A-share Pre-Market Watch

Key News Point 1: US AI Hardware Stocks Suffer a Collective Crash; Semiconductor Index Falls Over 2%, SK Hynix Drops Over 7%

Market Sentiment: Negative

US AI hardware stocks experienced a sharp decline. The Philadelphia Semiconductor Index plunged as much as 5% before closing down over 2%. Nvidia fell approximately 5%, marking its largest single-day drop since June 5th. The optical communication and memory sectors led the losses, with SanDisk falling over 11% and SK Hynix dropping over 7%, breaking below its US IPO price. The listing of China's DRAM leader, Changxin, has triggered a global re-evaluation of the memory sector. There are renewed concerns on Wall Street regarding the cash flow cycle of AI capital expenditure. WTI crude oil briefly fell over 8%. In early Asian trading, the Nikkei 225 index fell 3%, while the South Korea index dropped over 6%.

Key News Point 2: Ministry of Industry and Information Technology to Accelerate Formulation of the "15th Five-Year Plan" for Intelligent Connected New Energy Vehicles

Market Sentiment: Positive

The Ministry of Industry and Information Technology (MIIT) held a media roundtable for the 2026 World Intelligent Connected Vehicle Conference. The MIIT stated it will accelerate the drafting and release of the "15th Five-Year Plan" for the intelligent connected new energy vehicle industry. The plan involves speeding up breakthroughs in core technologies, accelerating the development, international coordination, and implementation of key standards, and deeply advancing pilot projects for "vehicle-road-cloud integration," production access, and road-use trials. The goal is to continuously promote the high-quality development of the intelligent connected vehicle industry.

Key News Point 3: China-US Tensions Flare! US Reportedly Plans to Investigate and Sanction Chinese AI Companies; China Responds

Market Sentiment: Positive

On July 27th, a spokesperson for the Ministry of Commerce responded to a reporter's question regarding the US's reported plan to investigate and impose sanctions on Chinese AI companies. The Ministry of Commerce stated that China will take all necessary measures to firmly safeguard its legitimate rights and interests against any actions that substantially harm its interests. The Office of the US Trade Representative has imposed a 12.5% Section 301 tariff on Chinese goods. The Ministry of Commerce stated it will continue to closely monitor and comprehensively evaluate subsequent US actions and reserves the right to take all necessary measures.

Key News Point 4: Trillion-Yuan Market Cap Leader "Stabilizes the Market"; Foxconn Industrial Internet Plans Share Buyback of 1 to 2 Billion Yuan

Market Sentiment: Positive

On the evening of July 27th, another batch of A-share listed companies announced share buyback plans. Among them, the trillion-yuan market cap "Fruit Chain" leader, Foxconn Industrial Internet, plans to use its own funds of 1 billion to 2 billion yuan to buy back company shares. Besides Foxconn Industrial Internet, companies like iFLYTEK, TGOOD, Sanhua Intelligent Controls, and Jiuli Hi-Tech Metals also disclosed buyback plans amounting to hundreds of millions of yuan. Furthermore, companies such as Fasoft Information, Yongzhen Shares, and Puya Semiconductor also disclosed buyback plans worth tens of millions of yuan.

Investment Calendar

State Council Information Office Press Conference

Investment Tips

When buying a stock, you should not buy it because it is cheap, but because you understand it. — Peter Lynch

Institutional Views

1. Huaan Securities: The combination of oversold conditions and positive catalysts is expected to sustain the market rally. Focus on the upstream and midstream segments of the AI industry chain.

2. Orient Securities: External uncertainties remain a variable. A truly strong rebound will require a clear increase in market volume.

3. Founder Securities: The market is likely to continue oscillating in the short term. The sustainability of the rebound will depend on volume support.

Positive and Negative Outlook

1. Domestic Deep Ultraviolet (DUV) Lithography Machine Expected to be Delivered Within the Year

Market Hot Topic

Ping An Securities: Lithography machines are the core equipment for semiconductor manufacturing. Their performance directly determines chip process levels. The difficulty of development is high, the value is significant, and the market scale is expected to be substantial for the long term. The domestic supply chain for lithography machines has considerable potential.

2. Seven Government Departments Jointly Issue the "15th Five-Year Plan for Disease Prevention and Control"; Pharmaceutical Sector Gains Attention

Policy Focus

Tianfeng Securities: Chinese innovative drugs have already taken the lead in some areas, particularly in new mechanisms and new targets. Driven by policy support and improved product competitiveness, Chinese innovative drugs are expected to continue achieving domestic substitution in the local market.

3. Key Electrolyte Raw Material, Vinylene Carbonate (VC), Sees Price Surge of 10%, Breaking Through the 200,000 Yuan Mark Again

Institutional Hot Comment

Guosheng Securities: VC is a crucial electrolyte additive with rigid demand and increasing usage rates. The new national safety standard for power batteries, effective July 2026, requires battery cells to not catch fire or explode for 2 hours after thermal runaway. This is expected to drive a sustained increase in the proportion of VC added.

Corporate Announcements

Positively-Biased Announcements

1. Changxin Bochuang: Its controlling subsidiary has signed a long-term cooperation agreement for optical fiber and cables worth 4.5 billion yuan.

2. Foxconn Industrial Internet: Plans to buy back 1 billion to 2 billion yuan worth of shares within the next 3 months.

3. Sanhua Intelligent Controls: Plans to buy back 200 million to 400 million yuan worth of company A-shares.

Negatively-Biased Announcements

1. Tenglong Shares: The controlling shareholder, Tenglong Technology, has reduced its stake by 2.19%.

2. Caida Securities: A shareholder holding over 5%, Guokong Operations, plans to reduce its stake by no more than 2%.

3. Zhongguancun: The controlling shareholder, Gome Holdings, has had an additional 8.23% of the company's shares frozen by judicial order.

Overseas Markets

US stock indices closed mixed on Monday. The Dow Jones Industrial Average rose 0.51%, while the Nasdaq Composite fell 0.18%. ASML and Nvidia led a "chip storm," with ASML falling nearly 6% and Nvidia falling nearly 5%. SK Hynix dropped over 7%. The Nasdaq Golden Dragon China Index rose 2.51%, with Alibaba rising over 2%.