UOB Kay Hian has released a research note stating that Chinese equities experienced a pullback in May due to a lack of fresh catalysts, with the Hang Seng Index and the MSCI China Index declining by 2.3% and 3.4% month-on-month, respectively.

The brokerage anticipates that US equities, after a significant rally since late March, will enter a consolidation phase, while Chinese markets may see further declines in June, moving in tandem with the US.

It views any such weakness as a favorable opportunity to purchase shares of companies expected to demonstrate stronger revenue growth in the second half of 2026.

The firm has added COWELL (01415), CHINA RES MIXC (01209), NTES-S (09999), and WUXI APPTEC (02359) to its buy list, while adding LI AUTO-W (02015) to its sell list.