GMT EIGHT - OPPORTUNITIES IN CHINA

The Underrated "New Narrative" of Nvidia: "Self-Developed Open Source Models" and "Supply Chain Lockdown"

HSBC believes that NVIDIAs strong bet on open-source small language models (SLMs) will guide millions of developers to run AI applications on its hardware through a free, optimized ecosystem, expanding its customer base from a few cloud giants to a broader ecosystem; and that by locking in capacity through long-term agreements, it will create a supply chain disadvantage for competitors. These two narrative threads are expected to become key catalysts driving its valuation re-rating.

Xingzheng Securities: September will be a crucial decisive window for technology, and high-quality tech assets are still expected to be the core driving force for market recovery.

The bank believes that the recent volatility in global technology stocks is, on one hand, a disruption caused by the rapid rise of overseas long-term bonds, and on the other hand, a disruption due to Anthropic's latest ARR falling short of expectations. However, related concerns are expected to gradually ease starting in mid to late September, which will be an important decisive window for the technology sector.

Jiangsu Hengrui Pharmaceuticals (01276) experiences a shift in growth structure: acceleration of the second curve and global value release.

The simultaneous realization of a threefold structural breakthrough is undoubtedly the evolution path of HengRui Medicine.

NVIDIA's earnings report "captures everyone's attention": Rubin cycle, cyclical financing, and future market share.

Nvidia will announce its quarterly earnings report next week. Brokers are expecting a strong fundamental performance, with Jefferies projecting revenue of $95 billion for the July quarter, surpassing the market consensus. However, the market's focus has shifted beyond just the quarterly results to three long-term issues: Can Rubin successfully take over from Blackwell? Will AI demand continue to exceed supply? And what financing responsibilities need to be borne to lock in future demand?

Zhejiang Shibao (01057) released its interim results, with a net profit attributable to shareholders of 104 million yuan, an increase of 11.48% year-on-year.

Zhejiang Shibao (01057) announced its interim results for the six months ended June 30, 2026. The group achieved operating revenue of RMB 1.721 billion, representing a year-on-year increase of 12.9%; net profit attributable to shareholders of the listed company was RMB 104 million, an increase of 11.48% year-on-year; basic earnings per share were RMB 0.1261.

METIS TECHBIO-P (07666) has been included in the Hang Seng Composite Index, effective September 7.

Jitai Technology-P (07666) announced that, according to the quarterly review results of the Hang Seng Index series released by Hang Seng Indexes Company on August 21, the company has been selected and will be included in the Hang Seng Composite Index constituents, effective from September 7, 2026. The company stated that the Hang Seng Composite Index covers the top 95% of listed companies on the Hong Kong Stock Exchange by cumulative market capitalization. After being included in the Hang Seng Composite Index, the company's H-shares are expected to meet the trading eligibility for the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect. The board believes that this inclusion will help broaden the shareholder base, attract long-term institutional investors, and enhance the liquidity of the shares.

HUAYAN ROBOTICS (01021.HK) has been included in the Hang Seng Composite Index and is expected to become a target stock for Stock Connect.

In early August, CMB International released a research report, giving Huayan Robotics a "Buy" rating with a target price of HKD 23.13.

AIM VACCINE (06660) announced its interim financial results, reporting revenue of 351 million yuan. It will continue to accelerate the commercialization and market preparation of its key products, including the iterative rabies vaccine series.

Aim Vaccine (06660) announced its interim results for the six months ended June 30, 2026, reporting revenue of 351 million yuan; the loss attributable to equity holders of the parent company was 123 million yuan; loss per share was 0.1 yuan.

CITIC SEC: The adjustment in technology stocks is not due to U.S. Treasury yields. There are three major "narrative variables" in AI forward pricing, and the speed of commercialization and "distillation prevention" become key factors.

The short-term capital structure of the A-shares has determined that the complexity of market dynamics is still increasing. During this phase of a volatile market, it is important to control psychological expectations and avoid excessive grand narratives.

METIS TECHBIO-P (07666) has been included in the Hang Seng Composite Index constituent stocks.

JiTai Technology-P (07666) announced that, based on the quarterly review results of the Hang Seng Index series announced by Hang Seng Indexes Company Limited on August 21, 2026, for the period ending June 30, 2026, the company has been selected and will be included as a constituent stock of the Hang Seng Composite Index, effective September 7, 2026.

SUNSHINE OIL (02012) plans to jointly invest with its partners to establish Dinen Intelligence Computing Artificial Intelligence (Beidaihe) Co., Ltd. in the Beidaihe District of Qinhuangdao City.

Sunshine Oil Sands (02012) announced that on August 23, 2026, its wholly-owned subsidiary, Sanghai Xiang Petroleum and Chemical (Shanghai) Co., Ltd. (Sanghai Xiang Petroleum and Chemical), will co-invest with Jiangsu Zhongke Supply Chain Management Co., Ltd., Shenzhen Sahara Hengxin Family Management Co., Ltd., Shanghai Chengzhi Xin New Energy Technology Co., Ltd., Shanghai Linwei Shucheng Technology Co., Ltd., and Shanghai Baisipawu Energy Technology Co., Ltd. (collectively referred to as "joint venture partners") to establish Denergi Smart Computing Artificial Intelligence (Beidaihe) Co., Ltd. in the Beidaihe District of Qinhuangdao City. Among them, Sanghai Xiang Petroleum and Chemical will hold 40% of the shares.

SINOPEC CORP (00386) will distribute a mid-term dividend of 0.105 yuan per share on October 14.

China Petroleum & Chemical Corporation (00386) announced that the company will distribute an interim dividend of 0.105 yuan per share for the six months ended June 30, 2026, on October 14, 2026.

BABA-W (09988) plans to place new shares in Hong Kong, with a total placement value of HKD 80 billion.

Alibaba-W (09988) announced that the company intends to offer new issue ordinary shares (the Offered Shares) to non-U.S. persons outside the United States, with a total offer price of HKD 80 billion, subject to market and other conditions (the Proposed Offering).

SINOPEC CORP (00386) released its interim results, with a net profit attributable to shareholders of 25.627 billion yuan, an increase of 19.3% year-on-year.

China Petroleum & Chemical Corporation (00386) released its interim results for the six months ended June 30, 2026. The group achieved operating revenue of RMB 1,436.561 billion, an increase of 2% year-on-year; net profit attributable to shareholders of the parent company was RMB 25.627 billion, an increase of 19.3% year-on-year; basic earnings per share were RMB 0.212.

ZHAOJIN MINING (01818) announced its interim results, with a shareholders' profit of 1.578 billion yuan, an increase of 9.61% year-on-year.

Zhaojin Mining Industry (01818) announced its interim results for the six months ended June 30, 2026. The group recorded revenue of RMB 9.022 billion, an increase of 29.38% year-on-year; the profit attributable to equity holders of the parent company was RMB 1.578 billion, an increase of 9.61% year-on-year; earnings per share were RMB 0.42.

Besant failed to stabilize the market, and Japan risks repeating the "1997 ASIA FINANCIAL CRISIS."

The Nomura report states that the "Basel bearish options" are becoming ineffective. The U.S. Treasury's attempts to lower long-term yields through bond buybacks have not only failed to stabilize the bond market but have also increased downward pressure on the dollar. The report warns that if Japan emulates the U.S. in trying to reduce long-term financing costs, it may transfer pressure to the currency market. Given the already weak yen, any policy misstep that triggers capital outflow could put Japan at risk of repeating the 1997 Asian financial crisis.

Free and powerful! The mysterious model Niu Lai has sparked heated discussions online, with speculation about whether it is Z.AI or someone else entirely.

The anonymous model Ox Alpha "Niu Lai" is now available for free, with programming test scores of 80% defeating GPT-5.6 and Claude; the AI community has initiated a 24-hour "fingerprint tracking," with five pieces of evidence pointing to Zhiyu GLM-5.3, but the computing power does not match. The identity remains a mystery, which may be revealed after the open-source release of Zhiyu's latest large model on August 28.

Fangzheng Strategy: U.S. Treasury yields exert pressure, the narrative around tech stocks changes; weak dollar leads to institutional favoring of resource and pharmaceutical sectors.

Focus on technology subsectors, assets benefiting from a weaker dollar, and leading pharmaceutical companies when the market dips.

Have over 40,000 units been shipped, and is the factory ready to pay for the "humanoid"?

Xu Yang stated that, in the context where the main enterprises have received substantial capital investment and the valuations of leading companies have risen, some investment institutions are shifting their focus from end products to upstream core components.

Trump's investment account made thousands of trades in June, with financial stocks becoming the main focus.

In June, Trump's investment account completed over 1,000 stock transactions, with investments of millions of dollars in Berkshire Hathaway, Visa, and MasterCard. Financial stocks replaced technology stocks as the largest concentrated direction for that month. The White House insists that the president himself is unaware of the transactions, and all decisions are automatically executed by independent managers through computer models.

One chart to understand IMOTIONTECH (01274) mid-year performance for 2026: Revenue grew 107.79% year-on-year.

Zhi Xing Technology (01274) announced its midterm results for 2026.

Soochow Chen Li: The U.S. bond crisis is not over; it has only been temporarily suppressed.

This bond crisis is not over yet. It has simply taken on a quieter form and continues to exist.

Guotai Haitong: New asset-liability regulations officially implemented, improving the stability of insurance companies' profits and supporting valuation recovery.

The China Insurance Regulatory Commission has released the "Measures for Asset-Liability Management of Insurance Companies," which strengthens the orientation towards asset-liability matching. It is expected to guide insurance companies towards balanced asset-liability development and enhance profit stability.

The first and currently only GPU constituent stock of Hengke, ILUVATAR COREX (09903), has been included in the Hang Seng Tech Index.

On August 21, the Hang Seng Index Company announced the results of its latest quarterly review, and Tianzu Zhi Xin (09903) has officially been included in the Hang Seng Tech Index, becoming the first and currently the only GPU constituent stock since the index was launched.

A graphical overview of CHINAHONGQIAO (01378) mid-term performance in 2026: Net profit attributable to shareholders surged by 39.2%.

China Hongqiao (01378) announced its mid-term results for 2026.

New Stock News | Wuxi Best Precision Machinery (300580.SZ) submits a second application to the Hong Kong Stock Exchange, mainly engaged in electronic functional enhancement materials.

According to the Hong Kong Stock Exchange's disclosure on August 21, Zhenjiang Best New Materials Co., Ltd. has submitted a listing application to the Main Board of the Hong Kong Stock Exchange, with Guotai Junan as its sole sponsor.

"We have been attacked!" Canada responds strongly: tariffs equivalent to those of the U.S. will take effect on September 8. Emergency recall of the negotiation team at midnight.

The China-U.S. trade negotiations have broken down, and the tariff confrontations between the two sides have rapidly escalated into the most severe trade conflict in recent years.

New Stock News | Yifang Biotech (688382.SH) re-applies to the Hong Kong Stock Exchange for the second time; no profit turnaround achieved during the reporting period.

According to the Hong Kong Stock Exchange's disclosure on August 21, Yifang Biotech has submitted a listing application to the main board of the Hong Kong Stock Exchange, with CITIC Securities as its sole sponsor.

Shenwan Hongyuan Group: The AI chain rebound may continue until late September, focusing on exploring new segments and targets for computing power inflation.

Shenwan Hongyuan maintains its short- to mid-term judgment, and the rebound of the AI chain may continue until late September.

UBS Research: In the past week, the daily flow through the Strait of Hormuz exceeded 6 million barrels.

According to a survey by UBS, the overall oil flow in the Strait of Hormuz over the past week remained slightly above 6 million barrels per day, with dark crude transport increasing to about 5 to 6 million barrels per day. This indicates that the actual transit volume of crude oil may have been less impacted than what surface shipping data reflects.

New Stock News | Jinzhihui resubmits application to the Hong Kong Stock Exchange, focusing on providing AI digital employee solutions and enterprise-level intelligent body solutions.

According to the prospectus, Jinzhiwei is an AI company focused on providing artificial intelligence (AI) digital employee solutions and enterprise-level intelligent body solutions. Through its self-developed AI solutions, Jinzhiwei helps enterprises accelerate their digital transformation.

New Stock News | Lithium battery electrolyte supplier Kunlun New Material has submitted a secondary application to the Hong Kong Stock Exchange, with profits of approximately 148 million yuan in the first half of the year.

Kunlun New Materials is a global supplier of lithium battery electrolytes, focusing on the research and development, production, and sales of lithium battery electrolytes and emerging battery materials.

Bescent's "toolbox" struggles against the dual hit of rising oil prices and weak consumption, Goldman Sachs: "The market is filled with the scent of stagflation."

Goldman Sachs believes that Bessent is attempting to stabilize the long-end bond market by expanding the repurchase of U.S. Treasuries and advancing fiscal consolidation, but after a brief decline, long-term bond yields quickly rebounded, and policy tools still struggle to alleviate fiscal and supply-demand pressures. Meanwhile, signs of stagflation are intensifying: oil prices rose over 7% in a week, and the 10-year break-even inflation rate increased by nearly 10 basis points in two weeks; consumer spending continues to cool, with Walmart's same-store sales growth falling to a six-year low of 2.6%, and the stagflation basket rose by 6.7% this week.

After the research in Silicon Valley, Goldman Sachs summarizes: Agents have entered the execution era, AI competition has shifted to workflows, and the rise of world models.

Goldman Sachs' report points out that AI is moving from "answering" to "executing," with industrial competition shifting toward workflow control. The key to deploying agents lies in controllability and responsibility division, with workflows that have clear boundaries and verifiable outcomes being prioritized for automation. The model market is headed towards specialization: cutting-edge models dominate high-value tasks, while open-source models handle large-scale inference.

New Stock News | Red Avenue New Materials Group (603650.SH) submits a secondary application to the Hong Kong Stock Exchange, ranking first in sales revenue in both the global and Chinese markets for phenolic resin rubber additives used in tires.

According to the prospectus, Tongcheng New Materials is a comprehensive new materials service supplier in China, focusing on advanced chemical products.

New Stock News | Eaglerise Electric & Electronic (002922.SZ) resubmits application to the Hong Kong Stock Exchange, ranking third among Chinese suppliers in the data center transformer equipment industry.

According to the prospectus, Igor is a global supplier of power equipment and solutions.

New Stock News | Taili Biology Resubmits Application to Hong Kong Stock Exchange, Loss of Approximately 117 Million Yuan in the First Half of the Year

Taili Biotech is a clinical-stage biopharmaceutical company established in 2017, focused on discovering and developing oncology therapies.

Anthropic's self-developed chip strategy: hiring the founder of Google's TPU business, a "bet against Nvidia" on the eve of a 2 trillion IPO.

Anthropic is shifting its strategic focus from "acquiring computing power" to "creating computing power." The company has hired Amir Salek, the founder of Googles custom chip business, to form an in-house chip development team, while also collaborating with Fractile, Google, Broadcom, Samsung, and others to secure an estimated TPU capacity of about 3.5GW by 2027. This dual strategy of "in-house development + diverse procurement" aims to reduce reliance on NVIDIA and lower inference costs.

Tesla, Inc. (TSLA.US) officially announced! The Cybercab launch event will be held in Austin on September 3rd.

Tesla will unveil the driverless model Cybercab, featuring no steering wheel and no pedals, in Austin on September 3, local time. Previous reports indicated that the vehicle has completed road testing and employee trials, with plans to first open it to employees and then to the public.

New Stock News | Wuxi Best Precision Machinery (300580.SZ) submits secondary application to Hong Kong Stock Exchange.

According to the prospectus, Best is a company specializing in electronic functional enhancement materials, with a well-established business presence in the fields of acoustic enhancement materials, electronic ceramic materials, electronic adhesives, and energy enhancement materials.

New Stock News | Yifang Biotech (688382.SH) Re-submits Application to the Hong Kong Stock Exchange

According to the prospectus, Yifang Biotechnology was founded in 2013 and is a biopharmaceutical company focused on oncology, autoimmune diseases, and metabolic diseases.

New Stock News | Jinzhihui Submits Secondary Application to Hong Kong Stock Exchange

According to the prospectus, Jinzhwei is an AI company focused on providing artificial intelligence ("AI") digital employee solutions and enterprise-level intelligent agent solutions.

New Stock News | Kunlun New Materials Resubmits Application to Hong Kong Stock Exchange

According to the prospectus, Kunlun New Materials is a global supplier of lithium battery electrolytes, focusing on the research, development, production, and sales of lithium battery electrolytes and emerging battery materials.

New Share News | Red Avenue New Materials Group (603650.SH) files a second application with the Hong Kong Stock Exchange.

According to the prospectus, Tongcheng New Materials is a comprehensive new materials service supplier in China, focusing on advanced chemical products.

New Stock News | Eaglerise Electric & Electronic (002922.SZ) Resubmits Application to Hong Kong Stock Exchange

According to the prospectus, Igor is a global supplier of electrical equipment and solutions.

New Stock News | Tairui Biotechnology Resubmits Application to Hong Kong Stock Exchange

According to the prospectus, Tali Bio is a clinical-stage biopharmaceutical company founded in 2017, focusing on the discovery and development of oncology therapies.

New Stock News | Medical device company Maikerian passes Hong Kong Stock Exchange hearing, with three major business lines globally deployed and leading in multiple categories.

The prospectus shows that Micatiann is a global medical device provider that meets the clinical needs of a wide range of clinical departments, wards, and clinics in medical institutions, as well as community health centers, testing institutions, and home care settings.

Bescent failed to stabilize the market, and Japan is at risk of repeating the "1997 ASIA FINANCIAL CRISIS."

The Nomura report believes that "Besson put options" are becoming ineffective, as the U.S. Treasury's attempts to lower long-end yields through bond buybacks have not only failed to stabilize the bond market but have also intensified downward pressure on the dollar. The report warns that if Japan were to follow the U.S. in suppressing long-term financing costs, it might shift pressure onto the foreign exchange market. Given the already weak backdrop of the yen, a policy misstep that leads to capital outflow could expose Japan to risks similar to those experienced during the 1997 Asian financial crisis.

TACO expectations fall short! US-Canada trade negotiations have collapsed, the US has initiated a 50% tariff, and Canada has suspended negotiations while preparing for "equal countermeasures."

Carney has suspended trade negotiations and vowed to take reciprocal measures against the new tariffs imposed by the United States. A senior government official stated that no further meetings are scheduled due to the U.S. implementing a new 50% tariff.

Yu Enyuan: The New Stone Age aims to build 10 million unmanned vehicles and a logistics network of 100 million Siasun Robot & Automation.

"From the very first day of its establishment, New Stone Technology has aimed to become a robotics company." On August 21, New Stone Technology founder Yu Enyuan systematically elaborated on this positioning for the first time at the 2026 World Robot Conference forum.

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

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

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

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Xiamen Releases Twelve Measures to Promote Exchange and Cooperation with Taiwan

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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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