CHINA/HK FIRST TO MARKET

Research evidence excerpt

CHINA/HK FIRST TO MARKET

Asia Pacific Equity Research

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China/HK First to Market 04 August 2026

Top Stories

The many gaps in China, China (Jahangir Aziz)

• China’s post-pandemic GDP remains ~1.5% below trend, despite 4.5%–5.5% headline growth

• Weak consumption is the oft-cited culprit

• But the bigger miss is investment, now extending beyond property to manufacturing and infrastructure

• Exports have become indispensable to growth, but are vulnerable to tariff increases and trade tensions

• 2H growth depends on faster fiscal deployment after 1H under-execution

• Bond issuance is a signal, but key is recovery in infrastructure (and manufacturing) investment; otherwise meeting growth

target may require more stimulus

China CXO, China, Hong Kong (Yang Huang)

1H26/2Q26 preview – Constructive: Demand resilient, pricing inflecting, new growth engines

The China CXO sub-sector saw a strong run from mid-June to early July and has maintained a relatively

stable price since early July. To better understand how it will perform next, the 1H6/2Q26 earnings results

would be important in determining the 3Q sentiment towards the sub-sector. We present here a preview of

the China CXO 1H/2Q results. We see risk skewed to the upside, with the strong fundamentals of the sub-

sector continuing, alongside an upbeat read-across from 2Q26 results of global peers, such as Lonza and

Samsung Biologics, reinforcing our constructive stance. The underlying global and China demand for CXO