The China Securities Regulatory Commission (CSRC) is set to hold a symposium today to gather feedback and foster stable and healthy market development.
Key Market Developments
In a positive development for Hong Kong-listed Chinese stocks, the U.S. has allowed the national emergency provisions related to Hong Kong, part of the "Hong Kong Normalization" presidential executive order, to expire without renewal as of July 14. This effectively terminates the relevant parts of the order. This move is seen as a significant step in fulfilling commitments made during Sino-U.S. economic and trade consultations. The order had previously classified Hong Kong-listed Chinese companies as high-risk assets for U.S. pension funds, sovereign wealth funds, and major investment banks, pressuring institutions to lower allocation caps and driving passive long-term divestment. Its termination removes a major policy overhang that has weighed on Hong Kong stock valuations and liquidity for years.
Overnight Market Overview
U.S. markets closed lower on Friday. The Dow Jones Industrial Average fell 0.77%, the S&P 500 dropped 1.01%, and the Nasdaq Composite declined 1.4%. Major tech stocks were broadly lower. The Philadelphia Semiconductor Index fell 1.63%, entering a technical bear market after dropping over 20% from its June 22 high. Chinese stocks listed in the U.S., tracked by the Nasdaq Golden Dragon China Index, fell 1.81%. Meanwhile, Hong Kong index ADRs rose 0.33%. In commodities, WTI crude oil futures rose 4.46% to $81.77 per barrel, and COMEX gold futures gained 0.77% to $4,023.0 per ounce.
Policy and Corporate Action Highlights
The CSRC has invited multiple market institutions to a symposium today to solicit opinions on promoting market stability. This follows recent announcements from two major state-owned investment platforms. China Reform Holdings announced it has utilized over 50 billion yuan from a special relending facility for stock buybacks and supporting funds to stabilize the market. Similarly, China Chengtong Holdings disclosed it has recently accumulated nearly 10 billion yuan in Chinese equity assets. Both entities have pledged to continue using their resources to maintain stable capital market operations, demonstrating confidence in the resilience and value of Chinese assets with substantial capital commitments.
Three government ministries announced a phased reintroduction of consumption tax on certain battery types. Starting September 1, 2026, a 2% tax will apply to specific batteries like lithium-ion and vanadium redox flow batteries, increasing to 4% a year later. For solar cells, a 2% tax will begin April 1, 2027, rising to 4% in 2028.
The Ministry of Industry and Information Technology held a meeting with key automobile manufacturers, urging them to resist irrational competition and strengthen product testing, verification, and safety assessments.
Notable Company Announcements
Air China Limited (00753) and its subsidiary Shenzhen Airlines plan to purchase a total of 55 aircraft from Airbus for a combined catalog price of $12.44 billion.
Kweichow Moutai Co., Ltd. announced a price increase for its flagship Feitian Moutai product on its iMoutai platform and contract prices, effective July 18, 2026.
SenseTime and Chengdu Guoxing Aerospace Technology Co., Ltd. signed a strategic cooperation agreement to jointly build the "SenseTime Computing Constellation." The first "SenseTime" computing satellites are expected to launch and begin forming a network in 2026, with a goal of building a constellation of thousands of satellites offering over ten thousand petaflops of computing power by 2030.
Excellence & Wisdom (02687) signed a cooperation framework agreement with ByteDance's Volcano Engine, focusing on AI empowerment in education across four core areas.
Lee's Pharmaceutical (00950) entered into an exclusive licensing and supply agreement with Ashlins for its interferon Alpha-2b product for regions outside Greater China.
Phoenix International (00613) issued a positive profit alert, expecting a significant increase of approximately 555% in profit attributable to shareholders for the first half of the year, driven by net fair value gains on financial assets and increased business revenue.
Anton Oilfield Services (03337) reported new orders worth 3.109 billion yuan for Q2 2026, a year-on-year increase of 3.2%, amid robust upstream oil and gas investment and service demand in the Middle East.
Beauty Farm Medical Health (02373) issued a positive profit alert, expecting interim revenue of no less than 1.88 billion yuan (up at least 28% year-on-year) and net profit of no less than 235 million yuan (up at least 37% year-on-year).
Stock in Focus: ANTA SPORTS (02020)
ANTA SPORTS released its Q2 2026 operational data, showcasing resilient multi-brand development. The ANTA brand achieved low single-digit and mid single-digit year-on-year growth in retail sales value for Q2 and the first half, respectively, with healthy inventory levels and stable retail discounts, outperforming the broader industry. The FILA brand also demonstrated strong resilience with similar growth rates. Other brands, notably DESCENTE and KOLON SPORT, performed exceptionally well, with Q2 retail sales value growing 25%–30% year-on-year and first-half growth at 35%–40%. The recent state approval of the "15th Five-Year Plan for Building a Leading Sports Nation," which aims to improve public fitness services and upgrade the sports industry, opens a long-term policy window for the sportswear sector. Analysts note that the "Other Brands" segment is evolving from a small, high-growth unit into a significant engine driving both revenue and profit growth for the group. Following its acquisition of Puma, Citigroup expects the technical consolidation of Puma's China business to positively contribute to ANTA's earnings in 2027, largely offsetting potential negative impacts from its associate business line related to its 29% stake in Puma. Consequently, Citigroup raised its net profit forecasts for ANTA for 2026 and 2027 by 2% and 3%, respectively.
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