Today's key focus is on the ongoing momentum in the storage sector, with BIWIN Storage securing a significant $1.86 billion procurement contract. BIWIN Storage Co., Ltd. (688525.SH) announced it has entered into a routine major procurement contract with a storage chip manufacturer. The total committed purchase amount is $1.86 billion, featuring locked-in volume and pricing. The commitment period spans a total of 24 months, effective until June 30, 2028. This contract is beneficial for securing medium- to long-term capacity and delivery schedules for storage chips, mitigating supply disruption risks. The 2026 procurement volume accounts for approximately 4.45% of the company's total NAND Flash purchases in 2025, and 14.88% in 2027, representing a relatively small proportion. Risks associated with the contract's execution include market price volatility, exchange rate fluctuations, and force majeure events. Regarding market prospects, Chen Libai, Chairman of ADATA, indicated that with the acceleration of global AI data center construction, demand for high-capacity, high-bandwidth storage products is rapidly increasing. Particularly in the new-generation Vera Rubin platform, storage configurations are experiencing exponential growth. The global storage market is expected to remain in a state of undersupply not only this year, but the shortage may even intensify next year. The latest research report from Huatai Securities suggests that the supply-demand gap for storage is projected to be around -7% before capacity reduction and -3% after, indicating that the upward cycle for storage remains intact.

This development involves Hong Kong-listed storage concept stocks, including GigaDevice Semiconductor (Beijing) Inc. (03986), Montage Technology Co., Ltd. (06809), Hua Hong Semiconductor Ltd. (01347), and Semiconductor Manufacturing International Corporation (00981).

Market Outlook

US stock indices closed mixed overnight, with major technology stocks experiencing widespread declines. At the close, the Dow Jones Industrial Average rose 86.1 points to 50,872.11, a gain of 0.17%. The S&P 500 index fell 19.08 points to 7,386.65, down 0.26%. The Nasdaq Composite Index dropped 250.84 points to 25,678.82, a decline of 0.97%. Major tech stocks were broadly lower, with Apple falling over 3%, Tesla down 3%, and Microsoft declining over 2%. Chip stocks collectively retreated, with ARM dropping over 6% and Qualcomm down over 5%. Optical communication concept stocks also weakened, with Marvell Technology falling over 7%. Most popular Chinese concept stocks declined, with the Nasdaq Golden Dragon China Index down 0.39%. The Hong Kong Hang Seng Index ADRs rose, with the proportional calculation indicating a close at 24,569.63 points, up 3.73 points or 0.02% from the Hong Kong market close. The New York Mercantile Exchange WTI crude oil front-month contract fell $2.60 to $88.7 per barrel, a drop of 2.85%. COMEX gold front-month futures contract declined by $78.60, or 1.80%, to $4,284.8 per ounce.

Sector Highlights

The Hong Kong Special Administrative Region government announced the "Hong Kong Corporate Treasury Centre Development Action Plan" on the 9th. The plan proposes targeted strategies to strengthen Hong Kong's position as a key hub for multinational corporate treasury centers, aiming to establish Hong Kong as a primary base for such centers and further enhance its role as a platform for attracting inbound and facilitating outbound activities. The action plan was jointly prepared by the Financial Services and the Treasury Bureau, the Inland Revenue Department, the Hong Kong Monetary Authority, and Invest Hong Kong. The plan focuses on two main objectives: first, to attract more multinational corporations to establish corporate treasury centers in Hong Kong; second, to assist existing corporate treasury centers operating in Hong Kong to expand their scale and fully utilize the city's comprehensive financial ecosystem. The action plan explicitly encourages multinational corporations from around the world to centralize their fund management, asset allocation, and risk control in Hong Kong.

Overseas inventories are only sufficient until the end of June, presenting a golden window for domestic tungsten hexafluoride. Influenced by multiple factors including tightening overseas supply chains and a surge in downstream demand, the supply-demand gap continues to widen, leading to a sharp spike in tungsten hexafluoride prices. According to monitoring by Buychem Research Institute, the current price for 99.999% purity tungsten hexafluoride in China ranges from 1,670 to 1,810 yuan per kilogram, representing a year-on-year increase of 232.7%. Key suppliers like South Korea's SK Specialty and Foosung have formally notified major chip giants such as Samsung Electronics and SK Hynix that they will significantly raise tungsten hexafluoride prices in 2026, with increases expected to reach 70% to 90%. Furthermore, Japanese companies Kanto Denka Kogyo and Central Glass have informed semiconductor clients like Samsung in South Korea that their inventories will only last until the end of May or June, and supply for the second half of the year cannot be guaranteed, advising them to seek other suppliers. Tungsten mining concepts involve Hong Kong-listed Jiaxin International Resources Holdings Ltd. (03858).

TENCENT (00700): According to its Global Medium Term Note Programme, the company has priced $2.45 billion and RMB 15 billion notes. On June 9, 2026 (New York time), the company entered into subscription agreements with arrangers for the issuance of $2.45 billion in US dollar notes and RMB 15 billion in renminbi notes under the programme, respectively.

Reports indicate Samsung is considering building a new advanced chip packaging plant to meet the explosive demand for AI computing power. According to South Korean media reports, Samsung is evaluating the construction of a chip packaging facility in South Korea. The facility is likely to be located in Gwangju, South Korea. Notably, SK Hynix is also considering investments in the same region. Sources familiar with the matter revealed that the South Korean tech giant is conducting a final review of the plan, with an announcement possible as early as next month. Chip packaging equipment involves Hong Kong-listed ASM Pacific Technology Ltd. (00522).

Swire Pacific Limited (00019/00087) plans to issue HK$4.7 billion in Cathay Pacific Airways exchangeable bonds. Based on a preliminary exchange price of HK$13.18 per Cathay Pacific share and assuming full exchange of the bonds at this price, the bonds would be exchanged for approximately 356.6 million Cathay Pacific shares, representing about 5.9% of the total issued Cathay Pacific shares as of the announcement date and post-full exchange.

Tianli International Holdings Limited (01773) intends to acquire a total of 10% equity in Tianlai Technology Group and increase its capital contribution by RMB 140.8 million. On June 9, 2026, the company's subsidiary, Shenzhou Tianli Education Technology Group Co., Ltd. (the buyer), entered into a share transfer agreement with the target company Tianlai Technology Group, Chongqing Yuwuxing Logistics Industry Private Equity Investment Fund Partnership (Limited Partnership) (Transferor 1), and Zhang Meng (Transferor 2). The buyer agreed to purchase, and the transferors agreed to sell, a total of 10% equity in Tianlai Technology Group Co., Ltd. for a total consideration of RMB 104 million. The target group, founded in 1998, has grown into a comprehensive art education group covering all types, subjects, and age groups in art education.

Jingtai Holdings Limited (02228) has reached a strategic AI drug discovery collaboration exceeding $400 million with an internationally renowned pharmaceutical company, targeting the development of an oral new drug for a GPCR target. The company's board announced a strategic partnership with a globally recognized biopharmaceutical company. Both parties will jointly develop an innovative oral small molecule drug with "Best-in-Class" potential targeting a GPCR (G-protein coupled receptor) target. This agreement is based on a rigorous and successful pilot phase, during which Jingtai's integration of quantum physics and AI algorithms achieved a breakthrough hit rate, demonstrating the platform's capability to handle such complex metabolic targets.

MINIEYE Group Inc. (02431) has signed an autonomous vehicle procurement contract valued at over RMB 130 million. The group recently formally signed an autonomous vehicle procurement contract with an independent third party focused on smart vehicles and related components, as well as intelligent transportation. The successful conclusion of this cooperation marks a significant step forward for the group's unmanned bus-related business in terms of commercial implementation and market expansion.

JPMorgan Chase reduced its holding in Alibaba Group Holding Limited (09988) by approximately 16.6358 million shares, with an average price per share of about HK$127.15. According to the latest data from the Hong Kong Stock Exchange, on June 3, JPMorgan Chase sold 16.6358 million shares of Alibaba at an average price of HK$127.1498 per share, involving a total amount of approximately HK$2.115 billion. Following the reduction, its latest shareholding stands at about 1.336 billion shares, representing a stake of 6.95%.

BYD Company Limited (01211): The US Department of Defense has included the company in its list of Chinese military-industrial companies, which the company states will not affect its normal business operations. The company noted that the US Department of Defense issued a "Notice on the Designation of Chinese Military-Industrial Companies" on June 8, 2026 (US time). According to the notice, the US Department of Defense has included BYD in the list of Chinese military-industrial companies. As the group is neither a Chinese military-industrial enterprise nor a civil-military integration enterprise within China's defense industry, the company believes there is no legitimate basis for its inclusion on this list.

Q Technology (Group) Company Limited (01478) reported May 2026 camera module shipments for mobile phones of 45.138 million units, a year-on-year increase of 39.4%. In May 2026, the sales volume of camera modules for mobile phones was 45.138 million units, representing a month-on-month increase of 7.7% and a year-on-year increase of 39.4%. The combined sales volume of camera modules and lidar products totaled 47.484 million units, up 8% month-on-month and 40% year-on-year. The sales volume of biometric recognition modules totaled 13.805 million units, down 16.6% month-on-month and 9.4% year-on-year.

Yuegangwan Intelligent Computing Holdings Limited (01396) issued 376 million new shares due to the conversion of zero-coupon mandatory convertible bonds. On June 9, 2026, the company issued and allotted 376 million new shares following the conversion of the zero-coupon mandatory convertible bonds due 2026, which were issued on June 10, 2025.

S.F. Holding Co., Ltd. (06936) completed the subscription for J&T B shares and the issuance of H shares to J&T under a general mandate. All conditions precedent for the S.F. subscription and the J&T subscription as set out in the subscription agreement and the relevant announcement have been fulfilled (including obtaining listing approval from the Hong Kong Stock Exchange Listing Committee for the S.F. subscription shares and the J&T subscription shares respectively), and the subscriptions were completed on June 9, 2026. A total of 226 million new S.F. H shares (representing approximately 48.48% of the total issued S.F. H shares as enlarged by the allotment and issuance of the S.F. subscription shares and approximately 4.29% of the total issued S.F. shares respectively) were successfully allotted and issued by the company to J&T on June 9, 2026, at the S.F. subscription price.

Stock in Focus

IPE GROUP (00929): China Baoan states that the company produces precision components for hard disk drives. Public information shows that IPE GROUP is a member enterprise controlled by A-share listed company China Baoan (000009.SZ). An investor inquired on an interactive platform: Does the internationally controlled IPE GROUP supply core precision components for hard disk drives to Seagate and Western Digital (WDC)? Are the related products used in AI data centers and server high-capacity storage? China Baoan responded that IPE GROUP does produce precision components for hard disk drives. It is noteworthy that IPE GROUP has successfully completed the sample development of its liquid-cooled UQD universal quick-disconnect connector series and has officially commenced small-batch delivery. This series of liquid-cooled UQD universal quick-disconnect connectors strictly adheres to the OCP open standard, featuring core advantages such as leak prevention, quick connect/disconnect, and standardized compatibility. They are adaptable for thermal management scenarios in various fields including data centers and new energy.