Markets successfully absorbed the massive listing of Longxin today, with both the mainland and Hong Kong markets moving higher. The Hang Seng Index rose 0.98% by the close. After 13 consecutive days of airstrikes on Iran, the United States suspended operations last Friday night without explanation. On Sunday, the Iranian military also stated that Tehran had suspended its military response. WTI crude oil futures fell by more than 8%. Some believe the US suspended strikes due to concerns over insufficient inventory, but the real driver is likely Trump's concern over inflation. With the Federal Reserve's upcoming policy meeting, a sustained surge in oil prices would make it difficult to lower inflation, a point many committee members could raise, creating a difficult situation. The pause creates room for de-escalation. Additionally, continued conflict threatens the US stock market, especially the Nasdaq, which is approaching its 200-day moving average.
Longxin Technology (688825.SH) debuted today with stronger-than-expected performance. It opened at 49.5 yuan, surging 471%, giving it a total market capitalization of 3.31 trillion yuan, surpassing ICBC to become the largest company in A-shares by market cap. The stock was volatile, hitting a low of 38.11 and a high of 55.03, but it closed steadily at 49 yuan. The company saw an enormous turnover of 141.2 billion yuan, a significant drain on liquidity. The stock's stable debut is a major positive. The most critical aspect is that it has become a new "valuation anchor," with many tech stocks expected to benchmark against it. Its current PE is around 31. If the stock can stabilize, it opens up opportunities for other oversold tech stocks, which had previously declined due to concerns about Longxin's impact.
The first sector to recover was PCB, driven by rising upstream material costs, such as electronic yarn. Institutions expect the price of standard cloth to be raised further in August, with the increase potentially reaching 1.5 yuan/meter, higher than the 1.2 yuan/meter increase in July. Given the rapid capacity expansion of downstream CCL and zero inventories across the fiberglass cloth industry, the pace of price increases is expected to accelerate. Institutions expect continuous price increases from September to December, with fiberglass prices potentially rising to 15 yuan/meter by year-end. A key beneficiary is CNBM (03323), which has a stake in related concepts and rose over 4% today. In the CCL space, KB LAMINATES (01888) plans high-end CCL capacity of 700,000 sheets/month, with phases one and two for 350,000 and 400,000 sheets, respectively, expected to be commissioned in Q1 2027 and Q4 2027. Phase one already has customer orders backing it. The stock rose over 6% today. Equipment companies in the PCB sector were strong. CFMEE (09630), the global leader in PCB direct imaging lithography equipment, saw its self-developed PLP2000 panel-level packaging direct imaging lithography equipment receive an order from a leading advanced packaging customer. Its market share in PCB exposure machines reached 18.8% in 2025, and the stock surged over 19% today. DTECH (01377) and VGT (02476) both rose over 6%
Last Friday evening, CATL (03750) announced a buyback plan for A-shares worth 20 billion to 40 billion yuan, to be used for cancellation and capital reduction, with a buyback price cap of 573 yuan per share, 49.6% above the current price. This is the largest stock buyback plan in A-share history and is quite strong. Its H-shares rose over 2% today, while Lopans Technology (02465) rose over 7%.
This year is expected to be a pivotal year for technical realization and commercial application of brain-computer interfaces. Internationally, Neuralink has completed over 20 implants, and its visual Blindsight project is expected to start clinical trials this year. The company's leading invasive technology and asset scarcity have driven its valuation upward. Science Corp's Prima retinal implant system has received CE certification, with the first commercial implantation expected to begin in August, marking a major milestone for overseas commercialization. In China, non-invasive BCI focused on rehabilitation is accelerating hospital entry and commercial conversion, while invasive BCI has also completed its first commercial implantation. Boreiko NEO completed its first commercial implantation in July. The path to monetization for invasive BCI is becoming clearer. Key beneficiaries include Nanjing Panda Electronics (00553), which surged over 12%, and MicroPort Scientific (02172) and Hearty Medical-B (06609), both rising over 5%.
Excellence RuiXin (02684) has made another breakthrough in the medical field, partnering with the ophthalmology department of Shanghai Ninth People's Hospital to build a complete virtual simulation training loop. This addresses three structural challenges in ophthalmology clinical training. If this benchmark project is successful, it could be replicated by major ophthalmology departments nationwide, opening up significant growth space for the company. The stock rose nearly 12% today.
Summer travel has been underway for over three weeks, with aviation travel heating up. According to data from the official platform of Air China and China Eastern Airlines, domestic flight ticket bookings for the period from July 21 to August 31 have exceeded 22.63 million, up over 4% year-on-year. International flight ticket bookings have exceeded 7.1 million, up over 5% year-on-year. Combined with the potential for lower oil prices, airline stocks collectively strengthened today. China Southern Airlines (01055), Air China (00753), and China Eastern Airlines (00670) all rose over 5%.
Macau is also entering its peak summer season, with hotel occupancy rates expected to reach 90% during July and August. Family and parent-child travelers make up a large proportion, with travel concentrated in time. August is expected to be the peak month for occupancy. Melco Resorts & Entertainment (00200), Galaxy Entertainment (00027), and MGM China (02282) all rose over 5%.
On July 27, Lei Jun announced that Xiaomi (01810) will hold a technical launch event for its Pengcheng series on July 30 at 7 PM, where the Pengcheng N90 and N70 range-extended SUVs will be officially unveiled. The series is positioned as a "smart, variable, large-space SUV." Some have joked that this car will make both real estate agents and car salespeople quiet. The product appears to address a key pain point and is expected to sell well. The market generally expects a price range of 200,000 to 450,000 yuan, but the final price is still pending official announcement. The key will be the pricing. The stock rose over 7% today.
Hong Kong bank stocks, mentioned last Friday, strengthened again. Dah Sing Banking Group (02356) rose nearly 8%, while Dah Sing Financial (00440) and Bank of East Asia (00023) rose over 4%. Agricultural inflation, also mentioned, continued to strengthen, with Modern Dairy (01117) rising over 5% again.
Sector Focus
Tesla executives released a video interpreting the earnings call, confirming that the exclusive Optimus production line at the Fremont factory will officially begin production by the end of 2026. The existing Model S/X production lines have been renovated, with a long-term annual capacity target of millions of units. Humanoid robots are moving from laboratory samples to mass production, with industry expectations now becoming reality. The supply chain's procurement plan is clear, with batch delivery appointments starting in Q4 2026 and large-scale order confirmation for performance in 2027. This news is a major catalyst for the domestic robot industry chain, which has also been adjusting for a considerable time. For Hong Kong stocks, focus on newer names: Estun Automation (02715), Luo Shi Robot (03752), LeDriver Robot (01236), and Sanhua Intelligent Controls (02050).
Stock Deep Dive
Beijing Biocytogen-B (02315): Platform antibody business accelerates delivery; partners with Whitehawk to develop bispecific antibodies. The company recently entered a global partnership with Whitehawk to develop innovative bispecific antibody-drug conjugates. Revenue is accelerating, gross margins are improving, and the company has been profitable for four consecutive quarters. In Q1 2026, revenue was 433 million yuan (up 73.68% YoY), with net profit attributable to equity holders of 104 million yuan, and gross margin improved to 78.88%. The company's original innovation capabilities are gaining recognition, and its RenMice® fully human antibody technology has seen a major upgrade. The company will provide up to five fully human bispecific antibodies through its self-developed RenLite® platform. Whitehawk can then choose to incorporate the resulting BsADC candidates into its pipeline and advance development. The company owns proprietary SUPCE large fragment chromosome engineering technology for in situ replacement of mouse antibody genes, creating the RenMice full-series mouse platform. It is one of the few companies globally with a full set of capabilities for developing fully human antibody mice. The company has over 5,000 in-stock gene-edited models, including 2,000 targeted humanized mice. It also has a 55,000-square-meter animal breeding center for large-scale production, offering advantages in delivery speed and cost. The "Thousand Mice, Ten Thousand Antibodies" project has built a library of over 1 million fully human antibody molecules. With a global high-end layout, the company's overseas revenue accounts for approximately 68%. It has penetrated over 90% of the top 20 global pharmaceutical companies, with core clients including Merck, Johnson & Johnson, Gilead, and BeiGene. The company continues to sign significant out-licensing deals, having signed over 350 antibody cooperation/licensing agreements. Representative large-scale transactions include a collaboration with IDEAYA for a dual-antibody ADC project with a potential total transaction value of nearly 3 billion yuan, and global antibody licensing agreements with Merck KGaA, Germany, Tubulis, and BeiGene. A large number of projects are progressing into clinical trials, which will release milestone payments in the future. The company's orders are primarily based on recurring framework agreements, relying on steady demand from global pharmaceutical companies for target validation. The company generates stable cash flow from model services while building a massive antibody library for out-licensing. If molecules are successfully launched, the company will receive long-term sales royalties, providing sustained explosive potential. The company's focus on bispecific antibodies, ADCs, nanobodies, and intracellular targets places it in the hottest global biotech sectors. Its platform perfectly matches current R&D demand. The company's model animals and preclinical CRO business have maintained a strong growth trajectory for years, with deep collaborative relationships established with leading global innovative drug companies. High barriers combined with industry tailwinds suggest its market share will continue to increase.
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