Market Weekly Report | May 24–30, 2026

Global tech markets exhibited extreme divergence: Lenovo Group surged 82% after its AI PCs led to inclusion in the Hang Seng Tech Index, while the Hang Seng Index declined under pressure; however, the tech sub-index posted gains against the broader market trend. Southbound capital flows recorded rare net outflows in May.

1. Overview of the Global Macroeconomy

The dominant theme in global markets this week can be summarized as"Silicon-based inflation, carbon-based deflation"—All assets tied to AI, computing power, and semiconductors rallied across the board, while traditional economy and consumer-related assets remained under persistent pressure. This extreme divergence was not limited to A-shares but was also fully evident in U.S., Japanese, and Korean equity markets.

In the United States,Q1 GDP annualized quarter-over-quarter growth was revised downward to +1.6%(released on May 28), slightly below the initial estimate, though the labor market remained resilient.The yield on the 10-year U.S. Treasury note fell by 11 basis points over the week to 4.45%., reflecting a marginal weakening in market expectations for economic growth.The US Dollar Index edged down slightly to 98.93, posting a weekly decline of -0.39%。

In the Asia-Pacific region,the Nikkei 225 surged by +4.72% this week，and South Korea's KOSPI index soared by +8.01%, both benefiting from the global spread of AI and semiconductor-related market momentum.Taiwan's weighted index broke above the 44,000 mark intraday, hitting a record high, closing at 44,732.94 on Friday.

Domestically,The State Council issued the '15th Five-Year Plan for Urban Renewal', outlining six key tasks including fostering and expanding new drivers of CityDev, and specifying 14 major projects such as the construction and renovation of 'high-quality housing' and upgrades to municipal infrastructure.Huawei proposed the 'Tao's Law', exploring a new path for chip performance growth and drawing market attention to domestic semiconductor substitution. Overall, A-share markets exhibited an extremely structural pattern characterized by 'tech strength alone, weakness elsewhere.'

II. Performance of Global Asset Classes

Key features this week: tech-growth styles outperformed globally, crude oil prices dropped sharply, bonds strengthened, and the US dollar declined slightly.

On the equity side,, with global tech-growth styles significantly outperforming. US equities continued to hit new highs,The S&P 500 rose 1.43% for the week to 7,580.06 points，The Nasdaq gained 2.39% for the week to 26,972.62 points，The Dow Jones Industrial Average advanced 0.90% for the week to 51,032.46 points, marking the sixth consecutive weekly gain for both the Nasdaq and the S&P 500. Asia-Pacific markets showed sharp divergence, with Japan, South Korea, and Taiwan surging on AI-driven momentum, while the Hang Seng Index and A-share main board faced downward pressure. In China-related markets,The Shanghai Composite Index fell 1.08% for the week to 4,068.57 points，The Shenzhen Component Index declined 0.14% for the week to 15,575.13 pointsbutThe ChiNext Index rose逆势 by +2.53% to 4,037.95 pointsTech growth stocks continued to outperform.

In commoditiesEnergy prices fell sharply.Brent crude declined approximately -8.3% for the weekdropping below the $91-per-barrel mark intra-week to a six-week low, mainly driven by expectations of U.S.-Iran nuclear talks and weakening demand outlook.COMEX gold gained +1.32% for the weeksupported by safe-haven demand.

In bondsYields on major global government bonds mostly declined.The U.S. 10-year Treasury yield fell from 4.56% to 4.45%, down 11 basis points for the week。China’s 10-year government bond yield decreased from 1.749% to 1.714%, down 3.5 basis points, the yield on China's 10-year policy bank bonds fell in tandem by 3.2 basis points to 1.7825%.

In terms of exchange rates,, the US dollar weakened slightly.The US Dollar Index declined from 99.33 to 98.93, posting a weekly drop of -0.39%.。The offshore renminbi closed at 6.7648 against the US dollar, appreciating approximately 0.47% during the week.。

III. Weekly Review of the Hong Kong Market

Hong Kong equities this week exhibited"broad market under pressure, tech stocks resilient"a pattern of structural divergence. The Hang Seng Index declined, weighed down by traditional sectors, while the Hang Seng Tech Index rose against the trend, driven by a sharp surge in Lenovo Group and strength in the semiconductor sector.

Index Performance

The Hang Seng Index fell -1.65% for the week, closing at 25,182.39 points.；The Hang Seng Tech Index gained +0.30%, closing at 4,884.23 points.；The Hang Seng China Enterprises Index declined -1.46%.. By sub-index,the Hang Seng Tech Index (+2.4%) posted the largest gain，while the Hang Seng Composite SmallCap Index (-2.5%) recorded the steepest decline. Year-to-date,the Hang Seng Mainland Connect High Dividend Yield Index (+10.3%) leads in returns，and the Hang Seng Tech Index (-11.5%) has seen the deepest decline。

Industry sector gains and losses

Stock Highlights

Top three gainers within the Hang Seng Tech Index components: Lenovo Group (+82.5%), Hua Hong Semiconductor (+26.0%), Sunny Optical (+22.2%). Lenovo Group surged more than 80% for the week, driven by the AI PC concept and expectations of a rebalancing of the Hang Seng Tech Index.

Top three decliners: Meituan-W (-10.5%), Horizonrobot-W (-9.7%), Trip.com Group (-9.7%）。

Additionally, on May 28, the semiconductor sector was boosted by the combined tailwinds of domestic substitution and AI computing demand, with several leading chipmakers posting single-day gains exceeding 5%, reflecting strong overall sector performance. Fund flows

Southbound capital recorded net inflows of approximately HK$8.08 billion this week,, indicating relatively weak overall buying momentum. Notably,Southbound funds posted a cumulative net outflow of HK$35.54 billion for the entire month of May,marking a rare monthly net outflow in recent years, reflecting a shift of some capital from Hong Kong back to A-shares amid rising tech-sector sentiment in the A-share market. As of May 29, Southbound capital has recorded net inflows of HK$553.99 billion over the past 30 trading days, underscoring an unchanged medium- to long-term trend of increased allocation.

From a daily perspective, southbound net selling amounted to approximately HK$1.76 billion on May 26; intraday net buying briefly exceeded HK$7 billion on May 28; net buying reached about HK$1.883 billion on May 29; and on May 30 (Friday), net buying stood at approximately HK$7.609 billion.

IV. Outlook for the Market Ahead

Next week, the market entersFirst week of June, market focus is shifting from May’s month-end dynamics to the allocation window for the second half of the year.

Key calendar

Core Thesis

Global markets are currently in an extreme phase of divergence between an 'AI-driven tech bull market' and 'traditional sectors under pressure.'This week, the Nasdaq posted six consecutive gains, Japanese, South Korean, and ** equities rallied sharply, Lenovo Group surged 82%, and Hua Hong Semiconductor rose 26%—all pointing to the same theme: AI computing power and the semiconductor supply chain are drawing global capital at an accelerating pace.

For the Hong Kong market, the Hang Seng Index remains under pressure due to drag from traditional sectors, butthe Hang Seng Tech Index has already shown signs of structural stabilization—this week, it posted a counter-trend gain of +0.30% against a backdrop of a -1.65% decline in the Hang Seng Index, with strong performance in sub-sectors such as semiconductors and AI hardware. The rare net outflow of southbound funds in May reflects more of a short-term rebalancing between A-shares and Hong Kong stocks rather than a trend of sustained withdrawal.

Allocation strategy

1. AI hardware and semiconductors are currently the strongest investment themes.。Global AI computing demand expansion and the logic of domestic substitution are reinforcing each other, driving related tech hardware and semiconductor sectors to lead market performance this week, with strong short-term momentum, though attention should be paid to the pace of valuation digestion.

2. High-dividend defensive plays remain attractive for portfolio allocation.The Hang Seng China Mainland Connect High Dividend Yield Index has gained +10.3% year-to-date, outperforming the broader market. Amid extreme divergence in tech stocks, dividend-paying assets such as energy, utilities, and telecom operators continue to serve as stabilizers for core holdings.

3. Innovative drugs: Watch for catalysts from the upcoming ASCO annual meeting.With the ASCO annual meeting approaching, innovative drug companies are entering a period of密集 data releases that could act as catalysts, while CXO firms benefit from sustained strong demand for R&D services from overseas pharmaceutical companies.

4. Following the sharp drop in crude oil prices, watch for valuation recovery opportunities in the energy sector.Brent crude fell 8.3% this week to a six-week low; oil prices could rebound if U.S.-Iran negotiations fall short of expectations or if OPEC+ signals production cuts.

Risk Warning

⚠️ Valuation correction risks following overheating in the AI rally. | Faster-than-expected progress in U.S.-Iran talks has weighed on oil prices. | Southbound capital continues to record net outflows. | Uncertainty surrounding the Federal Reserve's monetary policy | Escalation of U.S.-China technology tensions

Disclaimer: This report is for internal discussion purposes only and does not constitute investment advice.

Data sources: AlphaPai database and publicly available market data. Data retrieved on June 3, 2026.

$CMS Hang Seng Tech Index ETF (03423.HK)$ $BABA-W (09988.HK)$ $TENCENT (00700.HK)$ $XIAOMI-W (01810.HK)$ $NTES-S (09999.HK)$ $MEITUAN-W (03690.HK)$ $KUAISHOU-W (01024.HK)$ $SMIC (00981.HK)$ $BYD COMPANY (01211.HK)$ $JD-SW (09618.HK)$ $LI AUTO-W (02015.HK)$ $TRIP.COM-S (09961.HK)$ $XPENG-W (09868.HK)$ $BIDU-SW (09888.HK)$ $LENOVO GROUP (00992.HK)$ $HAIER SMARTHOME (06690.HK)$ $JD HEALTH (06618.HK)$ $KINGDEE INT'L (00268.HK)$ $SUNNY OPTICAL (02382.HK)$ $BILIBILI-W (09626.HK)$ $MIDEA GROUP (00300.HK)$ $SENSETIME-W (00020.HK)$ $KINGSOFT (03888.HK)$ $ALI HEALTH (00241.HK)$ $HUA HONG GRACE (01347.HK)$ $TONGCHENGTRAVEL (00780.HK)$ $BYD ELECTRONIC (00285.HK)$ $ASMPT (00522.HK)$ $NIO-SW (09866.HK)$ $HORIZONROBOT-W (09660.HK)$ $TME-SW (01698.HK)$

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