GMT EIGHT - OPPORTUNITIES IN CHINA

Ministry of Commerce: Opposes the EU's abuse of unilateral tools such as the "Foreign Subsidies Regulation" to suppress Chinese enterprises.

On August 20, the Ministry of Commerce held a regular press conference.

A-share Closing Review | Three Major Indices Bounce Back with Decreased Volume, Pharmaceutical and Biotechnology Stocks Surge to Limit Up, Precious Metals Strengthen

On August 20, after opening high, the A-shares rose and then fell back, with the increase narrowing, and the three major indices closed slightly in the red.

The Ministry of Commerce responds to the U.S. imposing tariffs on drones.

The Ministry of Commerce responds to the U.S. tariff on unmanned aerial vehicles.

Bank of America raises target prices for 10 software stocks across the board: concerns over AI impact have eased, leading to a revaluation of the sector.

Bank of America has raised the target prices for the stocks of several software companies.

Jingtai Technology (02228) 2026 Mid-term Performance Decoding: AI4S Commercialization Breakthroughs at High Speed, Multimodal Pipeline Accelerates to Realize Value

In the first half of 2026, Jingtai Technology achieved revenue of 394 million yuan from its AI4S business, smart robotics laboratory, and smart services business, marking an overall increase of 136.4%.

The Hong Kong Development Bureau will launch a pilot scheme next month, allowing for an additional 20% plot ratio on private redevelopment sites in seven old districts.

The Hong Kong Development Bureau will launch the "Additional Gross Floor Area Pilot Scheme" in September, initially implementing it in seven old districts for a duration of five years.

AI debt tsunami is coming; September is the testing period for U.S. debt.

The wave of AI infrastructure financing driven by technology giants is set to surge after the Labor Day in September, during which the issuance scale of investment-grade corporate bonds in the United States is expected to reach $200 billion, potentially posing a new round of impact on the already pressured Treasury bond market.

Central Plains Real Estate: The new Huanggang Port is about to open, which is expected to drive up property prices and rents in North New Territories.

Yu Zhiwei believes that after the formal customs clearance, the property market in northern New Territories will see noticeable changes in both buying and renting, which will help drive the New Territories property market.

New Stock News | Ingenic Semiconductor (03223) concludes its public offering with the total subscription amount reaching HKD 222.01 billion, oversubscribed by 689.3 times.

The "Storage + Computing + Simulation" chip provider Junzheng Co., Ltd. (03223) held its IPO from August 17, 2026, to August 20, 2026, and the offering has now concluded.

BANK OF E ASIA (00023) will distribute an interim dividend of HK$0.46 per share on October 13.

East Asia Bank (00023) announced that it will distribute an interim dividend of HK$0.46 per share for the six months ending June 30, 2026, on October 13, 2026.

CSPC PHARMA (01093) will distribute an interim dividend of HK$0.18 per share on November 10.

Stone Pharmaceutical Group (01093) announced that it will distribute a mid-term dividend of HKD 0.18 per share for the six months ended June 30, 2026, on November 10, 2026.

CSPC PHARMA (01093) released its interim results, with net profit attributable to shareholders reported at 6.094 billion yuan, a year-on-year increase of 139.2%.

China Shionogi & Co., Ltd. (01093) announced its mid-year results for 2026, with total revenues of 18.594 billion yuan (RMB, the same below), a year-on-year increase of 40.1%; profit attributable to shareholders amounted to 6.094 billion yuan, representing a year-on-year growth of 139.2%; basic earnings per share were 53.45 cents. A proposed interim dividend of 18.00 Hong Kong cents per share will be distributed.

VSTECS (00856) announced its interim results, with a profit attributable to shareholders of HK$915 million, an increase of 49.87% year-on-year.

Weishi Jiajie (00856) announced its interim results for the six months ending June 30, 2026, with revenue of HKD 52.61 billion, a year-on-year increase of 15.59%; profit attributable to equity holders of the company was HKD 915 million, a year-on-year increase of 49.87%; and basic earnings per share were HKD 0.6595.

WIN HANVERKY (03322) released its interim results, with a profit attributable to equity holders of HK$5.934 million, turning a profit compared to the same period last year.

Evergrande Group (03322) announced its interim results for the six months ended June 30, 2026, reporting revenue from continuing operations of HKD 1.631 billion, a year-on-year increase of 3.0%; the profit attributable to equity holders of the company was HKD 5.934 million, compared to a loss of HKD 43.535 million in the same period last year; basic earnings per share were HKD 0.005.

CHINESE EST H(00127) released its interim results, reporting a loss attributable to shareholders of HKD 200.5 million, a year-on-year decrease of 51.18%.

China's Overseas Property Holdings Limited (00127) announced its interim results for the six months ending June 30, 2026, with revenue of HKD 134 million, a year-on-year decrease of 0.21%. The loss attributable to shareholders was HKD 200.5 million, narrowing by 51.18% compared to the previous year; basic loss per share was HKD 0.105.

CHERY AUTO (09973) released its mid-term results, with a profit attributable to shareholders of 8.567 billion yuan, a year-on-year decrease of 11.7%.

Chery Automobile (09973) released its interim results for the six months ending June 30, 2026, with revenue of 143.28 billion yuan (RMB, the same below), an increase of 1.2% year-on-year; profit attributable to the company's owners was 8.567 billion yuan, a decrease of 11.7% year-on-year; basic earnings per share were 1.47 yuan.

BANK OF EAST ASIA (00023) announced its interim results, with profit attributable to shareholders of HK$2.416 billion, an increase of 0.37% year-on-year.

East Asia Bank (00023) announced its interim results for 2026, reporting interest income of HK$15.506 billion, a decrease of 8.23% year-on-year; profits attributable to shareholders of HK$2.416 billion, an increase of 0.37% year-on-year; and basic earnings per share of HK$0.91. A proposed interim dividend of HK$0.46 per share will be distributed.

Bond market alarm lifted? Strategists assert that the widening credit spreads of AI tech giants are a "supply shock," not a signal of default.

The competition in building artificial intelligence infrastructure has become a core focus of the credit market, driving the debt issuance scale of technology giants this year to nearly half a trillion dollars.

ND PAPER (02689) issued a positive profit forecast, expecting an annual profit of approximately 3.9 billion to 4.1 billion yuan, a year-on-year increase of 77.1% to 86.2%.

Nine Dragons Paper (02689) announced that the group expects to achieve a profit of approximately RMB 3.9 billion to RMB 4.1 billion for the year ending June 30, 2026, representing an increase of 77.1% to 86.2% compared to the profit of RMB 2.2017 billion for the year ending June 30, 2025. This profit growth is primarily driven by an increase in sales volume; the rise in product prices, both in magnitude and pace, significantly outstrips the increase in raw material costs, thereby driving the growth in gross profit.

In the first half of the year, AI revenue increased by 89.2% to 133 million yuan, and the stock price of Weimob (02013), which is undergoing a valuation logic switch, may soon reverse.

The steady improvement in financial fundamentals and the accelerating commercialization of AI are direct validations of Weimob's substantial progress in transforming from a "SaaS service provider" to an "AI Native business service provider."

AAC TECH (02018) released its mid-term performance report, with a net profit of 901 million yuan, an increase of 2.9% year-on-year, and revenue reaching a new high of 14.51 billion yuan.

AAC Technologies (02018) announced its interim results for the six months ended June 30, 2026, with revenue of 14.506 billion yuan (RMB), an increase of 8.9% year-on-year; net profit of 900 million yuan, a year-on-year growth of 2.9%; and basic earnings per share of 0.79 yuan.

The first-instance verdicts in the cases of Evergrande Group, Evergrande Real Estate, Xu Jiayin, and others.

The Intermediate People's Court of Shenzhen City, Guangdong Province, publicly announced its first-instance verdict on the case of the defendant company Evergrande Group Co., Ltd. (hereinafter referred to as Evergrande Group), the defendant company Evergrande Real Estate Group Co., Ltd. (hereinafter referred to as Evergrande Real Estate), and the defendant Xu Jiayin.

SSY GROUP (02005) has obtained the drug production registration certificate for Vitamin K1 injection (1ml: 10mg).

Shijifeng Pharmaceutical Group (02005) announced that the group has obtained the drug production registration approval from the National Medical Products Administration of China for Vitamin K1 injection (1ml:10mg), classified as a Category 3 chemical drug, which is considered equivalent to passing the consistency evaluation.

Personalized cancer vaccine crosses the phase III life-and-death line! Moderna (MRNA.US) stock skyrocketed by 177% in a single day, and the mRNA chain welcomes its "second value awakening."

William Blair upgraded the rating of this vaccine manufacturer from "in line with the market" to "outperform the market."

A-shares at noon | Three major indices collectively closed higher, pharmaceuticals and biotechnology surged, gold and electric grid strengthened.

The three major A-share indices opened higher collectively, with the market surging in the early session before a slight pullback and narrowing of gains.

Hong Kong dollar interbank interest rates continue to rise across the board, with the one-month HIBOR rising 5.345 basis points to 2.68%.

On August 20, the Hong Kong interbank offered rate continued to rise across the board, with the one-month HIBOR related to mortgages reported at 2.68%.

J.P. Morgan warns: The Treasury Department's plan to double the buyback of government bonds lacks credibility, and long-term yields may face upward pressure again.

JPMorgan's strategists warn that the market may perceive the U.S. Treasury's unexpected measures to curb long-term financing costs as lacking credibility.

Sinolink: AI capital expenditure squeezes sovereign debt, and the rise in long-term U.S. Treasury rates may force the Federal Reserve to ease policy.

When the best-rated private companies globally begin to compete with the largest sovereign debt issuers for long-term capital, it will inevitably lead to a crowding-out effect.

Using "Soros-style" to save U.S. bonds! Can Besant win the market by managing exchange rates and interest rates?

Since the beginning of this year, Suga has taken a series of actions, including cooperating with Japan to intervene in the yen, suggesting a reduction in long-term bond issuance, and announcing a doubling of the scale of long-term bond repurchasesearning him the title of the most proactive finance minister in intervening in the market in decades. However, critics argue that these interventions cannot address the fundamental issue of the fiscal deficit.

Hong Kong Stock Exchange's Chan Yat-ting: Currently, about 10 overseas companies are applying for listing.

Recently, there has been a wave of IPOs among Chinese enterprises. Chen Yiting stated that the current pipeline of listing applications is very robust, with numerous companies eager to go public in Hong Kong. This demonstrates the vitality of the Chinese market and the attractiveness of the Hong Kong market to global investors.

40 years of low yen levels propelled export surge: Japan's July export figures far exceeded expectations, with AI chip demand countering the shadow of the Middle East conflict.

Driven by strong demand for chips and automobiles in Japan and the yen falling to a 40-year low, Japan's export growth accelerated to its fastest pace since 2022.

HK Stock Market Move | METIS TECHBIO-P (07666) surged over 33% as Moderna's significant breakthrough opens up new possibilities for mRNA. The company possesses the capability to develop mRNA tumor vaccines.

Ji Tai Technology-P (07666) surged over 33%. As of the time of publication, it has risen by 31.74%, priced at HKD 15.44, with a trading volume of HKD 87.6427 million.

Ministry of Commerce: From January to July, the total retail sales of consumer goods and services increased by 2.6% year-on-year, while the total retail sales of consumer goods increased by 1.2%.

Since the beginning of this year, China's consumer market has maintained a positive trend towards innovation and quality, with the market scale steadily expanding and the quality of development continuously improving.

A-shares Opening Express | The three major indices opened higher collectively, with precious metals and pharmaceuticals leading the gains.

On August 20, the Shanghai Composite Index opened high at 3,907.21 points, up 0.33%, the Shenzhen Component Index opened high at 14,032.97 points, up 1.03%, the ChiNext opened high at 3,517.65 points, up 1.27%, and the STAR 50 opened high at 1,685.48 points, up 1.08%.

The leaked news about the camera-equipped AirPods Pro 3 turned out to be a mix-up! The supply chain issues remain unresolved, and Apple Inc. (AAPL.US) is still targeting a 2027 release for its new AI headphones.

Despite reports that Apple's plan to launch AirPods equipped with cameras might be expedited, the plan is still set to be implemented in 2027 as originally scheduled.

The era of mRNA cancer treatment has officially arrived. Moderna (MRNA.US) stock has surged dramatically, and leading domestic companies are experiencing significant increases.

Moderna and Merck announced that their jointly developed mRNA cancer vaccine for melanoma has met its primary endpoint in Phase III clinical trials, marking a period of value reassessment for companies like Aimeijie that are deeply engaged in the underlying core mRNA technology.

August LPR quotation is out: the 5-year and 1-year rates remain unchanged.

As of August 20, 2026, the Loan Market Quote Rate (LPR) is as follows: the 1-year LPR is 3.0%, and the LPR for 5 years and above is 3.5%.

From Hesai (02525, HSAI.US) Q2 report, we see the evolution of scarce physical AI assets: strategic growth business accelerates realization of potential.

Hesai has evolved into a robot and physical AI infrastructure platform that covers the entire chain of "perception, understanding, execution." Its unique full-stack capabilities also endow it with significant long-term investment value.

A-share Pre-Market Report | U.S. Treasury Department Steps In! U.S. Stocks End Three-Day Decline, Pharmaceutical Leader Moderna (MRNA.US) Soars 176%

With the U.S. Treasury Department's emergency intervention in the "U.S. debt crisis," the stock market has temporarily halted its previous streak of "three consecutive declines."

Brokerage Morning Meeting Highlights | External Disturbances Trigger Short-Term Adjustments, Repair Market is Still Expected to Continue

Yesterday, the market adjusted throughout the day, with the three major indexes opening low and continuing to decline.

Is the familiar golden bull market back? The U.S. Treasury is buying back long-term bonds, and $4,500 may become the starting point for a new upward wave.

After the U.S. Treasury unexpectedly took measures to control long-term borrowing costs, gold prices saw their largest increase in six months. The U.S. Treasury announced that it would expand the scale of liquidity support repurchase operations for securities with maturities from 10 to 30 years.

HIGH FASHION (00608) issues a profit warning, expecting that interim profits will decrease by approximately 45% to 65% compared to the same period last year.

Dali International (00608) announced that it expects the group's profit for the six-month period ending June 30, 2026, to decrease by approximately 45% to 65% compared to the profit of about HKD 41.21 million for the six-month period ending June 30, 2025. The anticipated decline in the group's performance during this period is primarily due to a ruling made by the court in a long-standing legal dispute.

LEADS BIOLABS-B(09887): The summary of the Phase II clinical study of Vilex (Opalimab, a PD-L1/4-1BB bispecific antibody, LBL-024) as a first-line treatment for NSCLC has been published on the WCLC website.

VILICTOR-B (09887) announced that the full text of the summary of the Phase II clinical study of its independently developed investigational drug VILISEN (Oframetuzumab, a PD-L1/41BB bispecific antibody) in combination with chemotherapy as first-line treatment for non-small cell lung cancer (NSCLC) has been officially published on the World Conference on Lung Cancer (WCLC) website.

GENFLEET-B(02595): GFH375 Two globally pioneering combined therapies for pancreatic cancer enter Phase II trials, including a RAS-targeted drug combined with a dual antibody scheme for cachexia and a dual RAS inhibitor scheme with different mechanisms of action.

Jingfang Pharmaceutical-B (02595) announced that the board of directors is pleased to declare the recent launch of a three-arm parallel-controlled Phase II clinical study for GFH375 (oral KRAS G12D ON/OFF inhibitor).

Yush tree (688836.SH) listing drives the valuation anchor for embodied intelligence to rise again. The Hong Kong stock market sees differentiation and value reassessment in the Siasun Robot & Automation sector.

On August 19, "the first stock of humanoid robots," Yushu Technology, was listed on the Science and Technology Innovation Board, opening with a surge of 629.44% compared to the issue price, with the total market capitalization once exceeding 440 billion yuan.

CKH HOLDINGS (00001): Initiated international arbitration proceedings against Panama for violating the investment protection treaty.

Changhe (00001) announced that, after multiple attempts to seek a solution, the company initiated international arbitration proceedings on August 20, 2026, against the Republic of Panama for violating the investment protection treaty. This violation stems from a series of measures taken by Panama during 2025 and 2026, which ultimately led to Panama undermining the concession contracts for Balboa Port and Cristobal Port and forcibly taking over the port terminals.

After swallowing Cursor for $60 billion, SpaceX (SPCX.US) aims to acquire Cognition, which is supported by Peter Thiel! Musk is setting his sights on a trillion-dollar AI empire.

According to informed sources, SpaceX has engaged in discussions with Cognition AI Inc. regarding a potential acquisition in order to gain an advantage in the artificial intelligence race. This approach highlights Musk's willingness to invest heavily in competing in the field of artificial intelligence, while Cognition's technological and business progress has also drawn SpaceX's interest.

Hong Kong Stock Concept Tracking | Moderna's Stock Price Soars, Cancer Immunotherapy and mRNA Technology Face Value Reassessment (Including Concept Stocks)

Moderna and Merck announced that their jointly developed mRNA cancer vaccine for melanoma has achieved its primary endpoint in Phase III clinical trials, a milestone event that has triggered a surge in the global pharmaceutical sector.

Hong Kong Stock Concept Tracking | Gold prices surge! Strategic allocation demand supports gold price upward movement, bringing a configuration window for the sector (with related stocks attached).

On Wednesday local time, the U.S. Treasury Department announced that it will significantly expand the scale of government debt buybacks. Following this news, U.S. Treasury yields fell sharply, and metals such as gold and silver saw substantial gains.

The hawkish sentiment is rising! The Fed's July minutes show that "several officials support a rate hike," and Waller also suggested reducing the number of meetings.

The minutes of the Federal Reserve's July meeting, released on Wednesday local time, indicate a growing concern among Fed officials about inflation.

Latest

18/08

Citigroup: Initiates "Buy" rating for Zijin Mining International (02259), optimistic about production growth and gold price outlook.

18/08

Ganfeng Lithium: Progress on Subsidiary's Involvement in Investment Limited Partnership Matters

18/08

Zhichun Technology (603690.SH) plans to transfer part of its shares in the affiliated company Weidun Crystal Phosphate for 20 million yuan.

18/08

Xiamen Releases Twelve Measures to Promote Exchange and Cooperation with Taiwan

18/08

Yuncong Technology: The company is deeply involved in the national standardized pilot project "Shanghai Virtual-Real Integration Embodied Intelligence Training Ground" and the "Humanoid Robot Qilin Training Ground" project.

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