US CPI released, stocks slump; regulators crack down on cutthroat low-price wars at the top five e-commerce platforms | Daily News Recap

0611 ｜Dolphin Research Key Watch:

🐬 Macro / Industry

1. US May CPI rose 4.2% YoY, above Apr's 3.8%, with core CPI up slightly to 2.9% YoY as energy led gains. The print was in line with market expectations. Markets pushed back the first rate cut timing and trimmed the expected number of cuts, driving UST yields higher and a stronger USD. This pressures growth stocks in HK/US near term and could intensify foreign selling in HK, while the Jun FOMC is set to keep rates elevated. The inflation rebound confirms a later global easing window. Flows should continue to favor high-dividend defensives, while multiple repair in AI and other high-valuation cohorts likely slows, and the turn to easier global liquidity is delayed again.

2. Beijing's market regulator summoned Tmall, JD, PDD, Douyin, and Xiaohongshu, flagging the second batch of cut‑throat competition issues: misleading '100‑bn subsidies' claims, non‑disclosure of subsidy amounts, opaque promo rules, and evasion of platform liability, with rectification ahead of the 6.18 sales. The aim is to curb vicious low‑price undercutting and protect consumers and SMEs. Near term, platforms face tighter marketing-spend discipline and potentially narrower subsidies, aiding slight GP improvement; over time, the sector shifts away from price wars toward differentiation in service, supply chain, and AI experience, supporting healthier margin repair for leaders and firmer valuation floors.

🐬 Single Stocks

1.$XIAOMI-W(01810.HK)

Xiaomi's MiMo team launched the open‑source AI coding assistant 'MiMo Code', entering the Coding Agent track. It is aligned with Xiaomi's own LLM, compatible with several mainstream third‑party models, and features persistent memory, unlimited context, and voice coding, offered under the MIT license for a limited‑time free release. Positioned vs. Cursor and Claude Code, the product lowers developer barriers. It fills out Xiaomi's AI tools matrix by extending from device‑side models into developer services, building a model + Agent ecosystem.

2.$Alibaba(BABA.US)

Alibaba announced a management change at DingTalk: founder Chen Hang stepped down as CEO, succeeded by 1992‑born tech entrepreneur Chen Yusen, now Alibaba's youngest BU CEO. The reshuffle follows internal culture turbulence and sharp criticism from the Alibaba Partnership of the prior management model. The new head specializes in AI agent development and, after Chaitin Tech was acquired by Alibaba Cloud, focused on cloud security and AI orchestration. The move signals an AI‑first pivot at DingTalk and internal management optimization, dialing back pure scale‑driven rivalry and focusing on AI‑enabled collaboration for public‑sector and enterprise clients; near‑term organizational friction is possible, but mid‑to‑long term it could accelerate DingTalk's AI commercialization.

3.$XD INC(02400.HK)

XD Inc. announced an automatic share repurchase program of up to HKD 400 mn, running from Jun 12 to Nov 11, with all repurchased shares to be canceled. Healthy cash flow and management's view of undervaluation underpin the move, which directly lifts NAV per share and shareholder returns while boosting secondary‑market confidence. Unlike prior small buybacks, this is sizable, helping counter weak sentiment across gaming names and offering near‑term share price support. It underscores long‑term confidence and could attract value‑oriented capital.

4.$Qualcomm(QCOM.US)

Supply‑chain checks indicate Apple's C2 in‑house 5G baseband will use TSMC's 4nm, debuting on the iPhone 18 Pro line with mmWave and satellite support, and materially better power efficiency vs. Qualcomm's solution. Apple previously tested on C1 in earlier models, and C2's rollout marks full in‑house second‑gen modem autonomy. Qualcomm's baseband share with Apple should shrink sharply, with an exit possible by 2027. For Apple, this lowers chip procurement cost and deepens HW/SW integration for better battery life and signal; TSMC gains incremental foundry orders, while the domestic supply chain may benefit over time via spillover substitution and tech transfer opportunities.

5. Dolphin Research on earnings and calls

Oracle: Oracle plunges? AI infra can't fix the core problem — high rates, high leverage + fading software. Oracle (Trans): 2027 capex > RMB 90 bn, with 1/4 covered by prepayments.

🐬 Top Gainer Sectors

A‑shares: industrial gases and precious metals & minerals. Diversified metals & mining.

HK: highway passenger transport and industrial chemicals. Computer & electronics retailers.

US: food retailers and reinsurers. Stadiums and other leisure facilities.

🐬 Watch for Tomorrow

1. US Jun 1‑yr inflation expectations (prelim). US Jun 1‑yr inflation expectations (prelim).

2. Huawei Developer Conference to be held. Runs Jun 12–14.

3. SpaceX is slated to list on Nasdaq. Target date: Jun 12, 2026.

Risk disclosure and statement for this article. Dolphin Research disclaimer and general disclosures