Market Overview - Asian equities experienced a strong week, with the exception of Mainland China, which saw slight declines as the market consolidates after a recent rally [2] - Chinese equity investors, after a bear market from 2021 to 2023, witnessed a strong week, particularly in Hong Kong, which broke above recent resistance levels [3] Company Performance - Hong Kong growth stocks led the gains, with Alibaba Group rising by 5.44% and Baidu climbing by 8.08%, driven by reports of both companies developing proprietary semiconductor chips [4] - Mainland investors continued to purchase Alibaba shares in Hong Kong through Southbound Stock Connect, while Baidu's rally was partly attributed to short covering [5] - Technology hardware stocks were mixed, with Foxconn gaining 4.84%, while semiconductor stocks showed varied performance, with Cambricon Technologies up by 7.28% and SMIC down by 1.69% [6] Sector Insights - The Chinese healthcare sector rebounded amid concerns over potential U.S. tariffs on imported healthcare drugs and equipment, with the sector outperforming year-to-date [8] - The non-ferrous metals sector saw Zijin Mining decline by 0.23% ahead of its planned relisting in Hong Kong, while CATL rose by 0.76% due to positive electrical equipment prospects [9] Regulatory and Economic Developments - The State Administration for Market Regulation urged companies to end unfair competition in food delivery subsidies, addressing the "race to the bottom" in the industry [7] - The Ministry of Finance reported an increase in the government budget deficit to 4% this year, with special government bond issuance climbing to RMB 1.94 trillion, indicating continued economic policy support [11] Diplomatic Activity - U.S. lawmakers are scheduled to visit China, marking the first visit by a U.S. House of Representatives delegation since 2019, which is seen as a positive sign for U.S.-China relations [7][10]