To The Moon

Mainland Chinese equities extended gains on August 26, with all three major indices moving higher in early trading. Precious and base metals sustained their upward momentum, while brokerages and pharmaceutical names showed strength. On the downside, concept stocks tied to glass substrates, superhard materials, optical modules, and fiberglass underwent a pullback.

Hong Kong stocks opened firm and advanced steadily, with the Hang Seng Index and the Hang Seng Tech Index both rallying more than 1% as tech counters broadly rebounded. The biotechnology sector also bounced, with INNOVENT BIO and Akeso leading the gains. In the bond market, treasury futures declined across the board. Commodity futures in China were mostly lower, with fuel oil and crude oil suffering the steepest drops.

Market Snapshot:

Mainland Equities: As of writing, the Shanghai Composite Index was up 0.32%, the Shenzhen Component Index advanced 0.37%, and the ChiNext Index gained 0.25%.

Hong Kong Equities: The Hang Seng Index rose 0.94%, while the Hang Seng Tech Index climbed 1.35%.

Bond Market: Treasury futures fell across the board, with the 30-year contract down 0.23%, the 10-year contract slipping 0.04%, the 5-year contract easing 0.04%, and the 2-year contract losing 0.01%.

Commodities: Domestic commodity futures were mostly lower. Soybean meal rose 1%, while polysilicon, stainless steel, industrial silicon, copper, eggs, silver, tin, manganese silicon, aluminum, iron ore, nickel, and rebar ticked higher. Platinum, hot-rolled coils, gold, caustic soda, pulp, palladium, coking coal, lithium carbonate, rapeseed, and glass moved lower. Rubber and alumina each dropped 1%, while coke, bitumen, the container shipping index, crude oil, and fuel oil saw notable declines, with fuel oil plunging 8%.

09:51

The Hang Seng Biotechnology Index jumped more than 3%, with INNOVENT BIO surging over 12% and Akeso rising more than 8%.

On the news front, INNOVENT BIO announced on August 26 that its total revenue for the first half of 2026 reached RMB 8.618 billion, a year-on-year increase of 44.8%, while net profit climbed 50.2% to RMB 1.253 billion. The company stated it is in its "best development window" and plans to transform into a world-class biopharmaceutical firm. Earlier data from the Hong Kong Stock Exchange on August 20 showed that JPMorgan increased its stake by 2.355 million shares, involving HK$241 million.

A Morgan Stanley report from August 19 highlighted the strong performance of INNOVENT BIO's core products, raising its 2026-2028 revenue forecasts by 6%/5%/2% and lifting the target price to HK$138.5. Goldman Sachs, in a note dated August 6, said the company's second-quarter revenue growth of 60% year-on-year exceeded expectations, maintaining a "Buy" rating and raising its target price to HK$111.68, while expressing optimism about the company's path toward a RMB 20 billion sales target.

Analysts at Nomura, led by Jialin Zhang, noted that driven by improved drug gross margins, lower operating expenses, and reduced other costs, the company's net profit grew 50% year-on-year to RMB 1.3 billion, surpassing both the firm's and Bloomberg's consensus estimates. The robust product sales growth was attributed to a rich drug pipeline and accelerated volume growth for oncology drugs following their inclusion in the national medical insurance catalog.

09:48

The brokerage sector saw a sudden intraday lift, with Jinlong Co., Ltd. hitting the daily limit, while Xiangcai Co., Ltd., Guoyuan Securities, Huachuang Yunxin, China Merchants Securities, and Guosen Securities followed with gains.

09:39

The liquid-cooled server concept extended its strength from the previous session, with Kangsheng Co., Ltd. and Haoersai notching two consecutive limit-ups, Yilida achieving a three-day surge within four sessions, and Chaopin San, Envicool, Olutong, and Nanfang Pump Industry all advancing.

09:35

The pharmaceutical and biotech sector remained active, with Hansen Pharma posting six consecutive limit-ups, while CanSino Biologics, Weiguang Biologics, Zhongguancun, and Qianjin Pharma hit their daily limits. Wison Biotech, Genscript, Tri-Prime Gene, Anke Biologics, and Zhifei Biologics also followed with gains.

On the news front, U.S. biotech firm Moderna surged 14% overnight after Barclays raised its target price and investment firm Wolfe Research expressed confidence in the commercial potential of the company's mRNA cancer vaccine.

09:33

Early trading saw the controllable nuclear fusion concept strengthen, with Rongfa Nuclear Power opening at the daily limit. Hahan Huatong and Changfu Co., Ltd. both rose over 10%, while Zhongzhou Tec, China Nuclear Engineering, Lanshi Heavy Equipment, and Hongxun Technology followed suit.

On the news front, the 2026 Nuclear Fusion Energy Conference held on August 25 revealed that the Yangtze River Delta Innovation Consortium, led by China Fusion Energy Co., Ltd. and joined by Shanghai Superconducting and other firms, will focus on developing high-temperature superconducting strong-field tokamak magnet manufacturing capabilities and engineering systems for the China Huanliu-4 fusion device. The goal is to build the first 25T high-temperature superconducting strong-field magnet development and testing line by 2028, with prototype magnet development completed by 2030.

09:26

The Shanghai Composite Index opened 0.2% lower, while the ChiNext Index gained 0.35%. Gold, agriculture, oil and gas, and coal sectors led declines, while digital currency, lithium mining, cross-border payment, and robotics concept stocks adjusted. PCB, CPO, innovative drugs, nuclear power, and AI computing themes were active.

09:21

The Hang Seng Index opened 0.49% higher, with the Hang Seng Tech Index up 0.75%. INNOVENT BIO rose over 6%, while JD.com, NetEase, XPeng, and Alibaba led gains.