Key Data Fuels Shift in Fed Rate Outlook

On the evening of August 12, Beijing time, the U.S. Bureau of Labor Statistics reported that the unadjusted Consumer Price Index (CPI) for July rose 3.4% year-over-year, aligning with market forecasts and edging down from the previous 3.5%. The core CPI, excluding food and energy, increased 2.5% annually, also meeting expectations and slightly below the prior 2.6%. Following a surprise decline in July non-farm payroll data, the further cooling of U.S. inflation in July has significantly eased pressure on the Federal Reserve to raise rates in September. Some institutions now assess that the Fed may hold rates steady in September, though the possibility of a rate hike within the year remains.

Central Bank Unveils New Monetary Policy Direction

On August 12, the People's Bank of China (PBOC) released its second-quarter monetary policy execution report for 2026, analyzing domestic and international conditions, outlining the main policy approach for the next phase, and discussing hot topics such as monetary policy adjustments in major overseas economies and interest rate control mechanisms. The report specifies that going forward, the PBOC will fully leverage the effectiveness of existing policies and promptly plan and implement pragmatic incremental policies. It further proposes diversifying loan pricing benchmarks, guiding financial institutions to enhance their interest rate pricing capabilities, and gradually increasing the frequency of overnight reverse repurchase operations in line with primary dealer demand.

Strait of Hormuz Remains Closed, Iran States

On August 12, Iran's Persian Gulf Strait Authority stated that repeated claims by U.S. officials that the Strait of Hormuz has reopened do not alter the facts. The strait remains closed and will not reopen unless the U.S. accepts Iran's conditions. In a social media post on August 12, U.S. President Donald Trump asserted that the U.S. fully controls the Strait of Hormuz and that Iran is powerless to change that. Trump added, "I think we will continue to control it!" According to Iranian media on August 11, General Mohammad Reza Naqdi, advisor to the commander of the Islamic Revolutionary Guard Corps, stated that all weapons currently used by Iran are domestically developed, with missile production far exceeding launch capacity, and the same applies to drones. He claimed that even if the war lasts for years, Iran's ballistic missiles could rain down on the enemy.

White House Press Secretary to Depart at Month's End

U.S. President Donald Trump announced on August 12 that White House Press Secretary Karoline Leavitt will resign at the end of this month. Trump posted on social media that Leavitt's resignation is due to a desire for more time with her children and family. He described her as one of his "most trusted advisors" and stated she would become a key external advisor and play a significant role within the Republican Party to help it win the midterm elections.

First-Half 2026 Marriage and Divorce Data Released

On August 12, the Ministry of Civil Affairs released civil affairs statistics for the second quarter of 2026. The data shows that in the first half of this year, there were 3.275 million marriage registrations nationwide, covering about 6.55 million people, a decrease of 264,000 pairs compared to the same period last year. Divorce registrations totaled 1.383 million pairs, an increase of 52,000 pairs from last year. In the first half of last year, there were 3.539 million marriage registrations and 1.331 million divorce registrations. Amid shifting demographic structures and changing attitudes toward marriage and romance, optimizing marriage services and improving the marriage and childbearing support system have become important societal concerns.

China's Auto Exports Surpass One Million Vehicles for Two Consecutive Months; New Energy Vehicle Sales Share Exceeds 60% for the First Time

In July, the auto market entered a traditional sales off-season, but China's auto exports continued to perform strongly. On August 12, the China Association of Automobile Manufacturers released the latest auto production and sales data, showing that July production and sales were 2.573 million and 2.584 million vehicles, respectively, down 6.8% and 8% month-over-month, and down 0.7% and 0.3% year-over-year. For the January-July period, production and sales reached 17.567 million and 17.602 million vehicles, both down 3.7% year-over-year, though the decline narrowed compared to the first half.

Eastern Theater Command Releases Scenes from East of Taiwan

On the morning of August 12, the Chinese Navy's Red River Ship and the Indonesian Navy's frigate "KRI I Gusti Ngurah Rai" successfully completed all scheduled exercises in the waters east of Taiwan, concluding a maritime navigational exercise. After reaching the designated area, the Red River Ship and the Indonesian frigate formed a fleet, conducting live drills on maritime communications, fleet maneuvers, replenishment at sea, and separation ceremonies. The crew of the Red River Ship skillfully used special tactical signal codes and signal flags to communicate and relay commands with the Indonesian frigate. The two sides, following a pre-planned exercise plan, demonstrated flexibility and coordination, achieving all exercise objectives. This China-Indonesia maritime navigational exercise fully showcased the willingness and capability of both sides for pragmatic cooperation in jointly maintaining regional peace and stability.

Butbin's U.S. Stock Portfolio Sees Major Overhaul

Just a day after Butbin faced investor criticism over his fund's performance, data on his latest U.S. stock holdings was revealed. Documents from the U.S. Securities and Exchange Commission show that Dongfang Harbor, managed by Butbin, held a U.S. stock portfolio worth $1.65 billion at the end of the second quarter. During the second quarter, the fund liquidated positions in Apple and Tesla, among others, while making significant new investments in seven AI hardware stocks. Meanwhile, the U.S. stock portfolio of the 1,000-billion-yuan private equity firm Jinglin Asset Management fell to $2.19 billion at the end of the second quarter.

Duan Yongping Increases Stake in Pop Mart, Ownership Reaches 7.7%

Duan Yongping's stake in Pop Mart has hit a new high. On August 12, according to a Hong Kong Stock Exchange filing, H&H International Investment, LLC, managed by renowned investor Duan Yongping, increased its shareholding in Pop Mart's H-shares from 5.55% to 7.7% as of August 6, holding 102.576 million shares. The filing attributed the increase to the holder "having an obligation to purchase the underlying shares" due to being a holder of equity derivatives or having sold or issued equity derivatives.

Cambricon Responds to Market Concerns After Stellar Results

Cambricon held its 2026 half-year results briefing on August 12. Addressing market concerns about computing power demand, supply chain stocking, and new product development, Chairman and General Manager Chen Tianshi stated that with the accelerating pace of large model technology innovation, demand for intelligent computing continues to rise. The company will focus on innovation in AI chip design technology, enhance core competitiveness, actively expand market share, and accelerate scenario deployment.

C919's First International Route Launched

The C919's first international route has been launched, with commercial operations helping the domestically produced large aircraft "fly abroad." The investment logic for innovative drug industry is shifting from "grabbing BD" to focusing on cash flow. AI server demand continues to ramp up, driving a boom in the MLCC sector. With low valuations and capital deployment, the consumer sector is seeing structural opportunities. The solid-state battery industry is entering a critical period of industrialization, with key equipment like isostatic presses expected to achieve breakthroughs next year.

Market Strategy

Wang Jun, Chief Strategy Analyst at BOC International, said that tech stocks have recovered somewhat after a correction in July, driven by two catalysts. First, the easing of the liquidity crisis in overseas markets has marginally improved risk appetite. The most severe period of deleveraging in the Korean stock market appears to have passed, with volatility declining, a typical sign that passive deleveraging is nearing its end. Second, the recent earnings reports from four major North American cloud vendors continued to validate the high prosperity of the AI industry chain, effectively alleviating concerns about "peak capital expenditure and insufficient demand." Historical patterns show that August is the best month of the year for earnings factors, Wang said. In the coming period, the weight of earnings factors is expected to increase, and the previous pattern of broad-based rebound in oversold stocks is unlikely to continue. The tech theme may face a process of "separating the real from the fake," with tech stocks backed by actual earnings performance likely to see a second wave of recovery after half-year report validation, while stocks purely based on concept hype without revenue realization may face significant pressure.

New Stocks Today

None.

Company Announcements

Chengzhi Co., Ltd. (000990): First-half net profit surges 1,416.23%

The company reported a half-year net profit of 290 million yuan, a 1,416.23% increase year-over-year, with revenue of 6.147 billion yuan, up 2.77%.

Megaore Technology: Control may change, shares resume trading on August 13

On August 12, Xinjiang Chaojun Equity Investment Co., Ltd. signed an agreement to transfer all its 47.6589 million shares (14.18% stake) in Megaore Technology to Shanghai Jingheheng Technology Co., Ltd. at a price of approximately 11.3062 yuan per share, for a total consideration of 539 million yuan. After the transfer, Jingheheng will become the controlling shareholder, and Qu Jialin will become the actual controller. The company also plans to acquire partial control of Shenzhen Bainei Technology Co., Ltd. through share issuance and cash payment, along with raising matching funds. Bainei Technology provides electronic equipment and server testing, repair, maintenance, and operation services. The company aims to enter the server infrastructure technical services field, fostering new growth points.

CATL (Contemporary Amperex Technology Co., Ltd.): Plans to invest 2.475 billion yuan in Hainan green industry fund

On August 12, CATL signed a partnership agreement to invest as a limited partner in the "Hainan Times Green Industry Investment Fund Partnership (Limited Partnership)" with a capital commitment of 2.475 billion yuan, holding a 49.5% stake. The fund focuses on green and zero-carbon industries in Hainan province.

Earnings Highlights

Dahu Lake Co., Ltd. reported a net profit of 16.88 million yuan for the first half of 2026, turning around from a loss of 2.57 million yuan in the same period last year. Baofeng Energy Group reported a net profit of 9.728 billion yuan, up 70.14% year-over-year, with revenue increasing 32.33% to 30.198 billion yuan, and plans a dividend of 0.42 yuan per share. Shenma Power Co., Ltd. reported a net profit of 215 million yuan, up 34.01% year-over-year, with revenue of 895 million yuan. Xiaocheng Technology Co., Ltd. reported a net profit of 55.708 million yuan, up 31.24% year-over-year, with revenue of 315 million yuan. Yihai Kerry Arawana Holdings Co., Ltd. reported a net profit of 2.294 billion yuan, up 30.69% year-over-year, with revenue of 122.852 billion yuan. Quectel Wireless Solutions Co., Ltd. reported a net profit of 602.318 million yuan, up 27.84% year-over-year, with revenue of 15.259 billion yuan, and plans a dividend of 0.47 yuan per 10 shares. Zhongguang Lightning Protection Co., Ltd. reported a net profit of 12.048 million yuan, up 12.82% year-over-year. Ligong Nengke Co., Ltd. reported a net profit of 120 million yuan, up 9.59% year-over-year, with revenue of 420 million yuan, and plans a dividend of 0.34 yuan per 10 shares. SPD Bank reported a net profit of 30.951 billion yuan for the first half of 2026, up 4.08% year-over-year, with revenue of 93.777 billion yuan.

Share Issuance and Restructuring

Speed Wireless Technology Co., Ltd. plans to raise up to 1.096 billion yuan through a private placement for server heat dissipation modules, smart glasses lightweight RF components, and low-orbit satellite communication antennas. Chengdi Xiangjiang Co., Ltd. is in discussions to terminate a private placement agreement with China Energy Engineering Group (Beijing) Smart Computing Technology Co., Ltd. The termination is not expected to materially impact daily operations.

Important Matters

Zhongding Co., Ltd. clarified that a strategic cooperation agreement signed with Tencent Cloud on August 10 is a framework agreement with no substantive content yet, and it does not meet the threshold for mandatory disclosure. Julong Co., Ltd. stated that its RV reducer sales revenue was 8.37 million yuan in 2025, accounting for 1% of total revenue, with limited impact on performance. Southeast Electronic Co., Ltd. plans to repurchase shares worth 14 million to 28 million yuan for equity incentives. Han’s Pharm Co., Ltd. signed a cooperation agreement with San Sheng Madi for the development and commercialization of semaglutide injection for blood glucose control. Tianwei Digital Co., Ltd. plans to cooperate with Shenzhen Radio and Television Group on space design and construction projects. Mingyang Circuit Technology Co., Ltd. received approval from the Shenzhen Stock Exchange for its application to issue convertible bonds. Weihua Xincai Co., Ltd. plans to repurchase shares worth 80 million to 120 million yuan for employee stock ownership plans. Chunfeng Power Co., Ltd. has received cumulative tariff refunds of $38.6079 million from the U.S., expected to impact 2026 net profit by approximately 183.45 million yuan. Gongdong Medical Co., Ltd. has received cumulative tariff refunds of $940,689.10 from the U.S., expected to impact current earnings. Dasheng Culture Co., Ltd. plans to transfer its 100% stake in Wuxi Zhonglian Chuanbo Culture Communication Co., Ltd. at a base price of 1 yuan. China Merchants Energy Shipping Co., Ltd. saw its subsidiary accumulate a 14.94% stake in Antong Holdings, proposing to reorganize the board. Zijin Mining Group announced a dividend of 0.42 yuan per share for A-share holders, with the ex-dividend date on August 21. Central China Securities Co., Ltd. plans to invest 20 million yuan through its subsidiary in a digital equity fund focused on Luoyang cultural tourism assets.

Suspension and Resumption

Resumption: Megaore Technology (300333). Suspension: None.