Markets Surge as Xi Hosts EU Leaders, SMIC Breaks $50, and Global Giants Make Big Moves

HK:00020.HK:SENSETIME-W
Six firms within SENSETIME-W’s “X” ecosystem secured or neared RMB1.8 billion in financing, according to Chairman Xu Li. This follows the company’s “1+X” restructuring completed last year.

HK:09992.HK:POP MART
Chairman Wang Ning denied using “hunger marketing,” stressing the firm is boosting monthly production to meet surging demand for its LABUBU dolls, now selling 10 million units per month. HSBC Research trimmed its target price to $319.5 but maintained a “Buy” rating.

HK:00981.HK:SMIC | HK:0522.HK:ASMPT | HK:3115.HK:Hangseng Index
The Hang Seng Index hit a 3.5-year high at 25,723, rising 185 points (0.7%) on strong turnover. SMIC surged 4% to $50.7, a 4-month high, while ASMPT jumped 9% as AI chip demand shifts toward domestic foundries.

HK:2314.HK:LEE & MAN PAPER | HK:2689.HK:ND PAPER
Shares soared 7% and 10%, respectively, after reports of Chinese paper firms hiking prices.

HK:1378.HK:CHINAHONGQIAO
Morgan Stanley raised its target price to $24.8, reiterating an “Overweight” rating.

HK:1929.HK:CTG DUTY-FREE
Stock extended gains, climbing 16% in early trading.

US:JPM:JPMorgan Chase | US:BAC:Bank of America | HK:300750.HK:CATL
US lawmakers subpoenaed JPMorgan Chase and Bank of America over their roles in CATL’s Hong Kong IPO.

HK:0001.HK:CKH HOLDINGS
Morgan Stanley resumed coverage with an “Overweight” rating and a $65 target price.

HK:3690.HK:MEITU | HK:0111.HK:WINLAND GROUP
MEITU Chairman Mike Cai purchased Cannon Street site from Winland Group for HKD750 million.

HK:0388.HK:HKEX
Bank of America Securities raised HKEX’s target price to $520, forecasting 31% net profit growth in 1H25. Separately, HKEX reported IPO fundraising surged ~7x YoY in the first half of 2025.

HK:1928.HK:SANDS CHINA LTD
Despite weak Q2 profit margins, its Londoner property showed improvements. Adjusted Q2 property EBITDA rose 0.9% YoY to US$566 million.

HK:2158.HK:WUXI BIO
Forecasted 1H net profit growth of 56% YoY.

HK:3690.HK:MEITU | Tech Sector
Alibaba Cloud’s Bailian platform launched Qwen3-Coder, pricing at one-third the cost of Claude 4.

HK:2319.HK:MENGNIU DAIRY
Issued RMB3.5 billion in sustainability bonds.

HK:2451.HK:EASOU TECH
Raised US$338 million through a top-up share placement at ~15% discount.

HK:1876.HK:LEADS BIOLABS-B
Priced IPO shares at the upper limit of HKD35.

HK:002475.HK:LUXSHARE PRECISION
Board approved plans for an H-share listing in Hong Kong.

US:DGT:Dow Jones Industrial Average | US:QQQ:Nasdaq Composite | SGX:S27.SI:S&P 500
Markets watched closely as Chinese President Xi Jinping met EU leaders Antonio Costa and Ursula von der Leyen in Beijing ahead of the 25th China-EU leaders’ meeting.

DBS, OCBC, UOB Face NIM Pressure; Frasers Hospitality Trust Moves Closer to Privatisation

SGX:D05.SI:DBS Group
HSBC analysts forecast DBS’s net interest margins (NIM) for 2025-2027 at 2 basis points below consensus, with estimates around 1.8% if SORA averages 1.5% and 1.75-1.85% should SORA fall to 1%. Goldman Sachs projects DBS’s 2QFY2025 earnings at US$2.783 billion, down from US$2.897 billion in 1QFY2025, citing falling SORA and HIBOR rates. Despite the pressure, HSBC expects DBS to sustain dividend growth due to sufficient capital and share buybacks.

SGX:O39.SI:OCBC Bank
OCBC’s dividend growth is expected to remain moderate, with payouts around 50%, according to HSBC. Goldman Sachs forecasts 2QFY2025 earnings of US$1.84 billion, down from US$1.883 billion in 1QFY2025, impacted by declining NIMs, weaker fee income, and normalised insurance profits. HSBC projects long-term ROE targets at 14%, with headwinds partly cushioned by lower credit costs and well-managed opex.

SGX:U11.SI:UOB
HSBC expects UOB dividends to remain near a 50% payout ratio amid NIM compression, with long-term ROE targets at 14%. Goldman Sachs estimates 2QFY2025 earnings at US$1.496 billion, little changed from US$1.49 billion in 1QFY2025, but warns of pressure from lower fee and non-interest income due to market conditions.

SGX:ACV.SI:Frasers Hospitality Trust (FHT)
Frasers Hospitality Trust will hold its scheme meeting on August 15 to vote on its proposed privatisation by Frasers Property (SGX:TQ5.SI:Frasers Property) at 71 cents per stapled security. This second privatisation attempt, following a failed offer in 2022, implies a P/NAV of 1.11 times, higher than other S-REIT deals. Deloitte & Touche, as independent financial adviser, deemed the scheme “fair and reasonable,” with directors recommending unitholders to vote in favour.

Elite UK REIT Secures Green Light for GBP24M Dundee Student Housing Redevelopment

SGX:1D5U.SI:Elite UK REIT
Elite UK REIT received planning approval to convert Lindsay House in Dundee, Scotland, into a 168-bed purpose-built student accommodation (PBSA) facility. Partnering with Scotland-based PBSA operator Mys through a development management agreement, the property’s estimated gross development value post-conversion is GBP24 million, with a projected ROI of about 18% and yield on cost above 7%. The project, retaining existing structures to accelerate delivery, is targeted for marketing and occupancy by the academic year starting September 2027.