Financial Morning Report: Insurance Giant Increases Stock Holdings by 150 Billion Yuan in Half Year, Quantitative Index-Enhanced Products Show Rare "Negative Alpha" Phenomenon

Deep News
Yesterday

**Headline News**

**Satellite Communication Industry Set for Acceleration as Direct-to-Satellite Mobile Services Gain Momentum, Trillion-Yuan Market Expected**

The Ministry of Industry and Information Technology released guidance on optimizing business access to promote satellite communication industry development on the afternoon of August 27. The policy outlines 19 measures across three areas: orderly market expansion, continuous application scenario development, and industrial ecosystem cultivation.

According to ministry officials, China will progressively open satellite communication services by business type, stage, and step. The reform focuses on three aspects: supporting low-orbit satellite internet development, enabling telecom operators to provide direct-to-satellite terminal services, and organizing commercial satellite IoT trials with expanded private sector participation.

**Margin Trading Balance Approaches Historical Peak, Surpassing 2.2 Trillion Yuan**

Since August, A-share market trading enthusiasm has intensified, with margin trading balances rising continuously. As of August 26, total margin trading balance reached 2.21 trillion yuan, a 10-year high, with financing balance reaching 2.19 trillion yuan.

Analysts attribute this growth to improved policy expectations and rising market risk appetite. Key sectors with over 10 billion yuan in net financing purchases since August include electronics, computers, machinery, telecommunications, power equipment, pharmaceuticals, and automotive, with electronics leading at 61.23 billion yuan.

**NVIDIA Reports Strong Q2 Results with Nearly 60% Profit Growth, CEO Hopes to Sell Advanced Chips to China**

NVIDIA's fiscal 2026 Q2 results showed revenue of $46.7 billion versus $30.04 billion year-over-year, beating expectations of $46.058 billion. Data center revenue reached $41.1 billion compared to $26.272 billion previously. Net profit surged to $26.422 billion from $16.599 billion, exceeding forecasts of $23.465 billion. The company approved an additional $60 billion share buyback program and guided Q3 revenue at $54 billion, plus or minus 2%. NVIDIA shares initially fell up to 5% after-hours before recovering to down 3.11%.

**Fund Semi-Annual Reports Reveal Hidden Holdings as Fundamental Analysis Becomes Investment Consensus**

Fund companies including Ruiyuan, Galaxy, Zhonggeng, and Nanhua have released 2025 interim reports, revealing complete portfolio positions. Multiple fund managers emphasized focusing on company fundamentals and long-term value investing strategies for the second half.

**US Treasury Secretary Bessent: Fed Chair Selection to be Announced in Fall, No Reason for Government to Invest in NVIDIA**

Regarding the Federal Reserve Chair selection, Bessent indicated 11 "very strong" candidates will be interviewed starting next month, with 3-4 finalists recommended to Trump. He confirmed the selection will "definitely" be announced this fall. On monetary policy, Bessent believes the Fed has deviated from its core objectives since 2008 and needs to return to its fundamental mission.

**China Life Insurance Giant Increases Stock Market Investment by 150 Billion Yuan**

China Life Insurance reported half-year revenue of 239.235 billion yuan, up 2.1% year-over-year, with net profit of 40.931 billion yuan, up 6.9%. The company achieved net investment income of 96.067 billion yuan and total investment income of 127.506 billion yuan. Significantly, the insurance giant allocated over 100 billion yuan to stock market investments during the first half.

**Quantitative Strategies Face Headwinds as Active Management Rebounds**

Recent A-share rallies have created challenges for quantitative index-enhanced products, with many experiencing "negative alpha" performance while active equity products have surged. Some private investors are shifting toward actively managed products, and FOF managers are increasing allocations to aggressive active equity strategies.

**Company Focus**

**Cambricon's Revenue Surges 4,300% but Questions Remain About Chip Buyers**

Cambricon reached new highs on August 27, briefly surpassing Kweichow Moutai as the highest-priced A-share stock at 1,464.98 yuan per share. The surge followed strong half-year results showing revenue growth exceeding 4,300% year-over-year and over 1 billion yuan in profits. However, questions remain about the sustainability of this performance amid intense competition.

**Gree and Xiaomi Reignite Air Conditioner Market Share Battle**

The dispute between Gree and Xiaomi over "second place in online air conditioner sales" continues, with both companies engaging in public exchanges over market positioning and product comparisons.

**Industry Highlights**

- Pet economy boom drives pet food company performance improvements - Apple product launch spurs institutional research into supply chain companies - Satellite communication policy benefits trigger social security fund investments - Traditional consumption season approaches with undervalued opportunities emerging - China's AI smartphone and PC industries accelerate development

**Market Performance**

**A-Shares**: Shanghai Composite fell 1.76% to 3,800.35 points amid profit-taking and sector rotation. Trading volume exceeded 3 trillion yuan again, indicating intense multi-directional trading activity.

**Hong Kong**: Hang Seng Index dropped 1.27%, Hang Seng Tech fell 1.47% as large-cap tech stocks declined in afternoon trading.

**US Markets**: Major indices closed higher with Dow up 0.32%, NASDAQ up 0.21%, and S&P 500 up 0.24%. Chinese ADRs fell broadly with the Golden Dragon Index down 2.58%.

**Corporate Announcements**

Notable earnings releases included Honghe Technology reporting 1,058.77% profit growth, China PICC with 16.9% profit increase, and Shandong Gold showing 102.98% profit growth with a dividend announcement.

Several companies announced strategic moves including Huayu Automotive's 206 million yuan acquisition and Debang Lighting's planned majority stake acquisition.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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