GMT EIGHT - OPPORTUNITIES IN CHINA

A-share midday | Shanghai Composite Index up 0.20%, ChiNext Index down 2.18%, with pharmaceutical and consumer sectors performing strongly against the trend.

On August 10, the three major A-share indices opened higher collectively, but their trends showed significant divergence. The market exhibited a pattern of "index divergence, broad gains in individual stocks, and the continuation of structural hotspots."

Financial Report Outlook | Cisco Systems, Inc. (CSCO.US) is about to deliver a crucial answer on "AI Transformation," with network business being the focal point.

Cisco Systems will release its financial results for the fourth quarter and the full year of fiscal year 2026 after the market closes on Wednesday, August 12.

What signals? UBS bluntly states "the disaster of AI": the volatility of tech stocks has reached its highest level since the internet bubble.

The report shows that the volatility in the global tech industry has risen to its highest level since the burst of the internet bubble, as investors re-evaluate whether the cash flow returns of AI-driven hyperscale data centers and semiconductor companies can be sustained.

The Hong Kong interbank offered rate continues to decline, with the one-month interbank rate unchanged at 2.61%.

On August 10, the Hong Kong dollar interbank offered rate continued to decline, while the one-month interbank offered rate related to mortgage loans stood at 2.61327%, unchanged.

From "Forgotten Corners" to "New Safe Havens": European Stock Earnings Season Wows Everyone, with a 22% Profit Growth Reaching a Four-Year High

The strong earnings season and the decline in oil prices are jointly enhancing the appeal of European stock markets as a safe haven. At the same time, investors are returning to the European market, viewing it as an alternative to hedge against the high volatility of global technology stocks.

The return of premium on term limits has pushed up real interest rates! Dangerous signals are emerging in the U.S. bond market, and the July CPI will serve as a stress test.

The U.S. Consumer Price Index (CPI) report for July, to be released this week, may serve as a kind of "stress test." The market's reaction after the release of the CPI data could convey more definitive information.

YIDU TECH (02158) has successfully completed the ownership registration of the tinnitus and hearing loss traditional Chinese medicine dataset.

This achievement provides a reference practice sample for the assetization of specialized traditional Chinese medicine (TCM) data and also validates the effectiveness of Yidu Tech's data governance and standardized dataset construction capabilities in the TCM context.

Multiple high-premium LOFs have seen a significant decline.

The global chip LOF has hit the lower limit of its trading range, with a current premium rate of 18.02%. The current drop for Guotou Silver LOF is 5.9%, with a current premium rate of 19.55%.

The July meeting minutes of the Bank of Japan released hawkish signals: the risks of rising inflation have intensified, with some committee members calling for an "accelerated rate hike."

The Bank of Japan has warned that there is a risk of price increases, and the pace of interest rate hikes may accelerate.

In the first half of the year, net profit is expected to drop by 70%, yet the stock price has risen by 110%: The temperature difference between expectations and reality for HELENS (09869).

Helen's is currently at a delicate crossroads.

The two departments jointly launched the project solicitation work for the 2026 metrology support industrys new quality productivity development project.

Recently, the State Administration for Market Regulation and the Ministry of Industry and Information Technology jointly issued a notice to publicly solicit projects for the development of new productivity in the metrology support industry for the year 2026.

Guotai Junan International's stock surged over 35%, with Guotai Junan and Haitong recommending a privatization at a premium of 44%.

As of the time of publication, Guotai Junan International is up 35.10%. In terms of news, the company and its controlling shareholder, Guotai Haitong, jointly announced that Guotai Haitong, as the offeror, is proposing to privatize Guotai Junan International and withdraw its listing status, with a cancellation price of HK$3 per share, representing a premium of approximately 44.23% over Guotai Junan Internationals last closing price of HK$2.08 before suspension.

Morgan Stanley: Global cloud capital expenditures are expected to surge by 29% in 2027, as the four giants face capacity crises under the pressure of computing power hunger.

Morgan Stanley's latest global cloud capital expenditure tracking report shows that the capital expenditures of the world's largest hyperscale cloud providers have not slowed down, with a projected year-on-year increase of 29% by 2027.

A-shares Opening Briefing | Three Major Indices Open Higher, Medicine and Biology Sector Leads the Gain

On August 10, the Shanghai Composite Index opened up 0.10% at 3943.82 points, the Shenzhen Component Index opened up 0.27% at 14348.95 points, the ChiNext Index opened up 0.11% at 3567.05 points, and the Sci-Tech Innovation 50 opened down 0.22% at 1740.14 points.

New Stock News | MoEr Thread (688795.SH) plans to go public in Hong Kong, with revenue in the first half of the year up 147% year-on-year.

The company plans to issue overseas listed foreign shares (H shares) and apply for listing on the Main Board of the Hong Kong Stock Exchange.

Tesla releases a concept video for its ultra-large-scale AI chip manufacturing project, Terafab.

AI investment sparks a wave of financing! Goldman Sachs: U.S. companies are expected to issue a record high in stock by 2026, but buybacks will form a strong hedge.

As artificial intelligence (AI) spending creates significant financing demands, U.S. companies are issuing more stocks to investors. Goldman Sachs strategists note that the increase in equity supply is more of a return to normal levels rather than a flood of issuances that poses a threat to the market.

HK Stock Market Move | GUOTAI JUNAN I (01788) resumed trading with a jump of over 37%, receiving a 44% premium privatization proposal from Guotai Haitong.

Guotai Junan International (01788) resumed trading and opened up over 37%. As of the time of writing, it has risen 37.02%, reaching HKD 2.85, with a trading volume of HKD 60.6224 million.

As leveraged ETFs trigger turmoil in tech stocks, Wall Street's intraday momentum trading is reaping huge profits from "the volatility itself."

The surge of leveraged ETFs intensifies day trading momentum on Wall Street.

From "usable" to "marketable": DIAGENS-B (02526) reports initiate a revaluation of the platform value of medical AI.

In the first half of the medical AI landscape, the focus was on "whether the model can be used." In the second half, the questions shift to "whether the model can sustain production, scale delivery, and generate revenue." The revenue from model services accounts for nearly 90%, indicating that De Shi has already taken the lead in this latter phase.

In July, over 150 towns and counties in the United States implemented bans on data centers.

This summer, the trend of local governments in the United States resisting the construction of data centers has intensified, serving as a warning signal for major artificial intelligence companies like Anthropic, Google, and OpenAIcompanies that are relying on the expansion of data centers to achieve their computational power growth targets. In just the month of July, more than 150 towns and counties implemented temporary or permanent bans on data centers, with many bans rushed through emergency meetings. Analysis shows that by early August, the number of active data center bans across the United States had exceeded 500. When the ban tracking statistics were first launched at the end of June, the count was only a little over 300. The shutdown of related projects by various counties and towns stems from multiple concerns from local residents: data centers raise residents' electricity bills, consume scarce water resources, and generate a significant amount of noise. Supporters argue that such projects can create jobs in rural and industrial areas, attract investment, and drive infrastructure upgrades, asserting that some resident concerns are exaggerated. However, these viewpoints have not been able to stem the tide of new bans being enacted.

Tearing off the heavy asset label, why is WuXi AppTec (02359) seeing its profits accelerate?

Starting from the first quarter of 2025, the difference between the company's "adjusted profit growth rate and revenue growth rate" has shown a high operating trend of 19.02%, 27.54%, 26.96%, and 27.16% respectively, and further expanded to 44.3% in the first half of 2026.

A-share Pre-market Report | Yushu Technology (688836.SH) is participating in today's IPO! Single order profit may exceed 70,000 yuan.

U.S. President Trump announced that the federal government will invest $3 billion in multiple key mineral and battery projects, aimed at increasing domestic production in the U.S. and enhancing the self-sufficiency of lithium, rare earth elements, scandium, and upstream raw materials for batteries.

Brokerage Morning Meeting Highlights | AI in Pharmaceuticals Has Great Potential, and the Industry Chain Is Expected to Continue Benefiting

At today's broker morning meeting, CITIC Securities believes that AI in pharmaceuticals has great potential, and the industry chain is expected to benefit continuously; Guotai Junan believes that the AI technology direction focuses on downstream applications; Huatai Securities believes that attention should be paid to valuation recovery under mid-term report pricing.

GENFLEET-B (02595): The world's first oral KRAS G12D inhibitor for the treatment of non-small cell lung cancer has entered Phase III trials, and the second registrational clinical study of GFH375 has completed the enrollment of its first patient.

Jinfang Pharmaceutical-B (02595) announced that GFH375 (an oral KRAS G12D inhibitor) has entered a registrational Phase III clinical study in China for the treatment of non-small cell lung cancer (NSCLC) ("Qilin-Fei 01").

KEYMED BIO-B(02162): CM512 (TSLP x IL-13 dual antibody) injection has achieved all study endpoints in the Phase II clinical trial for patients with chronic rhinosinusitis with nasal polyps.

Kangnuoya-B (02162) announced that the Phase II clinical study data unblinding and preliminary statistical analysis of its self-developed Class 1 new drug CM512 injection for the treatment of chronic rhinosinusitis with nasal polyps (CRSwNP) has been completed.

The Korea Composite Stock Price Index opened up 0.8% at 6306.33 points.

The Nikkei 225 index opened at 65,905.10 points this morning, up 0.45%.

Goldman Sachs Strategist: U.S. stocks may experience volatility after Labor Day in September, but strong earnings support the bull market trend remains unchanged.

The U.S. stock market may face a more challenging period after Labor Day (the first Monday of September), but strong corporate earnings and favorable technical conditions should support the continuation of the overall bull market trend.

The navigation prospects of the Strait of Hormuz remain uncertain! Iran and Oman have yet to reach a new shipping agreement + A Saudi refinery has been attacked, and oil prices continue to rise.

Due to the lack of an agreement between Iran and Oman on the reopening of the Strait of Hormuz, and the Houthi armed group in Yemen claiming to have attacked an oil refinery near the Red Sea in Saudi Arabia, oil prices continue to rise.

China Securities Co., Ltd.: U.S. non-farm payrolls fall short of expectations, supporting a continued rebound in non-ferrous metals.

The bank believes that the prices of non-ferrous commodities are expected to maintain strong momentum, driven by excellent fundamentals; the current PE recovery of non-ferrous equities is still insufficient, and there is further room for growth.

U.S. Treasury Secretary's "three-pronged approach" to stabilize U.S. Treasuries: joint intervention in the yen, adjustment of debt issuance language, and support for Waller, Wall Street detects signs of anxiety.

Wall Street has sensed a clear signal from U.S. Treasury Secretary Scott Pessen's intensive actions over the past weekhe is using all available tools to prevent further increases in long-term interest rates.

Inflation data collides with AI infrastructure earnings reports, and after reaching new highs, the US stock market faces a "double major test" this week.

The first week of earnings season for tech giants has concluded, and the market performance has exceeded investors' expectations.

Guotai Haitong: The performance guidance of U.S. optical communication companies reinforces the fundamentals, and we are optimistic about the opportunities at the communication turning point.

Guotai Junan Securities stated that AAOI's performance met expectations, and the production capacity guidance has been revised upward again. The optical interconnection industry is experiencing a growth bonus driven by dual lines, and it is recommended to focus on exploring investment opportunities in high-barrier niche segments and industry leaders.

Ningde Times Yichun Jianxiawo Lithium Mine Resuming Production Enters a Critical Period

The resumption of lithium production at the Jianxiawo Lithium Mine in Zhenkouli, Yifeng County, Jiangxi Province, has attracted significant attention from the outside world. "Currently, the public announcement stage for the project's environmental impact assessment (EIA) report and public participation has been completed as of August 7. After submission, it will undergo evaluation," said a relevant person from the Yichun municipal government to a Securities Times reporter regarding the progress of the resumption of operations at the Jianxiawo Lithium Mine. Does this mean that the time for resumption is near? In response, the aforementioned person pointed out that "the resumption of this project requires obtaining a series of approvals. Regarding the environmental impact assessment, after the government accepts the EIA report, it will organize relevant experts for evaluation. Before the formal approval, it also needs to go through the statutory public announcement process. Only after all these steps are completed will the EIA approval be issued."

CMSC: After the market rebound, what is the outlook for the future?

It is recommended to configure a balanced layout along the three lines of technological innovation + enterprises going abroad + rebalancing of traditionally undervalued sectors, with a focus on electronics, electrical equipment, pharmaceuticals, non-ferrous metals, coal, and non-banking financials.

SHOUCHENG (00697): Investment in Huatai Three Gorges Renewable Energy REIT

Shou Cheng Holdings (00697) announced that recently, a company under Shou Cheng Cornerstone (a wholly-owned subsidiary of the company) participated in the investment of the Huatai Sanxia Clean Energy Closed-End Infrastructure Securities Investment Fund (Huatai Sanxia New Energy REIT). This investment will help promote the large-scale and market-oriented high-quality development of the clean energy industry, providing strong support for achieving the goals of "carbon peak and carbon neutrality."

Inflation remains high! The Reserve Bank of Australia is expected to remain on hold this week and maintain a hawkish stance.

Economists and traders generally expect the Reserve Bank of Australia to keep the cash rate unchanged at 4.35% for the second consecutive meeting, while reiterating its readiness to further tighten monetary policy in response to persistently strong inflationary pressures.

Is the yen intervention just a flash in the pan? Strategists are optimistic about the Australian dollar regaining upward momentum against the yen or returning to a 35-year high.

As the effects of Japanese authorities' intervention gradually fade, coupled with the Reserve Bank of Australia's hawkish stance, strategists expect the AUD/JPY exchange rate to rise again towards a 35-year high.

New Stock News | Vinda Technology's Hong Kong IPO Prospectus Invalidated

The company is a global technology firm focused on interface enhancement technologies and related materials engineering.

New Stock News | Red Avenue New Materials Group (603650.SH) Hong Kong IPO prospectus voided

Tongcheng New Materials Group Co., Ltd. (abbreviated as: Tongcheng New Materials, 603650.SH) submitted its Hong Kong IPO prospectus on February 8, 2026, which will expire six months later on August 8, 2026. Haitong International is its exclusive sponsor.

New Stock News | The prospectus for Heng Intelligent's IPO on the Hong Kong Stock Exchange has expired.

The prospectus submitted by Weiheng Intelligent Technology Co., Ltd. (referred to as Weiheng Intelligent) for the Hong Kong Stock Exchange will expire on August 9, 2026, six months after its submission date of February 9, 2026.

KINETIC DEV (01277) announces a profit warning, expecting the after-tax net profit for the first half of the year to increase by 31% to 40% year-on-year.

Strength Development (01277) announced that it expects to achieve a net profit after tax of approximately RMB 730 million to RMB 780 million in the first half of 2026, an increase of 31% to 40% year-on-year. The significant year-on-year growth in the group's performance for the first half of 2026 is mainly due to: (i) driven by the recovery of market coal prices, the average selling price of the group's coal products in the first half of 2026 increased by about 18% year-on-year, leading to profit growth in the coal business; (ii) benefiting from the group's continuous implementation of efficient financial control measures, the group's profitability has further improved. In the first half of 2026, the unit cost of the group's coal products decreased by 9% to 12% year-on-year, and both management expenses and selling expenses saw a year-on-year decrease of between 5% and 7%.

New Stock News | ICS Group's Hong Kong IPO prospectus has expired

ICS Corporate Services Group Inc. (referred to as: ICS Group) submitted its Hong Kong stock offering prospectus on February 10, 2026, which will expire after 6 months on August 10, 2026. Agricultural Bank of China International is its sole sponsor.

New Stock News | The Prospectus for Tangji Medical's IPO on the Hong Kong Stock Exchange Has Lapsed

Tangji Medical is a medical device company based in China, focusing on providing innovative solutions for the treatment and full-cycle management of metabolic diseases.

New Stock News | Helian Group's Hong Kong IPO prospectus has expired

Hangzhou ReLian Group Co., Ltd. (abbreviated as ReLian Group) submitted its Hong Kong Stock Exchange prospectus on February 9, 2026, which will expire six months later on August 9, 2026.

New Stock News | Ingenic Semiconductor (300223.SZ) has passed the Hong Kong Stock Exchange hearing to become a provider of "storage + computing + analog" chips.

According to the Hong Kong Stock Exchange's disclosure on August 9, Beijing Junzheng Integrated Circuit Co., Ltd. has passed the listing hearing for the main board of the Hong Kong Stock Exchange, with Cathay Securities as the sole sponsor.

CHI KINGSTONE (01380): Signed a memorandum of understanding with First Asia and First Gold Shop to explore cooperation opportunities in the gold value chain.

China Gold & Stone (01380) announced that on August 7, 2026, the company entered into a memorandum of understanding with First Asia Merchant Gold & Silver Company Limited (First Asia) and First Gold Shop Holdings Group Limited (First Gold Shop). The memorandum outlines the framework for the contracting parties to explore potential collaboration opportunities, aiming to establish a long-term strategic partnership and achieve mutually beneficial commercial advantages.

GREENTOWN CHINA (03900) issued a profit warning, expecting that the mid-term profit attributable to shareholders will decline to approximately 50 million to 100 million yuan.

Greentown China (03900) announced that it expects the company's profit attributable to shareholders for the mid-year of 2026 to decrease to approximately RMB 0.5 billion to RMB 1 billion, down from RMB 2.10 billion in the same period of 2025. This decline is mainly attributed to the reduction in transferred area and average price in the first half of the year, leading to decreased revenue. Additionally, as the real estate market remains in an adjustment period, and to promote long-term development, the company continues to actively push for inventory reduction, resulting in a decrease in the gross profit margin of revenue recognized in the first half of the year. Furthermore, the company has made provisions for a certain amount of asset impairment losses, which has further affected profit attributable to shareholders.

China Securities Co., Ltd.: W-shaped bottom established, how long can the A-share rebound last?

The current market "W-shaped bottom" has formed, and previous concerns have clearly eased, with the repair trend unfolding as expected.

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Sunflower Pharmaceutical Investment Establishes a Pharmaceutical Company

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Dollar bond fluctuations | Jingrui Holdings JINGRU 14.5 02/19/23 price increased by 11.051%, reported at 0.673.

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Hong Kong Stock Movement | Old Paved Gold (06181.HK) rises over 8%. Gold records its largest weekly increase of the year, with strong seasonality expected in the second half of the year.

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Abu Dhabi National Oil Company's gas business: It announced that it has awarded a total engineering contract worth $8.2 billion for the second and third phases of the Ruwais-Dhafra-Jila project. The net profit forecast for the third quarter is based on the assumption that maritime routes in the Strait of Hormuz continue to face disruptions. The company stated that the premise for the annual profit forecast is that offshore operations are fully restored in the fourth quarter and that actual product prices return to normal. Domestic natural gas sales volume in the first half of the year fell by 20% to 94.8 billion British thermal units, primarily due to a reduction in reinjection gas volume. Influenced by disruptions in the Strait of Hormuz starting in March, which persisted throughout the second quarter, export and trade volumes of liquid products decreased by 36% to 31.9 billion British thermal units, with limited exports of liquefied petroleum gas, naphtha, and liquefied natural gas. The capacity to capitalize on high market prices in the second quarter was constrained due to regional conflicts. The company has closely collaborated with customers and partners to mitigate the impact of the disruptions, address temporary capacity constraints, and fulfill contract obligations as much as possible.

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Abu Dhabi National Oil and Gas Company's net profit in the second quarter exceeded expectations.

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