[Today's headlines]
Ministry of Commerce spokesman answers reporters' questions about the US not continuing the Hong Kong-related state of emergency
A reporter asked: I am concerned that up to now, the US has not continued the Hong Kong-related national emergency in the “Presidential Executive Order for the Normalization of Hong Kong” which expires on July 14. Does this mean that the Hong Kong-related Executive Order has been terminated? What comments does the Chinese side have on this? A: The Chinese side has taken note of the relevant situation. In the Sino-US Madrid economic and trade negotiations, the US side made commitments on issues relating to Hong Kong, investment, etc. Recently, the US side has confirmed to the Chinese side that the state of emergency relating to Hong Kong in Executive Order No. 13936 will not continue after it expires this year, and the executive order will be terminated. The relevant actions of the US side are an important step in implementing the bilateral economic and trade agreement. China appreciates this.
Maintaining Hong Kong's prosperity and stability is in the common interest of China and the US. The adjustment of the US side's policy relating to Hong Kong in a positive direction is also in line with the general expectations of the international community. We hope that the US side will strictly abide by relevant international conventions and mutual consensus, respect China's sovereignty and the rule of law in the Hong Kong Special Administrative Region, resume and strengthen normal economic and trade exchanges with the Hong Kong Special Administrative Region, and play a positive role in building a constructive strategic and stable relationship between China and the US.
Note: The executive order requires US pensions, sovereign funds, large investment banks and asset management institutions to classify Hong Kong stock Chinese enterprises as high-risk assets, forcing internal risk control to lower the upper limit of Hong Kong stock allocations, and passively reduce long-term capital holdings, restricting the entry of new capital, directly boosting the risk premium on Hong Kong stocks, which has become a legal reason for foreign investors to continue to avoid Hong Kong stocks and geographically discount Hong Kong stock valuations over the past five years. It is an important policy shackle for Hong Kong stock valuations that have continued to be pressured and liquidity contracted over the past five years. With the end of this executive order, the “stone” that has suppressed Hong Kong stocks for many years has finally come to fruition.
[General outlook]
The three major US stock indices collectively fell last Friday, and large technology stocks generally fell
Overnight, the Dow Jones Industrial Average fell 406.55 points to close at 52146.42 points, or 0.77%, down 0.93% last week; the S&P 500 stock index fell 76.08 points, or 1.01%, to close at 7457.69 points, down 1.55% last week; the Nasdaq Composite Index fell 361.71 points to close at 25520.24 points, or 2.9% last week.
Big tech stocks generally fell, SpaceX fell more than 5%, and Nvidia, Meta, Tesla, and Google fell more than 2%. The Philadelphia Semiconductor Index closed down 1.63%, down 20.2% from the all-time high set on June 22, and entered a technical bear market. Among storage concept stocks, Seagate Technology rose more than 5%, Western Digital rose more than 2%, SK Hynix rose more than 1%, and SanDisk fell more than 4%.
The lithium ore, oil and gas, and energy storage sectors rose higher. Chilean mining and chemical industries rose more than 5%, Total rose more than 3%, and Petrobras and Shell rose more than 2%.
The Nasdaq China Golden Dragon Index closed down 1.81%, most popular Chinese securities fell, and the Hang Seng ADR rose. On a proportional basis, it closed at 24642.89 points, up 80.65 points or 0.33% from the Hong Kong closing.
WTI crude oil futures on the New York Mercantile Exchange rose $3.49 for the month to close at $81.77 a barrel, or 4.46%. COMEX gold futures rose by $30.90, or 0.77%, to $4023.0 per ounce during the month.
[Hot Topics Preview]
The China Securities Regulatory Commission held a symposium today to promote the stable and healthy development of the market
The Securities Times reporter learned that a number of market institutions received notifications from the supervisory authorities yesterday and will attend the Securities Regulatory Commission symposium today. The purpose of this discussion is for the Securities Regulatory Commission to listen to opinions and suggestions from all parties on promoting the stable and healthy development of the market. On the evening of July 19, China Guoxin announced that it had used special reloans and supporting capital to repurchase shares to increase holdings by more than 50 billion yuan to maintain market stability. On the same day, China Chengtong announced that it has recently purchased a total of nearly 10 billion yuan in Chinese stock assets. China Guoxin and China Chengtong both said that in the future, every effort will be made to maintain the smooth operation of the capital market. The two major central enterprises took action and used real money to express their confidence in China's asset resilience and value center. In connection with the recent wide turbulence in the A-share market, especially the rapid correction in the technology sector, many investors are very concerned: Will there be any new developments in market fundamentals? Senior industry insiders believe that market fundamentals have been generally stable recently, there have been no significant changes, and adjustments have been greatly affected by mood swings. Judging from historical experience, the A-share market is often overadjusted due to heightened sentiment. At this time, confidence in the intrinsic value and support of Chinese assets should be strengthened.
Three departments: classification step by step to resume levying consumption tax on some batteries
From September 1, 2026, consumption tax will be levied on mercury-free primary batteries, metal hydride nickel batteries (also known as hydrogen-nickel batteries or nickel-metal hydride batteries), lithium primary batteries, lithium-ion batteries, and all-vanadium liquid flow batteries; from September 1, 2027, consumption tax will be levied on these battery products at a 4% rate. From April 1, 2027, consumption tax will be levied on photovoltaic cells (also known as solar cells) at a 2% rate; from April 1, 2028, consumption tax will be levied on photovoltaic cells at a 4% rate.
The Ministry of Industry and Information Technology organized a symposium for key automobile manufacturers to demand resolutely resisting irrational competition and strengthening product testing, verification and safety assessments
On July 17, the Equipment Industry Division I of the Ministry of Industry and Information Technology organized a symposium for key automobile manufacturers to deploy key tasks such as further standardizing the competitive order of the automobile industry, improving the consistency and quality and safety level of automobile product production, and carrying out investigation, supervision and inspection of hidden safety risks of automobile products.
China Guoxin announced an increase in stock holdings
China Guoxin Holdings Co., Ltd. is firmly optimistic about the development prospects of China's capital market and firmly supports the scientific and technological innovation and high-quality development of central enterprises. The relevant entities of its Guoxin Investment Co., Ltd. have used special reloans and supporting capital of more than 50 billion yuan to maintain market stability. In the future, they will continue to make good use of reloans as a policy tool, and continue to increase their holdings of central enterprise shares with their own capital, resolutely uphold the strategic value of the capital market's core assets, and resolutely maintain the smooth and healthy operation of the capital market.
China Chengtong substantially increased its holdings of Chinese stock assets
China Chengtong and its affiliated Chengtong Capital and Chengyang Investment are focusing on state-owned central enterprises to increase their holdings of Chinese stock assets by a large amount, with a cumulative purchase of nearly 10 billion yuan. China Chengtong is firmly optimistic about the prospects of the Chinese economy and China's capital market. In the future, it will continue to use its own capital and stock repurchases to increase its holdings and reloans to significantly increase its holdings of state-owned central enterprises and technology companies' stocks and ETFs, making every effort to maintain the smooth operation of the capital market.
Air China (00753) and its subsidiary Shenzhen Airlines plan to purchase 55 aircraft with a total catalogue price of US$12.44 billion
Air China (00753) announced that on July 17, 2026, the Company and Air China Import and Export Corporation entered into an Air China aircraft purchase agreement. According to this, the Company has agreed to purchase 15 Airbus A350-900 aircraft from Airbus; and Shenzhen Airlines, a subsidiary of the Company, signed a Shenzhen Airlines aircraft purchase agreement with Airbus. According to this, Shenzhen Airlines has agreed to purchase 40 Airbus A320NEO series aircraft from Airbus.
Kweichow Moutai: Increased retail price and contract price of the Flying Moutai i-Moutai platform
Kweichow Moutai announced that starting at 00:00 on July 18, 2026, the company will adjust the retail price of Feitian 53% vol500ml Kweichow Moutai (2026) from 1,539 yuan/bottle to 1,639 yuan/bottle, and the sales contract price will be adjusted from 1,269 yuan/bottle to 1,369 yuan/bottle. This price adjustment will have a certain impact on the company's operating performance. It involves the liquor sector.
The “Shangtang” computing power satellite will be first networked in 2026 and the “Shangtang Space Computing Constellation” will be built in 2030
On July 18, at WAIC 2026 Shangtang Technology's “Foundation Big Model Architecture Innovation and Ecological Cooperation Forum”, Shangtang Dacheng signed a strategic cooperation agreement with Chengdu Guoxing Aerospace Technology Co., Ltd. The two sides announced the joint construction of the Shangtang Computing Power Constellation. The scale of the constellation is expected to reach tens of thousands of P, to jointly promote AI infrastructure from terrestrial 10,000 card clusters to multi-star collaboration in orbit, and build a global AI infrastructure system integrating the world and earth. According to reports, the two sides will follow the path of “single star verification - platform construction - constellation into a network” in stages. It is expected that in 2026, the “Shangtang” series of computing power satellites will complete the first merger; by 2030, the two sides will build the “Shangtang Space Computing Constellation” composed of 1,000-class computing power satellites with a total computing power exceeding 10,000 P.
Excellent Ruixin (02687) signs cooperation framework agreement with Volcano Engine to focus on AI-enabled education
Zhitong Finance App News, Zhuoyue Ruixin (02687) issued an announcement. The company signed a cooperation framework agreement (framework agreement) with Beijing Volcano Engine Technology Co., Ltd. (Volcano Engine, together with the Company, collectively known as the “Contractor”) on July 20, 2026. The two sides will develop in-depth collaboration around the four core areas of “big model knowledge empowerment, factual integration training, AI audio and video interactive teaching, and digital talent development”, with the aim of exploring an intelligent industrial cooperation model combining industry knowledge, AI technology, and physical physics scenarios.
Lee's Pharmaceuticals (00950) entered into an exclusive licensing and supply agreement with ASHLINS for interferon ALPHA-2B products outside of Greater China
Under the agreement, the company agreed to license and supply interferon alpha-2b to Ashlins to develop and commercialize drugs for the diagnosis, prevention or treatment of certain human diseases in all regions other than mainland China, Hong Kong, Macau and Taiwan. The company will receive an advance payment and can receive additional development milestone payments based on specific achievements and annual commercialization milestone payments after commercialization.
Wutong International (00613) expects shareholders' profit to account for about HK$600 million in the first half of the year, a sharp increase of 555% over the previous year
Profit attributable to shareholders increased significantly during this period, mainly driven by increases in net fair value earnings on financial assets and business revenue, as well as an increase in positive contributions to the performance of associated companies.
Anton Oilfield Services (03337): New orders of 3.109 billion yuan increased by 3.2% year-on-year in the second quarter
Anton Oilfield Services (03337) issued an announcement. In the second quarter, the situation in the Middle East gradually eased, but regional conflicts and security risks still exist. Major energy transportation channels have gradually been restored, disruptions in the global supply chain have been marginally mitigated, and regional uncertainty remains high. OPEC+ continues to increase production in stages, and the market shows a pattern where phased supply easing and inventory restoration coexist. Oil prices tend to fluctuate around $70 per barrel after falling back from a high level in the game between supply and demand rebalancing and macroeconomic expectations. Production resumed in the Middle East, and demand for upstream oil and gas investment and services was strong.
Beautiful Garden Healthcare (02373) Fa Yingxi expects net profit for the medium term to be no less than 235 million yuan, a year-on-year increase of no less than 37%
According to Zhitong Finance App, Beautiful Garden Healthcare (02373) announced that the Group expects to record the following financial results for the six months ending June 30, 2026 (reporting period): (i) revenue of no less than RMB 1.88 billion, an increase of no less than 28% over the same period in 2025; (ii) adjusted net profit of not less than RMB 260 million, an increase of no less than 36% over the same period in 2025; and (iii) net profit of not less than RMB 235 million, an increase of no less than 37% over the same period in 2025.
[Individual stock prices are clear]
Anta (02020): Release operating data for the second quarter of 2026, multi-brand resilience development
Anta Sporting Goods Co., Ltd. released operating data for the second quarter and first half of 2026.
The Anta brand achieved positive year-on-year growth in the number of low and medium units in both the second quarter and the first half of this year, healthy inventory and stable retail discounts, and continued to outperform the overall level of the industry. Despite uncertainty in the macro-consumption environment, the brand has maintained a good growth trend in professional sports categories such as running and outdoor activities.
The FILA brand showed strong resilience, and achieved positive year-on-year growth in the number of low and medium units in the second quarter and the first half of the year, respectively. During the reporting period, the two major sports mentality of tennis and golf continued to be strengthened, and product system and retail store upgrades progressed steadily. During the “618” period this year, FILA's performance was still outstanding, continuing to rank first in all categories of mainstream e-commerce platforms.
Other brands, represented by DESCENTE (Descente) and KOLON SPORT (Colon), performed particularly well. Retail sales in the second quarter and the first half of the year achieved year-on-year growth of 25% to 30% and 35% to 40%, respectively, and also performed well among leading brands.
On June 29, the State Council approved the “Fifteenth Five-Year Plan” to build a strong sports nation, clearly proposing improving the national fitness public service system and speeding up the upgrading of the sports industry, opening up a policy window for long-term growth for the sports footwear industry. According to the analysis of brokerage research reports, other brands are gradually growing from small and high-growth sectors to important engines driving both the Group's revenue and profit growth.
Citi expects that after completing the acquisition of Puma, Anta Sports will technically merge Puma's business in China and make a positive profit contribution to Anta throughout 2027. The bank anticipates that the potential positive contribution of Puma's business in China will largely offset the negative impact of Anta Associates' business line in 2027 (associated with its 29% stake in Puma). As a result, Citi raised Anta's 2026 and 2027 net profit forecasts by 2% and 3%, respectively.