Market participants are closely monitoring a potential supply squeeze in the coal market, which may exceed current expectations. Concurrently, a renewed surge in copper demand from the United States is drawing significant attention.



**Key Market Developments**

Tightening coal supply may surpass market forecasts, with rising summer temperatures expected to gradually kickstart peak season demand. An industry expert noted that, unlike the persistent price declines from 2023 to 2025, domestic coal prices have shown a volatile but upward trend since the start of 2026, completely reversing the previous long-term downtrend. Following a severe mining accident in Shanxi, safety inspections are intensifying, likely leading to expanded short-term production halts and maintenance, directly curbing the release of effective regional supply. As temperatures rise, demand during the coal peak season is anticipated to gradually increase. High uncertainty in the US-Iran conflict corresponds to elevated volatility, though oil prices are unlikely to see a significant near-term drop. With coal PPI turning positive and prices on an upward trajectory, coal stocks could potentially experience a Davis double play. Some analysts believe the duration of the supply tightness, exacerbated by the accident and traditional June safety and environmental inspections, may last longer than the market expects. On the demand side, under the influence of a subtropical high, daily coal consumption at power plants has increased sequentially and is significantly higher year-over-year. Expectations of hot weather are gradually materializing, which, if sustained, will further incentivize power plants to replenish inventories, providing support for coal prices. Hong Kong-listed stocks in the coal sector include Yankuang Energy Group Ltd (HKEX: 01171), China Coal Energy Company Limited (HKEX: 01898), Shougang Fushan Resources Group Limited (HKEX: 00639), and China Shenhua Energy Company Limited (HKEX: 01088).



**Market Overview**

The Nasdaq Golden Dragon China Index closed up 1.47%. Overnight, all three major US stock indices reached new closing highs, with the Nasdaq Composite closing above 27,000 points for the first time. Cloud Service Providers led the gains. NVIDIA Corporation (NASDAQ: NVDA) rose over 6%, adding $319 billion in market value after announcing its entry into the PC market with the RTX Spark super chip. Dell Technologies Inc. (NYSE: DELL) and HP Inc. (NYSE: HPQ) also saw significant gains on the news. The New York Mercantile Exchange WTI crude oil front-month contract rose $5.11 to settle at $92.47 per barrel, a gain of 5.85%. COMEX gold front-month contract fell $78.20, or 1.70%, to $4,514.8 per ounce.



**Sector Focus**

The US copper rush is making a comeback. On the first trading day of June, both New York and London copper futures rose, adding to the tension ahead of the potential implementation of new US copper tariffs later in the month. Despite intraday market volatility due to US-Iran geopolitical tensions, COMEX copper futures closed up over 2%, touching $6.58 per pound intraday. LME copper prices also gained nearly 2%, rising above $13,800. Goldman Sachs noted that the copper supply deficit outside the US has surged tenfold.



**Knowledge Atlas (HKEX: 02513)**

The company announced on the evening of June 1st that, at a board meeting held on June 1, 2026, it proposed applying to relevant Chinese regulatory authorities for the allotment and issuance of A-shares and applying to the Shanghai Stock Exchange for the listing and trading of these A-shares on the Science and Technology Innovation Board (STAR Market). The proposed A-share issuance is expected to represent between 2% and 8% of the company's total share capital post-issuance (excluding any A-shares to be issued upon the exercise of any over-allotment option), equating to no less than 9,098,838 and no more than 38,768,964 new A-shares. The board also passed additional resolutions related to the proposed A-share issuance, which will be submitted to shareholders for approval at the annual general meeting.



**Meituan-W (HKEX: 03690)**

The company released its first-quarter 2026 results, reporting revenue of RMB 91.039 billion, a year-over-year increase of 5.6%. During the earnings call, management stated that as subsidies in the food delivery industry continue to be optimized, competition is gradually shifting towards a stage focused on efficiency and user experience. Since Q1, Meituan has further solidified its leading position in the mid-to-high-value food delivery order market and continues to expand its Unit Economics (UE) advantage over peers. If the competitive environment remains rational, coupled with the seasonal peak effect in Q2, UE for food delivery in Q2 is expected to be significantly better than in Q1. CEO Wang Xing expressed confidence that with ongoing regulatory guidance, industry competition will gradually return to rationality, and the company will maintain its operational efficiency lead to ensure long-term, stable competitiveness.



**Montage Technology (HKEX: 06809)**

The company announced that to meet the operational development needs of its controlling subsidiary, Hengqin Company, Hengqin Company plans to conduct a capital increase and share expansion and introduce new investors. The registered capital of Hengqin Company will be increased from RMB 143.5 million to RMB 165.7 million, with the new capital contribution amounting to RMB 22.2 million. The total investment from the new investors in this round is approximately RMB 499.5 million. As a controlling subsidiary, Hengqin Company is primarily engaged in the R&D and industrialization of new products such as CXL MXC and PCIe Switch chips and is currently in the R&D investment phase, requiring financing support.



**Chery Automobile Co., Ltd. (HKEX: 09973)**

The group announced that the total sales volume of its five major brands in May 2026 was 231,900 vehicles, representing a year-over-year increase of approximately 20.7%.



**UISEE Technology Ltd (HKEX: 01511)**

The company announced that in May 2026, in collaboration with Chongqing Seres Phoenix Intelligent Innovation Technology Co., Ltd., it facilitated the successful mass production of the first overseas right-hand-drive model of the Seres Landian E5 Plus at an Indonesian manufacturing facility. For this project, the company was responsible for the mass production development of the vehicle's integrated driving and parking intelligent driving functions. This successful delivery marks another important milestone following the delivery of the intelligent driving system for the domestic and overseas left-hand-drive Landian E5 Plus models in November 2025. It signifies that the company's passenger car intelligent driving solutions can rapidly adapt to the road environments, driving habits, and traffic regulations of different countries and regions, fully equipping it to empower clients' global expansion.



**Techtronic Industries Company Limited (HKEX: 00669)**

The company announced a $500 million automatic share repurchase program and entered into an agreement with The Hongkong and Shanghai Banking Corporation Limited. Under the agreement, the broker will repurchase up to $500 million worth of the company's ordinary shares on the Stock Exchange of Hong Kong according to predetermined parameters.



**China Life Insurance Company Limited (HKEX: 02628)**

Latest Hong Kong Exchange data shows that on May 28th, Ping An Insurance (Group) Company of China, Ltd. increased its holding in China Life by 23.163 million shares at an average price of approximately HK$28.3733 per share, involving a total amount of about HK$657 million. Following this transaction, its latest shareholding is approximately 1.269 billion shares, representing a 17.05% stake.



**Zijin Mining Group Co., Ltd. (HKEX: 02489)**

The company released its first-quarter 2026 results, reporting revenue of RMB 161 million, a year-over-year increase of 16%. Profit attributable to owners of the parent company was RMB 39.345 million, an increase of 32.51% year-over-year. Basic earnings per share were RMB 0.0164. The increase in revenue was primarily attributed to an approximate 63.8% rise in the average selling price, partially offset by a 29.2% decrease in sales volume.



**Company Spotlight**

**KARRIE INT'L (HKEX: 01050)**

The company issued a positive profit alert, anticipating that operating profit and profit attributable to equity holders for the fiscal year ended March 31, 2026, will record growth of not less than 30% compared to the previous fiscal year. The expected profit increase is mainly attributable to the following factors:

(1) Increased revenue contribution from AI-related server products: In the second half of the fiscal year, AI-related server products, including Application-Specific Integrated Circuit (ASIC) related server products, began mass delivery and were reflected in the group's performance. During the year, AI-related products accounted for over 10% of the group's server chassis segment, becoming a key driver of revenue and profit growth.

(2) Smooth progress in Thailand capacity expansion and operational enhancement: Throughout the fiscal year, the ongoing expansion of production capacity and operational enhancement at the Thailand production base progressed smoothly. This demonstrates the group's ability to rapidly respond to the demands of internationally renowned clients and AI-related customers, further enhancing its delivery capability, operational efficiency, and supply chain resilience.

Public information indicates that as a leading global supplier in the server chassis field, Karrie International is deeply benefiting from the explosive growth in AI computing power demand, with AI server chassis becoming a key growth engine. The company has been successfully included in NVIDIA's qualified supplier list for server chassis and rack components and has delivered multiple prototype products for next-generation AI servers like MGX and DGX. Simultaneously, the company's ASIC-related server products have begun delivery, formally entering the core supply chain for AI servers and laying an important milestone for future order growth.