China Daily Briefing

FUTU Holdings surged 7.37% on 3x normal volume. The platform is direct beneficiary of mainland investors routing capital offshore via Hong Kong Stock Connect during USD/CNY pressure near 7.25. When yuan edges toward weakness, Futu's active client accounts and trading revenue historically spike — it functions as a yuan hedge instrument for wealth-preservation investors. TME +2.19% and NTES +4.45% also in the broader Tencent-adjacent complex; both are gaming/platform businesses less exposed to the regulatory overhang hitting TCEHY.

Alibaba's $10.2B equity issuance to fund AI cloud buildout, alongside Unitree Robotics' stellar A-share IPO, signal that domestic capital markets are opening up for AI infrastructure plays. The STAR Market is positioning as China's NASDAQ for AI/robotics listings. Retail investor appetite for humanoid robots and AI cloud creates a two-tier market: AI-adjacent firms trade 40-60x while property and consumer names fetch 12-15x. Alibaba BABA +0.14% — the market is discounting the new capital raise without a negative reaction, which is constructive.

WuXi Biologics posted H1 profit +4.3% YoY, defying concerns that multinational drugmakers cutting deal budgets would crimp Chinese CRO revenue. The Jiangsu-based company cited improved capacity utilisation and stronger demand from biotech clients (vs Big Pharma). If the CRO backbone stays profitable even as out-licensing deal flow slows, China biotech earnings quality is better than feared. Watch for follow-through in smaller CRO names (Zymeworks, Kineta adjacents listed in HK).