Pre-Market Headlines

Elevated inflation concerns have resurfaced, triggered by a hotter-than-expected US producer price index and oil prices breaking through key resistance levels. This has intensified bets on a Federal Reserve rate hike next week, prompting a broad sell-off across US equities, bonds, gold, and cryptocurrencies. US stocks have now declined for four consecutive sessions. WTI crude jumped 7% on the day, while Brent climbed over 6% to $107, with both benchmarks returning to their highest levels since the outbreak of the conflict. Chip stocks fell broadly, with the Philadelphia Semiconductor Index dropping 2.66%. Nvidia fell 2.3%, and Micron Technology declined 4.7%.

The China Securities Regulatory Commission (CSRC) made a significant statement regarding the A-share market, coinciding with the official release of the 15th Five-Year Plan for building a financial powerhouse. At a series of press conferences on September 10th, CSRC Vice Chairman Li Chao emphasized the goal of "striving to establish the A-share market as the primary listing destination for high-quality domestic enterprises," marking the first time regulators have explicitly set this objective. The newly issued plan outlines key tasks for the 2025-2030 period, including refining the macro-financial regulatory framework.

The Ministry of Commerce has confirmed that China and the US are actively engaged in consultations. Spokesperson Huang Ling stated at a regular press conference that both sides' trade teams are diligently implementing the consensus reached by the two heads of state in Beijing and are negotiating a framework for reciprocal tariff reductions on goods worth $30 billion, aiming for early implementation.

The Federal Communications Commission (FCC) has published its final rule on the Equipment Authorization Program, designed to address national security threats in the communications supply chain. The rule will take effect 30 days after its publication in the Federal Register. Notably, major optical communication companies like Eoptolink Technology, Innolight Technology, Dongshan Precision Manufacturing, and TCI-Tianfu Communication were not named in the final order. According to industrial Securities, the FCC decision alleviates significant uncertainty that had been hanging over the optical communications sector.

Investment Calendar

The China Computing Power Conference is slated to be a key event on the horizon.

Investment Wisdom

"Success in venture capital comes from making the right choices in deals rather than haggling over valuations." — Sebastien Mallaby, The Power Law.

Institutional Perspectives

Orient Securities suggests the market still lacks a dominant, sustained leading sector, and a genuine turnaround may take more time. Hua Jin Securities anticipates continued short-term volatility and bottom-building for the A-share market, recommending a balanced allocation between tech growth and select consumer sectors. Founder Securities notes that the market's short-term direction will likely depend on trading volume sustaining above the 2 trillion yuan level and the tone of the upcoming September FOMC meeting.

Preview of Positive Influences and Risks

Oracle's better-than-expected earnings and a 121% surge in its Q1 cloud business have lifted sentiment in after-hours trading. China Securities highlights that AI capital expenditure remains resilient and is expanding beyond GPUs and servers into power, storage, and data center ancillary segments. Power infrastructure and storage equipment are seen as areas with clearer paths to earnings delivery.

The Ningxia-to-Hunan Ultra-High Voltage (UHV) direct current transmission project is progressing, with Longyuan Power completing the hoisting of its first batch of turbine units. CITIC Securities notes that procurement amounts for UHV projects in the first three tenders of this year have already exceeded the total for 2025. Domestic high-voltage equipment leaders trading at low valuations are poised for a potential inflection point.

A strategic "3-day leave for 13 days off" strategy during the upcoming Mid-Autumn Festival and National Day holiday is accelerating flight and hotel bookings. Vansec Securities points out that the tourism, scenic spot, and hotel & restaurant sectors saw improved profitability in the first half of 2026, defying the broader trend. Valuations have retreated to historical lows, and with clear data validation windows in Q3-Q4, the potential for valuation recovery is significant once marginal improvements materialize.

Corporate Announcement Summaries

On the positive side, Aidi Precision plans to repurchase between 100 and 200 million yuan of its shares. Hengxuan Technology's controlling shareholder has proposed a share buyback of 50 to 100 million yuan. Xianhui Technology's controlling shareholder and senior executives are planning to increase their stakes by a combined 40 to 80 million yuan.

On the negative side, National IC Industry Investment Fund Phase II has reduced its stake in Xingfu Electronics by 1%. Shanghai Hejing's major shareholder, Xinggang Rongchuang, plans to reduce its holding by no more than 1%. Tangrenshen reported August pig sales revenue of 410 million yuan, a year-over-year decrease of 39.92%.

Overseas Markets

With New York crude futures surpassing the $100 mark, escalating worries about US inflation weighed on the three major indices. The storage sector and copper-related stocks declined; the Philadelphia Semiconductor Index fell over 2%. Performance among leading tech stocks was mixed, with Intel dropping over 5%, Apple rising more than 3%, and Nvidia shedding over 2%. The Nasdaq Golden Dragon China Index edged down 0.66%.