To The Moon

Major evening news recap: Yushu Technology Co.,Ltd. has set its IPO price at 150.80 yuan per share, with a lot size expected to yield significant profits if the stock performs well on its debut.

US memory chip stocks tumbled after earnings reports disappointed investors despite revenue growth, with SanDisk and Western Digital shares dropping over 12% and 19% respectively on Tuesday. The broader sector saw declines as Micron Technology, SK Hynix, and Seagate Technology each fell more than 5%. Analysts noted that merely delivering a "good earnings report" is insufficient in the current market environment, as investors demand sustained upward revisions and stronger forward guidance.

Yushu Technology Co.,Ltd. announced its IPO pricing on the STAR Market, setting the price at 150.80 yuan per share, with subscriptions scheduled for August 10. The company is expected to raise about 6.1 billion yuan, achieving a market value of approximately 61 billion yuan upon listing, making it a highly anticipated capital market event in the domestic humanoid robotics sector. For comparison, Changxin Technology Group saw its shares surge 471.59% on its debut day, opening at 49.50 yuan per share compared to its IPO price of 8.66 yuan, reaching a total market value of over 3.31 trillion yuan. If Yushu Technology Co.,Ltd. achieves a first-day gain of over 300%, one lot could yield more than 200,000 yuan, while a gain exceeding 450% could result in profits over 300,000 yuan.

The Democratic Republic of Congo has banned the export of copper and cobalt concentrates, according to a government decree. The DRC is the world's largest cobalt producer and second-largest copper producer. In 2025, the country's copper exports rose nearly 10% to 3.4 million tons. International copper prices surged after the announcement, with analysts at Guoxin Futures suggesting that this move marks a shift toward "resource-driven pricing" in the global critical minerals landscape, where commodity pricing systems are moving from efficiency-focused to security-focused equilibrium, potentially leading to higher price volatility.

The US government plans to impose a 15% tariff on polysilicon products, a key raw material for solar panels and semiconductors. The expected executive order from President Trump may include minimum import prices for polysilicon, wafers, cells, and solar modules, along with the 15% tariff on polysilicon derivatives. Among A-share companies, Tongwei Co., Ltd. is a major polysilicon and cell producer, potentially facing limited short-term profit impact. Daqo New Energy focuses on high-purity polysilicon and is more sensitive to price changes. Midstream and downstream companies with US sales channels or overseas production bases, such as LONGi Green Energy, Jinko Energy, JA Solar, Trina Solar, Canadian Solar, TCL Zhonghuan, JunDa Co., Ltd., and Aiko Solar, may be more sensitive to this development.

China's cybersecurity review office has initiated a review of products sold by Palo Alto Networks in China, citing national security concerns. The review is based on the Cybersecurity Law and the Cybersecurity Review Measures to protect critical information infrastructure from potential risks.

Goldman Sachs and JPMorgan Chase have significantly increased their holdings in Zhongji Innolight's H-shares, with both banks doubling their positions. Hong Kong Stock Exchange filings show Goldman Sachs' long position in Zhongji Innolight H-shares rose to 12.19% as of August 3, up from 5.95% a week earlier, while JPMorgan's position increased to 13.72% from 5.60% as of July 31.

Ge Weidong, a prominent investor, has increased his stake in GigaDevice, according to a company filing. As of July 31, Ge held 16.4467 million shares, or 2.34% of the company, up from 16.2616 million shares at the end of the first quarter. His wife, Wang Ping, also increased her holdings to 8.5999 million shares from 7.5732 million. In July, Ge publicly expressed confidence in AI, stating that he believes the trend is not over and that stopping would lead to a "dimensional reduction" attack, a view shared by top AI talent in Silicon Valley and China.

Hong Kong's Insurance Authority has responded to reports that mainland residents' insurance gains from Hong Kong policies are being taxed. The authority stated that it is closely monitoring the latest developments in mainland tax arrangements and maintaining communication with the industry. Reports suggest that Beijing and Hangzhou have seen cases of taxing Hong Kong insurance gains, including dividends and prepaid premium interest, with a 20% tax rate in some cases, though the practice is not yet widespread.

According to a report by Wall Street CN citing foreign media, Federal Reserve Chairperson Warsh is prepared to raise interest rates in September if inflation data remains strong over the coming weeks. US short-term Treasury yields rose on the news, despite a recent sell-off in Treasuries following the last Fed meeting, as Warsh pushes for a streamlined communication strategy.

Investment opportunities: AI large models and computing power are gaining attention. ByteDance is reportedly discussing training a model with over 5 trillion parameters, which would surpass Alibaba's Qwen 3.8-Max (2.4 trillion parameters) and Moonshot AI's K3 (2.8 trillion parameters), making it the largest known model in China. Larger model sizes generally correlate with higher intelligence levels, but the plan is still in early stages and may not result in a final release. Great Wall Securities believes that as large models continue to evolve, the focus is shifting from parameter scale to reasoning efficiency and cost-effectiveness, which is key to commercial viability. Soochow Securities notes that AI applications are moving from concept to commercialization, with C-end traffic and payment logic, and B-end subscription models, providing greater room for valuation growth in 2026.

Other sectors to watch: Real estate, as some banks lower mortgage rates to the "2% range"; Civil explosives, as the Ministry of Industry encourages industry consolidation; Batteries, as the supply chain sees price adjustments and full-year lithium battery production forecasts are raised; and Power, as Beijing's grid load hits record highs for two consecutive days.

Company announcements: Positive: Yushu Technology Co.,Ltd. sets IPO price 150.8 yuan/share; Xingfa Group plans private placement up to 3 billion yuan; Haodangjia reports 21.74% rise in net profit; Sanxing Electric subsidiary signs 175 million yuan overseas contract. Negative: Shanxi Coking Coal suspends Xiqu mine due to safety accident; Tongyu Communications clarifies no R&D partnership with Nvidia; *ST Cuihua faces potential forced delisting over false statements; Jumpcan Pharmaceutical directors plan to reduce holdings.

This article is adapted from "Tencent Self-Selected Stocks," edited by Xu Wenqiang for Zhitong Finance.