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

Research evidence excerpt

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

301; OECD said 60% of Chinese gains in market share driven by subsidies, amid rising Gina Wu >>

concerns on EU trade war; Macro: PBOC cut cash operation to record low as bond rally Strategist

Merrill Lynch (Hong Kong)

deepens, and skipped reserve repos for first time in 2Y amid liquidity glut; banks guided +852 3508 8008

to boost credit granting; MOF raised childcare subsidies by 10.6% in 2026; at least four gina.wu@bofa.com

regions to raise the share of SOE profits to be remitted to the fiscal budget; ODI: State Winnie Wu >>

Research Analyst

Council’s outbound investment rules now cover individuals’ cross-border FX/fund flow, Merrill Lynch (Hong Kong)

and tighten controls on overseas tech, data transfer. +852 3508 3058 winnie.wu@bofa.com

Sector: key trends and weekly updates Patrick Pan, CFA >>

Capital control: mainland investors scrambled for HK accounts as offshore trading ResearchMerrill LynchAnalyst(Hong Kong)

curbs bite; Xiaohongshu cleaned up illicit resale of professional financial contents; A- +852 3508 4601

patrick.pan2@bofa.com

share: SSE new account opening +77.8%YoY in May (+29.5% in Apr); Zhipu and MiniMax

sought secondary listing on STAR board; Consumer: Busy Ming, Wanchen called to

contain excessive competition in discount snack retail; Internet: Qiushi article signaled See glossary on page 20

online-platform policy balancing growth and oversight; Meituan’s losses narrowed after

food delivery fight cooled; Mining: China picked state firm to help coordinate overseas Recent reports:

mining deals; Property: new home prices in 100 cities +0.16%MoM in May (+0.08% in Expert call takeaways: Muted Trump-