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The US military announced a new round of strikes against Iran, marking the "sixth consecutive night" of such operations. The US Central Command stated on social media on the 16th that the strikes, conducted at 2 PM Eastern Time, aimed to further degrade Iran's military capabilities.
Recent days have seen continuous US military strikes against Iran, with two rounds occurring on the 15th alone. Targets included Iranian command centers, air defense facilities, missile and drone capabilities, and coastal surveillance infrastructure. The US also reinstated a maritime blockade against Iran on the afternoon of the 14th.
In a Fox News interview on the 14th, former US President Trump stated that US military strikes would continue "until I say enough." He warned that unless Iran returns to the negotiating table, US forces would target its bridges and power plants next week.
The US military reported intercepting multiple vessels attempting to breach the blockade on Iran. On July 16, the US Central Command stated that forces had redirected three commercial ships trying to break the blockade and disabled one non-compliant vessel.
US officials stated that the Strait of Hormuz and surrounding waters remain open and free, except for vessels attempting to violate the US blockade on Iran.
Iran's Foreign Ministry condemned the recent US military strikes, labeling them as "war crimes." In a statement on the 16th, Iran asserted that the actions severely violate the UN Charter and fundamental principles of international law. The statement noted that over recent days, the US intensified military strikes while declaring a maritime blockade, attacking several non-military sites, resulting in casualties.
Iran refuted claims by former President Trump regarding the release of American prisoners. On the 16th, Iranian authorities stated that after verification, no American prisoners matching Trump's description had been released from Iranian prisons, nor had any prisoner exchange occurred. Trump had earlier posted on social media that Iran had allowed a US citizen to leave the country, thanking Iran for the "goodwill gesture."
Ministry of Commerce Addresses Nexperia and Helium Export Queries
At a regular press conference on Thursday, Ministry of Commerce spokesperson He Yadong responded to public concerns, including progress on resolving the Nexperia issue and controls on helium exports.
Regarding Nexperia, He stated that since the establishment of a comprehensive open and pragmatic partnership over a decade ago, China-Netherlands economic and trade cooperation has continuously deepened. On July 7, Dutch Minister for Foreign Trade and Development Cooperation Schreinemacher visited China, co-chairing the 18th session of the China-Netherlands Joint Economic and Trade Committee with Minister Wang Wentao, where they held candid and in-depth discussions on bilateral and China-EU economic relations.
Foreign Ministry Rebuts Claims of "Tribute System" in Chinese Diplomacy
On July 16, Foreign Ministry spokesperson Lin Jian presided over a regular press conference.
In response to a question about recent Western media and academic commentary labeling Chinese foreign policy with a so-called "tribute system" concept—suggesting Asia is in an early stage of transitioning to such an order where China uses economic and technological power to achieve objectives without conflict—Lin stated that such rhetoric is a false proposition. He said it projects Western hegemonic logic onto Chinese diplomacy, ignores the historical gene of harmony in diversity within Chinese civilization, distorts the core principle of equality in contemporary Chinese diplomacy, and deviates from fundamental norms of international relations, not reflecting the reality of China's exchanges and cooperation with Asia and the world.
South Korea's KOSPI Plummets Nearly 25% from Highs Amid Foreign Sell-off
As widely anticipated, South Korea's central bank raised interest rates. On July 16, the Bank of Korea lifted the benchmark rate by 25 basis points to 2.75%, marking the first hike since January 2023.
The central bank's hawkish signals have intensified over recent months. Since presiding over his first policy meeting in May, Governor Rhee Chang-yong has repeatedly emphasized that risks from inflation, economic growth, exchange rates, and financial stability all point toward the same policy direction, minimizing the usual trade-offs that complicate monetary policy decisions.
Ministry of Education Adds 27 New Vocational Majors
On July 16, the Ministry of Education announced the addition of 27 new vocational education majors at the undergraduate and college levels, including 9 college majors and 18 undergraduate majors, spanning 14 major categories and 20 professional fields. The new majors will begin enrollment in 2027.
The additions align closely with national development plans, focusing on building a modern industrial system, promoting high-quality service sector development, and precisely meeting the needs of new industries, business models, and scenarios. They aim to cultivate high-skilled talent, with a focus on digital economy, low-altitude economy, artificial intelligence, high-end equipment, urban renewal, and areas with talent shortages.
June Sees 79,000 New COVID-19 Cases, Disease Control Agency Responds
According to data released on the Chinese Center for Disease Control and Prevention website, from June 1 to 30, 2026, mainland China reported 79,000 new confirmed COVID-19 cases, including 130 severe cases and 1 death (due to underlying conditions combined with infection).
At a press conference on July 16, Xi Jingjing, spokesperson for the National Disease Control and Prevention Administration, stated that the overall level of respiratory infectious diseases nationwide is low, and the COVID-19 epidemic is currently at a low prevalence level, with no change in the dominant variant.
US Launches 337 Investigation into DRAM Devices, Samsung and NVIDIA Named
According to China Trade Remedy Information网, on July 15, 2026, the US International Trade Commission voted to initiate a Section 337 investigation (Investigation No. 337-TA-1511) concerning certain Dynamic Random Access Memory devices and related downstream products and components.
The investigation was initiated based on a petition filed on June 16, 2026, by US-based Netlist, Inc., alleging that the importation and sale of the products in the US infringe upon US patents. The petitioner requested the ITC to issue limited exclusion and cease and desist orders.
Authorities Debunk Viral College Entrance Exam Score Rumor
A widely circulated online article titled "Estimated Score 715, Actual Score 299, Girl Claims Test Paper Not Hers" recently sparked heated discussion. Following a comprehensive joint investigation by the Mianyang Education and Sports Bureau and the Sichuan Provincial Education Examination Authority, the entire content was confirmed to be fabricated misinformation. On July 16, authorities reported that the poster, Zhou, a netizen from Xiamen, Fujian, used AI tools to generate the false article in bulk. Zhou has been apprehended by police and given administrative detention.
Chinese Company Unveils World's Largest Open-Source AI Model
Ahead of the 2026 World AI Conference, a new generation model named Kimi K3 was launched on the 16th, boasting a parameter scale of 2.8 trillion. This currently stands as the world's largest open-source model by parameters, marking a new step in China's AI model development.
The developer, Beijing Dark Side of the Moon Technology Co., Ltd., stated that Kimi K3 natively supports visual understanding, features a 1 million token context window, and is optimized for complex task scenarios like software engineering, knowledge work, deep research, and multimodal understanding, further enhancing large models' capability to handle intricate tasks.
Overnight, 33 A-Share Companies Issue Risk Warnings
On the evening of the 16th, 33 A-share listed companies released announcements regarding abnormal stock trading fluctuations or risk warnings.
Featured Companies
Changxin Tech: The final online lottery rate for its IPO was approximately 0.4714%. The company announced the results of its online share subscription for its initial public offering on the STAR Market. The issue price was set at 8.66 yuan per share, with valid online subscriptions from 9,428,778 accounts for 816.92 billion shares. The preliminary lottery rate was 0.40995452%.
JOINN Laboratories (China) Co.,Ltd., known as "Monkey Mao," issued a risk warning. On the evening of July 16, the company released an abnormal trading volatility announcement, cautioning that its stock price had risen significantly over three consecutive trading days (July 14-16), with cumulative deviation exceeding 20%. It warned of potential overheating, irrational speculation, and high risk of a price correction.
Taiwan Semiconductor Manufacturing reported record-high Q2 revenue of NT$12,703.8 billion, a 36% year-on-year increase, setting a new quarterly record for the company. Net profit after tax reached approximately NT$7065.6 billion, with earnings per share of NT$27.25, up 77.4% year-on-year, also a record high. In US dollar terms, Q2 revenue was $40.2 billion, up 33.7% year-on-year and 12% quarter-on-quarter. Revenue from advanced processes (7nm and more advanced) accounted for 77% of total wafer sales.
Montage Technology Co.,Ltd. responded late at night to a search of its South Korean office by prosecutors. On July 15, 2026, the Fair Trade Investigation Department of the Seoul Central District Prosecutors' Office conducted an on-site search and evidence collection at the company's South Korean office regarding potential violations of antitrust regulations. The company stated it is fully cooperating with the investigation and emphasized that neither the company nor its directors and employees have been accused of any wrongdoing by prosecutors or any government agency. Operations remain normal, with the company focused on product R&D and customer service. The announcement also highlighted two positive developments for the company.
Liang Wenfeng, founder of DeepSeek and幻方量化, participated in the subscription for Changxin Tech's IPO. Companies associated with Liang appeared on the IPO subscription list. According to the issuance announcement, 153 funds under Ningbo幻方量化投资管理合伙企业 and 41 funds under Zhejiang Jiuzhang Asset Management Co., Ltd. were listed among the investors.
Sector Highlights
The path of merely stacking GPUs is narrowing; AI competition is shifting towards computing power optimization.
Companies in the solid-state battery industry chain report strong earnings as mass production construction advances.
Lithium iron phosphate leaders announce price hikes amid rising costs and growing demand.
Amid a memory price increase cycle, smartphone manufacturers are turning to overseas markets.
AI phone penetration is expected to accelerate; institutions are closely watching 18 related stocks.
The innovative drug sector shows upward momentum, with 22 companies' earnings viewed favorably by institutions.
Market Strategy
Institutions generally believe that highly concentrated market positions have led to extremely fragile sentiment, which is the root cause of amplified volatility. Since late June, fluctuations in external markets, particularly South Korean tech stocks triggered by high-leverage product unwinding, have transmitted to the A-share market through global AI industry chain linkages, further intensifying adjustment pressure on the technology sector.
The strategy team at Dongwu Securities views the recent short-term style rebalancing in the A-share market as essentially a correction driven by internal trading congestion and external market volatility, noting that the underlying industrial logic has not fundamentally shifted. The team suggests that until the end of July, when major overseas cloud providers release earnings and capital expenditure guidance, liquidity factors will remain a core variable disturbing the market. For allocation, they recommend prioritizing leading companies in the overseas computing power chain with strong earnings visibility and attractive valuations, as these offer a favorable risk-reward profile in the medium term. Investors are advised to consider a longer holding period and look beyond short-term fluctuations.
New Listings Today
None.
Announcement Summary
Highlights: Yong'an Pharmaceutical, after two consecutive limit-up sessions, stated its current operations are normal with no undisclosed major matters.
Happiness Blue Ocean: No major matters in the planning stage.
Jian Medical: A wholly-owned subsidiary indirectly invested in DeepSeek.
Operational Data: Moore Threads: Expects H1 revenue of 1.65-1.75 billion yuan, up 135.12%-149.37% year-on-year.
Ouke Yi: Expects H1 net profit of 360-420 million yuan.
Lingyun Guang: Expects H1 net profit to increase approximately 590% year-on-year.
Toread: Expects H1 net profit to increase 128.92%-178.69% year-on-year.
Share Buybacks & Increased Holdings: Gem Co.,Ltd. (002340): Plans to repurchase shares worth 100-160 million yuan.
CIMC: Plans to use up to HK$173 million to repurchase H-shares.
Xuelong Group: Actual controller plans to increase holdings by 62-80 million yuan.
Haotong Technology: Plans 40-80 million yuan share repurchase.
Jujiao Shares: Plans 24-48 million yuan share repurchase.
Contracts & Orders: VeriSilicon: Secured new orders totaling 6.413 billion yuan from April 30 to July 16.
Xianhui Technology: Since March 7, cumulative contracts and order notifications from CATL total approximately 920 million yuan.
Jingce Electronic: A controlling subsidiary signed a 223 million yuan sales contract for semiconductor front-end measurement and inspection equipment.
Major Investments: Rongsheng Petrochemical: A controlling subsidiary plans to invest 19.6 billion yuan in a refinery integration project upgrade and transformation project.
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