Nominal 
【Headlines】
1. Diplomatic developments in the U.S.-Iran conflict have still not been sufficient to dispel market concerns, coupled with high oil prices potentially pushing inflation higher, leading U.S. stocks to close lower on Tuesday (11th). Investors are focusing on the U.S. July Consumer Price Index (CPI) report due Wednesday (12th) to assess whether the Fed's interest rate path will be further impacted by energy prices. The three major U.S. indices traded in narrow ranges throughout the day. The Dow briefly rose over 240 points early in the session but then turned lower, closing down 184.13 points, or 0.34%, at 53,791.85 points; the S&P 500 fell 24.91 points, or 0.32%, to 7,728.2 points; the Nasdaq dropped 159.91 points, or 0.6%, to 26,445.45 points. The Nikkei opened at 67,172 points, up 202 points.
2. Pakistan stated that the U.S. and Iran are close to reaching some arrangement on the Strait of Hormuz issue, but according to Iranian state media, an adviser to Iran's Supreme Leader said the strait will remain closed until Tehran's conditions are met. White House officials revealed that Trump believes there is no need to rush into an agreement.
3. According to Bloomberg Economics, key munitions used by the U.S. in the Iran conflict have dwindled to "dangerous" levels, and replenishing stockpiles could take several years.
4. UBS data shows that commodity trading advisors' short positions on global bonds have reached a record high. If the upcoming U.S. CPI report drives bond prices higher, such trades could face massive losses.
5. The U.S. Securities and Exchange Commission is preparing to launch two major initiatives in the coming days, including an innovative exemption for tokenized stocks that could reshape the U.S. market landscape and pave the way for round-the-clock stock trading on blockchains.
6. The Chinese and Indonesian navies will conduct navigation drills in waters east of Taiwan. China stated that the drills aim to enhance joint operational capabilities between the two navies and jointly maintain regional peace and stability.
7. Nvidia (US.NVDA) launched a new open-source model, Nemotron 3.5 Lightning, claiming it could boost agent task completion speed by 30%. The open-source model Nemotron 4 is reportedly under development, with its largest version expected to have at least one trillion parameters, potentially completed by late autumn this year.
8. Nvidia CEO Jensen Huang stated the company will limit risk exposure from its $500 billion AI financing plan by providing 25% residual value guarantees for future projects. If related data centers face operational failure or cannot be sold, Nvidia will cover 25% of the asset's residual value. Nvidia's credit risk indicators have slightly declined.
9. Apple (US.AAPL) is reportedly still on track to launch a new iPhone Pro model with a fresh glass-like design next year, coinciding with the 20th anniversary of the iPhone's debut.
10. SK Hynix (US.SKHY) will resume construction of the second factory at its NAND flash memory production base in Dalian, China, with equipment installation expected to begin as early as November this year. Once operational, local production capacity is expected to increase by approximately 50%.
11. The Trump administration has lifted restrictions on the use of TikTok on federal agency devices, stating it no longer poses a national security threat.
12. After its acquisition deal with Meta (US.META) was halted by Chinese authorities, AI startup Manus said it will soon resume operations as an independent company.
【Stock Focus】
Tencent (00700)
- To release quarterly results after market close today
GigaDevice Innovation (03986)AI hardware concept: SMIC (00981), ASMPT (00522), Kingboard Laminate (01888)
- Reportedly, SK Hynix resumes construction of the second factory at its Dalian NAND flash memory production base
Auto stocks: BYD (01211), Geely Automobile (00175), Li Auto (02015)
- CPCA data shows China's auto exports in July surged 88% year-on-year, meaning 41% of domestically produced vehicles were exported overseas
Apple-related stocks: Biel Crystal (00285), Sunny Optical (02382), AAC Technologies (02018)
- Apple remains on track to launch a new iPhone Pro model with a glass-like design
Insurance stocks: AIA (01299), Prudential (02378), Manulife (00945)
- According to the Shanghai Securities Journal, amid rumors of mainland taxation on offshore insurance policy returns, industry insiders estimate the short-term surge in purchasing insurance in Hong Kong will significantly cool down
Master Kong Holdings (00322)
- Mid-year net profit rose 7.1% to RMB 2.43 billion, no dividend declared
WH Group (00288)
- Its subsidiary Smithfield reported nearly $500 million in mid-year profit, up 18% year-on-year
MMG (01208)
- Mid-year profit nearly $900 million, a 1.6-fold increase and a record high for the first half, no dividend declared
GenScript Biotech (01548)
- Legend Biotech, its listed affiliate, turned from a loss to a profit of $33.2 million in Q2, with revenue up 52%, exceeding expectations
Tencent Music (01698)
- Q2 net profit rose 2.6% to RMB 2.47 billion, adjusted profit up 4.4%
China Literature Group (00772)
- Mid-year net profit fell 84% to RMB 140 million, no dividend declared
Kingdee International (00268)
- Turned from a loss to a profit of RMB 544.97 million in the mid-year, no dividend declared
HK Electric (02638)
- Mid-year net profit rose 0.2% to HK$1 billion, dividend of 15.94 cents
HSBC Holdings (00005)
- Repurchased nearly 500,000 shares in Hong Kong yesterday for HK$80.87 million
【Oil & Gold Quotes】
NYMEX crude oil up 0.38%, at $83.52/barrel
Brent crude oil up 0.28%, at $89.21/barrel
Spot gold up 0.03%, at $4,370.07/ounce
Gold futures down 0.28%, at $4,428.32/ounce
1. Diplomatic developments in the U.S.-Iran conflict have still not been sufficient to dispel market concerns, coupled with high oil prices potentially pushing inflation higher, leading U.S. stocks to close lower on Tuesday (11th). Investors are focusing on the U.S. July Consumer Price Index (CPI) report due Wednesday (12th) to assess whether the Fed's interest rate path will be further impacted by energy prices. The three major U.S. indices traded in narrow ranges throughout the day. The Dow briefly rose over 240 points early in the session but then turned lower, closing down 184.13 points, or 0.34%, at 53,791.85 points; the S&P 500 fell 24.91 points, or 0.32%, to 7,728.2 points; the Nasdaq dropped 159.91 points, or 0.6%, to 26,445.45 points. The Nikkei opened at 67,172 points, up 202 points.
2. Pakistan stated that the U.S. and Iran are close to reaching some arrangement on the Strait of Hormuz issue, but according to Iranian state media, an adviser to Iran's Supreme Leader said the strait will remain closed until Tehran's conditions are met. White House officials revealed that Trump believes there is no need to rush into an agreement.
3. According to Bloomberg Economics, key munitions used by the U.S. in the Iran conflict have dwindled to "dangerous" levels, and replenishing stockpiles could take several years.
4. UBS data shows that commodity trading advisors' short positions on global bonds have reached a record high. If the upcoming U.S. CPI report drives bond prices higher, such trades could face massive losses.
5. The U.S. Securities and Exchange Commission is preparing to launch two major initiatives in the coming days, including an innovative exemption for tokenized stocks that could reshape the U.S. market landscape and pave the way for round-the-clock stock trading on blockchains.
6. The Chinese and Indonesian navies will conduct navigation drills in waters east of Taiwan. China stated that the drills aim to enhance joint operational capabilities between the two navies and jointly maintain regional peace and stability.
7. Nvidia (US.NVDA) launched a new open-source model, Nemotron 3.5 Lightning, claiming it could boost agent task completion speed by 30%. The open-source model Nemotron 4 is reportedly under development, with its largest version expected to have at least one trillion parameters, potentially completed by late autumn this year.
8. Nvidia CEO Jensen Huang stated the company will limit risk exposure from its $500 billion AI financing plan by providing 25% residual value guarantees for future projects. If related data centers face operational failure or cannot be sold, Nvidia will cover 25% of the asset's residual value. Nvidia's credit risk indicators have slightly declined.
9. Apple (US.AAPL) is reportedly still on track to launch a new iPhone Pro model with a fresh glass-like design next year, coinciding with the 20th anniversary of the iPhone's debut.
10. SK Hynix (US.SKHY) will resume construction of the second factory at its NAND flash memory production base in Dalian, China, with equipment installation expected to begin as early as November this year. Once operational, local production capacity is expected to increase by approximately 50%.
11. The Trump administration has lifted restrictions on the use of TikTok on federal agency devices, stating it no longer poses a national security threat.
12. After its acquisition deal with Meta (US.META) was halted by Chinese authorities, AI startup Manus said it will soon resume operations as an independent company.
【Stock Focus】
Tencent (00700)
- To release quarterly results after market close today
GigaDevice Innovation (03986)AI hardware concept: SMIC (00981), ASMPT (00522), Kingboard Laminate (01888)
- Reportedly, SK Hynix resumes construction of the second factory at its Dalian NAND flash memory production base
Auto stocks: BYD (01211), Geely Automobile (00175), Li Auto (02015)
- CPCA data shows China's auto exports in July surged 88% year-on-year, meaning 41% of domestically produced vehicles were exported overseas
Apple-related stocks: Biel Crystal (00285), Sunny Optical (02382), AAC Technologies (02018)
- Apple remains on track to launch a new iPhone Pro model with a glass-like design
Insurance stocks: AIA (01299), Prudential (02378), Manulife (00945)
- According to the Shanghai Securities Journal, amid rumors of mainland taxation on offshore insurance policy returns, industry insiders estimate the short-term surge in purchasing insurance in Hong Kong will significantly cool down
Master Kong Holdings (00322)
- Mid-year net profit rose 7.1% to RMB 2.43 billion, no dividend declared
WH Group (00288)
- Its subsidiary Smithfield reported nearly $500 million in mid-year profit, up 18% year-on-year
MMG (01208)
- Mid-year profit nearly $900 million, a 1.6-fold increase and a record high for the first half, no dividend declared
GenScript Biotech (01548)
- Legend Biotech, its listed affiliate, turned from a loss to a profit of $33.2 million in Q2, with revenue up 52%, exceeding expectations
Tencent Music (01698)
- Q2 net profit rose 2.6% to RMB 2.47 billion, adjusted profit up 4.4%
China Literature Group (00772)
- Mid-year net profit fell 84% to RMB 140 million, no dividend declared
Kingdee International (00268)
- Turned from a loss to a profit of RMB 544.97 million in the mid-year, no dividend declared
HK Electric (02638)
- Mid-year net profit rose 0.2% to HK$1 billion, dividend of 15.94 cents
HSBC Holdings (00005)
- Repurchased nearly 500,000 shares in Hong Kong yesterday for HK$80.87 million
【Oil & Gold Quotes】
NYMEX crude oil up 0.38%, at $83.52/barrel
Brent crude oil up 0.28%, at $89.21/barrel
Spot gold up 0.03%, at $4,370.07/ounce
Gold futures down 0.28%, at $4,428.32/ounce
