Macroeconomic Highlights
The State Council Information Office will hold a press conference on August 17 at 3:00 PM, where Fu Linghui, spokesperson for the National Bureau of Statistics, Chief Economist, and Director of the Department of Comprehensive Statistics of the National Economy, will present the national economic performance for July 2026 and take questions.
The People's Bank of China has released financial data for July 2026. Aggregate social financing for the first seven months of the year totaled 22.25 trillion yuan, a decrease of 1.74 trillion yuan compared to the same period last year. By the end of July, the broad money supply (M2) stood at 355.51 trillion yuan, up 7.7% year-on-year. In the first seven months, RMB deposits increased by 17.79 trillion yuan, while RMB loans rose by 10.38 trillion yuan.
On August 14, the People's Bank of China and the State Administration of Foreign Exchange jointly issued a notice on the centralized operation of cross-border local and foreign currency funds for multinational corporations, launching this service nationwide. The notice, effective from September 14, 2026, expands support for small and medium-sized multinationals, facilitates the pooling and allocation of cross-border funds, and simplifies the filing and registration process.
The State Administration of Foreign Exchange reported that in the second quarter of 2026, China's current account surplus was 1.3337 trillion yuan, with a goods trade surplus of 1.9065 trillion yuan, a services trade deficit of 358.4 billion yuan, a primary income deficit of 257.2 billion yuan, and a secondary income surplus of 42.8 billion yuan. For the first half of 2026, the current account surplus totaled 2.6174 trillion yuan.
Following round-the-clock emergency efforts, a 117-meter breach on the east bank of the Jialu River in Chuanhui District, Zhoukou City, Henan Province, was successfully sealed at 8:29 PM on August 15.
Industry Developments
Wang Shancheng, Director of the Department of Resource Conservation and Environmental Protection at the National Development and Reform Commission, stated that by 2030, a comprehensive closed-loop system for recycling solid waste from the "new three" (new energy vehicles, lithium batteries, and photovoltaic modules) will be established. This includes strictly enforcing the "battery-bearing scrapping" of new energy vehicles and cracking down on illegal recycling and dismantling activities.
New quotas for amortized cost bond funds have been approved. The first 15 fund companies submitted their application materials on August 14, with products primarily being closed-end bond funds with maturities of over five years (63 months).
Guangdong Province's first specialized financial product for the "Token Economy," the "Token Loan," was launched in Haizhu District, Guangzhou. Targeted at small and medium-sized computing power enterprises in Haizhu, the "Computing Power Token Loan" allows borrowing based on contract or token consumption limits. It offers credit, accounts receivable pledge, and order financing as primary guarantee methods, with the option to combine guarantees or mortgages to increase the loan amount. New companies can also apply for financing based on orders, provided they offer proof of continuous operations from the original business or a guarantor.
As of 5:00 PM on August 16, total box office revenue (including pre-sales) for the 2026 summer film season has surpassed 10 billion yuan, with daily box office revenue exceeding 100 million yuan for 37 consecutive days. The top five films in the summer season are Kung Fu Women's Football, Eight Immortals!, Spider-Man: Brand New Day, Welcome to the Dragon Restaurant, and A Love Letter to Grandma.
In response to market rumors about updated housing purchase rules in Shanghai, a hotline staff member at the Shanghai Real Estate Trading Center stated on August 15 that no new policy had been introduced. According to the staff, non-Shanghai resident households selling their only property can purchase one replacement home anywhere in the city, with the property owner remaining the same, without needing to provide social security or tax payment records. This rule has been in effect since May 28, 2024. For multiple properties, non-Shanghai resident households or single adults selling some of their properties (i.e., owning two or more) must purchase a replacement home in the same location as the one sold—selling a property outside the Outer Ring allows buying only outside the Outer Ring, and the same applies to properties inside the Outer Ring. This rule has been in effect since February 26, 2026.
Corporate News
Kweichow Moutai Co.,Ltd. released its semi-annual report, reporting revenue of 90.703 billion yuan, a 1.47% year-on-year increase, and net profit attributable to shareholders of 44.517 billion yuan, a 1.95% decline.
The year's most expensive new stock, Pinzhun Laser, announced that its shares will list on the STAR Market on August 18, 2026. The company issued 10 million shares at an IPO price of 186.88 yuan per share, with a total share capital of 40 million shares post-listing.
Zhongweiban Semiconductor reported a 98.48% year-on-year increase in net profit for the first half of 2026.
Unigroup Guoxin announced a 15% year-on-year increase in net profit for the first half of the year, with its memory segment growing 305% year-on-year.
Shengyi Technology reported a 130% year-on-year increase in net profit for the first half, driven by optimized copper clad laminate sales volume and product mix.
Hualian Holdings announced it received a notification letter from FIRES in Canada, indicating that its investment in an Argentine lithium salt lake project may trigger a review.
Centec Networks announced signing a major contract for Ethernet switch chips, with the contract value exceeding 50% of last year's revenue.
Focuslight Technologies Inc. disclosed in its investor relations activity record that its micro-optics products for NPO/CPO and high-channel V-groove products have partially completed batch validation, with ongoing orders increasing.
Changyingtong issued a stock price fluctuation announcement, stating that its orders or intentions for optical fiber used in the communications sector are low.
Swancor announced plans to implement a restricted stock incentive plan involving 8,067,200 shares, with performance targets including a net growth rate of no less than 160% for new business revenue in 2027.
Zhiyang Innovation announced plans to raise up to 904 million yuan through a private placement for projects including multi-domain embodied intelligence and AI agent development.
SenseTime announced it expects to record a profit of approximately 500 million to 700 million yuan for the first half of 2026, compared to a loss of about 1.489 billion yuan in the same period of 2025.
Global Markets
On Friday, Greg Abel, the successor to "Oracle of Omaha" Warren Buffett, filed his second 13F report as CEO of Berkshire Hathaway. The report showed that Berkshire purchased stocks worth $23.5 billion in the second quarter, ending a streak of 14 consecutive quarters of selling more stocks than buying. This indicates Abel has begun deploying the substantial cash reserves left by Buffett upon his retirement at the end of last year.
Insiders report that NVIDIA and OpenAI are nearing a financing agreement to build a large data center campus in Ohio. However, the transaction structure has been revised, with NVIDIA initially guaranteeing only half of the multi-hundred-billion-dollar expansion plan, not the full amount. The revised plan reduces NVIDIA's financial guarantee from $250 billion to less than $120 billion.
NVIDIA disclosed for the first time on Friday that it held 122.88 million shares of SpaceX as of the end of the second quarter. According to a 13F filing with the SEC, the value of these holdings was nearly $21 billion as of the end of June. NVIDIA is now the sixth-largest shareholder of SpaceX.
JPMorgan Chase has warned that the next global food crisis may be brewing, potentially erupting next year. Analysts attribute the drivers to the "five Ws": War, Weather, Warehousing, Water, and Waste.
Iranian Foreign Ministry Spokesperson Baghaei stated on August 15 that, despite US obstruction, talks between Iran and Oman are progressing positively, and an agreement has been reached on a transit plan for the Strait of Hormuz.
The three major US stock indexes all closed lower on Friday. The Dow fell 0.56% for the week, while the S&P 500 rose 0.36% and the Nasdaq Composite rose 0.14%. On Friday, the storage sector strengthened, with SanDisk surging over 7%. Semiconductor equipment stocks weakened, while optical communication stocks rose. The "Magnificent Seven" were mixed, with Tesla up 0.68%, Apple up 0.22%, NVIDIA down 0.06%, Google down 0.12%, Microsoft down 0.30%, Meta Platforms down 0.86%, and Amazon down 0.94%.
Investment Opportunities
Liquid Cooling Becomes a Rigid Necessity for the AI Era, Moving from 0-1 to 1-N Adoption
The National Standardization Administration recently announced the official release of China's first national standard for data center liquid cooling, GB/T 48023-2026 "Technical Specification for Cold Plate Liquid Cooling Systems in Data Centers," led by Sugon. The standard will take effect on February 1, 2027. Kaiyuan Securities notes that liquid cooling has become a rigid necessity for the AI computing era, transitioning from a 0-1 phase to a 1-N adoption phase. IDC smart computing centers differ significantly from traditional general-purpose IDCs, as they focus on high-power AI training and inference, greatly increasing cooling demands. Liquid cooling technology, with its superior heat dissipation efficiency, can significantly improve space utilization, reduce PUE to below 1.2, and lower energy and maintenance costs. Globally, NVIDIA's Rubin platform, which is fully liquid-cooled, validates liquid cooling as the definitive mainstream solution for high-end smart computing centers. According to TrendForce, the penetration rate of liquid cooling in AI data centers is expected to rise from 14% in 2024 to 33% in 2025 and 40% in 2026.
DeepSeek Harness Developer Preview: Everything is a Plugin
DeepSeek has released the developer preview (v0.1) of DeepSeek Harness, open for testing to global developers and open-sourced under the MIT license. Designed with an "everything is a plugin" philosophy, the platform uses a plugin-based open architecture to build Agent Harness, where all agent capabilities—including models, tools, skills, sessions, sandboxes, storage, loops, scheduling, and UI—are composed of pluggable components. The debut of the self-developed DeepSeek Harness framework in official testing marks the company's evolution from a model provider to a full-stack infrastructure provider for intelligent agents. Kaiyuan Securities analyst Zhang Yue believes that the MIT open-source license, combined with high concurrency, low pricing, and strong agent capabilities, is reshaping developer standards for agent infrastructure, pushing agent applications from prototype validation to large-scale commercial deployment.
Trading Halts and Resumptions
Suspension: None
Resumption: None
Company Announcements
Highlights
Focuslight Technologies Inc. stated that its emerging businesses, such as optical communications and consumer electronics, account for a relatively low proportion of revenue.
Financial Results
Kweichow Moutai Co.,Ltd. reported first-half net profit of 44.517 billion yuan, down 1.95% year-on-year.
Ruijie Networks reported first-half net profit of 694 million yuan, up 53.54% year-on-year, driven by increased R&D investment in core products like data center switches.
Shanghai Airport reported a 7.89% year-on-year increase in passenger throughput at Pudong International Airport in July.
Spring Airlines reported a 9.72% year-on-year increase in passenger turnover in July.
Yinxing Technology reported a 95.45% year-on-year increase in first-half net profit, driven by higher sales of modified plastic products.
Chipown Micropower reported a 74.13% year-on-year increase in first-half net profit, including a 119 million yuan fair value gain from its stake in Silergy Integrated Circuits.
KeDa Li reported first-half net profit of 943 million yuan, up 22.57% year-on-year.
Youyou Foods reported a 14.42% year-on-year increase in first-half net profit and proposed a cash dividend of 2.7 yuan per 10 shares.
NCS Testing Technology reported first-half net profit of 76.92 million yuan, up 32.02% year-on-year.
Huarui Precision reported a 178.32% year-on-year increase in first-half net profit.
Cangzhou Dahui reported a 330.75% year-on-year increase in first-half net profit.
China Communications Construction Company reported a 8.89% year-on-year decrease in new contract values for the first half, totaling 902.949 billion yuan.
Lianchuang Shares reported first-half net profit of 28.35 million yuan, up 142.36% year-on-year.
Tianyin Electromechanical reported first-half net profit of 24.82 million yuan, up 39.44% year-on-year.
Air China reported an 11.2% year-on-year increase in passenger turnover in July.
Chengde Lolo reported first-half net profit of 298 million yuan, up 15.28% year-on-year.
Huayuan Biological reported first-half net profit of 132 million yuan, down 18.34% year-on-year.
Boliwei reported a 101.24% year-on-year increase in first-half net profit.
Sieyuan Electric reported a 13.23% year-on-year increase in first-half net profit.
Wingtech reported a loss of 406 million yuan in the first half.
Xiangpiaopiao reported a net profit of 10.86 million yuan in the first half, turning around from a loss.
Topchoice Medical reported first-half net profit of 458 million yuan, up 32.7% year-on-year.
Angel Yeast reported first-half net profit of 881 million yuan, up 10.21% year-on-year.
Wangsu Science & Technology reported a 6.61% year-on-year decrease in first-half net profit and proposed a cash dividend of 0.8 yuan per 10 shares.
Unigroup Guoxin reported first-half net profit of 798 million yuan, up 15.29% year-on-year.
Gongda Acoustics reported first-half net profit of 13.77 million yuan, down 68.03% year-on-year.
Satellite Chemical reported a 126.94% year-on-year increase in first-half net profit.
Ping An Bank reported a 3.3% year-on-year increase in first-half net profit and proposed a cash dividend of 2.49 yuan per 10 shares.
Only Education reported a 977.3% year-on-year increase in first-half net profit.
Fudan Zhangjiang reported a 545.57% year-on-year increase in first-half net profit.
Juchen Shares reported a 156.07% year-on-year increase in first-half net profit.
Dahua Technology reported a 3.74% year-on-year decrease in first-half net profit and proposed a cash dividend of 3.06 yuan per 10 shares.
Shengyi Technology reported first-half net profit of 3.287 billion yuan, up 130.42% year-on-year.
Shareholding Changes
Medicilon shareholders plan to sell up to 1.68% of the company's shares.
Zhongfu Shenying plans to sell up to 1.3% of the company's shares.
Yongxin Optics plans to sell up to 0.602% of the company's shares.
Share Buybacks
NARI Technology plans to repurchase shares worth between 500 million and 1 billion yuan.
Xiangshan Shares plans to repurchase shares worth between 15 million and 30 million yuan.
Ruyi Films has received a commitment letter for a stock repurchase loan.
Guangdong Hongda plans to repurchase shares worth between 50 million and 100 million yuan.
Haozhi Machinery plans to repurchase shares worth between 100 million and 150 million yuan.
Yiming Pharmaceutical plans to repurchase shares worth between 35 million and 70 million yuan.
Contracts and Awards
Shaanxi Construction subsidiary won a bid for the Yunjing Computing Center Project (EPC) worth 1.156 billion yuan.
Fenfu Components secured a seat project from a joint venture brand customer, with an estimated total sales value of 2.86 billion yuan over the product lifecycle.
Zhejiang Construction subsidiary won a project in Hong Kong worth HK$2.497 billion.
Equity Changes
Zhongheng Electric controlling shareholder received a 4.1 billion yuan capital increase from CATL.
Major Investments
Nanjing Model Biology plans to invest 59 million yuan to co-establish a venture capital fund in Yancheng.
Haitong Development subsidiary plans to invest up to 600 million yuan to build two multi-purpose heavy-lift vessels.
TaiChen Optical plans to invest in the construction of a production base in Pingshan.
Mergers and Acquisitions
Huashi Technology plans to spend 300 million yuan to acquire a 30% stake in Aoxing Technology, whose core business includes internet advertising and short-film distribution.
Refinancing
Cityland Xiangjiang terminated its 2024 private placement plan.
Other
Jinyao Pharmaceutical received approval for a new specification of Vitamin B6 Injection, passing the generic drug consistency evaluation.
Beijing North Media subsidiary has filed a lawsuit over a lease dispute.
Dongcheng Pharmaceutical Shanxi nuclear medicine production center has commenced operations.
Yasheng Group reported drought conditions at its planting bases in Zhangye and Jiuquan, which are expected to negatively impact its 2026 operating results.
ST Ningke has applied to lift the other risk warning on its stock.
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