Top Headlines: State Council Advocates Systematic Digital China Development, Accelerates New-Generation Communication and Computing Networks

The State Council convened an executive meeting to discuss the progress of Digital China construction. The meeting emphasized the need to systematically advance the development of Digital China, accelerate the construction of new-generation communication and computing networks, and comprehensively empower economic and social development. It called for enhanced research in cutting-edge technologies and improved capabilities in assessing and preventing new types of security risks. The meeting also highlighted the importance of promoting the large-scale development of emerging pillar industries across the entire value chain, strengthening fundamental research and breakthroughs in key software and hardware, supporting multi-technology route layouts, emphasizing application-driven innovation, and accelerating technological iteration and ecosystem improvement. It further stressed the need to strengthen factor guarantees, optimize regulatory models, and guide different regions to develop according to local conditions and differentiated advantages.

Market Outlook: SK Hynix Makes Strong US Debut, Closes Up 12.76% on First Day

Overnight, US markets closed higher. The Dow Jones Industrial Average rose 149.68 points, or 0.29%, to 52,637.09. The Nasdaq Composite gained 74.72 points, or 0.28%, to 26,281.61. The S&P 500 increased by 31.61 points, or 0.42%, to 7,575.25. For the week, the S&P 500 accumulated a gain of 1.23%, the Nasdaq rose 1.74%, while the Dow fell 0.50%. SK Hynix's ADR surged 12.76% on its US market debut. NVIDIA Corp (NVDA.US) rose 4.03%, Micron Technology, Inc. (MU.US) fell 1.24%, SanDisk (SNDK.US) gained 3.10%, and Meta Platforms, Inc. (META.US) advanced 5.97%. The global HBM memory leader, SK Hynix, saw its ADR close up 12.76% on its first trading day, surpassing Micron's market capitalization. The Nasdaq Golden Dragon China Index closed down 0.23%, with popular Chinese stocks showing mixed performance. The Hang Seng Index ADR rose, indicating a potential increase of 112.33 points or 0.46% to 24,287.45 compared to the Hong Kong close. The New York Mercantile Exchange WTI crude oil front-month contract fell $0.57, or 0.79%, to $71.51 per barrel. COMEX gold front-month contract dropped $11.90, or 0.29%, to $4,128.9 per ounce.

Key Developments to Watch: State Council Approves "15th Five-Year" Plan for Traditional Chinese Medicine Revitalization

The State Council has approved the "15th Five-Year" Plan for the Revitalization and Development of Traditional Chinese Medicine. The plan emphasizes unwaveringly following the path of health development with Chinese characteristics, implementing the health work policy for the new era, upholding the equal importance of Chinese and Western medicine, maintaining integrity and innovation, adhering to the laws and characteristics of TCM, improving the mechanism for its inheritance, innovation, and development, accelerating TCM modernization, and promoting TCM globally.

National Electricity Load Hits Record High of 1.518 Billion Kilowatts

This year, the national economy has continued to develop with new and improved qualities, the level of end-use electrification has steadily increased, and coupled with recent high temperatures across many regions, power loads have risen rapidly. On July 10, the national electricity load reached a record high for the year, peaking at 1.518 billion kilowatts, an increase of 10 million kilowatts from the previous historical peak. Since the start of summer, the power grids in the southern region and in provinces including Guangdong, Guangxi, Hainan, Ningxia, Gansu, Fujian, and Shaanxi have seen their electricity loads exceed historical highs more than 20 times cumulatively. This involves Hong Kong-listed power and power distribution equipment sectors.

Sinopec Completes Restructuring of China Aviation Oil, Making It a Second-Tier Wholly-Owned Subsidiary

It was reported that China Petroleum & Chemical Corporation (Sinopec) has announced the completion of the restructuring of China Aviation Oil, which has now officially become a second-tier wholly-owned subsidiary of Sinopec. This is a significant move in advancing the strategic and specialized restructuring of central state-owned enterprises and represents proactive action to serve national strategy and address international competition.

Xinjiang Xinxin Mining Industry Co., Ltd. (03833): Xinjiang Nonferrous Metals Intends Strategic Restructuring with Xinjiang Geology and Minerals

As of now, the above matter does not involve a major asset restructuring of the company, does not currently involve a change in the company's controlling shareholder or actual controller, and is not expected to have a significant impact on the company's normal production and operations. The company's production and operations are currently proceeding normally. The company will disclose information in a timely manner according to relevant regulations as the matter progresses. Both Xinjiang Nonferrous Metals and Xinjiang Geology and Minerals are enterprises ultimately controlled by the State-owned Assets Supervision and Administration Commission of the Xinjiang Uygur Autonomous Region People's Government.

Xun Chi Limited (03317) Enters into Strategic Cooperation Memorandum with Lutech

Xun Chi Limited (03317) announced that Lutech is a leading Italian digital and artificial intelligence services company and a core service provider in the European digital and AI field, offering digital transformation solution design, implementation, and operational management services to enterprises and institutions across various industries. This strategic cooperation marks a significant step for the group's data tokenization capabilities into overseas markets and represents a major breakthrough in advancing the international deployment of its TokenOS operating system and tokenized business model, as well as participating in the construction of global AI data infrastructure.

Ganfeng Lithium Group Co., Ltd. (01772) Receives "Decision of Non-Prosecution" from Procuratorate

Ganfeng Lithium Group Co., Ltd. (01772) announced that on December 29, 2025, the company received a notice of transfer for prosecution from the Yichun Public Security Bureau, stating that as the company was suspected of unit crime involving insider trading, the case had been transferred to the procuratorate for review and prosecution. On July 10, 2026, the company received a "Decision of Non-Prosecution" from the Jiangxi Yichun People's Procuratorate. According to relevant laws and regulations, the decision was made not to prosecute the company.

51World Limited (06651): Officially Establishes Strategic Cooperation in Aerospace Field with Huantian Intelligence

51World Limited (06651) announced that recently, the company and Huantian Intelligence Technology Co., Ltd. (Huantian Intelligence) have officially established strategic cooperation in the aerospace field. Huantian Intelligence is a leading domestic commercial aerospace enterprise focused on the overall development and in-orbit operation of space-based Earth observation remote sensing satellites, and is also the largest commercial aerospace entity in Southwest China with full independent and controllable capabilities in building and operating remote sensing satellite constellations. The two companies will collaborate on the collection of high-precision satellite remote sensing data and the reconstruction of "physically usable" data assets, and jointly customize the world's first commercial remote sensing satellite designed specifically for physical AI training and simulation applications—the Earth Clone Star "ECS-1". This cooperation marks the first deep collaboration at the satellite payload level between China's physical AI industry and commercial aerospace.

Huaqin Technology Co., Ltd. (03296) Acquires Approximately 1.6282 Million H Shares of Nexchip for About HK$56.41 Million

Following the completion of the acquisition and as of the date of this announcement, the group holds approximately 10.00% of the total issued share capital of Nexchip Semiconductor Corporation (02249). The acquisition demonstrates the group's continued confidence in the future development prospects and long-term investment value of Nexchip.

Basic Semiconductor Co., Ltd. (09971): Partial Product Prices Expected to Increase by Up to 25%

It was reported that Basic Semiconductor Co., Ltd. (09971) announced that since 2026, with the rapid development of global emerging applications such as artificial intelligence (AI) and new energy vehicles, market demand has continued to grow, and industry supply-demand relationships have remained tight. After comprehensive evaluation of the market environment, cost changes, and overall business strategy, the group will implement appropriate adjustments to the sales prices of some products starting from the third quarter of 2026 to support continued R&D investment and ensure product quality and supply stability. The expected price increase for some products will not exceed 25%. Specific adjustment plans will be determined based on factors such as product category, order size, cooperation model, market region, and mutual commercial arrangements, and will be implemented in an orderly manner with relevant customers.

CITIC SEC (06030): Forecasts 69.59% Year-on-Year Increase in First-Half Net Profit

CITIC SEC (06030) announced that it expects net profit attributable to the parent company's owners for the first half of 2026 to be RMB 23.343 billion, a year-on-year increase of 69.59%. The performance change is mainly attributed to the stable and positive capital market in the first half of 2026, with the company's various businesses developing synergistically, achieving record-high operating results for the same period. Note: Based on an estimated Q2 net profit of RMB 13.127 billion and a Q1 net profit of RMB 10.216 billion, Q2 net profit is estimated to have increased by approximately 28% quarter-on-quarter.

Muyuan Foods Co., Ltd. (02714) Issues Profit Warning, Expects H1 Net Loss of RMB 5.7-6.7 Billion, Turning from Profit to Loss Year-on-Year

It was reported that Muyuan Foods Co., Ltd. (02714) announced that the company expects to incur a net loss of RMB 5.7 billion to RMB 6.7 billion for the six months ended June 30, 2026, compared to a net profit of RMB 10.79 billion in the same period last year.

China Molybdenum Co., Ltd. (03993) Issues Profit Alert, Expects H1 Net Profit Attributable to Parent to Increase 78.76% to 90.29% Year-on-Year

The company expects to achieve net profit attributable to the company's owners, excluding non-recurring gains and losses, of RMB 15.0 billion to RMB 16.0 billion for the first half of 2026. This represents an increase of RMB 6.276 billion to RMB 7.276 billion compared to the same period last year, a year-on-year rise of 71.94% to 83.40%. In the first half of 2026, the company's main copper product output achieved growth, and comprehensive scale benefits continued to manifest: copper metal output was approximately 388,000 tonnes, a year-on-year increase of about 9.73%. The year-on-year increase in the company's first-half 2026 performance was due to a dual increase in the volume and price of its main copper products, significantly higher prices for molybdenum and tungsten products, and the consolidation of the Brazilian gold mine business, leading to improved performance.

Jiaxin International Resources Limited (03858) Issues Profit Alert, Expects H1 Net Profit Attributable to Shareholders of Approximately HK$1.45-1.55 Billion, Turning from Loss to Profit Year-on-Year

The significant increase in net profit attributable to equity holders is attributed to two main reasons: (1) The group commenced commercial production in April 2025, and the comparable period in 2025 had less than 2 months of production time, whereas the current period achieved a full 6 months of production; (2) Following commercial production, the average selling price of tungsten concentrate rose substantially during the current period.

Guoen Technology Co., Ltd. (02768) Issues Profit Alert, Expects H1 Net Profit Attributable to Parent of RMB 600-750 Million, Up 73.48%-116.85% Year-on-Year

The company accurately assessed trends in the upstream petrochemical raw material market. Relying on its vertically integrated layout across the entire industrial chain from "monomers - synthetic resins - organic polymer modification/composite materials - finished products," it ensured the resilience of its core raw material supply chain, consolidated cost advantages, and fully released the synergistic value of the entire chain. New achievements were made in the technological iteration of its core product, the HP-RTM ultra-thin lightweight battery pack technology, with key breakthroughs in market expansion. Strategic cooperation with leading customers continued to deepen, new customer development progressed orderly, order books were ample, and product scaling achieved significant results.

China CSSC Holdings Limited (00317) Expects H1 Net Profit Attributable to Parent to Increase 50.08% to 69.08% Year-on-Year

The shipbuilding industry continues its high景气 operation. The company's order book structure is continuously optimized, and production tasks on hand are ample. The operating performance of associated enterprises has significantly improved, and the dividend level of invested companies has steadily increased, leading to a substantial year-on-year increase in recognized investment income.

Stock Spotlight: Hansoh Pharmaceutical Group Company Limited (03692): HS-20093 Phase III Clinical Study for Small Cell Lung Cancer Meets Primary Endpoint

Hansoh Pharmaceutical Group Company Limited (03692) announced that its self-developed B7-H3-targeting antibody-drug conjugate (ADC) HS-20093 met the primary endpoint of overall survival (OS) in the pivotal Phase III clinical trial (ARTEMIS-008) for patients with small cell lung cancer (SCLC) who progressed after or relapsed following platinum-based therapy. At the pre-specified interim analysis, compared to topotecan, HS-20093 demonstrated a statistically significant and clinically meaningful improvement in OS. Consistent benefits were also observed in secondary clinical endpoints including progression-free survival (PFS). The safety profile was consistent with previous study results, with no new safety signals identified. Based on these positive results, the group will initiate communication with regulatory authorities in the near future to advance the preparation of a new drug application in China. Detailed data from the ARTEMIS-008 study are expected to be presented at future international oncology academic conferences.