China: An Equity Strategist’s Diary (H): Weekly wrap (1-5 Jun): Outbound policy concerns weigh; AI/semis turn choppy

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China: An Equity Strategist’s Diary (H): Weekly wrap (1-5 Jun): Outbound policy concerns weigh; AI/semis turn choppy

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China: An Equity Strategist’s Diary (H)

Weekly wrap (1-5 Jun): Outbound policy

concerns weigh; AI/semis turn choppy

Equity Strategy

Weekly index performance 08 June 2026

HSCEI +0.1%/CSI 300 -1.5%: Discussions on Tencent’s WeChat AI agent and tigher Equity Strategy

outbound investment rules stood out as headline catalysts this week. Early optimism on China

WeChat AI assistant rollout drove outsized gains in internet mega caps and helped early-

week sentiment. Into mid-late week, focus shifted to State Council’s outbound Table of Contents

investment tightening and potential impact on individuals’ overseas investments, with

Indices vs RRR cut 2

AIA leading the weakness on concerns over mainland business exposure. News of HK

Key themes update 2

bank tightening curbs on mainland investment accounts added to the pressure.

Elsewhere, AI/ domestic semis remained active but volatile, swinging with positioning Market movements and capital flows 2

and news flow. Innovative biotechs squeezed by tighter domestic controls on licensing- Southbound weekly flow 2

out (tech transfer) and a US House bill (BINSA). Coal strengthened on supply disruptions China Positioning 2

following late-May mine incident and safety inspections. Comm. services, discretionary, Earnings revisions 2

and financial outperformed the most while healthcare, staples, and materials lagged. Recovery trends 2

Macro: top weekly headlines & upcoming highlights Key events 2 Key news 2

Week of Jun 8: May money supply & TSF and FDI (dates TBA); Tues, trade data; Wed,

inflation; Trade: USTR proposed 10.0% or 12.5% tariffs on 60 economies under section China Coverage Universe 2