China Weekly Kickstart MXCN gained 3 while A shares lost 1

Portfolio Strategy Research 22 August 2026 | 12:21AM HKT

MXCN gained 3% while A-shares lost 1%; Unitree Robotics made debut on STAR Board; HSI review results announced; July activity data broadly weakened

MXCN gained 2.9% while CSI300 lost 1.0% this week. n A: Energy (5.1%) & GARP (2.1%) outperformed, Cons Kinger Lau, CFA | Chinese Commerce Minister Wang Wentao and Swiss Stap (-2.6%) & Size (-1.3%) lagged Goldman Sachs (Asia) L.L.C.

President Guy Parmelin jointly announced the completion of Timothy Moe, CFA | Earnings and valuations (Pages 13-17) negotiations to upgrade the bilateral free trade agreement. Goldman Sachs (Singapore) Pte

China and Australia expanded the currency swap agreement. n MXCN/CSI300 12m forward P/Es are 10.8x/13.4x Si Fu, Ph.D. | China successfully launched the reusable rocket Zhuque-3, Goldman Sachs (Asia) L.L.C. n I/B/E/S consensus 2026/27E EPS growth is 18%/17% achieving its first rocket recovery on land. China’s humanoid Kevin Wang, CFA and 26%/16% for MXCN and CSI300, respectively | robot maker Unitree Robotics debuted trading on the STAR Goldman Sachs (Asia) L.L.C.

Board on August 19. Media reported that small batches of n Financials/Info Tech were revised up the most Nvidia’s H200 chips have been allowed to enter mainland off/onshore China. July activity data broadly weakened and missed Flows (Page 18) expectations, pointing to a soft start to Q3. SAFE data suggest modest FX inflows in July. 70-city average primary n Southbound: US$47bn ytd property price decline narrowed further. Shanghai issued 8 Key event policy measures to support the property market on August 20. HSI company announced quarterly index review results. n Asia Leaders Conference 2026 | Aug 31 - Sep 2 Southbound Connect had US$1.5bn outflows this week. 37%/52% of All China listed/MSCI China universe has Policies and news reported with 2Q26 earnings rising 10%/declining 4% yoy. n HKEx extended validity period of new listing Performance (Pages 8-12) applications from 6 to 12 months

n H: Health Care (4.0%) & Value (6.4%) outperformed, Key charts: HF Positioning, Earnings Tracker & Barometers Cons Stap (-4.3%) & Momentum (-5.2%) lagged

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Goldman Sachs China Weekly Kickstart

Charts of the Week: Hedge Fund Positioning

Exhibit 1: Global stocks are meaningfully net bought by hedge funds so far in Exhibit 2: North America is the most net bought region, while nearly all other August major regions are net sold MTD, driven by long sales

Net Regional Allocation | O/U Weights vs MSCI AC World

Source: Goldman Sachs FICC and Equities Source: Goldman Sachs FICC and Equities

Exhibit 3: Within Asia, China is by far the most net bought, while Japan, Korea, Exhibit 4: Despite the recent buying activity, net allocation in Chinese equities is and Taiwan are net sold MTD still near its lowest level in the past five years

Net Trading Flows: Asia Markets Gross and Net Allocation: China 8.5% 15.0%

% of Asia Net MV at start of 2026 Gross

Percentage of Global Gross MV 8.0% 14.0%

Percentage of Global Net MV Allocation 7.5% 13.0% 7.1% 7.0% 12.0% Japan 6.5% 11.0% China 6.0% 10.0% + HK 5.5% 9.0% Taiwan 5.0% Net 8.0% Korea 4.5% Allocation 7.0% 4.0% 7.0% 6.0%

Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 Jul-25 Jan-26 Jul-26

Source: Goldman Sachs FICC and Equities Source: Goldman Sachs FICC and Equities