Citi's China Equity Strategy Report: Citi has become more optimistic about the H- and A-share markets, raising mid-year and year-end targets for the HSI and CSI 300 Index based on favorable government announcements and clearer export visibility.

Top H-Share Picks: ZIJIN MINING, CONANT OPTICAL, and LENS have been added to Citi's top H-share picks, while SUNNY OPTICAL and ASMPT were removed from the list.

Market Performance: The HSI rose by 239 points (0.9%) to close at 26,848, with the HSCEI and HSTECH also showing gains, while total market turnover reached HKD315.192 billion.

Technology Sector Highlights: Notable gains were seen in BABA-W (+3.6%) and ALI HEALTH (+2.8%), while some AI stocks like SENSETIME-W and WEIMOB INC experienced declines of 4.9% and 4.5%, respectively.

Chip Stocks Movement: Chip stocks faced losses, with BIREN TECH and ILUVATAR COREX dropping 7.7% and 8.9%, while ASMPT and COWELL saw gains of 3.6% and 8.1%.

Automotive Sector Developments: Supported by a new tariff deal between China and the EU, BYD COMPANY and other car manufacturers like GWMOTOR and XPENG-W saw increases, while XIAOMI-W declined by 2%.

Market Performance: The HSI fell by 251 points (0.9%) to close at 26,458, while the HSCEI and HSTECH also experienced declines of 1.1% and 1.5%, respectively, with total market turnover at $276.134 billion.

Tech Stock Movements: Major tech stocks like BABA-W and TENCENT saw significant drops, with BABA-W down 3.2% after a downgrade, while other tech companies also faced declines in short selling ratios.

Chip Stocks Trends: While some chip stocks like HUA HONG SEMI and BIREN TECH saw gains of over 5%, others like SMIC and BIDU-SW experienced slight declines, indicating mixed performance in the sector.

Pharmaceutical Sector Gains: The pharmaceutical sector showed strong performance, with several companies like 3SBIO and REMEGEN surging over 7%, reflecting positive investor sentiment in this industry.

Launch of New Index: Hang Seng Indexes Company has introduced the Hang Seng SCHK Electronics Theme Index, which tracks the performance of Hong Kong-listed companies in the electronics sector eligible for Southbound trading under the Stock Connect scheme.

Constituents and Review: The index comprises 40 constituents, representing the largest market cap companies in the electronics theme, and is reviewed semi-annually with quarterly adjustments to weightings.

Current Constituents: Notable companies included in the index are TCL Electronics, Xiaomi, and SMIC, among others, with varying short selling ratios reported.

Market Activity: The article provides detailed short selling data for various constituents, indicating market activity and investor sentiment towards these stocks.

Market Performance: The Hang Seng Index (HSI) rose by 149 points (0.6%) to close at 26,085, while the HSCEI and HSTECH also saw gains, closing at 9,198 and 5,662 respectively, with a total market turnover of HKD210.473 billion.

Constituent Changes: INNOVENT BIO will be added to the HSI next week despite a 1.7% drop, while YUM CHINA, which is set to join the HSCEI, fell by 1.6%. LEAPMOTOR and ASMPT showed slight increases as they prepare for index changes.

Tech Stock Movements: Notable tech stocks like BIDU-SW surged by 5% amid news of a spin-off, while other major players like Tencent dipped slightly. Robotics stocks also performed well, with significant gains reported.

Financial Sector Gains: Chinese financial stocks, particularly insurers like CHINA TAIPING and PING AN, experienced substantial increases, with gains of over 6%, indicating a positive trend in the financial sector.