China's first-half GDP growth of 5.3% significantly outpaced last year's 5.0% expansion, making the annual target of around 5% highly achievable. Global equities broadly advanced, with Hong Kong stocks climbing 1.6% in volatile trading. However, the Shanghai Composite underperformed due to structural constraints. Market reaction remained muted to former U.S. President Trump's announcement of potential 100% tariffs on Russian goods and secondary tariffs on nations purchasing Russian oil unless Ukraine negotiations conclude within 50 days. This development echoed previous "TACO trade" patterns that historically left markets unfazed. Meanwhile, the EU's proposed €72 billion counter-tariffs on U.S. goods represented defensive posturing rather than substantive escalation, reflecting Europe's continued hope for negotiated solutions given its reliance on U.S. mediation in Ukraine.

A notable market shift emerged as major technology firms previously embroiled in cutthroat competition stabilized. The Zunyi Catering Association's petition highlighted how platforms like Ele.me were disrupting market equilibrium through extreme subsidies like "zero-yuan purchases" and "18-yuan discounts," forcing restaurants into participation-or-oblivion dilemmas while devastating dine-in establishments. Though regional, this appeal signals systemic concerns likely to attract regulatory attention. Commerce Vice Minister Sheng Laiyun subsequently emphasized advancing national market integration while curbing disorderly price wars—a clear signal to industry giants despite avoiding direct naming. This regulatory tailwind propelled Alibaba (09988) nearly 7% higher, while Meituan (03690) and JD.com (09618) gained over 4% and 2% respectively. TENCENT (00700) and Kuaishou (01024) advanced 3.5% and 4.44%.

Nvidia's resurgence, fueled by U.S. approval for H20 chip exports to China, catalyzed AI infrastructure plays. This pragmatic policy shift likely resulted from industry lobbying acknowledging containment futility while strategically limiting technological capabilities. The momentum ignited PCB manufacturers like July stock pick Kingboard Laminates (01888), up nearly 5%. AI infrastructure investments accelerated globally as Trump unveiled plans for $70 billion in AI and energy projects spanning data centers, power generation, and grid upgrades. Meta's parallel commitment to building history's largest data center with hundreds of billions signaled intensified computational arms racing. China's inevitable countermeasures boosted computing power stocks like GDS Holdings (09698) and SUNeVision (01686), surging over 12% and 7%. Optical fiber leader YOFC (06869) rose 4% on infrastructure demand.

Meta's potential pivot from open-source to proprietary models could widen China's advantage through platforms like DeepSeek, elevating domestic AI application developers. The World Digital Academy's newly released "AI Agent Operational Security Standards" at UN Geneva further catalyzed the sector. Stocks including Minffs (02556), Asiainfo (01675), Kingdee (00268), Mingyuan Cloud (00909), 4Paradigm (06682), and Yidu Tech (02158) all gained over 5%. Intelligent agent proliferation simultaneously accelerated cloud adoption, with Kingsoft Cloud (03896) skyrocketing 16% as Xiaomi and Kingsoft allocated increasing AI computing budgets. VSTECS (00856) surged 11% on AI momentum and stablecoin payment solution exploration.

Apple supply chain activity intensified with TF Securities analyst Ming-Chi Kuo reporting Samsung Display's crease-free technology would enable foldable iPhone production by late 2026. UBS projected premium pricing between $1,800-$2,000 with initial output capped at 10-15 million units. Foxconn's rumored exclusive assembly contract targets 8-10 million units for 2026, doubling by 2027. FIH Mobile (02038) leapt 7%, while hinge component maker Tongda Group (00698) rose over 6%. Other suppliers including Cowell E (01415) and AAC Tech (02018) gained over 5%.

Pharmaceutical momentum persisted as China initiated its 2025 national drug reimbursement catalog adjustments, crucially adding a parallel commercial insurance pathway for innovative drugs facing reimbursement barriers. Leaders including Sino Biopharm (01177), BeiGene (06160), RemeGen (09995), and Innovent (01801) posted significant gains. Firms like Chunlizhengda (01858), Hansoh Pharma (03692), and Livzon Pharma (01513) benefited from new procurement cycles.

The inaugural China International Game Developers Conference will debut in late July, featuring the "One-Country Access" overseas expansion guide covering Japan, South Korea, UK, France, and Finland. Concurrent establishment of Shanghai's "Game Globalization Research Center" will facilitate compliance navigation and geopolitical risk mitigation. Chinese publishers increased global market share from 22% (2018) to 28% (2024), claiming 12 of last year's top 16 new game launches. Key beneficiaries include TENCENT (00700), NetEase (09999), Kingsoft (03888), BILIBILI-W (09626), and NetDragon (00777).

YOFC (06869) exemplifies growth through global infrastructure expansion. First-quarter revenue surged 21.23% to RMB2.89 billion, with net profit rocketing 161.91% to RMB152 million. Overseas revenue expanded from RMB398 million (2014) to RMB4.12 billion (2024), representing 33.79% of total income. International deployments include 7,000km Philippine fiber networks covering 2.7 million people, 14,000km Indonesian infrastructure serving 1.1 million households, and Peru's national broadband project installing 9,800km cables for over 1 million users. Technological leadership in G.654.E fiber (over 1 million core-km deployed globally) and multi-core fiber solutions positions YOFC advantageously. Automotive innovations include 50Gbps in-vehicle systems and distributed battery monitoring, validated through 12,000km road tests with Dongfeng. Since 1988, cumulative fiber production exceeded 1.1 billion core-km, serving 3 billion people globally. Hollow-core fiber trials with telecom operators and internet giants show globally leading metrics. With AI demand and premium product mix, YOFC anticipates sustained revenue and profit inflection.