Chinese and Hong Kong stock markets showed mixed performance in early June 2025. The Shanghai Composite Index opened slightly higher by 0.07%, while the Shenzhen Component Index and ChiNext Index declined by 0.02% and 0.16%, respectively. The Hang Seng Index initially gained 0.21% and the Hang Seng Tech Index rose 0.41%, but both later turned negative, with the Hang Seng Tech Index falling over 1% and the Hang Seng Index closing down 0.08%. The Hang Seng Tech Index rebounded the following day, rising over 1%, supported by gains in BYD and NIO shares, which increased nearly 5% and over 4%, respectively. The MSCI China Index has rebounded 20% from its April low, contributing to positive momentum in various Chinese stocks including $SHCOMP, $SSEC, $ASHR, $HSI, $KWEB, $FXI, $HXC, $DRAG, $YINN, and $YANG. Southbound net buying via the Stock Connect program reached 7 billion yuan, indicating strong investor interest. Additionally, the premium of China-listed "A shares" over Hong Kong-listed "H shares" narrowed to its lowest level since June 2020. In the broader Asia-Pacific region, markets were mixed with the Nikkei down 0.10%, Kospi up 0.34%, and ASX 200 up 0.25%. Hang Seng futures suggested a weaker open ahead of inflation data releases from the Philippines and Thailand. Year-to-date, China equities have outperformed U.S. broad equities, with gains of 16% compared to 5%.