Macro News
The State Council has officially approved the forest annual harvesting quota for key forest areas during the '15th Five-Year Plan' period, as formulated by the National Forestry and Grassland Administration. This quota represents the maximum annual limit for harvesting timber and consuming forest stock in these regions, and both the administration and all relevant units must strictly adhere to it without exception.
Foreign Ministry Spokesperson Guo Jiakun responded to a question from a Japanese media outlet yesterday. The journalist inquired about the detention of two Japanese citizens in Dalian, Liaoning, in May this year on suspicion of smuggling goods that are prohibited from import and export. There are also reports that several Japanese executives from various companies have been detained in similar cases. Guo stated that Chinese authorities are handling these criminal cases in accordance with the law.
The National Meteorological Center continued to issue an orange alert for heavy rain at 6:00 PM on August 11. It is forecasted that from 8:00 PM on August 11 to 8:00 PM on August 12, heavy to torrential rain will hit parts of eastern Zhejiang, Shanghai, western Jiangsu, central and northern Anhui, northern and western Hubei, northwestern Hunan, Henan, western Shandong, central-northern and southwestern Hebei, Beijing, eastern Shanxi, as well as central Inner Mongolia and western Heilongjiang.
Industry News
SK Hynix has reportedly resumed construction on its second NAND flash memory production base in Dalian, China, aiming to expand capacity by approximately 50%. Construction on the second plant began four years ago but was long stalled due to a downturn in the memory industry. The company now plans to introduce semiconductor production equipment by the end of this year and commence mass production in the first half of next year.
Shanghai has released its '15th Five-Year Plan' for the development of the software and information services industry. The plan sets a target for the industry to become a key driver of economic growth by 2030, with total output expanding to 4 trillion yuan and industry value added exceeding 1.1 trillion yuan. Key focus areas include core components such as high-performance computing chips (GPU/NPU), quantum chips (QPU), high-speed optical interconnects (CPO), high-bandwidth memory (HBM), and heterogeneous servers, with the goal of deeply integrating domestic chips with mainstream large models.
According to sales channels, a group of quantitative private equity products, which experienced net value pullbacks in July, showed strong performance last week. Some quantitative long-only products posted single-week gains of over 10%, with certain products rising more than 15%.
The 2026 China Computing Power Conference will be held from September 11 to 13 in Langfang, Hebei Province, under the theme 'Weaving the Computing Network, Intelligently Unlocking the Future.'
South Korean President Lee Jae-myung called for large-scale strategic investment in future industries during a cabinet meeting on Tuesday. He highlighted small modular reactors, renewable energy, quantum computing, aerospace, and advanced biology as key sectors that will determine global leadership in the coming years.
Concerns are growing that the peak of the general-purpose memory chip industry cycle has passed, leading more securities firms to lower their target stock prices for South Korea's two major market leaders, Samsung Electronics and SK Hynix. According to South Korean financial investment industry sources on the 11th, Kiwoom Securities lowered its target price for Samsung Electronics from 390,000 won to 350,000 won and for SK Hynix from 2.2 million won to 2.1 million won. However, the firm maintained a 'buy' rating on both stocks.
Data from the China Passenger Car Association (CPCA) shows that passenger car production in July reached 2.222 million units, down 1.6% year-on-year and 4.9% month-on-month. The retail share of new energy vehicle startups in July was 26.8%, an increase of 5.4 percentage points year-on-year. The CPCA noted that the passenger car market in August 2026 is showing a 'weak overall recovery with significant structural divergence.'
Samsung SDI, a major South Korean battery manufacturer, announced on Tuesday that it has partnered with General Motors. The two companies will jointly develop prismatic power batteries for GM's next-generation pure electric vehicles. Samsung SDI stated in a press release that the joint development agreement will focus on creating high-energy-density, fast-charging prismatic batteries.
Nvidia is reportedly developing a new generation of open-source artificial intelligence models, Nemotron 4, with an expected parameter count of at least 1 trillion. The goal is to compete with the world's leading open-source large models. By opening its model ecosystem, Nvidia aims to expand the application scope of AI and further drive market demand for its GPU computing power.
Company News
Foxconn Industrial Internet (FII) released its half-year report, posting a net profit of 23.74 billion yuan for the first half, a year-on-year increase of 95.99%.
Golden Laser announced that its actual controller, Liang Wei, has been sentenced to three years and nine months in prison for manipulating the securities market, along with a fine of 12 million yuan.
Longsys Electronics announced it has received a commitment letter for a 720 million yuan stock repurchase special loan.
Biwin Storage announced plans to repurchase shares worth between 200 million and 250 million yuan for the purpose of reducing registered capital.
Zhongji Innolight announced that its subsidiary plans to invest 27.45 million yuan to acquire a 90% stake in the Gansheng Run Fund.
Xingyun Technology issued a clarification statement regarding market rumors, stating that no computing power equipment or related goods have been detained or held up by customs in any way.
Yuanjie Technology announced plans to invest 4.3 billion yuan to build a semiconductor technology industrial park project, expanding the production scale of high-end laser chips.
Titanium Energy Chemical announced plans to invest approximately 11 billion yuan to build a 600,000-ton annual iron phosphate precursor project and a 400,000-ton annual titanium dioxide and 1.4 million-ton annual ferrous sulfate heptahydrate project.
According to Menova's 2026 half-year report, individual investor Liu Xin has newly entered as the fourth-largest shareholder, holding 3.9548 million shares, representing 1.63% of the total share capital.
The half-year report of Avary Holding (Zhen Ding) shows that a subsidiary of Zhongji Innolight has newly become its fourth-largest shareholder, with a market value of 2.32 billion yuan based on the closing price.
China First Heavy Industries announced that Lu Wenjun has been sentenced for accepting bribes, and the board has agreed to remove him from his positions as director and chairman.
Beijing Culture announced that some film projects in which it is a co-producer have been released during the 2026 summer season, but the company's investment ratio is relatively low.
Qiangrui Technology announced plans to raise up to 1.05 billion yuan through a private placement for projects including precision liquid cooling components for AI servers.
Global Markets
All three major U.S. stock indexes closed lower, with the Nasdaq falling 0.6%, the Dow down 0.34%, and the S&P 500 dropping 0.32%. The memory sector rose, with SK Hynix gaining over 4%, and SanDisk and Seagate Technology each rising over 2%. The Livermore China ADR Index fell 1.68%. AI cloud services giant CoreWeave surged over 16% in after-hours trading. CoreWeave reported a second-quarter net loss of $626 million, beating market expectations of a $757.1 million loss. The company's total contract backlog as of June 30, 2026, was approximately $104 billion.
International oil prices rose for the fourth consecutive trading day as traders remain skeptical about reaching an agreement to immediately resume shipping through the Strait of Hormuz. WTI for September delivery rose 1.3% to settle at $83.20 per barrel. Brent for October delivery rose 1.4% to settle at $88.91 per barrel.
International precious metals fell as traders assessed the prospects of a U.S.-Iran agreement to reopen the Strait of Hormuz and awaited upcoming U.S. inflation data to determine if the Federal Reserve is leaning towards raising interest rates. At the close, spot gold fell 0.51% to $4,369.22 per ounce.
Optical communications leader Lumentum reported fourth-quarter adjusted earnings per share of $3.23, beating the estimate of $2.97. Fourth-quarter net revenue was $1.01 billion, compared to $480.7 million in the same period last year, exceeding the expected $990 million. Lumentum forecasts first-quarter net revenue of $1.23 billion to $1.28 billion, above the market estimate of $1.15 billion, and first-quarter adjusted earnings per share of $4.05 to $4.35, compared to the market estimate of $3.58.
Investment Opportunities
Alibaba Cloud plans to more than double its global data center production capacity, according to information obtained by the Sci-Tech Innovation Board Daily. Leveraging its first-of-its-kind fully modular design architecture, Alibaba Cloud has reduced the delivery time for large-scale AIDC data centers to 100 days. In comparison, the traditional delivery cycle in China is 6 to 12 months, and in the U.S., it is 12 to 18 months. While shortening the construction period, the overall cost of building Alibaba Cloud data centers has been reduced by over 10%. This year, the company plans to increase the global capacity of its modular data centers by more than twofold.
The AI computing wave is reshaping the competitive landscape of the data center switch industry, with both domestic and international markets simultaneously witnessing opportunities for high-speed product upgrades. Aibond Securities believes that overseas cloud providers continue to increase data center capital expenditures, while the construction of domestic intelligent computing centers is steadily advancing. Together, these factors are supporting the expansion of the 800G high-speed switch market. In the first quarter of 2026, the global high-end switch market remained dominated by overseas companies, but domestic manufacturers are accelerating product iterations and commercial deployments. They have completed technological accumulation and scenario implementation in areas like 800G large-scale deployment, CPO, and silicon photonics, with the process of domestic substitution steadily advancing.
As AI computing demand continues to grow, the liquid cooling sector is emerging as a critical link in supporting the development of computing power. Recently, the State Administration for Market Regulation (Standardization Administration of China) announced that the country'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 Digital, has been officially approved and released. It will take effect on February 1, 2027. This marks a new phase of standardized, ecologically collaborative, and innovation-driven high-quality development for China's data center liquid cooling industry. Guotai Haitan Securities believes that from an industry chain perspective, liquid cooling is reshaping the value distribution system of data centers. In the traditional air-cooling era, heat dissipation value was mainly concentrated in air conditioning systems, chillers, and room infrastructure. However, in the liquid cooling era, value is further extending to server internals, rack-level, and chip-level thermal management. The importance of core components like cold plates, CDUs, quick connectors, coolants, and system control modules is continuously increasing, and industry competition is shifting from pure manufacturing capabilities to comprehensive competition in technology R&D, platform adaptation, customer certification, and mass delivery capabilities. Overall, liquid cooling is an inevitable technological path driven by increasing power density in the upgrade of computing infrastructure. As AI computing demand continues to rise, liquid cooling will become an infrastructure role in future data center construction, similar to power supply and server equipment, becoming a key link in supporting the development of the AI era's computing power.
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