Major Chinese brokerages have been instructed to immediately conduct comprehensive self-inspections of their trading units, with a strict ban on providing special advantages to individual investors. According to media reports, the Shanghai Stock Exchange has issued a notice to brokers reinforcing the management of trading business units. The exchange mandates that brokerages must start a full-scale self-review of their trading units immediately, with any existing non-compliant configurations to be rectified within three months. This action impacts the Hong Kong-listed Chinese brokerage sector. The exchange requires that brokerages ensure fair allocation within trading units, treat all investors equitably, protect the lawful rights and interests of investors—especially retail investors—and strictly prohibit offering special conveniences to select clients. Brokerages must ensure the cleanup and rectification work proceeds smoothly and orderly, while also prioritizing the use of any cleared trading units to improve the trading experience for ordinary investors. Industry sources explained that this move primarily targets quantitative clients, aiming to eliminate independent trading channels and reduce trading inequality. The principle is to level the playing field between proprietary, retail, and high-frequency quantitative trading units, preventing retail investors from being disadvantaged by speed disparities. It is reported that previously, a few institutions gained microsecond-level speed advantages thousands of times faster through dedicated slots and independent trading units, potentially causing ordinary investor orders to be queued-jumped or intercepted.

Market Outlook

The Nasdaq Golden Dragon China Index closed down 0.60%. Overnight, U.S. markets saw the Dow Jones Industrial Average surge 874.86 points, or 1.73%, closing at a record high of 51,561.93. The S&P 500 gained 30.63 points, or 0.41%, to finish at 7,584.31. The Nasdaq Composite fell 23.02 points, or 0.09%, to 26,830.96. Space-related stocks generally rose, with the "SpaceX concept fund" Destiny Tech100 up over 7%. The semiconductor sector was mixed, with Broadcom plunging over 12% and Arm down over 4%. In Hong Kong, the HSI ADR rose, indicating a 0.16% or 40.24-point increase to 25,293.64. On the commodities front, the front-month WTI crude oil futures contract on the New York Mercantile Exchange fell $3.11, or 3.24%, to settle at $92.91 per barrel. COMEX gold futures for the front-month contract rose $35.50, or 0.79%, to $4,502.4 per ounce.

Key Developments to Watch

The Ministry of Industry and Information Technology has initiated a coordinated provincial and ministerial pilot program for 6G innovation and development. Key tasks include enhancing collaborative efforts in technology research, industrial R&D, application cultivation, and project layout. By 2029, the program aims to stimulate local and corporate innovation, develop a batch of independently innovative 6G technology solutions, cultivate promising new business application scenarios, and foster a variety of new terminal products, providing strong support for 6G commercial deployment. This involves Hong Kong-listed communication industry chain companies like ZTE Corp (00763).

NVIDIA (NVDA.US) has officially announced the launch of NVIDIA Cosmos 3, the world's first fully open, full-modal physical AI model. Unveiled at the GTC Taipei 2026 conference, this open-world foundation model for physical AI integrates visual reasoning, world generation, and action prediction through a novel hybrid Transformer architecture. Concurrently, NVIDIA spearheaded the formation of a global developer collaboration alliance, officially establishing the physical AI ecosystem, signaling an accelerated era of large-scale physical AI implementation. NVIDIA also launched the NVIDIA Cosmos Coalition, a global collaborative alliance uniting top-tier world model R&D teams and AI developers to jointly advance the technological iteration and widespread adoption of next-generation open-world models.

Futu Holdings (FUTU.US) will suspend all buy trades and fund deposit services for stocks and other products for mainland China-based investors starting June 12. To comply with a two-year industry rectification period and promote the standardized development of cross-border securities business, Futu will adjust services for existing investors in mainland China. From June 12, 2026 (Beijing Time), trading services in mainland China will suspend buy (open position) trades for all product types, while sell (close position) trades remain unaffected, and fund deposit services will also be suspended.

Joinn Laboratories (06127) announced that two special resolutions proposed at its 2026 first H-share class meeting on June 4 were not passed, failing to secure the required two-thirds majority of the voting rights present. The company stated this will not impact its daily operations.

A subsidiary of Quantgroup (02685) has entered into a strategic cooperation framework agreement with Beijing Ruihong to commercialize embodied intelligent robots across various scenarios. Leveraging their respective strengths in AI, application scenarios, robotic hardware, flexible control, and mass production capabilities, the partnership will focus on co-creating products, joint R&D, shared channels, technology exchange, and ecosystem synergy to advance the R&D, innovation, and commercialization of embodied intelligent robots for home services, commercial settings, and automotive showrooms.

The controlling stake of Wah Sun Holdings (01657) is set to change hands, with Hong Kong Weiye Software proposing a general offer at a discount of approximately 72.26%. Trading will resume on June 5. The joint announcement details that on May 25, 2026, the seller and the offeror entered into a share purchase agreement for the sale of 23.97 million shares (representing about 74.91% of the issued share capital and the seller's entire interest) for a total cash consideration of approximately HK$198.5 million.

A joint venture affiliated with China Energy Engineering Corporation (03996) has signed an EPC contract for the Abu Dhabi Twila C Gas-Fired Combined Cycle Power Plant project, valued at $1.687 billion (approximately RMB 11.42 billion). Located in the Emirate of Abu Dhabi, UAE, the project involves constructing a dual-fuel gas-fired combined cycle power plant with a net output of 2,600MW, encompassing design, manufacturing, supply, factory testing, transportation, civil works, installation, commissioning, training, acceptance, warranty, and maintenance. The total project duration is 32 months.

Fourier Intelligence (03625) has secured new firm orders and letters of intent for its automotive-grade audio chips from customers, with a total value exceeding $2 million (approximately RMB 13.5 million). This represents a roughly 2,000% increase in revenue from its automotive audio chip business segment for 2025. The products have been in mass production and delivery since the beginning of the year, with these orders scheduled for delivery and revenue recognition in 2026.

Dickson Concepts (00113) reported its annual results. Revenue for the year ended March 31, 2026, reached HK$1.989 billion, a year-on-year increase of 3.51%. Profit attributable to equity shareholders was HK$249 million, up 25.72% year-on-year. Basic earnings per share were 64.5 HK cents, and a final dividend of HK$0.25 per share is proposed.

SSY Group (02005) has signed a letter of intent for cooperation with Xin Zhen He Ying for two improved new drugs, securing global exclusive commercialization rights for both. If the project proceeds, the group will acquire and benefit from exclusive project technology and know-how, related patents (including application rights), registration data, and global exclusive commercialization rights, which is expected to positively impact the group's growth and business development.

CIG Cambridge Technology Group (06166) has completed the placement of 15.6 million new H shares, raising net proceeds of approximately HK$1.967 billion. On June 4, 2026, the company issued and allotted the shares at HK$126.66 per share to no fewer than six placees, representing about 16.84% of the enlarged issued H share capital. Approximately 80% of the net proceeds will be used for core component inventory, 10% for working capital, and 10% for general corporate purposes. Following the issuance, the total issued share capital increased from 353 million to 368 million shares, with the controlling shareholder's and its concert parties' stake diluted from 10.34% to 9.90%.

Leapmotor (09863) announced that its shareholders, Mr. Zhu Jiangming (Chairman and CEO) and Mr. Fu Liquan, have collectively increased their holdings by purchasing 11,621,900 H shares in the market recently, demonstrating strong confidence in the company's future. The average purchase price was approximately HK$41.99 per share, with a total investment of around HK$490 million.

New IPO Grey Market Performance

Sky Bioscience-B (01779), set to list on June 5, saw its grey market price close at HK$149.80, up 55.94% from its offer price of HK$96.06. Based on a board lot of 50 shares, this translates to a profit of HK$2,687 per lot before fees.

Long Feng Group (02290), also listing on June 5, closed its grey market session at HK$5.10, down 1.54% from its offer price of HK$5.18. Based on a board lot of 500 shares, this represents a loss of HK$40 per lot before fees.

Dajin Heavy Industry (01081), listing on June 5, closed its grey market at HK$63.30, down 4.67% from its offer price of HK$66.40. Based on a board lot of 100 shares, this translates to a loss of HK$310 per lot before fees.

Stock Spotlight

HAIWEI ELEC (09609): Capacitor Base Film is the Company's Largest Revenue Component. Recent market attention has been drawn to investment banks significantly reassessing the bill of materials for AI servers, where passive components have risen to become the third-largest cost item. Public information shows that HAIWEI ELEC is primarily engaged in the R&D, manufacturing, and sales of capacitor base film and metallized film, which are core components of film capacitors. The company's products are widely used in new energy vehicles, new energy power systems, AI and data centers, industrial equipment, and household appliances. According to the company's annual reports, capacitor base film constitutes the largest portion of its revenue, accounting for 91.9% in 2022, 71.8% in 2023, 72.8% in 2024, and 78.8% in 2025 of its total revenue.