China Strategy Tracker: Solo or symphony?

Research evidence excerpt

China Strategy Tracker: Solo or symphony?

17 June 2026

Equity Research Report

China Strategy Tracker EquityChina Strategy

Solo or symphony?

◆ The AI-centric rally has started to broaden out, with equity Jeffrey Xie* (Reg. No. S1700523100002)

fundamentals now being the most important driver… Analyst, China Equity Strategy Research HSBC Qianhai Securities Limited

jeffrey.p.xie@hsbcqh.com.cn

◆ …while valuations as a driver remain the missing link as +86 10 5795 2361

domestic demand like consumption and FAI weakened further Neal Chen*, PhD (Reg. No. S1700524120001)

Analyst, China Equity Strategy Research

HSBC Qianhai Securities Limited

◆ 12 stocks, six themes: AI, commercial aerospace, going neal.m.chen@hsbcqh.com.cn

global, new consumption, price hikes, high-quality dividends +86 21 5066 2066

Steven Sun*, CFA (Reg. No. S1700517110003)

Head of Research, HSBC Qianhai Securities Limited

Solo or symphony? In our 2H26 outlook (see China Equity Strategy - 2H26 outlook: HSBC Qianhai Securities Limited stevensun@hsbcqh.com.cn

Less concentration, more upside, 9 June 2026), we highlighted how the AI-centric +86 755 8898 3158

rally could broaden out, driven by fundamentals (AIDC-related industrials and Lydia Li*, CFA (Reg. No. S1700525040002)

materials), valuations (consumer-related), and dividend appeal (high-yield stocks). Analyst, China Equity Strategy Research HSBC Qianhai Securities Limited

Since then, fundamentals have started to drive stocks in energy storage and the lydia.j.y.li@hsbcqh.com.cn

+86 21 5066 2022

electronic fabric industry (key beneficiaries upstream of AIDC), while the dividend

appeal of stocks has led investors to seek resilient names with improving

* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

fundamentals (e.g.