Hang Seng up more than 2% intraday, led by CSPC PHARMA (01093.HK), Innovent Biologics (01801.HK) and Baidu (09888.HK). Hang Seng Tech index extends gains, up about 3.5%.

In 1H Japan saw just 18 IPOs and $917m of proceeds, the fewest listings since 2011 and lowest fundraising since 2022, Dealogic data show (annual average ~35 listings). The Nikkei 225 is up roughly one-third YTD, but the market rally has not revived issuance. This month ride‑hailing app Go raised ¥89bn (~$550m) on listing, highlighting the scarcity of companies willing or able to go public. Bankers, advisers and lawyers say the weak pipeline is unlikely to reverse in H2, in part because Japan lacks startups positioned to capture valuation gains tied to AI, data‑center and semiconductor demand.

CITIC Securities says early-May dollar strength and rising rate expectations correspond with an acceleration of global K-shaped market divergence, driven by tightening expectations that damage non-AI demand. The firm judges the K-shaped split has reached a cyclical extreme; even overseas tech is contracting internally, and pricing across equities, bonds, commodities and FX already reflects early recession-trade signals. If tightening materializes, carbon‑based demand could suffer further; if not, divergence may partially converge. Compared with volatile offshore markets, China’s A-share market shows greater resilience: some non-AI sectors have attracted early (left-side) institutional flows and a few low-valuation pockets have begun to repair, but catalysts are still required.