In a significant move on the evening of August 28, multiple government departments unveiled a package of four supportive policies for the property market. These include the China Securities Regulatory Commission (CSRC) backing reasonable financing for real estate developers, a central bank directive extending the maximum mortgage term to 40 years, the National Financial Regulatory Administration issuing five new management measures for real estate financing, and a tri-departmental notice on refining the commercial housing sales system. Industry experts suggest that with the coordinated rollout of these measures and the commercial real estate REIT pilot program, a preliminary institutional framework for the capital market to support the new development model of the property sector is taking shape. This represents a shift from systematic financing reforms to market-based channels for revitalizing existing assets, and establishes a regulatory loop emphasizing accountability at the point of application, highlighting the capital market's increasingly vital role in the industry's transition.
Market analysts also note that extending the loan term will lower the threshold for monthly repayments, effectively increasing borrowing capacity for homebuyers. This move is seen as beneficial for both first-time and upgrade housing demand.
Warsh Signals Hawkish Stance, Gold Prices Dip
Speaking at the Jackson Hole symposium on August 28, Federal Reserve Chair Kevin Warsh delivered a hawkish message, clearly prioritizing the fight against inflation in monetary policy. He cautioned that recent data is insufficient to prove that price pressures have been substantially alleviated and indicated that "there is more work to do" if the Fed cannot build confidence that inflation is returning to its target quickly enough. Market pricing following his remarks showed increased bets on future rate hikes. Consequently, US Treasury yields experienced a "V-shaped" reversal, with both 10-year and 2-year yields rebounding sharply after an initial dip. Spot gold fell below $4,530 per ounce, down 1.29% on the day.
Changxin Technology's Stellar Half-Year Results
Changxin Technology, the A-share market's most valuable company, released its 2026 half-year report on August 28, revealing a remarkable turnaround. The company posted revenue of RMB 150.31 billion, a year-on-year surge of 873.64%, transforming a previous loss of RMB 2.387 billion into a net profit attributable to shareholders of RMB 77.605 billion. The report highlighted the company's self-developed LPDDR6 chip, which demonstrates a comprehensive performance leap over its predecessor, the LPDDR5X. This product is currently undergoing sample validation with key customers and is on track for accelerated mass production. Analysts believe Changxin's performance surge is not an isolated event but a microcosm of the global DRAM industry's restructuring. As one of the world's largest DRAM markets, China has historically relied on international suppliers for over 90% of its needs. Amid deepening US-China tech competition, the lack of domestic DRAM supply is a critical supply chain security issue, a gap Changxin's rise is beginning to fill.
New Trading System Access Rules Take Effect
New regulations for managing trading system access were implemented on August 28. Jointly drafted by the Securities Association of China and the Asset Management Association of China, the "Management Standards for Securities Companies' Trading System Access (Trial)" aim to strengthen oversight of such access, maintaining market order and fairness. The standards require securities companies to conduct access compliantly, provide access services prudently, and treat all clients equitably, prohibiting any differentiated arrangements in technical or business resources for specific clients.
Tax Rules Clarified for Restricted Share Transfers
On August 28, the Ministry of Finance, the State Taxation Administration, and the CSRC issued a notice clarifying the individual income tax policy on restricted shares. This includes taxing bonus shares issued after the lifting of the lock-up period. Income from individuals transferring restricted shares of listed companies will be taxed under "income from property transfers" at a 20% rate. The notice also cancels the previous 15% valuation of the original cost base, stipulating that if listed companies fail to declare the original cost of restricted shares accordingly, securities institutions must calculate and withhold tax based on the full transfer proceeds. Enhanced management of tax clearing declarations is also introduced, allowing taxpayers to file for clearing if the withheld amount differs from the actual tax due.
Big Six Banks Report Interim Results
All six major state-owned banks have now published their half-year reports for the year. ICBC leads with a net profit of RMB 173.682 billion attributable to shareholders. Bank of China reported the highest growth rate, with a net profit of RMB 123.594 billion, up 5.10% year-on-year. According to a CITIC Securities research report, the banking earnings season that began last week shows a stable operating landscape for listed banks, with stable interest margins and asset quality, and a slight recovery in earnings growth. From an investment perspective, the banking sector offers both relative and absolute returns, outperforming most sectors. Looking ahead to Q3, core variables like interest margins and asset quality are expected to remain stable, with a positive outlook for full-year earnings recovery. Combined with ongoing long-term narratives in the macro economy, the sector's absolute returns are expected to persist.
Meituan's Q2 Results Exceed Expectations
Meituan delivered a robust quarterly report despite intense industry competition, showing a comprehensive recovery in core profitability and significantly beating market expectations on several key financial metrics. Q2 2026 revenue reached RMB 104.64 billion, surpassing the Bloomberg consensus estimate by approximately RMB 3.5 billion. Adjusted net profit was RMB 2.52 billion, dramatically higher than the market forecast of around RMB 340 million. Adjusted EBITDA was RMB 4.1 billion, a year-on-year increase of 47.3%, also exceeding expectations. The company posted an operating profit of RMB 2.69 billion for the quarter, compared to a market estimate predicting a loss of approximately RMB 850 million. During a conference call on August 28, Meituan's management stated that its advantages in user structure, order mix, and operational efficiency were further strengthened in Q2. For Q3, the food delivery business's unit economics are expected to improve significantly year-on-year but may decline quarter-on-quarter due to seasonal factors, though they are still projected to remain positive.
NDRC Pushes Forward with Key Infrastructure Planning
The National Development and Reform Commission (NDRC) convened a national investment work promotion meeting on August 28. The meeting emphasized increasing the intensity of scheduling and supervision for "two major" constructions and projects funded by central budget investment. It also called for accelerating the issuance and use of local government special bonds, promptly deploying new types of policy-based financial instruments, strictly enforcing fund supervision, and ensuring timely payment. The meeting stressed the systematic planning and construction of the "six networks," urging the swift planning of a batch of key projects, diversifying funding channels, and establishing robust coordination mechanisms to ensure efficient and orderly progress.
China Responds to US Sanction Threats on Banks
At a regular press briefing on August 28, Foreign Ministry Spokesperson Lin Jian responded to a question regarding former US President Trump's暗示 that the US might sanction Chinese banks still doing business with Iran to further isolate the country. Lin Jian reiterated China's consistent and clear opposition to illegal unilateral sanctions, stating that dialogue and negotiation remain the only viable solution to the Iranian situation.
Market Focus: Computing Power and Other Opportunities
Among investment opportunities attracting market attention, computing power stands out. According to a CCTV News report, over 20 computing power scheduling entities have officially joined the national integrated computing network's monitoring and scheduling trial platform, aiming to enhance overall scheduling and operational service capabilities. The NDRC and the National Data Administration will advance the "East Data, West Computing" project, building a national integrated computing network based on 8 national computing hubs and 3 computing-power collaboration zones. A Huatai Securities research report suggests that while the entities and targets of domestic computing power capital expenditure varied in H1, investment directions are converging on AI infrastructure. They recommend screening beneficial segments along the "computing supply – cluster organization – high-speed networking – optical interconnection" sequence, prioritizing factors like order and delivery cadence, power and energy consumption targets, chip supply, and downstream clients' capex execution.
Other sectors also merit attention: PCB – Kingboard Laminates, a major materials manufacturer, announced its 7th price increase this year, raising prices by 10-20% across all products effective immediately. Data Elements – The National Data Administration is deploying a new batch of data annotation pilot zones in 32 cities.
Key Announcements: Positive and Negative
On the positive side, notable announcements include Yuanjie Technology's H1 net profit surging by 1212.2% to RMB 607 million, Inspur Electronic Information's net profit jumping 269.59% to RMB 2.952 billion, BOE Technology reporting a 61.62% increase in net profit to RMB 5.248 billion, Wuliangye Yibin's net profit rising 89.3% to RMB 8.753 billion, and Ganfeng Lithium's semi-annual net profit soaring 901.36% to RMB 4.257 billion.
Conversely, negative announcements include Wanli Stone, which along with its actual controller, is under investigation by the CSRC for suspected information disclosure violations. Sungrow Power Supply reported a 32.01% year-on-year decline in H1 net profit to RMB 5.259 billion. Jinpu Titanium Industry faces risk of mandatory delisting as its wholly-owned subsidiary has been indicted on suspicion of environmental pollution crimes. Additionally, Shanghai Lily & Beauty Cosmetics saw its controlling shareholder's holding reduce to 25.78% after 10 million shares were auctioned off in a divorce settlement.
Comments