With the Iran conflict still raging on, we were surprised to find that the Chinese Ai and technology markets still doing well.

While IPOs have proliferated there, there' isn’t much focus on the other tech companies that enable the AI companies to operate.

For this week, we are looking at 3 small- and mid-cap Hong Kong/Chinese tech stocks that could benefit BIG from this.

Cheers,
InvestKaki Team 🤜🤛

Moving on, here are the news that shocked the world…

Berkshire Hathaway $BRK.A ( ▼ 1.24% ): Berkshire is investing $1.8 billion to acquire a 2.5% stake in Japanese insurance company, Tokio Marine. [Read More]

OpenAI $OPENAI ( 0.0% ): OpenAI is shutting down its video-generation AI platform, Sora and also cancelling its $1 billion deal with Disney [Read More]

Merck X Terns Pharmaceutical $MRK ( ▲ 0.59% ) $TERN ( ▼ 0.47% ): Merck is acquiring Terns Pharmaceutical for $6.7 billion for its promising leukemia treatment. [Read More]

Nvidia X Emerald AI $NVDA ( ▼ 2.17% ): Nvidia is collaborating with Emerald AI to develop a new class of AI factories, working with U.S. power producers also [Read More]

Elliot X Synopsys $SNPS ( ▼ 5.34% ): Elliot Management has built up a multibillion dollar stake in Synopsys, a chip design company [Read More]

Here are the news covering the Asia market…

Xiaomi $XIACY ( ▲ 0.43% ): Xiaomi’s quarterly profit dipped by 27% to CNY6.5 billion as it faces soaring memory chip prices and weak consumption in China. [Read More]

Zijin Mining: Zijin Mining is acquiring Chifen Gold for $2.6 billion, further expanding its market position as gold prices are at record-highs now [Read More]

ASE: Taiwan’s ASE is investing $12 million in AEM Holdings to capture the market for AI and high-performance computing [Read More]

Grab: Grab is acquiring Foodpanda Taiwan for US$600 million from Delivery Hero. This will enable Grab to expand into East Asia for the first time. [Read More]

OUE REIT: OUE REIT is converting 2,100 sqm of chiller system space into office space at OUE Bayfront. The conversion is expected to be completed by 1H 2027 [Read More]

20 Stocks Impacted by High Oil Prices!

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That's the AI paradox hiding in your CX stack. Tickets close. Customers leave. And most teams don't see it coming because they're measuring the wrong things.

Efficiency metrics look great on paper. Handle time down. Containment rate up. But customer loyalty? That's a different story — and it's one your current dashboards probably aren't telling you.

Gladly's 2026 Customer Expectations Report surveyed thousands of real consumers to find out exactly where AI-powered service breaks trust, and what separates the platforms that drive retention from the ones that quietly erode it.

If you're architecting the CX stack, this is the data you need to build it right. Not just fast. Not just cheap. Built to last.

See the data

XDInc is a global games developer and publisher based in China, with popular games including Etheria, Heartopia, Ragnarok M: Eternal Love, Sword of Convallaria, Sausage Man, Flash Party, Another Eden, and Torchlight Infinite. It alsso has the popular TapTap community platform that has thousands of indie games to play.

Why we like this: XDInc’s financial performance in 2025 has been great. Revenue was up by 15.0% for 2025, but profit almost doubled to RMB1.7 billion. Its cost structure is becoming leaner as it is paying less for platform fees and revenue-sharing costs and also increasing its advertising monetisation.

It has recently started the invitation test for TapTap Maker that enables users to make their own game using AI technologies. This could increase the number of indie games on its TapTap platform, where it contributes 31.5% of revenue.

For the next financial year, the company’s earnings is projected to grow by 15%.

Plover Bay Technologies sells network hardwares which includes wired and wireless routers, mobile antenna, network switches, accessories, and access points.

Why we like this: Its clients are in many industries such as maritime, transportation, public safety, construction, mining, agriculture, events, and most importantly AI-related ones. A teledriving company in Las Vegas is already using its network hardware.

Every AI-related companies would need connectivity hardwares. Hence, its future outlook is clear. Earnings are projected to grow by 15.3% for the next financial year. According to SimplyWallSt’s discounted cash flow valuation, its deemed 23.2% undervalued.

Yidu Tech is an AI-powered company providing healthcare solutions mainly in China and Southeast Asia.

Why we like this: Its core AI technology, YiduCore is a Large Language Model (LLM) that is now being deployed across several hospitals in China. It helps doctors and physicians to lower their research and diagnostic time.

While Yidu Tech is still loss-making, it has quickly narrowed its losses in the past couple of years. This paves the way for the company to generate profits in the next financial year.

Cheers,
James Yeo