energy lagged amid declining

Key themes update 3

crude prices as geopolitical tensions eased, consumer staples and healthcare also

underperformed. Market movements and capital flows 4

Southbound weekly flow 5

Macro: top weekly headlines & upcoming highlights China Positioning 6

Week of May 11: Apr money supply & TSF and FDI (dates TBA); Mon, inflation; Earnings revisions 7

Geopolitical: ahead of Xi-Trump meeting, Trump downplayed strains while Premier Li Recovery trends 8

stressed more practical achievements, USTR said China’s purchases of Iranian oil on the Key events 9

discussion list; Nvidia, Apple, Boeing CEOs invited for China trip; China urged opening of

Key news 10

Hormuz in Iran talks ahead of leadership summit; Trade: US trade court ruled Trump’s

10% global tariffs (Section 122) illegal, but issued narrow block; Macro: state media saw China Coverage Universe 18

liquidity stance normalizing from extremely loose to “neutral with a mild easing bias” in