J.P. Morgan GEMS FTM 26 Jun 26 China Equity Strategy; Robotics – from factory floor to humanoid frontier; Techtronic Industries (0669); Social License; APAC Energy Transition and More

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J.P. Morgan GEMS FTM 26 Jun 26 China Equity Strategy; Robotics – from factory floor to humanoid frontier; Techtronic Industries (0669); Social License; APAC Energy Transition and More

Global Equity Research

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GEMS First To Market 26 June 2026

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China Equity Strategy (Erin Zhang, CFA), China

Three-Channel Playbook: How a Hormuz Reopening Could Boost China Stocks

Many investors are looking for a playbook on a potential Strait of Hormuz reopening. In our view, this outcome would be a

constructive tailwind for selected China equity themes in 2H26. As Brent crude retreats toward the US$70-80 per barrel range

and the extreme tail risk of an oil-price spike fades, macro resilience should strengthen. The impact would likely cascade

through three distinct investment channels: (1) the macro and fundamental effects of lower oil prices, (2) incremental demand

from Middle East reconstruction, and (3) a recovery in global demand that benefits Chinese exporters (see Figure 18 and

Figure 19 for the list of top exporters). At the sector level, a durable reopening/normalization around Hormuz is seen as

supportive for tanker equities. Lower fuel/feedstock costs should lift margins for airlines, logistics, chemicals and soft

beverages, though equity upside may be tempered by still-soft discretionary demand and incomplete volume/price

normalization. A pickup in Middle East reconstruction across traditional infrastructure and renewables could support