GMT EIGHT - OPPORTUNITIES IN CHINA

MIIT: In the first quarter, China's Internet companies completed a year-on-year growth of 10.6% in Internet business revenue.

In the first quarter, the revenue from internet businesses maintained steady growth, the growth rate of total profits accelerated, research and development expenditures maintained a fast growth momentum, and some regions showed good growth momentum.

EU bans funding support for projects using Chinese inverters, Ministry of Commerce responds.

The European side, without any actual evidence, for the first time categorizes China as a so-called "high-risk country" and uses this as a reason to prohibit funding support for projects using Chinese inverters. This is a stigmatization of China and constitutes unfair and discriminatory treatment of Chinese products. China firmly rejects and opposes this.

Northbound funds | Northern Water net sold 4.797 billion, US-Iran negotiations disrupted international oil prices, Northern Water sold over 500 million Hong Kong dollars in CNOOC (00883).

On May 7th, in the Hong Kong stock market, Northbound trading saw a net outflow of 4.797 billion Hong Kong dollars. Among them, the net outflow of Hong Kong Stock Connect (Shanghai) was 2.095 billion Hong Kong dollars, and the net outflow of Hong Kong Stock Connect (Shenzhen) was 2.702 billion Hong Kong dollars.

Using super voting rights to create the "Musk Charter"! Reshaping the power boundaries of founders before the SpaceX IPO paves the way for ambitious AI computing power in the universe.

The SpaceX IPO gives Musk broad powers and limits shareholder rights, documents show, with collective shareholder rights strictly restricted, including mandatory arbitration and super-voting share system.

Southbound funds net sold 4.797 billion Hong Kong dollars today.

In terms of the Hong Kong stock connect (Shanghai), CNOOC and Cambridge Technology respectively received net purchases of 194 million Hong Kong dollars and 691.38 million Hong Kong dollars; Tencent Holdings had the highest net sales amounting to 1.29 billion Hong Kong dollars. In terms of the Hong Kong stock connect (Shenzhen), SMIC and Fiberhome Telecommunication received net purchases of 1.294 billion Hong Kong dollars and 418 million Hong Kong dollars respectively; Tencent Holdings had the highest net sales amounting to 1.449 billion Hong Kong dollars.

Spot silver broke through $80 per ounce, rising 3.47% intraday.

Previous day bank officials intervention: Tokyo may continue to take action to protect the exchange rate, but unable to change the overall trend of the weakening yen.

Former central bank official Jun Takeuchi said Japan likely intervened during the Golden Week holiday.

People's Bank of China: In April, a net amount of 400 billion yuan was injected into the market through open market operations of government bonds.

French ship Delphine Sai Gon container ship rare crossing of the Hormuz Strait breaks the deadlock of Western European shipping.

A French container ship has appeared in the Arabian Sea, with its last recorded position in the Persian Gulf. This marks the rare completion of a passage through the Strait of Hormuz for this Western European vessel.

Hong Kong Monetary Authority: Official foreign exchange reserves as of the end of April amounted to US$442.1 billion.

On May 7, the Hong Kong Monetary Authority announced that Hong Kong's official foreign exchange reserves at the end of April 2026 were $442.1 billion (compared to $430.8 billion at the end of March 2026).

The People's Bank of China has increased its holdings of gold for the 18th consecutive month.

According to data from the central bank, China's gold reserves at the end of April amounted to 74.64 million ounces, an increase of 260,000 ounces from the previous month's total of 74.38 million ounces. This marks the 18th consecutive month of increased gold holdings.

China Association of Automobile Manufacturers: In March, the import value of automotive parts reached $1.52 billion, an increase of 3.4% compared to the previous month.

From January to March 2026, the import amount of automotive parts and components reached 48.3 billion US dollars, a year-on-year increase of 4.5%.

Roche accelerates layout in "AI + Healthcare"! Official announcement of acquisition of PathAI signals a major turning point in the field of digital pathology.

Roche has agreed to acquire PathAI, a leading AI digital pathology company based in the United States that focuses on "AI + healthcare" wave. The prepayment value of the deal is approximately $750 million.

State Administration of Foreign Exchange: China's foreign exchange reserves were $341.05 billion at the end of April.

On May 7, the State Administration of Foreign Exchange released statistics showing that as of the end of April 2026, China's foreign exchange reserves reached 3.4105 trillion US dollars, an increase of 68.4 billion US dollars compared to the end of March, representing a growth of 2.05%.

Intervening 30 times with the fire power in hand but only seeking for a "one-hit kill", the dilemma of the Japanese yen cannot be solved by simply throwing money at it.

Faced with the continuous devaluation pressure of the Japanese yen, the Japanese authorities were forced to take measures to launch a currency intervention last week. However, this "defense battle of the yen" is facing a serious test due to the huge US-Japan interest rate spread, rising energy costs pushed by geopolitical conflicts, and complex international rule game.

GGII: In the first quarter of 2026, China's lithium battery shipments reached 525GWh, a year-on-year increase of 67%.

In Q1 2026, China's lithium battery shipments reached 525GWh, an increase of 67% year-on-year and a decrease of 8% compared to the previous quarter.

Spot gold broke through $4750 per ounce, rising 1.27% intraday.

Germany's industrial sentiment is showing signs of recovery, with industrial orders in March increasing by 5.0% higher than expected.

In March, industrial orders in Germany increased by 5.0% compared to the previous month, a faster pace than the revised 1.4% growth in the previous month, and well above market expectations of a 1.0% increase.

Eight departments issue the implementation opinions on reforming and improving the guarantee mechanism for the supply of children's medicines.

The implementation suggestions include improving the research and development innovation mechanism for children's drugs, improving the clinical application guidance principles for children's drugs, optimizing the management of children's drug supply, strengthening the rational use of drugs for children, increasing the supply of pediatric pharmaceutical services, and 16 specific measures in total. These measures aim to better meet the needs of medication for children's disease prevention and treatment, and comprehensively enhance the drug supply and capabilities in pediatrics.

Midland Realty: The vacancy rate of street shops in the four core districts of Hong Kong in the first quarter was 11.1%, a decrease for two consecutive years.

The Chief Executive Officer (Residential) of Midland Group and the Chief Executive Officer of Midland Commercial Properties, Ma Taiyang, stated that the vacancy rate in the four major core areas of Hong Kong (Central, Tsim Sha Tsui, Causeway Bay, and Mong Kok) has been continuously decreasing for two consecutive years in the first quarter of this year. The latest report shows a vacancy rate of 11.1%, down 0.8 percentage points from the third quarter of last year, reaching a new low in a year and a half.

Shell (SHEL.US) exceeded expectations in the first quarter profit: surge in oil and gas prices boosted trading business, but buyback activities shrank.

Due to the Iran war pushing up oil and gas prices and market volatility, Shell's (SHEL.US) trading business performed strongly in the first quarter, driving profits beyond market expectations.

A-share market closing review | Partial profit-making effect explodes A-share market "continues to play music and dance"! ChiNext rose by 1.45%, hitting a new high in ten years.

On May 7th, the three major stock indexes in A-shares opened higher and continued to rise throughout the day, with the "AI narrative trading" market persisting and localized profit-making effects exploding. In terms of the market, most thematic concepts are trending upwards, with fiber optic cables, optical modules, PCBs, electronic fabrics, and storage chips continuously surging in terms of computing power hardware concepts.

Brent crude oil fell below $99 per barrel, dropping 2.29% intraday.

The offshore Chinese yuan has risen above 6.8 against the US dollar, hitting a new high since February 2023.

Multiple rounds of suspected intervention have brought the stalemate to a standstill! The 155 barrier remains unbroken after prolonged attacks, casting a shadow over the yen appreciation market.

The exchange rate of the Japanese Yen against the US Dollar has not been able to break through the 155 level, and the market is beginning to question whether the current trend of the yen appreciating can continue.

At the end of artificial intelligence is truly electricity! The United States' largest power grid has sounded the alarm for upgrades and renovations, and the power stock bull market is roaring in.

The American power grid needs to be upgraded to meet the surging electricity demand brought by the booming data center industry.

Global bulk commodity trade is showing strong signs of recovery! The Baltic Dry Index has risen for four consecutive days, reaching its highest level in over two years.

Driven by the increasing demand for Capesize vessels and tightening supply of bulk carriers, a key indicator of dry bulk shipping rates has surged to its highest level since December 2023.

The surge of SanDisk (SNDK.US): Is behind it the reshaping of storage genes by AI, or another epic cyclical illusion?

Based on the logic of "NAND has achieved 'de-cycling' through a long-term contract with a super large-scale cloud vendor worth $42 billion," SanDisk (SNDK.US) has achieved a return rate of over 356% since the beginning of the year.

Luxury goods are not selling well, luxury cars are not in demand... Europe's non-essential consumption sectors are facing a "poor financial report season".

During this financial reporting season, the overall performance of European luxury goods companies, car manufacturers, and the hotel industry has been disappointing, dragging down the non-essential consumer goods sector to become the worst-performing industry. Inflation and geopolitical uncertainty have hindered the long-awaited recovery process in the market.

Historical record high! Post-holiday buying frenzy sweeps through Japan: Nikkei 225 soars 3400 points, breaking through the 62,000 level for the first time!

Boosted by the positive sentiment from the profits of technology stocks and the easing of tensions in the Middle East, the Nikkei index soared to over 62,000 points, setting a new all-time high.

Musk: xAI dissolves and merges into SpaceX, renting 220,000 GPUs to Anthropic.

Elon Musk announced that his artificial intelligence company xAI will officially dissolve and be integrated into SpaceX, becoming a new AI product under SpaceX called SpaceXAI. This move signifies a strategic reorganization of AI business within Musk's tech ecosystem. The Colossus 1 cluster is equipped with over 220,000 NVIDIA GPUs, including the high-density H100, H200, and the next-generation GB200 accelerators, providing computational support for large language models, multimodal systems, scientific simulations, and cutting-edge generative AI at scale. Anthropic plans to use the additional computational power to directly enhance the service capacity for subscribers of Claude Pro and Claude Max.

Space analysis company HawkEye 360 (HAWK.US) priced its US stock IPO at $26 per share, raising $416 million.

Space analysis company HawkEye 360 (HAWK.US) announced on Wednesday that it successfully raised $416 million in its initial public offering (IPO) in the United States.

Yushu Technology: The world's first humanoid robot task action application store - Yushu UniStore official shared application platform is officially open to the public.

Hong Kong dollar interbank rates are all rising, with overnight interbank rates jumping to 2.45691%.

On May 7th, the Hong Kong dollar interbank interest rates all increased. Overnight interest rates rose by 1.57 basis points to 2.45691%.

Goldman Sachs Group, Inc. (GS.US) adds 2 new members to its management committee and appoints its CAO to oversee OneGS 3.0.

Recently, Goldman Sachs (GS.US) announced the latest changes in its leadership team.

China Railway: During the May Day holiday, the national railway system transported a total of 159 million passengers, an increase of 5.2% compared to the previous year.

During the May Day holiday transportation period from April 29 to May 6, the national railway system carried a total of 159 million passengers, an increase of 5.2% compared to the previous year; and transported a total of 93.5 million tons of goods, an increase of 4.5% compared to the previous year.

Chen Maobo: Discuss the establishment of a list of bulk commodity mediators to help Hong Kong build a financial ecosystem for the metal industry.

Chen Maobo mentioned that the Hong Kong government is cooperating with the International Mediation Institute to explore the feasibility of establishing a roster of mediators specifically for bulk commodity trading.

Xu Zhengyu visited the central bank and stock exchange of Uzbekistan to explore and expand opportunities for financial cooperation between the two sides.

On May 6th, Tashkent time, the Secretary for Financial Services and the Treasury of Hong Kong, Christopher Hui, visited the Central Bank and Stock Exchange of Uzbekistan in the capital city of Tashkent, actively exploring opportunities to expand financial cooperation between the two sides. Uzbekistan is an important producer and trader of gold.

Hong Kong Exchanges and Clearing Limited (number 00388) Chen Yiting: Geopolitical situation prompts diversification of funds allocation, benefiting Hong Kong market and LME.

The ongoing geopolitical uncertainties are prompting global investors to break the long-term trend of capital being highly concentrated in a few stocks and seek diversified allocation to manage risks.

LME Chief Executive Matt Chamberlain: expects to add one to two new warehouses in Hong Kong this year, with metal storage capacity increasing to a maximum of 30,000 tons.

LME Chief Executive Matthew Chamberlain said that it is expected that only one or two new warehouses will be added in Hong Kong this year, with the maximum metal storage capacity in Hong Kong expanding to as much as 30,000 tons.

AI chip craze boost "Shengka"! South Korean stock market surpasses Canada, jumping to the world's seventh largest market.

According to data compiled by the market, driven by the continued strong demand for artificial intelligence chips, the total market value of the South Korean stock market has surpassed Canada's, ranking it as the seventh largest stock market globally.

Farewell to the era of US stock quarterly reports? Traders are betting on the SEC's new regulations to accelerate implementation, with disagreements still existing on the effective timing.

Traders generally bet that the probability of this reform being implemented is very high, but there is a clear divergence in market views on when the new rules will officially take effect.

A-share midday review | Global "AI narrative trading" market, A-shares "continue to play music and dance"! The ChiNext Index rose nearly 1% in the morning

On May 7th, the market fluctuated up, with the ChiNext Index showing a stronger trend, and the Beixing 50 Index rising more than 4% intraday.

VanEck's Director of Digital Asset Research: A major rally in Bitcoin is on the horizon, with the potential to reach $1 million within the next five years.

VanEck's head of digital asset research, Matthew Siegel, said on Wednesday that despite Bitcoin still being in a downtrend this year, he believes a major bull run is on the horizon.

New stock news | Loldyn Siasun Robot&Automation (01236) is finalizing its IPO with over 5126 times over-subscription.

The first stock of space intelligent robot, Lezhi Robot (01236), will be listed for public offering from April 30 to May 6, 2026.

Goldman Sachs: Hong Kong's GDP grew by 5.9% in the first quarter, far exceeding expectations. The full-year forecast has been revised upwards to 4.6%.

Goldman Sachs released a research report stating that the real GDP of Hong Kong in the first quarter of 2026 increased by 5.9% year-on-year, and seasonally adjusted (non-annualized) growth by 2.9% per quarter, significantly higher than market expectations.

Financial outlook | Coinbase (COIN.US) faces the challenge of the crypto winter: Q1 revenue and profit are expected to drop simultaneously, 14% of employees will be laid off to bet on AI transformation.

After announcing layoffs and with the volatility in the cryptocurrency market, Coinbase will face a profitability test.

Financial Report Outlook | McDonald's Corporation (MCD.US) hits a 52-week low, can promotional combos withstand the impact of the war?

McDonald's will release its first quarter financial report for 2026 before the US stock market opens on Thursday.

Musk and Anthropic shake hands and make peace! Under his flag, SpaceX opens the door to computing power for Anthropic.

On Wednesday, Anthropic announced a partnership with SpaceX, the commercial space giant owned by Musk, giving Anthropic access to the full computing power capacity of SpaceX's Memphis Colossus 1 data center.

The future of US-Iran relations is uncertain! Iran is still considering the US proposal, but some terms are reportedly unacceptable.

Iran has not yet officially responded to the latest proposal from the United States. However, based on various statements from Iran, there is still significant uncertainty as to whether this proposal will be accepted by Iran, as some key differences have not been resolved.

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4 m ago

Yuejian Intelligent: By 2025, the company's intelligent fabric inspection machine sales revenue will be less than one million yuan, accounting for far less than 1% of the main business income.

5 m ago

Outstanding Optoelectronics surged more than 20% in pre-market trading of US stocks, with first quarter revenue reaching $199 million; diluted earnings per share were 4.6 cents, exceeding the expected range of 2.0 to 4.0 cents; second quarter is expected to grow by 10% to 13% compared to the first quarter.

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Satellite images show a suspected second attack on a Russian oil pipeline pump station in the hinterland, causing it to catch fire.

6 m ago

Canossa Hospital (02120.HK): the public holding is approximately 24.11%

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Large cap stocks: The stock has deviated by more than 30% for two consecutive days without any undisclosed significant issues.

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