Market Brief
CATL has launched a historic RMB 40B share buyback and cancellation program, the largest in A-share history. By permanently reducing share count, the battery giant signals a structural shift in corporate governance for global allocators.
Sectors
As global AI capex surges, China's A-share tech manufacturers are posting massive profits. Fueled by upcoming 1.6T optical module shipments, New Easy East guided H1 profits up 102%, creating a gap for deeply discounted China AI stocks.
Sectors
Despite the July A-share tech sell-off, China's semiconductor sector is posting explosive earnings. Fueled by robust AI data-center demand, chip designer Yuanjie Technology guided H1 profits up 1,305%, creating a gap for cheap China AI stocks.
Of SASAC's six "One Profit, Five Ratios" metrics, only two cleanly predict stock returns: operating cash ratio and ROE above 10%. We walk through what the backtest data shows—and build a Buffett-style screening discipline North American investors can apply today.
Four Chinese SOE industries trade at PB discounts above 20% versus private peers: petrochemicals, steel, construction, and transportation — also the highest-yielding sectors. This installment maps where the discount concentrates and what the geography reveals about policy-mandate pricing.
China's central SOEs generate higher ROE than private peers, yet the PB-ROE valuation framework completely fails on them. This installment examines why traditional fundamentals-based pricing breaks down on state firms — and what the 2023 reform does and does not change about governance risk pricing.
Conventional wisdom holds that Chinese state-owned enterprises are unreliable dividend payers. The data shows the opposite: central SOEs delivered a 55.17% three-year cumulative payout ratio against 49.59% for private firms — alongside higher ROE and stronger profit resilience.
In 2023, SASAC introduced a new SOE performance framework linking management evaluation to ROE and cash flow quality. This is what changed — and what it signals for valuation.
China’s state-owned enterprises trade near 10x earnings, versus about 40x for the S&P 500. A data-driven analysis of the structural valuation gap.
Understand China’s A‑share market through clear English analysis. Independent research, sector deep dives, and policy insights for Global Investors.
On July 16, 2026, memory giant CXMT launched an $8B IPO on the STAR Market, the largest A-share IPO of 2026. Earmarking RMB 29.5B for DRAM and HBM projects, CXMT is positioned as a key bellwether for China's self-sufficient AI hardware thesis.
On July 16-17, 2026, 18 top firms filed for China's first Active ETFs with the CSRC. This regulatory milestone transforms the 6T-RMB A-share ETF market, providing daily transparency and real-time liquidity for global allocators.
At WAIC 2026, China's AI stack showed massive integration. Driven by Moonshot's Kimi K3 and DeepSeek's $50B valuation, the robust momentum contrasts with the July 17 A-share tech dip, opening a tactical window for cheap China AI stocks.
CXMT, China's largest DRAM maker, is preparing for a historic $9.8B IPO. Driven by the AI boom and US export controls, this listing offers global investors exposure to China's tech decoupling, balanced by persistent regulatory risks.
As Chinese AI LLMs achieve technical parity with Western peers at 40-50% lower costs, Julius Baer has rated China tech overweight. Driven by the 15th Five-Year Plan, the A-share value chain offers secular growth at a deep valuation discount.
China's AI industry has crossed the ¥1T threshold, growing over 30% in 2026. Driven by a potential $70B CapEx from ByteDance and strict localization mandates, a parallel, self-sufficient A-share AI hardware supply chain is emerging.
Luxshare Precision priced its landmark Hong Kong H-share IPO at HKD 63.28, implying a historically tight ~13% AH discount. This compressed premium signals that global allocators are aggressively repricing China's high-tech manufacturing giants.
Driven by the global AI infrastructure boom, northbound capital recorded a historic RMB 208.6B net inflow into A-shares in Q2 2026. Rather than chasing software, global allocators are aggressively buying deeply discounted hardware leaders.
China's healthcare sector has rebounded 50% YTD in 2026, driven by global validation of its biotech assets. Highlighting this trend, AstraZeneca signed a landmark $1.74B siRNA deal with Shipharmaceuticals' subsidiary, Gigabio.
China's memory chip sector is undergoing an earnings supercycle. Driven by robust AI demand and Samsung's planned 20% Q3 DRAM price hike, storage manufacturer Jiangbolong pre-announced a staggering H1 net profit surge of over 62,000% YoY.
On July 6, 2026, China rolled out sweeping trading upgrades. By expanding after-hours fixed-price trading to all A-shares, aligning fund closing, and doubling ST limits to ±10%, Beijing is lowering execution friction for global allocators.
As global AI capex surges, the China AI trade has bifurcated. While chip designer Cambricon hit a 1T RMB cap but warned of supply constraints, optical module leaders are prepaying billions to lock in scarce EML lasers and DSP components.
