[Today's headlines]
Copper inventories are being eliminated faster than market expectations, and the logic of tight supply and demand is gradually being implemented
Copper inventories in various regions of the Shanghai Futures Exchange fell sharply on July 20, totaling 35,091 tons, down 4,561 tons from the previous day, or about 11.5%. Hongyuan Futures pointed out that tight global copper and sulfur supply and demand expectations are disrupting production and smelting, and domestic electrolytic copper stocks continue to decline, yet repeated concerns about US inflation may heat up expectations of the Federal Reserve's interest rate hike in September, or cause Shanghai copper prices to fluctuate high.
Orient Securities pointed out that although domestic electrolytic copper social inventories were significantly higher in early March 2026 than in 2025, after copper prices fell in March, the inventory removal rate exceeded market expectations. As of July 10, domestic copper social inventories fell from a high of 577,200 tons to 165,000 tons, a drop of 71%. The tight supply and demand logic behind rapid storage is gradually being implemented, and the copper sector trading logic is gradually shifting from expectations to actual transactions.
Copper stocks involve Hong Kong stocks: Jiangxi Copper (00358), China Nonferrous Mining (01258), Minmetals Resources (01208), Luoyang Molybdenum (03993), Zijin Mining (02899), etc.
[General outlook]
Overnight, the three major US stock indexes collectively rose, and large technology stocks generally rose
Overnight, US stocks were up 385.38 points, or 0.74%, to close at 52224.64 points; the S&P 500 stock index rose 65.92 points to close at 7509.2 points, or 0.89%; and the Nasdaq Composite Index rose 329.14 points to close at 25837.21 points, or 1.29%.
Major technology stocks generally rose; Intel and AMD rose more than 8%, ARM rose more than 7%, TSMC rose more than 5%, Oracle rose more than 4%, SpaceX rose more than 3%, Tesla rose more than 2%, and Nvidia rose nearly 2%. The storage sector rebounded strongly, with SanDisk up more than 14%, SK Hynix up more than 13%, the optical communications sector rising across the board, Coherent up more than 11%, and Lumentum up more than 9%.
Most popular Chinese securities fell, and the Nasdaq China Golden Dragon Index fell 0.68%. The Hang Seng Index ADR declined. On a pro rata basis, it closed at 25037.17 points, down 95.12 points or 0.38% from the Hong Kong closing.
WTI crude oil futures on the New York Mercantile Exchange rose $2.06 for the month to close at $84.54 a barrel, or 2.50%. COMEX gold futures rose $66.30 in the same month, or 1.65%, to $40,82.2 per ounce.
[Hot Topics Preview]
The maximum issue price of Zhongji Innotech's Hong Kong IPO is set at HK$1,010 per share
Zhongji Xuchuang announced on the Hong Kong Stock Exchange that it plans to issue 54.5 million H shares (depending on whether the over-allotment right is exercised). The issue price will not be higher than HK$1,010 per share. The price is expected to be set on July 28; trading on the Hong Kong Stock Exchange will begin on July 30.
China Railway (00390) recently won bids for several major projects involving about 56.043 billion yuan
China Railway announced that recently, the company won bids for 18 major projects, with a total bid price of approximately RMB 56.043 billion, accounting for 5.14% of the company's 2025 revenue under China's accounting standards.
Xinwei Medical-B (06609) Fa Yingxi expects adjusted net profit of not less than 70 million yuan in the first half of the year to increase by at least 104.7% year-on-year
The increase in expected performance is mainly due to the increase in earnings due to the Group's products being more widely recognized by the customer base, thereby driving the continued growth in end user demand; the further expansion of the Group's business coverage of hospitals during the reporting period; and rapid revenue growth in the three core businesses (ischemic stroke, hemorrhagic stroke and vascular occlusion). The increase in adjusted net profit was mainly due to an increase in the revenue contribution of high-margin products, which led to an increase in overall gross margin compared to the same period last year; as well as improvements in operating efficiency, sales and distribution expenses and administrative expenses were effectively controlled.
Modern Animal Husbandry (01117) has received valid acceptance of 4.182 billion shares of China Shengmu (01432) under the offer
Taking into account: (i) Hyundai Animal Husbandry Holdings and its co-actors will hold 2.62 billion shares of China Shengmu shares immediately after the completion of the share purchase agreements under all share purchase agreements; and (ii) by accepting shares, Hyundai Animal Husbandry Holdings and its co-actors will hold a total of about 6.803 billion shares of China Shengmu shares, accounting for about 81.17% of all issued China Shengmu shares on the date of this joint announcement. Based on the current level of acceptance, China's Shengmu's public shareholding may not comply with section 13.32B of the listing rules.
Tongyuankang Pharmaceutical-B (02410) joined hands with Qilu to promote the development, production and commercialization of the new drug TY-9591, the latter invested 400 million yuan in strategic shareholding
Tongyuankang Pharmaceutical-B announced that on July 21, 2026 (after the transaction period), the company reached a license and cooperation agreement and supply and commercialization agreement with Qilu or its designated related party to cooperate in the development, production and commercialization of TY-9591 cooperative APIs (i.e. TY-9591 APIs) in China, with the aim of promoting the development, production and commercialization of innovative drugs. According to the license and cooperation agreement, the company will collect a total down payment of approximately RMB 700 million, including proceeds under the subscription agreement of approximately RMB 400 million, and a cumulative total of up to RMB 2.06 billion in milestone payments relating to TY-9591's regulatory approval and expansion of indications.
Wuhan Organic (02881) Fayingxi expects the profit attributable to shareholders in the medium term to be about 87 million yuan to 90 million yuan, an increase of about 124.81% to 132.56% year-on-year
This expected increase is mainly due to a significant increase in the prices of many of the Group's products and the Group's control costs and expenses.
Australia Asia Group (02425) plans to acquire all shares in a dairy manufacturing business company
The cost includes a basic purchase price of RMB 320 million and an adjustment amount, but the maximum purchase price is RMB 350 million. After the restructuring is completed before the transaction is completed, the target company will operate the target business previously operated by the seller. After the transaction is completed, the target company will become a wholly-owned subsidiary of the Company, and the target group's financial performance, assets and liabilities will be consolidated into the Group's financial statements.
[Individual stock prices are clear]
Fast Innovation (03355) Fa Yingxi expects to achieve net profit of about 437.4 million to 464.7 million yuan in the first half of the year, an increase of about 60.1% to 70.1% year-on-year
Fluctuations in the Group's performance are mainly due to the following reasons:
(a) The current global demand for AI computing power clusters and high-speed data center construction continues to be released, driving the boom in the enterprise-level high-speed network infrastructure industry; the Group continues to deepen the network communication hardware and complete solution circuit, adhere to product technology iteration and solution architecture optimization, promote the continuous expansion of the Group's core business order scale, and achieve a steady increase in revenue;
(b) The business structure continues to be optimized, and the market demand for high performance solutions with high added value and suitable for enterprise data centers and AI high-performance computing scenarios is strong. The revenue growth rate in this sector is expected to be about 45.4%, which is significantly higher than the Group's overall revenue growth rate, and the share of this business revenue in the Group's overall revenue is increasing year by year, continuing to drive the overall revenue scale up; and
(c) As the scale of the Group's revenue continues to expand, the scale effect at the operating level has been fully released, and the fixed costs corresponding to unit revenue have been diluted; the overall cost structure of the Group has been continuously optimized, and the scale effect has been highlighted, effectively broadening profit margins.