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

Research evidence excerpt

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

Sino-US: US holds off blacklisting >100 Chinese firms including DeepSeek and

CXMT to avoid escalating tensions

• According to two people familiar with the matter on Jun 17

• DeepSeek, CXMT and other companies were approved by an interagency

committee last year for addition to the Commerce Department's Entity List

• Companies deemed security risks but not listed include those that supplied

Russian drones recovered in Poland, sold restricted Nvidia chips to Chinese

universities, and provided drones and robot dogs to China’s military

• The US has not posted any additions to its Entity List since Oct, the longest

stretch between new postings in more than a decade.

(Reuters)

Geopolitical: China cautions “more difficult” Iran talks after interim deal, calls

for greater international role in next Iran-US talks

• According to foreign minister WANG Yi in a phone call with Pakistani deputy PM

Mohammad Ishaq Dar on Jun 16.

(Bloomberg, MFA)

Infra: NDRC to systematically advance the planning and construction of “six

networks”

• According to the readout of an NDRC symposium on Jun 16

• Five private companies shared insights on the development of the water

systems, next-generation power grids, computing network, next-gen

communications network, urban underground pipelines, and logistics network

• Background: the “Six Networks” initiative was given prominent attention by the

Politburo in Apr.

(Cailian Press, Xinhua)

Bonds: ChinaBond further cuts market-maker bond settlement fees to 75% of

standard rate

• According to ChinaBond (CCDC) on Jun 16

• Settlement fees on market makers’ spot bond trades will be cut from 80% to

75% of the standard rate