A-share Pre-market Briefing | The consolidation of trillion-level brokerage firms has been finalized! CICCs three-in-one has passed the review, and storage giants are expanding production significantly.

Pre-market News 1. CICC merges with Dongxing and Cinda, approval received for trillion-level brokerage consolidation Type: Company Sentiment Impact: Positive On August 27, the Shanghai Stock Exchange announced that CICC's major asset restructuring through share swap to merge Dongxing and Cinda has been approved by the exchanges merger and reorganization review. Projected with data from the end of 2025, the total assets of the merged entity will exceed 1.03 trillion yuanfollowing CITIC SEC and Guotai Haitong, the Chinese capital market will welcome another trillion-level universal brokerage. 2. Kioxia and SanDisk plan to invest $31 billion to expand memory manufacturing in Japan Type: Company Sentiment Impact: Positive Kioxia and SanDisk plan to invest over 5 trillion yen (about $31.4 billion) to enhance local capacity in Japan, aiming to increase the output of critical components for AI data centers that are currently facing supply shortages. Insider sources revealed that the factory will produce the latest generation of high-density 3D flash memory chips designed for handling the vast computational tasks generated by AI services. Additionally, SK Hynix's CEO expects the shortage of memory chips to persist until 2030. 3. Multiple A-share companies see tenfold earnings increase; memory chip stock profits explode with net income soaring over 2200% Type: Company Sentiment Impact: Positive On August 27, several A-share listed companies disclosed their semi-annual reports for 2026. Notably, Shannon Semiconductor Technology reported a net profit of 3.642 billion yuan, a year-on-year increase of 2207.2%. Semiconductor Manufacturing International Corporation achieved revenue of 38.635 billion yuan in the first half of the year, up 19.4% year-on-year. Additionally, Shanghai Fullhan Microelectronics, New East New Materials, and other companies also reported net profits more than ten times greater than the previous year. Semiconductor Manufacturing International Corporation stated that the demand for AI-compatible chips is robust, and overseas orders continue to flow back. 4. NVIDIA surges nearly 9%, igniting AI market rally; the Nasdaq composite jumps over 1.5% with focus on Powell's upcoming speech Type: Market Sentiment Impact: Positive Boosted by strong earnings guidance from NVIDIA, all three major indices closed higher. NVIDIA's explosive revenue expectations once again confirm the strong demand stemming from the AI boom, with its stock price climbing 8.7% and market capitalization increasing by $442 billion, which also drove a general rise in tech stocks. The market is focused on Federal Reserve Chair Powell's speech at the Jackson Hole conference on Friday. The storage sector showed mixed results, with SK Hynix rising over 2% and Western Digital falling 1.47%. 5. The U.S. signs order to restrict foreign power grid equipment; several listed companies respond Type: Macro Sentiment Impact: Negative The U.S. has escalated its controls on China Power equipment. On August 26, President Trump announced a national emergency regarding the "main power system" to tighten regulations on the procurement, import, and installation of foreign-manufactured power grid equipment under the guise of national security. Companies such as Sieyuan Electric, Hainan Jinpan Smart Technology, and Guangdong Mingyang Electric responded, generally stating that the specifics of the executive order have yet to be implemented, making it difficult to assess the actual impact, and that their revenue exposure to the U.S. is limited. Investment Calendar The National Development and Reform Commission holds a press conference in August Investment Tips If you want to find evidence of a competitive moat in a company's financial statements, one thing is clear: the higher the gross margin compared to competitors, the better. [U.S.] Christopher Mayer, "How to Find Stocks for 100x Returns" Institutional Perspectives 1. Founder: Both domestic and foreign funds are entering the market steadily, with profits driving the market; the bull market has not yet ended. 2. Soochow: As U.S. Treasury yields rise, it is wise to avoid overvalued sectors while hedging with low-volatility dividends and focusing on the domestic technology supply chain. 3. Orient: The recovery of technology growth boosts short-term sentiment, and attention should be paid to whether the rebound in the tech sector can be sustained. Outlook for Positive and Negative Factors 1. Shanghai launches the "Intelligent Computing Network" project, setting milestone indicators for fiscal funding allocation Type: Policy Focus CITIC SEC: The explosion in AI computing power demand drives the upgrade of the optical communication industry, with overseas cloud vendors continuing to expand their capital investment, underscoring robust demand for AI infrastructure and leading to a surge in demand for high-speed optical modules. Supply chain bottlenecks are expected to ease. 2. CCTV Finance: The average daily word vector utilization in China has surpassed 500 trillion, with a explosive growth in computing power demand Type: Institutional Commentary Huayuan Securities: Domestic AI large models are entering an accelerated development phase, which may lead to growth in the domestic computing power market and increase penetration rates, maintaining a positive outlook on the domestic computing power sector's high prosperity. Suggested areas of focus include domestic chips, CPUs, ODM manufacturers, and IDC. 3. News Broadcast Shows Support! Continuous innovations in China's Siasun Robot & Automation industry Type: Market Discussion China Great Wall: Firmly optimistic about investment opportunities in the Siasun Robot & Automation sector, considering aspects like value, technical paths, and incremental segments, capitalize on current industry trends to identify companies with capacity, orders, and pinpoint development. Announcement Digest Positive Announcements 1. Tianqi Lithium Corporation: Net profit of 4.242 billion yuan in the first half of the year, a year-on-year increase of 4925%. 2. Semiconductor Manufacturing International Corporation: Net profit of 4.467 billion yuan in the first half of the year, a year-on-year increase of 94.2%. 3. Sharetronic Data Technology: Net profit of 1.838 billion yuan in the first half of 2026, a year-on-year increase of 325.51%. Negative Announcements 1. China Vanke Co., Ltd.: Loss of 14.951 billion yuan in the first half of 2026, compared to a loss of 11.947 billion yuan in the same period of 2025. 2. Arashi Vision Inc.: Net profit of 30.4073 million yuan in the first half of 2026, a year-on-year decrease of 94.15%. 3. Grace Fabric Technology: Recently, shareholders collectively reduced their holdings by 6.61 million shares, accounting for 0.73% of the total share capital. Overseas Markets Stock Tips: Boosted by strong earnings guidance from NVIDIA, all three major indices closed higher. Large tech stocks showed mixed results, with NVIDIA rising 8.7% and increasing its market cap by $442 billion; the cybersecurity sector saw a significant surge, with Okta up 28.6% and CrowdStrike up 20.5%; the storage sector varied, with SK Hynix rising over 2% while SanDisk fell 0.96%. This article is reproduced from "Tencent Self-selected Stocks," with editing by Feng Qiuyi.