China: An Equity Strategist’s Diary (H): Weekly wrap (15-18 Jun): AI trades return; A-H market divergence widens

Research evidence excerpt

China: An Equity Strategist’s Diary (H): Weekly wrap (15-18 Jun): AI trades return; A-H market divergence widens

e Research Analyst

Merrill Lynch (Hong Kong)

AI firms; PBOC governor said slower loan growth is the new norm to prioritize quality. +852 3508 4601

patrick.pan2@bofa.com

Sector: key trends and weekly updates Gina Wu >>

Capital market: China to support IPOs by 'future industry' startups, large model Strategist

companies; stock exchanges unveiled guidelines on the management of active ETFs; +852 3508 8008

Banks: PBOC to formalize the RMB200k minimum subscription threshold for retail gina.wu@bofa.com

purchases of large CDs; Consumer: Yum Brands sold Pizza Hut to private equity firm Winnie Wu >>

Research Analyst

LongRange Capital and Yum China for USD2.7bn; Internet: SAMR issued 10-point draft Merrill Lynch (Hong Kong)

rules on food delivery subsidy, and called for orderly pricing in “618” campaign; +852 3508 3058 winnie.wu@bofa.com

Shenzhen summoned Meituan, Taobao, JD over food safety; WeChat Pay tested AI-

enabled payment services; Xiaohongshu mulled confidential HK IPO filing by end-Jun;

Metals: China set 3Y roadmap to cut energy use, carbon emissions in key industries, See glossary on page 17

with differential power tariffs as a key lever; Property: new home prices -0.20%MoM in

May (-0.19% in Apr), national sales value -8.0%YoY (-6.5%); Semis: CoWoS supply- Recent reports:

demand gap could be narrowed from 20% to 10% by end-2026; Tech/AI: DeepSeek Hold or fold – US investors’ feedback,

closed record USD7bn-plus funding with unusual deal structure; Huawei began marketing Jun 12

AI systems powered by 950DT chips and DeepSeek V4 to Middle East, Central Asia

clients; ByteDance in talks with Iluvatar CoreX to purchase AI chips. Supportive liquidity conditions