AGP Executive Report

Hong Kong’s AI push goes global: Cyberport says more mainland AI firms are using Hong Kong as a “super-connector” to set up regional HQs and expand into Southeast Asia and the Gulf, with LEAP East running July 8–10. Crypto policy watch: The UK FCA published a cost-benefit analysis for its new cryptoasset regime, estimating £1.435bn in benefits vs £1.315bn in costs over 10 years, covering stablecoins, market abuse, custody and prudential rules. Markets and chips: Asian stocks slid as investors took profits in semiconductors ahead of US jobs data; South Korea’s Kospi sank nearly 8% with SK Hynix and Samsung hit hard, while Hong Kong’s Hang Seng rose. Renewables listing momentum: China Resources New Energy surged in its Shenzhen debut after raising 24.5bn yuan in Asia’s biggest IPO so far this year. Local tech infrastructure: Hong Kong is trialling procurement for Modular Integrated Construction (MiC) modules, aiming to streamline delivery. Health science in HK: A large Hong Kong study of 700,000 mother-child pairs found prenatal paracetamol exposure shows no link to autism or ADHD. AI in Hong Kong media: Actor Lawrence Ng says he licensed rights to his younger AI likeness for a film, avoiding extra filming.

HKEX Robotics Listing: Guangdong TrueHealth Medical Technology debuted on the Hong Kong Stock Exchange as the first percutaneous surgical robotics specialist, jumping about 217% on its debut after a 216.96% surge to HK$400. AI Revenue Model: Nvidia is rolling out a usage-linked revenue-sharing scheme, offering token credits to developers so they can access AI “DSX AI factories” compute and share future sales. Chip Smuggling Probe (Taiwan): Taiwan detained Supermicro employees as prosecutors expand an investigation into alleged Nvidia AI-server smuggling, with Supermicro saying it is cooperating and not a target. Cybersecurity: A password-spray campaign tied to LSHIY LLC hit Microsoft 365 and Azure CLI accounts, with 81 million login attempts and at least 78 confirmed compromises across 64 orgs. Quantum Push (Mainland): Shanghai launched a quantum computing industrial hub to move firms from lab work to commercialization, backing early research and first products. Identity Fraud Risk: A Shufti report says Asia-Pacific identity fraud signals are highest in digitally advanced economies, with fraud scaling alongside remote onboarding volume. Finance & Markets: China Resources New Energy’s Shenzhen debut nearly tripled after a record-sized IPO, while Hong Kong shares rebounded as chip sell-offs cooled. Local Governance: A Legco probe is expected after lawmaker William Wong failed to report his CUHK drink-driving arrest. Tech & Trade Events: ASIA FRUIT LOGISTICA announced FRESHTech, a Hong Kong tech platform for fresh-produce automation, traceability and cold-chain solutions (Sept 2–4).

Robotics & Industry Ecosystems: Shenzhen’s “Robot Valley” is positioning itself as a global robotics innovation hub, powered by dense supply chains and university-industry links, with 2026 momentum highlighted by humanoid robot “Flash” and new robotics IPO filings. Hong Kong in Space: Hong Kong’s first astronaut sent greetings from China’s Tiangong space station on SAR’s 29th anniversary, underscoring the city’s growing role in China’s space program via university-developed space technologies. Cybersecurity: A massive password spray campaign hit Microsoft Azure CLI sign-ins, with Huntress reporting 81M login attempts and confirmed compromises across 64 organizations—an urgent reminder that weak coverage can beat even MFA. AI & Research (HK angle): CityUHK researchers used AI to strengthen the “two-state” explanation of liquid water at the molecular level, while HKUMed researchers report prenatal paracetamol exposure does not raise autism or ADHD risk. Health Tech: A new DME regimen (early anti-VEGF plus dexamethasone implant, then as needed) aims to cut injection counts without losing efficacy. Policy & Risk: China’s new “national security” outbound investment rules take effect July 1, potentially reshaping how tech and talent move across borders. Fintech/Payments: Payward completed its acquisition of Reap to expand B2B stablecoin-native card and cross-border payments infrastructure. Sustainability & ESG: HYBE published its 2025 sustainability management report, emphasizing fan experience and greener merchandise.

AI & Design Tools: Pixso launched “AI Smart Design,” generating editable UI inside enterprise component libraries and design systems—aimed at speeding designers from requirements to production-ready drafts. Robotics & Physical AI: Shenzhen’s “Robot Valley” is pitching itself as a global robotics hub, citing fast-moving humanoid and collaborative robot progress alongside IPO momentum. Health Research: HKUST-linked researchers analyzed 124,333 siblings and found no link between paracetamol use in pregnancy and later autism or ADHD—adding weight to the growing pushback on anti-Tylenol claims. Hong Kong Tech Policy: Hong Kong’s innovation chief Sun Dong warned AI will drive a bigger-than-previous industrial shift, while pushing universal AI education and local LLM development. Data Centres: SUNeVision said MEGA IDC Phase One demand is strong, with a new customer commitment expected to lift occupancy from ~30% to ~70% as AI/cloud usage grows. Markets & Trade: China’s June factory activity picked up, with tech and chip-related stocks leading gains; Hong Kong stayed closed for a holiday. Startup/Capital Flows: METiS TechBio secured a global licensing deal for a trispecific T-cell engager, while Amity Robotics raised seed funding to expand its AI concierge and mobile robot deployments.

Embodied AI & IPO momentum: Greater Bay Area startups kept the “physical AI” hype alive as Shenzhen’s AI² Robotics and X Square Robot both crossed 20 billion yuan valuations; X Square Robot is reportedly eyeing a Hong Kong IPO. Hong Kong finance & hard-tech listings: Hong Kong doubled down on its IPO comeback, with first-half 2026 fundraising hitting a multi-year high and AI, semiconductors and advanced manufacturing leading deal flow. AI model race: Zhipu AI released and open-sourced GLM-5.2, claiming top spots on coding benchmarks and pitching long-horizon engineering help. GBA–ASEAN connectivity: At the GBA-ASEAN Summit, Hong Kong positioned itself as a “super connector,” with InvestHK launching an ASEAN Chamber of Commerce (Hong Kong) and pushing Northern Metropolis links. Health & biotech: CUHK researchers reviewed how gut microbes may shape immunotherapy outcomes in liver cancer. Energy storage supply chain: Pace Digitek’s Lineage Power signed for 3 GWh LFP battery cells from RJE Tech, aiming to stabilize BESS production. Market backdrop: US futures steadied after a strong quarter, while chip stocks stayed in focus amid ongoing AI infrastructure demand worries.

GBA-ASEAN Push: Hong Kong’s tech-and-trade partners are looking south: the Philippines’ trade chief told the SCMP GBA-ASEAN Summit that Manila is ready to be the “gateway” for Greater Bay Area firms into ASEAN, pitching a mix of Hong Kong/GBA finance and tech with a young, digital workforce. AI Hardware & Markets: Asia tracked Wall Street’s rebound after a tech sell-off, with investors watching whether the AI boom can keep its momentum as the yen stays near multi-decade lows and geopolitics (US-Iran) keeps markets jumpy. Tencent Signals Confidence: Tencent is accelerating Hong Kong buybacks, spending over HK$9bn in June as investors question how WeChat’s heavy AI investments will translate into monetisation. Cross-border Chip Scrutiny: Taiwan raided Super Micro Computer and other firms in an expanded Nvidia AI chip smuggling probe tied to shipments to China, Macau and Hong Kong. Autonomous Driving IPO Watch: Momenta kicked off its Hong Kong IPO subscription process, targeting about HK$5.9bn (up to HK$751m cited elsewhere) to fund autonomous driving and robotaxi expansion. Health Tech Deal: Metis TechBio struck a deal with US biotech Boulevard Bio for its experimental autoimmune drug MTS-128, potentially worth up to $1.6bn. Human-Robot Reality Check: China’s humanoid robot “rental” trend is growing, but users still rely on human operators, underlining that today’s models are more like advanced toys than full replacements. Hong Kong Product/Policy Notes: WhatsApp in Hong Kong is moving toward username-based texting (no phone-number sharing needed), and Hong Kong is reviewing rules to expand distributed ledger use in fixed income markets.

Hong Kong IPO Watch: Crealights Technology priced its HK$1.53bn HKEX listing, with Latham & Watkins advising Huatai International, underscoring how Hong Kong tech deals are demanding deeper disclosure on capacity, R&D and supply-chain resilience. Autonomous Driving Finance: Momenta opened its Hong Kong IPO, targeting about $752m (up to ~HK$5.9bn) to fund robotaxi and AI research, valuing the company near $9bn. AI+Policy Push: Hong Kong’s AI+ Committee met to drive industrial transformation and sustainable development, while the city also moved to expand distributed ledger use in fixed income markets. Energy Storage Deal: Lineage Power signed a 3 GWh LFP battery cell supply agreement with Rongjie Energy Tech, aiming to strengthen BESS manufacturing for utility and C&I projects. Cybercrime Alert: Research says DCloud Uni-App has been repurposed to power at least 236,493 scam domains, including fake crypto exchanges and WhatsApp phishing. Health Research: A large Hong Kong study again finds no link between acetaminophen use in pregnancy and autism or ADHD risk. Environment & Safety: Hong Kong accepted Ombudsman recommendations to tighten oversight of private man-made slopes, and also highlighted new tech-enabled enforcement tools. Science & Nature: Genetic analysis suggests Hong Kong’s feral yellow-crested cockatoos may act as a “biodiversity ark” for endangered Indonesian lineages.

Autonomous Driving IPO Watch: Momenta Global kicked off Hong Kong bookbuilding for a HK$5.89b (US$751m) listing, pricing 19.9m shares at HK$295.60 and targeting July 8 trading; proceeds split 60% R&D and 20% Robotaxi rollout, with backers including Mercedes-Benz and BlackRock. AI Chips & Valuation Buzz: Reports say Baidu’s Kunlunxin is eyeing a HK listing targeting a $50b valuation, with subscription structured around buying chips worth multiple times the investment. AI Meets Fraud at Scale: A study flags DCloud Uni-App as a mass-production base for scam domains—236,493 second-level domains linked to investment-style fraud since 2022—raising alarms for Hong Kong defenders. Data-Centre Climate Pressure: A UN push (via CETA System coverage) urges major AI firms to disclose carbon, water use and land take, and power data centres with renewables by decade’s end. Local Policy & Funding Oversight: Hong Kong’s Innovation and Technology Commission named the 2026–2028 New Industrialisation Vetting Committee for ITF schemes, effective July 1. Power Electronics Supply Chain: Soitec and ZenSemi plan high-volume 300mm BCD-on-SOI production for next-gen power chips used in AI datacentres and EVs. Security & Enforcement: Hong Kong Customs seized suspected illicit motor spirit and cigarettes from a speedboat off Cheung Chau, arresting a 49-year-old man.

AI & Markets: Hong Kong share sales hit a five-year high, with about US$44bn raised in H1 2026 as AI enthusiasm powered IPOs, placements and block trades despite a weaker Hang Seng. IPO Watch: Baidu’s chip unit Kunlunxin is reportedly targeting a US$50bn Hong Kong listing and asking investors to commit to buying its semiconductors—an arrangement that could blur investor vs customer roles. Semiconductors for Power: Shenzhen SiC chipmaker Basic Semiconductor is moving toward a Hong Kong IPO as data centres strain power grids and SiC chips gain traction. Cybersecurity: India’s fake income tax notices are being used to deliver malware via a convincing portal and ZIP/disk-image chain. Public Safety: A fatal Kowloon City traffic crash involved a public light bus; the driver was arrested for dangerous driving causing death. Research & Education (Macau/HK GBA): UM plans four new research institutes (including AI and smart city) to expand tech transfer for Macau’s diversification. Smart Tourism: APEC tourism ministers met in Macau, pushing digital innovation for the region’s tourism industry. Local Tech/Policy: Hong Kong’s finance chief called the city a “super converter” for mainland firms going global, linking standards and patient capital to hard-tech growth.

Hong Kong Policy & Finance: Financial Secretary Paul Chan says Hong Kong can turn Beijing’s “China Opportunity 2.0” into global growth by helping mainland firms commercialise research and reach overseas investors, with the Northern Metropolis flagged as a key platform. AI & Markets: Hong Kong posted a $44 billion 5-year share-sale high in H1 2026, driven largely by AI excitement despite a softer Hang Seng backdrop. Cyber & Privacy: Experts weigh in on what to do after Mirror star Stanley Yau lost his phone in Hong Kong and it surfaced in Shenzhen, focusing on preventing data leaks. AI Infrastructure & Chips: As data centres strain power grids, some Chinese chipmakers are betting on silicon carbide (SiC) to make AI hardware more energy-efficient, with a Hong Kong IPO path in the mix. Smart Regulation: Hong Kong confirmed its first regulated stablecoins are expected to launch in mid-to-late 2026 after licensing bank-backed issuers, with ongoing supervision. Sustainability & Education: The Jockey Club SCENES Building opened at Tai Tam Scout Centre, adding low-carbon design and solar power to scale environmental education for up to 60,000 visitors a year. Local Tech & Industry: Hong Kong’s Cantonese restaurant sector faces pressure as Chinese eateries’ revenue keeps shrinking, pushing operators toward innovation to stay competitive. Regional Tech & Trade: Ho Chi Minh City is positioning itself as a value-added services hub, leaning on logistics and port capacity to plug into global supply chains.

Hong Kong FinTech & Regulation: Hong Kong confirmed its first regulated stablecoins should launch in mid-to-late 2026 after licensing two bank-backed issuers, with HKMA oversight and reserve requirements aimed at protecting monetary and financial stability. AI & Markets: Jefferies warns the AI boom’s biggest threat isn’t chip supply but investors realizing hyperscalers and top labs may not earn a return on massive capex, as Hong Kong-listed Z.ai’s GLM-5.2 launch adds pressure in a cheaper Chinese-model race. Smart Tourism (APEC, Macao): APEC tourism ministers met in Macao on “Digital Innovation,” with Hong Kong pushing smart, data-and-AI-led visitor tools and crowd/queue updates to support sustainable growth. Education Tech & Integrity: AI smart glasses are being flagged as a new exam-cheating risk, with reported cases in East Asia showing how quickly the devices can bypass traditional monitoring. Robotics & STEM: Elephant Robotics showcased AI robots and embodied-intelligence/STEM solutions at major global events, including the Hong Kong Electronics Fair and ICRA. Local Tech/Industry: Momenta’s Hong Kong IPO is moving ahead with Mercedes and GIC named as cornerstone investors, targeting about US$750–800m. Science & Research: CityU welcomed Arctic climate scientist Li Xueke, linking Hong Kong’s research ecosystem to climate-driven shipping-route impacts.

Aerospace & finance ties: Financial Secretary Paul Chan wrapped up a Xi’an visit, praising the city’s rocket engines, satellite payloads, laser communications and precision tech, and pitching Hong Kong as a bridge for capital, research and global market access. Smart tourism: Hong Kong’s SCST told APEC Tourism Ministers that smart technology—AI, big data and digital platforms—should deepen visitor experiences, including live information during peak periods. Autonomous driving IPO: Momenta’s Hong Kong listing is lining up cornerstone backers Mercedes-Benz and GIC, with a target raise of about US$750–800m and a possible ~US$9b post-money valuation. EV battery swapping: CATL says it has launched two Choco swap stations in Hong Kong, aiming for 36 by 2030, with swaps in about 99 seconds—an approach suited to taxis and logistics. AI 3D printing for creators: Hi3D launched an AI-powered end-to-end workflow that turns text prompts into manufacturing-ready 3D models for mecha and designer-toy makers. Cybersecurity: Kaspersky flagged a new SharkLoader malware campaign delivering Cobalt Strike Beacon, with targets including government and software firms across multiple countries, including entities tied to Hong Kong. Markets & tech sentiment: Global stocks edged lower as chip and tech selloffs continued, with Hong Kong’s Hang Seng and Hang Seng TECH both slipping amid AI-linked volatility. Education tech ethics: A report highlights the rise of AI smart glasses cheating in exam-heavy East Asia, pushing schools to tighten monitoring.

Huanggang Port Control: NPCSC has authorized Hong Kong to exercise jurisdiction over the Huanggang Port Hong Kong Port Area and related extended areas, aiming to tighten infrastructure connectivity and boost Greater Bay Area cross-border flow. Cybersecurity: Kaspersky reports a new SharkLoader malware campaign (“StrikeShark”) delivering Cobalt Strike Beacon, targeting diplomatic, government, and software groups across multiple countries including entities linked to Hong Kong. Markets & AI Sentiment: Hong Kong’s Hang Seng slid as newly added AI stocks (Zhipu/Knowledge Atlas and MiniMax) dragged the Hang Seng Tech Index; broader Asia also wobbled on chip and AI profit concerns after Apple’s price-hike headlines. IPO Watch (HK): Momenta filed for a Hong Kong IPO for its NOA driver-assistance tech as China’s onshore tech listings rebound; meanwhile Lingyi iTech’s debut showed renewed appetite for AI and advanced manufacturing-linked listings. Local Tech & Research: CUHK researchers published a multi-omics review on how gut bacteria may trigger colon cancer, highlighting mechanism-driven links beyond simple microbiome lists. Robotics in the Spotlight: A viral clip shows a Unitree humanoid “begging” for electricity-bill recharge, underscoring how China’s humanoid boom is still chasing practical adoption. Hong Kong Bio Push: HKSTP led its biggest-ever BIO 2026 delegation, pitching AI-enabled biotech and setting up partnership mixers for investors and deal-making.

Market Volatility (HK/Asia Tech): Asian stocks slid again as Apple’s price hikes for iPads and MacBooks signalled higher memory and storage costs, while investors also digested reports that OpenAI may delay its IPO to 2027—dragging tech sentiment from Seoul and Tokyo to Hong Kong. HK Judiciary Digital Services: The Hong Kong Judiciary will extend its e‑Appointment system to Enduring Power of Attorney registrations at the High Court Registry from 6 July, with online booking opening 3 July and walk-ins generally phased out. AI in Medicine (HKUST): HKUST researchers unveiled a misalignment-resistant GenAI framework for virtual histopathology staining, aiming to speed workflows and reduce tissue use. Cross-border Tech (Face Scan): Facial recognition immigration clearance expands to Qingmao Port and the Zhuhai‑Macao Bridge’s Zhuhai-Macao Hall, building on the earlier Hengqin rollout. Crypto Compliance (CoinEx): CoinEx responded to a Wall Street Journal report on Iran-related flows, outlining compliance upgrades and denying ties to sanctioned Iranian government or IRGC entities. Energy & Industry (HK/Region): OCBC launched a free SME ESG assessment tool across Hong Kong, and VinEnergo and SunAsia Energy announced solar-on-stilts projects in the Philippines.

AI Security in Finance: JPMorgan removed Anthropic Claude access for staff in Hong Kong, citing Anthropic’s terms that bar use in China—echoing similar moves by Goldman Sachs and highlighting rising U.S.-China AI security friction. Semiconductor Momentum: Micron surged after earnings and stronger AI-chip demand guidance, lifting global sentiment and helping Asian tech shares rebound. Hong Kong Exports Watch: Hong Kong’s merchandise exports jumped 40.8% year-on-year in May, driven by AI-related semiconductors and ICT gear—though analysts warn momentum may face trade and geopolitical headwinds. Local AI for Science: SCNet.AI launched in Hong Kong as an AI & HPC “research computing” platform, aiming to make AI-for-science resources easier to access for labs and developers. Smart City Tech: A LegCo subcommittee visited the Yuen Long Barrage project to see an AI-enabled Smart Site Safety System that issues real-time hazard alerts during construction. Mobility & Energy: AutoFlight is completing first eVTOL flight trials under “Regulatory Sandbox X,” while CATL expanded battery swapping (Choco-Swap) to Hong Kong with plans for dozens of stations by 2030. Cross-border Biometrics: Macao expanded face-scan smart immigration clearance to Qingmao Port and the Zhuhai-Macao Bridge hall, adding more automated channels for eligible residents.

HKSTP & partners at BIO 2026: Hong Kong’s biggest-ever life and health tech delegation heads to San Diego with a record 41-organisation pavilion, led by HKSTP, InvestHK, HKTDC and five universities, aiming to land biotech partnerships and “first-in-class” assets. Market mood check: Hong Kong’s Hang Seng briefly dipped under 23,000 as tech stocks slid, with Alibaba hit after an Anthropic Claude dispute and broader AI valuation worries. New listing volatility: Seer Robotics debuted in Hong Kong with a sharp 24-hour swing, while HJ Science’s listing turned into a valuation stress test after a wild gray-market run. AI infrastructure push: SuperX AI met Kazakhstan’s PM to discuss a phased 1GW AI computing park plan for Central Asia’s digital buildout. Semiconductor rebound: Micron’s upbeat earnings and AI memory demand outlook sparked a regional chip rally, lifting Hong Kong and peers. Local innovation infrastructure: The government set up the San Tin Technopole Company to drive a 210-hectare I&T hub, with board appointments from July 2026. Smart ports & connectivity: Face-scan smart immigration clearance expands to Qingmao Port and the Zhuhai-Macao Bridge ports, while Pulsar signed up as an Amazon Leo reseller to bring LEO satellite internet to commercial maritime customers. Public health angle: Experts warn rat infestations remain a key driver of rodent-to-human hepatitis E risk, saying tech helps but behaviour matters most.