Despite the massive subscription for Unitree Technology shares today, the market remained unaffected, with Hong Kong stocks jumping 1.05% at the open. With the midterm elections approaching, the pressure on Trump seems to be mounting. After signaling last week that US weapons and ammunition stockpiles were insufficient, a path to de-escalation is being sought. US Treasury Secretary Bessent commented that the Strait of Hormuz is becoming irrelevant, predicting that over 50% to 70% of energy will be transported via underground pipelines. It appears the US has shifted its focus away from the strait. The latest development indicates that Trump is willing to end the war without a nuclear agreement, provided Iran fully reopens the Strait of Hormuz. PACIFIC BASIN (02343) rose over 3% again.

The US non-farm payroll data came in significantly below expectations, with a surprise loss of 23,000 jobs in July against a market expectation of an increase of approximately 80,000. The data for May and June was also revised down by a combined 103,000 jobs, painting a bleak picture for the quarter. According to CME FedWatch, the probability of a 25-basis-point rate hike in September has dropped from 57% to around 44%, while the probability of holding rates steady has risen to 56%. Gold prices have subsequently rallied. ZIJIN GOLD INTL (02259) gained over 5%. Downstream jewelry retailers saw a sharp surge. On August 8, many domestic gold jewelry brands hiked prices overnight, returning to the 1,300 yuan per gram level. For instance, Chow Sang Sang's pure gold jewelry was quoted at 1,315 yuan per gram, Chow Tai Fook at 1,308 yuan, and Lao Miao Gold at 1,310 yuan. According to reports, the wholesale price of pure gold 999 at the Shenzhen Shuibei market reached 1,100 yuan per gram on August 6, rising nearly 50 yuan in just two days. LAOPU GOLD (06181) surged over 12%, while Chow Sang Sang (00116), Chow Tai Fook (01929), and Luk Fook Holdings (00590) all rose over 5%.

Under normal circumstances, a Fed pause on rate hikes should be favorable for tech stocks. However, the hardware sector weakened collectively today, with PCB stocks that had been showing recent recovery failing to hold their gains. Dingtai High-Tech fell over 7%, and core stock Zhongji Innolight dropped nearly 7%, although reports suggest Korean investors have been buying this stock. The logic behind tech stocks remains somewhat chaotic, indicating significant divergence. Only Legend Holdings, which has benefited from price increases, is an exception. It is set to announce its performance this Thursday, which is expected to be quite strong, leading to a nearly 8% gain today. The concept of TOKEN-related stocks performed well, with Xunce and Maifutu both rising over 7%.

As mentioned last Friday, the CXO sector is experiencing revolutionary catalysis from AI. This topic has been widely discussed online over the weekend. The core beneficiary is the upstream of all innovative drugs. KINTOR PHARMA-B (02315) has two major moats: 1) Model animal sales, having developed approximately 5,000 types of gene-edited animal and cell models, including over 2,000 types of target humanized mice, and built a 55,000 square meter model animal production center to support large-scale supply. 2) The "Thousand Mice, Ten Thousand Antibodies" platform creates an antibody shelf, allowing pharmaceutical companies to skip early-stage development and directly screen usable antibodies while comparing multiple targets in parallel, improving drug development efficiency. The stock surged over 11% today. Related upstream healthcare AI service stocks like Jingtai Holdings and Yingke Smart both rose over 7%. WuXi AppTec (02359) also contributed to the positive sentiment. On August 7, the US District Court for the District of Columbia ruled on the company's motion for a preliminary injunction, approving the application against the US Department of Defense's 1260H designation. The ruling means that while the judicial process challenging the 1260H designation is ongoing, the Department of Defense cannot enforce or implement the designation or take related actions. With this legal victory, the stock rose nearly 3% today. Genscript (01548), Asymchem (06821), and the bottoming Hansoh Pharma (03692) all rose over 5%.

Consumer stocks are also showing signs of improvement. Gold jewelry led the charge, and the restaurant sector saw gains, with Xiaocaiyuan and Yihai International rising over 5%. In the film sector, "Welcome to the Dragon Restaurant," starring Shen Teng, began previews on August 8, and by 4 PM, its total box office from previews and pre-sales had exceeded 133 million yuan. The producer, Damai Entertainment, rose over 6%. Maoyan Entertainment surged over 10% after the official announcement of an extension for "Kung Fu Women's Football," extending its run until September 10. The film's box office has already surpassed 2.248 billion yuan, with expectations of reaching 2.5 billion yuan. The National Bureau of Statistics recently released CPI data. The effects of comprehensive regulation policies for pig production capacity, combined with extreme weather like high temperatures and heavy rain in some areas raising transportation costs, led to a 4.1% increase in pork prices, reversing from a 0.8% decline in the previous month. Dekon Agriculture, Muyuan, and Youran Dairy all rose over 5%.

On August 7, Beijing issued a notice reducing the social security or tax payment period for non-Beijing residents purchasing commercial housing within the Fifth Ring Road from two years to one year, and appropriately increasing the maximum housing provident fund loan amount. This policy directly expands the base of homebuyers within the Fifth Ring Road, accelerating the sell-through of new and second-hand homes in the six urban districts. Stocks that had fallen significantly from their highs showed strong elasticity, with Jinhui Holdings surging over 36% and Country Garden Holdings rising nearly 9%. Any reduction in inventory for these stocks will positively impact their fundamentals. The market is watching for follow-up actions from other cities. Real estate agent Beike, which is highly sensitive to policy changes, rose over 3%.

On the evening of August 7, Guotai Junan International announced on the Hong Kong Stock Exchange that Guotai Haitong Jinkong would acquire all other common shares of Guotai Junan International at a price of HKD 3 per share through a scheme of arrangement, aiming to take the company private. As the price is capped at HKD 3, the stock's 36% rise today is considered reasonable, factoring in time costs and uncertainty. Whether through mergers or privatization, the core goal of securities firms is to become bigger and stronger. However, reality is not ideal, as mergers involve many issues and do not necessarily guarantee strength. The fundamental problems include severe homogeneous competition, inherent inefficiencies, and a business scope largely confined to the domestic market. When compared to Wall Street giants dealing with massive global capital, they are not on the same level. The performance of securities stocks is closely tied to bull markets; otherwise, they behave like cyclical stocks.

On August 10, the National Development and Reform Commission and the National Energy Administration released the "15th Five-Year Plan for the Coal Industry." The core points include: 1) Energy security: Coal remains a stabilizer for the new power system and a core component for emergency supply, without a campaign-style reduction in carbon emissions. The plan clarifies that coal consumption will peak during the 15th Five-Year Plan period and then decline in an orderly manner. 2) Supply-side centralization: All outdated, small, and medium-sized coal mines will be phased out. By 2030, the share of production capacity from large, modern, advanced coal mines will increase to 87%. Production capacity will be concentrated in five major bases in Shanxi, Inner Mongolia, Shaanxi, Xinjiang, and Yunnan-Guizhou, which will account for over 80% of national output. 3) Strict capacity replacement: New coal mine capacity must strictly adhere to replacement rules and be included in a unified capacity ledger. Simultaneously, a capacity reserve of over 100 million tons per year will be built, and the government and enterprise coal reserve system will be improved to stabilize coal price fluctuations. Incorporating coal into the national strategic plan is beneficial for the stability of the national energy structure. Coal remains a key energy source. Key stocks include: Shougang Resources (00639), Power Development (01277), China Shenhua Energy (01088), China Coal Energy (01898), Yankuang Energy Group (01171), Yancoal Australia (03668), and MONGOLMINING (00975).

Analysis of Weichai Power (02338): NVIDIA's massive investment in AI power infrastructure is highlighting the ongoing power shortage in North America. Weichai Power reported Q1 2026 revenue of 62.563 billion yuan, up 8.87% year-on-year, and net profit attributable to shareholders of 3.085 billion yuan, up 13.83%. The gross margin was 6.37%, significantly higher than the previous year. The company also announced a cash dividend of RMB 3.74 per 10 shares (before tax) for its 2025 A-share dividend. The AIDC power generation business is experiencing a high boom cycle with explosive industry demand. Weichai Power's AIDC diesel generators have become its most profitable business segment, with the profit share expected to rise from 20% to over 40%, contributing over 70% of earnings growth. The company holds the top market share in China for heavy-duty truck engines and transmissions. It has received certification for the world's first National VI heavy-duty hydrogen internal combustion engine. Its high thermal efficiency diesel engine is a global leader, breaking the world record for diesel engine thermal efficiency four times in four years. The company commands a 51.8% market share in natural gas heavy-duty truck engines, providing strong elasticity during gas price downturns. Weichai Power has a unique technological advantage in large-bore power generation equipment, with an AIDC data center diesel generator start-up loading capability of 83%, 22% higher than overseas competitors. Its 9-second rapid start-up meets the strict power supply standards of AI data centers, enabling it to secure orders from top global computing centers like OpenAI's Stargate. The company's engines for mining trucks, agricultural machinery, and construction equipment have broken foreign monopolies. Its 12M25 large-tonnage mining engine and methanol off-road engine hold the top market share in China. Large-scale orders from mining and overseas infrastructure continue to drive demand. Weichai Power's production capacity far exceeds that of its peers, with five major engine bases in China producing one million engines and 20,000 generator sets annually. After expanding its large-bore production line, capacity has doubled, allowing it to accept large-scale global AI data center orders and achieve the fastest delivery speed in the industry. Global mergers and acquisitions have provided technical synergies, including the acquisition of Germany's KION (the world's second-largest forklift manufacturer) and France's Baudouin (large-bore engines), with the Baudouin brand entering the high-end North American market. The company has secured long-term batch orders from domestic and international computing centers, with leading cloud vendors in North America and China placing additional orders. In 2026, it signed multiple new large-scale data center framework procurement agreements. Production of the M55 large-bore line is expanding, with orders scheduled through 2027. Demand for AIDC data center backup power is exploding, with power shortages in North American computing centers driving massive overseas orders for Weichai's 2.5MW gas generator sets. The AIDC engine shipment target for 2026 is 3,500-4,000 units, raised to 6,300 units for 2027. In the SOFC solid oxide fuel cell sector, capacity is expected to increase from 30MW in 2026 to 200MW in 2027, targeting low-carbon power sources for overseas AI data centers. The company is also achieving nationwide batch deliveries of new energy heavy-duty trucks, with recent deliveries in August for long-haul routes in Shanxi, Yunnan, Jiangxi, and Sichuan. Its self-developed CTB blade batteries and fully in-house developed three-electric system have driven a doubling of new energy power revenue year-on-year. As a traditional heavy-duty truck leader with high dividends and a market cap exceeding one trillion yuan, Weichai Power is also advancing its SOFC Phase II production line tender and has a share buyback plan for its A-shares. The upcoming dividend record date on August 12 is also contributing to positive market sentiment.