GMT EIGHT - OPPORTUNITIES IN CHINA

Iran claims to have reached an agreement with Oman regarding the shipping routes in the Strait of Hormuz, and the market is paying attention to the prospects for the restoration of energy transportation.

Iran has announced that it has reached an agreement with Oman on the proposed shipping route in the Strait of Hormuz.

The first batch of over $100 billion in stocks will be unlocked on Thursday. SpaceX (SPCX.US) faces the first test of its nine-phase lock-up period arrangement, with the market on alert for selling pressure and extreme fluctuations.

On Thursday, approximately $101 billion worth of SpaceX stocks will reach their first unlock period, allowing insiders to begin selling their shares. Due to the unprecedented nine-phase, staggered unlock mechanism and the large scale of the first unlock, the market generally expects that SpaceX's stock price may face a new round of volatility.

US Stock Market Move | Advanced Micro Devices, Inc. (AMD.US) fell over 7% as its Q3 revenue guidance fell short of expectations.

On Wednesday, AMD (AMD.US) fell more than 7%, closing at $480.71.

After casting a dissenting vote last week, Kashkari calls for interest rate hikes: the Federal Reserve should take action starting in September.

Minneapolis Fed President Neel Kashkari stated on Wednesday that the Federal Reserve should begin to gradually raise interest rates in order to lower inflation, which remains above target, and to avoid having to implement more aggressive rate hikes in the future if inflation becomes further entrenched.

A-shares evening hotspot | China announces five countermeasures against the U.S. How to interpret this?

On August 5, China consecutively announced multiple countermeasures against the U.S.: implementing countermeasures against American compliance testing companies, tightening export controls on dual-use items related to drones to the U.S., and taking countermeasures against six American entities, including those applying DNA science.

US Stock Market Move | SpaceX (SPCX.US) dropped 8% as a large amount of locked shares is about to be released.

On Wednesday, SpaceX (SPCX.US) fell by 8%, closing at $115.26.

In July, the ISM Services PMI in the United States expanded for the 25th consecutive month! Business activity and new orders accelerated in growth, but the employment index returned to the contraction zone.

In July, the U.S. service sector continued to expand, with business activities and new orders noticeably accelerating, but employment indicators fell back into contraction, while input price pressures further intensified.

US Stock Market Move | Gold stocks rise broadly, with Gold Fields Limited Sponsored ADR (GFI.US) up over 9%.

On Wednesday, gold stocks rose broadly, with Gold Fields (GFI.US) up over 9% and AngloGold (AU.US) up nearly 9%.

US Stock Market Move | NVIDIA Corporation (NVDA.US) rose over 4% as SpaceX adopts its AI system to enhance satellite computing power.

On Wednesday, Nvidia (NVDA.US) rose over 4%, closing at $220.62.

US Stock Market Move | Eli Lilly (LLY.US) rose over 7%, with Q2 revenue increasing by 48% year-on-year, and has raised its full-year performance outlook.

On Wednesday, Eli Lilly (LLY.US) rose more than 7%, reaching $1197.12.

The S&P 500 continues to reach new highs, with SanDisk and Western Digital announcing their earnings results. Three major events and their interplay are shaping the narrative of the AI bull market.

The S&P 500 index is expected to reach new highs, and the outlook for artificial intelligence spending remains optimistic.

"Blood-stained chips" turn into profits! Castle Investment acquires $16 billion worth of AI stocks at a discount; flagship fund jumped nearly 6% in July.

Castle Investment drove a swift deal that led to a 5.9% increase in its flagship Wellington fund in July.

ADP employment hits a new low for the year, as the Federal Reserve's policy path faces more tests.

ADP Research reported on Wednesday that the number of jobs added in the U.S. private sector in July was 44,000, lower than market expectations, marking the smallest increase since the beginning of the year.

SpaceX's stock price plummeted 12%, with a market value evaporating by $205 billion.

U.S. stocks opened with the Dow Jones up 0.33%, the S&P 500 up 0.56%, and the Nasdaq up 0.39%. SpaceX (SPCX.O) fell 10.5%, raising concerns over its surge in AI spending. AMD (AMD.O) dropped 7%, with poor Q2 performance and outlook. Shopify (SHOP.N) surged 20%. Gold briefly hit $4,200, with Harmony Gold (HMY.N) up 7.5% and Gold Fields (GFI.N) up 8.3%. Storage concept stocks edged down slightly.

The U.S. Treasury Department has maintained its debt issuance guidelines as expected, while an increase in financing demands may intensify the "dependency" on short-term debt.

The U.S. Treasury Department maintained its previous guidance on future debt issuance as scheduled on Wednesday. Since taking office, Becerra has relied on short-term Treasury bills (with maturities of up to one year) to meet the government's growing financing demands.

Changxin Rejects Apple's Price Pressure

According to the latest media reports, Apple had attempted to negotiate lower DRAM procurement prices with Changxin Storage, but was rejected. Changxin Storage insisted on a price not lower than that of Samsung Electronics and SK Hynix, and even higher.

The Hong Kong Department of Health: Promoting the Construction of Hong Kong as an International Medical Innovation Hub and Continuously Advancing the Development of Clinical Trials.

Professor Lu Chongmao chaired the fourth meeting of the Medical Innovation Development Supervisory Committee, discussing strategies for Hong Kong to develop into an international hub for medical innovation and the continued promotion of clinical trial development.

AI empowers e-commerce! Shopify (SHOP.US) Q2 revenue soared 34% year-on-year, and the Q3 performance guidance exceeded expectations, driving the stock price to surge.

Shopify announced better-than-expected second-quarter revenue and third-quarter performance guidance, indicating that the company's investment in AI is attracting more merchants to use its e-commerce service system, which may alleviate investors' previous concerns about emerging AI tools intensifying competition in the small business market.

Walt Disney Company (DIS.US) focuses on growth in its theme parks and streaming business: Q3 earnings exceed expectations, buyback goals raised, official announcement of content cooperation with TikTok.

Disney's Q3 earnings exceeded expectations, driven by strong growth in its theme parks and streaming business.

Shanghai Stock Exchange: MINIMAX, Luxshare Precision, and Sanhua Group added to the Hong Kong Stock Connect eligible stocks list.

On August 5th, the Shanghai Stock Exchange issued a notice stating that according to the relevant provisions of the "Implementation Rules for the Shanghai-Hong Kong Stock Connect," the list of stocks eligible for the southbound trading under the Stock Connect has been adjusted. MINIMAX-W, Luxshare Precision, and SanHuan Group have been added to the list, and the changes will take effect from the next trading day of the southbound stock connect.

The trajectories of the weight loss drug duopoly have diverged! Strong sales fuel Eli Lilly's (LLY.US) Q2 performance that exceeded expectations.

Eli Lilly (LLY.US) reported better-than-expected second-quarter results before the market opened on Wednesday, driven primarily by strong sales of its injectable GLP-1 medications and the newly launched oral weight loss drug Foundayo.

Selection of A-share Announcements | BeOne Medicines Ltd. (688235.SH) announces its performance! Net profit surges 627% in the first half of the year.

Yushu Technology (688836.SH) announced on August 5 that its online roadshow for the initial public offering of stocks and listing on the Sci-Tech Innovation Board will be held on August 7, 2026, from 14:00 to 17:00.

The U.S. Treasury is scheduled to hold a $58 billion auction of 3-year Treasury bonds on August 11; a $42 billion auction of 10-year Treasury bonds on August 12; and a $25 billion auction of 30-year Treasury bonds on August 13.

MiniMax has been included in the Hong Kong Stock Connect, rising over 10% today.

On August 5th, the list of Chinese stocks accessible via the Hong Kong Stock Connect was adjusted, with multiple stocks including MiniMax being added, effective from the 6th. By the close of trading on the 5th, MiniMax's Hong Kong stock had risen by over 10%. This week, MiniMax released its next-generation general-purpose multimodal generative model, MiniMax H3, which ranked first in the Artificial Analysis video editing evaluation list and the Arena image-to-video ranking.

Preview of US Stock Market | All three major stock index futures rise, oil prices rebound slightly, and SpaceX plummets after earnings.

On August 5th (Wednesday) before the US stock market opened, the three major US stock index futures all rose.

Memory shortages may persist until 2027! Samsung, SK Hynix, and Micron's production capacity sold out in advance.

According to a report by technology media on Tuesday, the tight supply of memory chips is expected to continue until 2027. Industry insiders revealed that the three major memory manufacturers have essentially completed negotiations regarding next year's production capacity allocation.

The 30-year fixed mortgage rate in the U.S. has risen to a one-year high.

Mortgage rates in the United States rose to their highest level in a year last week, further dampening the already weak demand for home loans in the housing market. Data released on Wednesday showed that for the week ending July 31, the 30-year fixed mortgage rate increased by 5 basis points, reaching 6.81%. The rates had fallen to their lowest level since 2022 just before the outbreak of the Iran conflict in late February. Since then, rates have continued to rise as the conflict pushed up energy prices and heightened inflation concerns. The result of this change has been a weakening in loan demand. The Mortgage Bankers Association (MBA) reported that the home purchase mortgage application index fell by 3.6% from the previous week, reaching its lowest level in five months; the refinancing index also decreased by 1.9%, hitting its lowest level since mid-2025.

European traditional tech stocks rise against the trend, surprising winners of the AI era in the earnings season.

The wave of AI was initially seen as a new opportunity for model developers, but recent financial reports indicate that a group of large, established technology companies in Europe is rising against the trend and becoming the actual beneficiaries of the artificial intelligence dividend.

The ambiguous statement from Waller has triggered a trust crisis for the Federal Reserve, while major banks like Barclays and HSBC are backing inflation-protected bonds.

Top international investment banks such as Barclays and HSBC have expressed their optimism regarding the allocation value of U.S. inflation-protected bonds.

SanDisk (SNDK.US) has seen two consecutive increases after a sharp decline; can the earnings report confirm the resurgence of AI storage?

Learning from history, the sharp decline in SanDisk's stock price after the earnings report seems to provide a great opportunity for bargain hunters.

Yush: The online roadshow will be held on August 7, 2026, from 14:00 to 17:00.

Yushu Technology announced that the online roadshow for the company's initial public offering and listing on the Science and Technology Innovation Board will be held on August 7, 2026, from 14:00 to 17:00. This offering proposes to issue 40,446,434 new shares, accounting for 10.00% of the total share capital after the issuance.

Uber's pre-market U.S. stock price fell slightly, currently down over 3%; the total bookings for the second quarter were $58.02 billion, exceeding market expectations of $57.17 billion; the expected total bookings for the third quarter are between $58.25 billion and $60.25 billion, with market expectations at $59.32 billion.

The U.S. stock market's tech sector has made a strong comeback! The earnings season has reignited confidence in AI, with the market value of the NASDAQ 100 surging by $3.5 trillion in just four days.

After strong earnings reports boosted investors' confidence in the prospects of artificial intelligence (AI), U.S. tech stocks experienced a dramatic turnaround, driving the market capitalization of the Nasdaq 100 index up by $3.5 trillion within just four trading days.

The Hong Kong ACCA has proposed 10 recommendations for Hong Kong's first five-year plan, focusing on AI accounting and the development of an offshore RMB hub.

The Hong Kong ACCA (Association of Chartered Certified Accountants) submitted 10 recommendations for the public consultation regarding Hong Kong's first five-year plan.

New Stock News | It is reported that SHEIN may launch a pre-IPO roadshow in Hong Kong on Thursday.

Reports citing informed sources indicate that SHEIN may launch a pre-roadshow on Thursday.

The Hong Kong Chinese General Chamber of Commerce offers recommendations on the five-year plan and the policy address, proposing four major development visions.

Zeng Zhiming, Vice President of the China General Chamber of Commerce, believes that the Five-Year Plan and the Policy Address are part of a coherent strategic system that combines both long- and short-term approaches.

Hong Kong Stock Exchange: Appoint Ho Kwon Yi as Managing Director and Group Head of Strategy. Lam Kei Wing will serve as Head of the CEO's Office and Head of Strategic Relations.

On August 5th, the Hong Kong Stock Exchange announced the appointment of He Guangyi as Managing Director and Group Chief Strategy Officer. He Guangyi will assume his new role on September 1st and will report to Liu Biyin, Chief Operating Officer of the Hong Kong Stock Exchange.

Northbound funds | Northbound capital recorded a net sell of 1.398 billion. Northbound capital continues to increase positions in SMIC and Hua Hong. Throughout the day, over 2 billion HKD was sold off from the TRACKER FUND OF HONG KONG (02800).

On August 5, the Hong Kong stock market saw a net sale of 1.398 billion HKD from northbound capital. Among them, the Shanghai-Hong Kong Stock Connect recorded a net sale of 1.577 billion HKD, while the Shenzhen-Hong Kong Stock Connect saw a net purchase of 179 million HKD.

China Iron and Steel Association: A new order for a fairer, more transparent, and sustainable iron ore market is gradually being established.

For a long time, the iron ore industry chain has shown characteristics of structural imbalance between upstream and downstream actors, with a stark contrast between the "rich" international mining companies in the upstream sector and the "struggling" domestic steel enterprises downstream. This uneven and unreasonable distribution of interests between the two ends has affected the healthy and sustainable development of the entire industry. In recent years, there has been a growing call from various parties for rule reconstruction and value return, and the iron ore market structure is facing profound adjustments, with a new market order that is fairer, more transparent, and sustainable gradually taking shape. Firstly, China's super-large-scale market acts as a "constant," offsetting the "variables" in global supply. Secondly, a diversified resource supply system is being established. Thirdly, reaching a consensus on resolving the structural imbalance of interests between upstream and downstream has become a shared understanding. Finally, a more objective and transparent pricing mechanism for iron ore is being gradually established. For a long time, the pricing based on the US dollar index has largely relied on the limited transaction prices of some international mining companies in the dollar market. China, possessing the largest port spot market globally, is able to reflect market supply and demand conditions more objectively and authentically in its transaction prices.

Sources say Shein may kick off its pre-IPO roadshow on Thursday.

Rocket Lab (RKLB.US) has secured a nearly $400 million contract with the U.S. Space Force, further advancing its strategy to become an "end-to-end contractor."

Rocket Lab has received a $397 million contract from the U.S. Space Force to build and launch Flatellites rockets.

"AI Computing Power Industry Chain Barometer" Foxconn's sales surged 54% in July, and Q3 AI rack shipments are expected to continue growing.

Hon Hai announced a 54.2% increase in sales for July, indicating that the demand for global AI infrastructure continues to be strong.

Yu Chengdong: With the rising costs of memory, smartphones may face significant price hikes in the future.

On the afternoon of August 5, Yu Chengdong, Executive Director, Chairman of the Product Investment Review Committee, and Chairman of the Terminal BG at Huawei, stated at the Huawei product launch that due to the soaring prices of memory, all mobile phones may have to undergo significant price increases in the future; otherwise, they will be sold at a loss at the original prices.

Eurozone June PPI month-on-month -0.3%, expected -0.3%, previous value 0.20%.

4nm continues to be fully loaded, and it is reported that Samsung's wafer foundry has proposed a 5nm alternative to its customers.

According to reports, in the context of a surge in orders for the HBM4 Base Die from brother units and NVIDIA Groq LPU, Samsung Electronics' 4nm advanced process capacity in its foundry business is continuously operating at full capacity. Against this backdrop, Samsung Foundry is recommending its 5nm process as an alternative option to chip design companies seeking affordable advanced process capacity.

The Eurozone economy is seeing a long-awaited recovery! In July, the composite PMI rose to an eight-month high, but the geopolitical crisis in the Middle East and interest rate hike pressures still cast a shadow over the outlook.

Driven by the recovery of the service sector and the strengthening of manufacturing, economic activity in the Eurozone rebounded in July, but the remaining uncertainties surrounding the geopolitical situation in the Middle East continue to cast a shadow over the Eurozone's economic outlook.

Apple is considering incorporating China's Changxin Storage into its new supply chain, but has failed to drive down prices.

According to a report by the South Korean IT media outlet "Digital Daily," citing industry insiders, Apple had previously considered including China's Changxin Memory in its new supply chain to reduce costs. However, it is now facing resistance in negotiations to further lower procurement prices. Recently, Apple has been negotiating with Changxin Memory regarding the supply prices for mobile DRAM, such as LPDDR5X, to alleviate the manufacturing cost pressures for the next generation of iPhones and other smart devices, but its price reduction requests have been rejected. It is reported that Changxin Memory's quoted prices are even higher than those of Samsung Electronics and SK Hynix, or at least at a similar level. Apple, which used to have strong purchasing bargaining power in the consumer electronics market, is now encountering what can be described as hard nails with suppliers sticking to firm pricing. The reason Changxin Memory boldly refuses Apple's price reduction demands lies in the large-scale "stockpiling" by Chinese tech giants like Huawei and Xiaomi. In this context, Changxin Memory sees no need to actively lower prices and reduce profits to accommodate Apple's complex and stringent quality certification and price reduction demands. Analysts believe that the strong domestic demand in the Chinese market provides robust price support for Changxin Memory.

The motorcycle "cash cow" offsets the weakness in the automotive business! Honda (HMC.US) leverages the weaker yen to exceed expectations: Q1 net profit surged by 129%, raising the fiscal year 2027 guidance.

The weakening yen and strong U.S. demand have boosted performance, prompting Honda to raise its fiscal year guidance.

Huawei MateBook Pro S officially released

On August 5th, Huawei officially launched the ultra-thin flagship notebook Huawei MateBook Pro S, featuring the first flexible OLED privacy screen, a debut four-antenna design, and supporting connectivity from one kilometer away, with a starting price of 7,999 yuan.

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The New York Times fell 13%, marking the largest single-day drop since October 2012.

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SpaceX fell by 14%, with a market value evaporating by $225 billion.

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U.S. stock market close: Three major indices showed mixed results.

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The Nasdaq China Golden Dragon Index fell by 1.08%.

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