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SMIC (981): reported revenue of US$2.505 billion in the first quarter of 2026, a 0.7% increase quarter-over-quarter and an 11.5% increase year-over-year. Gross profit was US$504 million, a 5.3% increase quarter-over-quarter and a 0.4% decrease year-over-year; the gross margin was 20.1%, a rebound from the previous quarter. Profit for the period was US$231 million, a 13.5% increase quarter-over-quarter, but a 28.6% decrease year-over-year. Looking ahead to the second quarter, the company expects revenue to increase by 14% to 16% quarter-over-quarter, with a gross margin between 20% and 22%. Management indicated a more optimistic outlook for the full year's operations based on existing orders. Overall, while first-quarter profits were under pressure year-over-year, strong guidance for the second quarter suggests a potential recovery in performance.

Preliminary results were announced in the China-US trade consultations

Preliminary results were announced in the China-US trade consultations, with both sides agreeing to mutual tariff reductions on a certain range of products (agricultural products will benefit significantly); China will purchase US aircraft, while the US will guarantee the supply of core components such as aircraft engines to China. Furthermore, the Ministry of Foreign Affairs revealed that President Xi Jinping will pay a state visit to the United States this autumn at the invitation of the US government.

On Friday, net inflows into Hong Kong stocks via the Stock Connect program reached HK$24.956 billion. The Tracker Fund of Hong Kong (02800) saw the largest inflow at HK$12.91 billion, followed by the Hang Seng China Enterprises Fund (02828) at HK$4.74 billion. Alibaba-W (09988) recorded the largest net outflow at HK$340 million, followed by Yangtze Optical Fibre and Cable (06869) at HK$187 million.