Market dissection reveals that US stock movements now have minimal impact on A-shares, regardless of direction, but still influence Hong Kong stocks, which fell 0.74% today as capital awaits the Federal Reserve's policy meeting.
According to media reports, sources indicate a US-Iran framework agreement includes a plan to establish a $300 billion private fund to drive investment into Iran. The $300 billion Iran investment fund will only begin operations after a final deal is signed. Capital is once again exploring post-disaster reconstruction opportunities.
On June 16, a delegation from Saudi Arabian Mining Company (Ma'aden) visited XIDI Smart Driving (03881) for exchange and inspection. Both parties explored cooperation opportunities around unmanned mine transportation, mine digitalization, and global collaboration. According to CIC, as of November 2025, XIDI Smart Driving ranked sixth in China's smart commercial vehicle market with a share of about 5.2%, and is a leading player in the unmanned mining truck segment. The Middle East has both capital and market potential; the market is watching for potential future orders. The stock surged over 35% today.
The 2026 Lujiazui Forum opened this morning. In his keynote speech, China Securities Regulatory Commission (CSRC) Chairman Wu Qing stated the need to continuously enhance regulatory effectiveness and adaptability. He emphasized improving regulatory mechanisms across market entry, ongoing supervision, and exit. There will be strict investigation and punishment of illegal activities such as hyping concepts, market manipulation, and insider trading under the guise of technology.
The State Administration for Market Regulation stated that long-term, large-scale subsidies that disrupt market order are prohibited, and new rules for food delivery platforms are open for public comment. This directly targets several major giants in the Hong Kong market. While internal competition has somewhat moderated, rivalry has never ceased, draining capital and leaving all players in a difficult position. Observing overseas giants focusing on high technology, while the local market remains mired in competition over basic necessities, highlights the poor ecosystem of the Hong Kong market.
CSRC Chairman Wu Qing also mentioned further enriching investment products and tools, supporting the launch of active ETFs on the Shanghai and Shenzhen stock exchanges. Unlike traditional ETFs that aim to replicate or track a benchmark index, active ETFs are managed by fund managers who actively conduct asset allocation, stock selection, and timing based on investment strategies, aiming for long-term capital appreciation or outperformance relative to a benchmark. Active ETFs have become one of the fastest-growing segments in the asset management industry. According to ETFGI data, by the end of April 2026, global assets under management in active ETFs reached a record high of $2.33 trillion, with net inflows of $311.66 billion year-to-date, also setting a new record for the period. These active ETFs will be a significant source of incremental capital, acting as a stabilizing force for the market. However, to avoid style drift, institutions launching ETFs will likely favor the most mainstream sectors, ultimately pushing the market towards a US-style development path.
Reports indicate that after its US ADR listing, SK Hynix plans to launch a shareholder return program worth up to 100 trillion won (approx. $66.4 billion) in Q4, including share buybacks and cash dividends. Proceeds from the new share issuance will be dedicated to AI infrastructure, with recent roadshows receiving positive feedback. This success is enviable; Hynix employees are buying houses, cars, and watches, directly stimulating consumption—a virtuous cycle reminiscent of the real estate boom years. There is hope that profitable Chinese tech companies can similarly invigate other traditional industries.
Hynix's continued investment, coupled with the boost from active ETFs, has led to a resurgence in tech leaders. GigaDevice (03986) rose 14%, Montage Tech (06809) surged over 11%, and Hua Hong Grace (01347) gained over 8%.
The PCB sector, repeatedly highlighted recently, remains the hottest golden track. The frenzy is evident from price hikes. Kingboard Laminates (01888) officially issued a price adjustment notice on June 16, raising prices for all specifications of FR-4 CCL and PP prepreg by a uniform 15% across all thicknesses. New orders will be executed at the new price immediately, while existing long-term contracts are temporarily unaffected. This marks the fifth price hike in 2026, coming just 20 days after the previous one (May 27). The first four rounds saw 10% increases each; this round jumped directly to 15%. This directly boosts company profits. After Kingboard Laminates (01888) rose significantly yesterday, Kingboard Holdings (00148) followed suit today, surging over 17%.
Heat in the sector is boiling over again. High-end computing PCB concept stock Guanghe Technology (01989) saw its Thailand base's first phase reach full capacity, with the second phase scheduled for Q3 2026, hedging US tariffs and offering significant delivery advantages for overseas clients. Its 2.6 billion yuan Yunqing Intelligent Manufacturing base in Guangzhou has been topped out, focusing on high-end AI server PCBs with 40+ layers to solve capacity bottlenecks. The Huangshi base supplements mid-to-high-end capacity, with overall new output value expected to reach tens of billions by 2027. The stock rose over 7% today.
Yesterday's stock pick, PCB equipment leader Han's CNC (03200), benefits from expansion by leading PCB manufacturers. Management expects the proportion of AI-related business revenue to rise from about 30% in 2025 to about 60% in 2026. The stock gained over 5% today.
Yesterday's mentioned upstream PCB electronic glass fabric concept stock China National Building Material (03323) was also exceptionally strong, soaring over 24%. CNBM Advanced Materials (01108), part of the China National Building Material Group, was also boosted. The logic is that the price increase logic for PCB electronic fabric may spread to fiberglass. Another catalyst is the TGV semiconductor glass substrate theme. TSMC officially announced its CoWoS glass substrate development plan, targeting trials in 2026 and gradual mass production after 2027, strengthening industry expectations. However, it's another group company, A-share listed Kaisheng Technology (600552.SH), that is involved in this business, and it hit the daily limit-up today. The rally in the H-shares appears to be riding the hype, with its price action showing a pattern of surging then retreating, closing up nearly 15%.
Chinese AI large model company DeepSeek completed its first round of financing since its founding on June 16. Founder Liang Wenfeng contributed approximately 20 billion yuan, becoming the largest single investor in this round. Market estimates suggest DeepSeek's valuation could reach $50 billion post-financing. From a rumored valuation of $10 billion when financing plans emerged in April, the valuation has quintupled in just two months, showing that top-tier models are highly sought after by capital.
The Shanghai Stock Exchange stated that AI large model companies are eligible for the fifth set of listing criteria on the STAR Market, supporting high-quality AI model companies that have not yet generated significant revenue to list. It is expected that more large model companies will list subsequently, likely focusing on vertical applications. The future for general-purpose models may involve consolidation, while laggards without strength will struggle to compete.
According to disclosures on the CSRC website, the IPO tutoring status for Zhipu AI (02513) on the STAR Market has changed to "tutoring acceptance," indicating an accelerated timeline for its A-share listing. The stock rose over 12% today. MINIMAX (00100) gained over 6%.
On June 17, MicroPort MedBot - B (02252) announced that as of the announcement date, the group's cumulative comprehensive orders for core products including endoscopic, orthopedic, and vascular intervention systems have reached nearly 400 units. Among them, global commercial orders for its core product, the Toumai endoscopic surgical robot, have surpassed 300 units. Orders received in the first half of the year have already exceeded the total for the entire previous year, marking another milestone in Toumai's commercialization. Having orders is what truly matters; the stock rose nearly 14% today.
The Federal Reserve will announce its interest rate decision at 2:00 AM Beijing time on Thursday. Subsequently, new Fed Chair Kevin Warsh will hold a press conference at 2:30 to answer questions. Maintaining the benchmark rate unchanged is a foregone conclusion. The focus is on observing the Fed's operating style under the Warsh era: whether the "easing bias" will be removed, whether the Fed will further emphasize inflation threats, its stance on rate cuts and balance sheet reduction, whether the dot plot will be scrapped, and whether Powell will cast a dissenting vote.
Sector Focus
Apple is set to launch camera-equipped AirPods and a new generation of foldable iPhones in 2027. Apple plans to release new AirPods with built-in cameras in late 2027, alongside several other new products, including a next-generation foldable phone and a new commemorative iPhone. These new AirPods are Apple's first AI-focused wearable, equipped with a computer vision camera as a sensing component to provide Siri with real-world visual information. Key stocks: Sunny Optical (02382), AAC Technologies (02018), Lens Technology (06613), Q Technology (01478).
Stock Selection
Weichai Power (02338): Breakthrough in Brazilian Market, South America Holds Promise; North American Computing Power Energy Gap Offers Significant Upside. Recently, heavy trucks equipped with Weichai's WP15NG engines were delivered in batches to Brazilian customers, marking a new breakthrough for the Chinese heavy-duty truck power brand in the Brazilian market. As the powertrain heart of the vehicle, Weichai engines' robust product quality and comprehensive service support are decisive factors for full-load operation and high efficiency, and the core confidence driving bulk purchases by customers. Analysis: With a breakthrough in Brazil, the South American market holds promise. The company is the absolute leader in China's heavy-duty truck engine market, showing strong resilience at the cycle's bottom, with a stable market share of around 40% for heavy-duty truck engines. It supplies Shaanxi Heavy Duty Automobile, forming a complete powertrain closed-loop with "engine + Fast Gear transmission + Hande axle." Its self-developed diesel engine achieved a thermal efficiency of 53.09%, setting a world record for four consecutive years and leading in fuel economy. Natural gas engine overseas orders are scaling up (thousand-unit level orders for oil-to-gas projects in Africa and Southeast Asia). Overseas revenue accounts for nearly 40%, with products sold to 150 countries. The Belt and Road Initiative and African infrastructure projects continue to drive engine and vehicle exports. Key points: 1. AIDC Data Center Backup Power: The company has a dual-platform strategy: French Baudouin (domestic computing backup power) + US-based PSI (primary power for North American data centers), breaking the overseas monopoly of Caterpillar and Cummins. AI server rooms have rigid demand for backup/distributed power generation. In 2025, AIDC generator set sales reached 1,401 units, up 259% year-on-year. In Q1 2026, large-bore power generation equipment sales exceeded 500 units in a single quarter, up 240% year-on-year, showing high elasticity in North America. PSI's gas-fired units can start within 10 minutes, adapting to North America's computing power energy gap. Net profit in H1 2025 increased 141% year-on-year, with high overseas margins being realized. Next-generation reserves are also promising, with exclusive global manufacturing authorization for UK-based Ceres' SOFC technology, boasting over 60% power generation efficiency, suitable for next-gen data center clean power, with production scheduled to begin within 2026. 2. Hydrogen Energy Full Industry Chain Leader: This represents a second growth curve. The company ranks first in domestic market share for commercial vehicle hydrogen fuel cell systems, covering all scenarios including heavy trucks, buses, and construction machinery. It has delivered hydrogen heavy trucks in batches to steel plants, ports, and mining areas. It has in-house R&D for key components like fuel cell stacks, air compressors, and hydrogen storage tanks, ensuring self-sufficiency. It is also developing SOFC solid oxide fuel cells (for distributed power generation, data centers, commercial/industrial cogeneration), with a long-term market potential in the hundreds of billions. 3. Domestic Heavy Truck Recovery + Export Boom: Shaanxi Heavy Duty Automobile exported 59,000 units in 2025. Its X6000 high-end heavy truck obtained EU WVTA certification, opening up the high-end European and American markets. Localized production and delivery in Africa and Latin America help hedge against domestic cyclical fluctuations.
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