GMT EIGHT - OPPORTUNITIES IN CHINA

Foreign exchange intervention cannot save the yen, and the return of pension funds to Japan may become the sharp sword of breaking the deadlock of depreciation. The cost may be global stock and bond volatility.

Katsuki Katayama announced that the government will implement relevant policies to encourage its large pension fund to invest more in Japan domestically. This move is seen as a strong statement from the Japanese government to boost the yen (despite the Bank of Japan's interest rate hike, the yen continues to weaken) and stabilize the fluctuating Japanese government bond market.

Do not chase high-popular AI stocks! Asset management company Clough Capital: Investors should focus on quality stocks and increase cash reserves.

Vince Lorusso, CEO of Clough Capital, is adopting a more cautious strategy in the stock market, shifting the investment portfolio towards high-quality stocks and increasing cash reserves while waiting for better buying opportunities of certain highly profitable popular stocks.

$7.7 billion offer exceeds Castlelake's! Apollo enters the bidding for EasyJet Airlines (ESYJY.US), two major American private equity firms may start a bidding war.

EasyJet Airlines (ESYJY.US) has received a new acquisition offer of 715 pence per share from the American private equity firm Apollo Global Management (APO.US), which is higher than the offer from Castlelake.

National Immigration Administration: In the first half of the year, immigration management agencies nationwide collectively inspected 3.69 billion inbound and outbound personnel, an increase of 10.8% year-on-year, reaching a record high.

In the first half of the year, the total number of people entering and leaving the country checked by national immigration management agencies reached 369 million, an increase of 10.8% year-on-year, setting a new historical record. Among them, there were 176 million mainland residents, 147 million residents from Hong Kong, Macao, and Taiwan, and 45.906 million foreigners, representing increases of 10.7%, 8.1%, and 20.6% respectively compared to the same period last year.

Goldman Sachs Wang Yajun: Hong Kong's annual IPO fundraising is expected to exceed 60 billion US dollars, hitting a new historical high.

Wang Yajun said that the outbreak of AI in this round of Hong Kong stocks belongs to a structural bull market driven by the transformation of the AI industry, not by economic cycles.

Hong Kong Department of Health: Hong Kong actively implements the Greater Bay Area integration and development strategy to promote innovative cross-border medical cooperation.

Promoting innovative cross-border medical cooperation not only helps Hong Kong integrate into the "Healthy Bay Area," but also enables Hong Kong's internationally high-level medical services to contribute to the globalization of national medical standards, demonstrating Hong Kong's unique advantages and value in integrating into and serving the overall development of the country.

A-share closing report: Shanghai Composite Index fell 1%, the commercial aerospace sector exploded, the storage leader GigaDevice Semiconductor Inc. (603986.SH) set a record high in trading volume.

As of the close, both markets fell, with the Shanghai Composite Index dropping 1.00% to 3996.16 points, with a turnover of 156.31 billion yuan; the Shenzhen Component Index fell 2.29% to 15046.67 points, with a turnover of 180.80 billion yuan.

Summary: The Sci-Tech Innovation 50 Index surged and then fell by 5.5%, with technology growth stocks like semiconductors and CPO weakening at the end of the trading day.

The three major indexes of A shares collectively fell today. As of the close, the Shanghai Composite Index fell by 1%, the Shenzhen Component Index fell by 2.29%, the ChiNext Index fell by 4.37%, the BeiGene 50 Index fell by 0.02%, and the Star 50 Index fell by 5.53%. The total trading volume in the market was 3.4107 trillion yuan, an increase of 478.4 billion yuan from the previous day, with over 3700 stocks in the entire market rising. In terms of sectors, leading gains were seen in the innovation drugs, film and television, liquor, pork, real estate, commercial aerospace, and retail sectors; while losses were seen in the electronic chemicals, semiconductor, components, energy metals, diamond cultivation, advanced packaging, fluorine chemical, CPO, and PCB concept stocks. On the market, the successful recovery of the Long March 10B ship at sea, as well as the sharp rise in the commercial aerospace and satellite navigation sectors in the afternoon, led to many stocks, such as Hailan Xinyi, Aerospace Universal, Shanjian Shares, China Satellite Communications, and Shanghai Harbour, hitting limit up. In the early morning, the innovation drugs sector surged, with nearly 10 stocks like Changshan Pharmaceutical, Zhaoyan New Drugs, and Shuanglu Pharmaceutical hitting the limit up. It was reported that the innovative drugs were first batched into the 2026 edition of the essential drug list. Additionally, traditional economic sectors like liquor, real estate, and pork also performed well. However, towards the end, technology growth stocks such as semiconductors, components, and storage chips plummeted, causing multiple stocks like Shenghong Technology, Zhongji Xuchuang, Yuanjie Technology, Guoci Materials, and Zhaoyi Innovation to drop significantly. Similarly, the electronic special gas and electronic chemical sectors related to technology also declined, with Zhongship Special Gas nearing a 20cm limit down, and Zhongjuxin, Huatexian, and Jinhong Special Gas leading the decline.

SK Hynix's listing in the US has set off a flurry on Wall Street: a large number of single-stock leveraged products will be launched next week, potentially bringing "Korean-style volatility" to the global markets.

SK Hynix's listing in the United States paves the way for a new round of leverage products tied to the stock of this South Korean storage giant.

Iron ore reverses the pressure of the off-season to achieve the best single-week performance in two months. BHP Group Ltd's Sponsored American Depositary Receipt Repr 2 Shs (BHP.US) port strikes and FMG disputes are the twin engines.

Although the fundamentals are still under pressure, concerns about supply have been raised in the market due to the upcoming strike action at BHP Billiton's port terminal in Hedland. Iron ore prices are expected to achieve the largest weekly gain since early May.

The ChiNext Index fell by 4.00% to 3857.426 points; the Shanghai Composite Index fell by 0.77% to 4005.306 points; the Shenzhen Component Index fell by 1.97% to 15094.655 points.

Geopolitical changes are driving sovereign wealth funds to transform into "national strategic engines"! Accelerating the layout of AI and semiconductors.

With the constantly changing geopolitical situation, sovereign wealth funds are increasingly focusing on national strategic goals, moving from pursuing investment returns to enhancing infrastructure resilience and supporting key local industries.

In the first 50 days of the science and technology innovation board, the decline reached 4.00%. Among the component stocks, Zhejiang Crystal-Optech Co., Ltd. fell by 16.27%, CR Microelectronics Co., Ltd. fell by 12.64%, Sino-semiconductor Integrated Co., Ltd. fell by 9.72%, and Beijing Share and Chip Tech Co., Ltd. fell by 9.33%.

Citibank: Hong Kong stocks "real technology stocks" account for a small proportion, and it is difficult for the Hang Seng Index to have a significant improvement in the second half of the year.

Global funds favored AI infrastructure stocks in the first half of this year, with concepts such as storage chips, optical communication, and PCB becoming the main drivers of the market. Compared to the Hong Kong stock market, the proportion of "true technology stocks" at the forefront of technology is small. Mainly referred to as technology stocks in the Hong Kong stock market are platform stocks, which are mainly influenced by retail consumption markets such as food delivery and automotive.

Hang Seng Index Corporation: Hang Seng Biotechnology Index rebounds steadily from mid-June, with a noticeable increase in companies' buyback efforts.

The total repurchase amount of the components of the Biotechnology Index surged by 1372% month-on-month in May, and increased by another 117% in June.

The trading volume of Shanghai and Shenzhen stock markets exceeded 3 trillion yuan, an increase of 434 billion yuan compared to the same time the previous day.

Growth Enterprise Index fell 3.00%, now at 3897.440 points; Shanghai Composite Index fell 0.36%, now at 4022.081 points; Shenzhen Component Index fell 1.26%, now at 15205.114 points.

The ChiNext Index fell by 2.00%, closing at 3937.718 points; the Shanghai Composite Index fell by 0.02%, closing at 4035.634 points; and the Shenzhen Component Index fell by 0.55%, closing at 15314.024 points.

The Hong Kong government has reappointed Professor Wong Kit-loong as the Chairman of the Energy Advisory Committee and announced the new list of members for the new term, which is for two years.

On July 10th, the Hong Kong government announced the reappointment of Professor Wong Kit-loong as the chairman of the Energy Advisory Committee, and the appointment of 18 social individuals as committee members. Their term will be two years, effective from July 15, 2026.

Sun Dong: Green technology in Hong Kong will usher in more and wider development space and opportunities.

Sun Dong stated that with the support of the country, Hong Kong is rapidly building an international innovation and technology center, and Hong Kong also has significant advantages in promoting green development.

Global refining bottleneck: Shifting from the Strait of Hormuz to Russia.

The bottleneck in the global oil market is shifting from the crude oil passage through the Strait of Hormuz to the supply of finished oil products from Russian refineries. J.P. Morgan believes that, in a scenario where crude oil can flow again, the real challenge lies in whether the world can timely convert crude oil into diesel, gasoline, aviation fuel, and fuel oil.

The Hong Kong dollar interbank interest rates diverged with the 1-month interbank rate hitting a new low of 2.66%.

On July 10th, the Hong Kong dollar interbank interest rates saw individual developments, with the one-month interbank interest rate related to mortgage loans at 2.66113%, a decrease of 5.786 basis points, the lowest since June 4th.

A-share midday review | Index differentiation, Shanghai index up with volume, more than 4500 individual stocks rose, "old listed stocks" rebounded in shock.

The three major A-share indexes diverged in early trading, with the Shanghai index fluctuating and rising, the ChiNext index and the Sci-Tech Innovation 50 index rising and then falling back.

U.S. officials said that technological negotiations between the two sides have not stopped, and the "fighting while talking" between the U.S. and Iran is driving strong rebound in technology stocks.

The United States said that despite recent attacks, technical negotiations with Iran will continue. The official stated that the United States is still committed to seeking solutions with Iran. He spoke about this matter on condition of anonymity.

Funds flow west into AI, medical technology sector undervalued, BMO calls out: Historic "gold mine" emerging, top pick Intuitive Surgical, Inc. (ISRG.US) and two other targets.

BMO begins to cover this heavily impacted sector and refers to it as a buying opportunity.

Japanese version of "Taper Tantrum" approaching? Yields on Japanese bonds closing in on thirty-year highs, warns Natixis: a crisis that could overturn global assets is brewing.

French Societe Generale Bank warned that the current bond market turmoil in Japan is eerily similar to the "mini-budget" crisis sparked by former British Prime Minister Thatcher in 2022, and a financial storm that could shake global asset valuations may be brewing.

Commodity futures closed in the early morning trading session.

Palladium rose continuously by 3.65%, silver rose continuously by 3.48%, pulp rose continuously by 3.21%, industrial silicon rose continuously by 2.74%, and platinum rose continuously by 2.53%.

The Hong Kong government has re-appointed Chan Kam-wing as the Chairman of the Consumer Council for a term of two years.

On July 10, the Hong Kong government reappointed Chan Kam-lung as the chairman of the Consumer Council, with a two-year term starting from July 15, 2026.

European stocks "strongest bull market" born! Credit Suisse raised the target of Stoxx 600 index to 690 points in a big way.

UBS Group strategist says, stronger profits and broader gains will drive European stocks to new highs this year.

The "going to Musk exchange" is coming! The market always has funds that don't believe in Musk's "big cake", and Wall Street is customizing ETFs for them.

An issuer of Wall Street ETFs has filed documents to launch two exchange-traded funds that track the Nasdaq 100 Index and the S&P 500 Index, but exclude any affiliated companies founded, controlled, or led by Elon Musk.

Weakening yen + energy shock, Japan's June PPI surged 7.1% year-on-year to reach a more than three-year high, with expectations of a rate hike in October continuing to rise.

The Japanese Corporate Goods Price Index (PPI) accelerated in June, marking the fastest increase since March 2023. This data provides crucial evidence of continued inflationary pressure, further strengthening market expectations of the Bank of Japan continuing to raise interest rates.

Chen Meibao: In July, approximately 15,800 applications were submitted for "Guangdong cars heading south" entering the city. 60% were from 5 new mainland cities.

The "Guangdong license plate lottery for traveling to the south" will be expanded to nine cities in the Greater Bay Area starting from July 25th. There are about 15,800 applications for entering the city through the registration lottery in July, exceeding the quota by 3 times. Among them, about 60% of the applications are from the five new mainland cities.

The Hang Seng Technology Index is up more than 2%, now at 4826.500 points; The Hang Seng Index is up 1.528% now.

Close negotiations with CFTC! Kalshi seeks regulatory breakthrough, planning to expand "perpetual" derivatives to the forex and gold markets.

A senior executive of the market platform Kalshi predicts that it is planning to expand its business to cover derivative products with no expiration date in the metal, forex, and energy markets.

The Cyberspace Administration of China has strictly dealt with a batch of accounts and platforms that have labeled short video content in an inappropriate manner.

The Cyberspace Administration of China has strictly dealt with a group of short video accounts that have published fabricated and exaggerated content without properly labeling the content according to regulations.

US dollar from "safe-haven king" to high-volatility asset? Global funds chase US stocks AI themes US dollar fate seems tied to the Nasdaq

Deutsche Bank warned that the United States' reliance on foreign capital inflow into stocks is higher than debt inflow, which could bring about dollar risks.

Hang Seng Index rose over 1%, currently trading at 24271.939 points; Hang Seng Technology Index is up by 1.717% now.

The trading volume in the Shanghai and Shenzhen markets has exceeded 1 trillion yuan, an increase of 207.3 billion yuan compared to the same time the previous day.

A-share market express at the opening bell: three major indexes collectively rose, the ChiNext50 index surged more than 2%, and the semiconductor industry chain continued to show strength.

On July 10th, the three major stock indexes in A shares rose strongly. As of 9:42, the Shanghai Composite Index increased by 0.20%, the Shenzhen Component Index increased by 0.73%, the ChiNext Index opened higher by 0.69%, and the SSE STAR Market 50 Index rose by 2.02%.

"Media Mergers with the Highest Leverage in History" Face Short Selling! Arete: After Paramount (PSKY.US) merges with Warner (WBD.US), it may struggle to handle the massive debt, with the target price slashed to $2.

According to Arete Research analysis, Paramount management may lack sufficient experience to deal with the enormous debt generated after its merger with Warner Bros. Discovery.

New Stocks First Day | Nexchip Semiconductor Corporation (02249) debuts on the market with an opening price up 11.46% in early trading. The company is the third largest semiconductor foundry in mainland China.

Crystal International Group Limited (02249) made its debut on the stock market. The announcement shows that the price per share is 32.3 Hong Kong dollars, with a total of 216 million shares issued and traded in lots of 100 shares. The net proceeds are approximately 6.79 billion Hong Kong dollars. As of the time of writing, the stock has risen by 11.46% to 36 Hong Kong dollars, with a trading volume of 755 million Hong Kong dollars.

First day of new stock | Befar Group (06745) first listed, opening 21.26% lower in early trading. The company currently holds a leading position in the chlor-alkali chemical industry.

Binhua Company (06745) debuted on the stock market. The announcement showed that the price per share was set at HK$3.48, with a total of 352 million shares issued, traded in lots of 1000 shares each, resulting in a net proceeds of approximately HK$1.16 billion. As of the time of writing, the stock has fallen by 21.26% to HK$2.74, with a total trading volume of HK$50.56 million.

PrismML overcomes the bottleneck of edge AI: successfully integrates Ali Tongyi Qianwen into Apple Inc. (AAPL.US) iPhone 17 Pro, running all parameters comparable to the cloud.

Artificial intelligence startup PrismML has compressed Alibaba's open-source large language model Qwen 3.6, enabling it to run on Apple's iPhone 17 Pro.

Commodity futures opening

Silver rose continuously by 3.40%, Shanghai crude oil fell continuously by 3.10%, pure benzene fell continuously by 3.02%, coking coal fell continuously by 2.83%, and pulp rose continuously by 2.52%.

The list of the Federal Reserve's reformed "Think Tank" is revealed: Wall Street and academic heavyweights gather, with the AI team all being "optimists"

Federal Reserve Chairman Jerome Powell officially announced the member list of five external special work groups on Thursday. This group, which gathers Wall Street titans, business leaders, academic authorities, and former central bank officials, will conduct a comprehensive review of the operating mechanism of the Federal Reserve around core issues such as communication mechanism, data governance, balance sheet management, productivity and employment, and inflation assessment framework.

A new paradigm of winning Alpha is achieved! The prototype of AI fund manager emerged on Wall Street, J.P. Morgan's AI intelligent body outperforms the classic 60/40 investment.

J.P. Morgan has been testing a model recently to see if it can allocate funds independently. Researchers are building a series of AI-driven investment agents that will switch between stocks and bonds based on constantly changing market conditions.

Tracking Hong Kong stocks concept | Multiple securities firms are expected to have strong half-year performance, Chinese securities firms may see valuation restoration (with concept stocks)

CITIC Securities: Focus on high-quality medium-sized securities firms with prominent industry resources and leading securities firms with strong investment banking business capabilities.

A-share pre-market report | US stocks storage, optoelectronics big rebound! SanDisk soared nearly 8%, Many AI leading stocks' performance forecasts have surged.

The mid-year reports of companies in the AI industry chain continue to be released intensively, covering various areas such as AI servers, storage chips, and others.

Brokerage Morning Meeting Highlights | Waiting for AI Capital Spending and Performance Verification to Avoid Pure Concept Stocks and Highly Crowded Directions

At today's brokerage morning meeting, Huatai Securities believes that it is important to wait for AI capital expenditure and performance validation, and to avoid pure themes and high-crowded directions.

The South Korean composite stock price index opened up 3.6% at 7552.49 points.

Latest

7 m ago

Xiantan Corporation: In June, the sales revenue of chicken products reached 541 million yuan, a year-on-year increase of 19.12%.

7 m ago

Ruizai Technology: Expected net loss of 16-22 million yuan in the first half of 2026.

7 m ago

Weixin Kang: Subsidiary obtains registration certificate for potassium dihydrogen phosphate injection.

8 m ago

Deputy Director Lei Ping of the National Medical Products Administration conducted research in Jiangsu on the innovation and development of medical devices, as well as the promotion of the "Spring Rain Initiative".

8 m ago

Fuhua Shangwei: Revenue in the first half of 2026 reached 1.08 billion, a year-on-year increase of 97.8%, achieving a profit turnaround.

Seeking Coverage

Being Writer

Exploring Cooperation