**Market Commentary**
The market has been pricing in interest rate cuts in advance, while domestic personal loan subsidy policies are also helping drive capital actively into the market. With leading securities gaining momentum, Hong Kong stocks continued their upward expansion last week.
The Russia-US summit has concluded, with Trump failing to achieve substantial results. The Russia-Ukraine conflict has not ceased, nor has any agreement been signed with Putin. There are currently no plans to impose additional tariffs on China's purchases of Russian oil. Trump announced on the 16th that he will meet with Zelensky in the White House Oval Office on the afternoon of the 18th (Eastern Time). If all goes smoothly, a trilateral meeting between the US, Russia, and Ukraine leaders will be arranged next. Overall, US mediation in the Russia-Ukraine conflict is merely surface-level; the main objective is to improve various relationships with Russia behind the scenes. Europe emerges as the only loser.
On August 21, the Federal Reserve will release minutes from the July monetary policy meeting. The Jackson Hole Global Central Bank Annual Conference will be held from August 21-23, with Fed Chair Powell scheduled to speak at the conference on August 22. The tone is expected to lean dovish.
The central bank emphasized implementing accommodative monetary policy thoroughly and meticulously. From a macro perspective, the probability of the Hang Seng Index moving higher appears greater.
Multiple solar companies have received notifications to participate in a solar industry symposium organized by relevant departments on Tuesday (August 19). The new solar symposium is expected to further discuss anti-involution and capacity reduction issues, with the possibility of storage acquisition plans being implemented. Solar stocks are poised for value re-evaluation.
OpenAI CEO Sam Altman expressed his desire to invest trillions of dollars in developing and operating the infrastructure needed for artificial intelligence services in the future. In the second half of 2025, Ascend plans to implement a strategy covering edge scenarios from low-computing power to high-computing power comprehensively. The chip computing power sector is expected to remain active.
**Weekly Featured Stock**
AB&B BIO-TECH-B (02627) announced that its independently developed Recombinant Respiratory Syncytial Virus Vaccine (CHO Cell) (Adjuvanted) has received Investigational New Drug (IND) approval from China's National Medical Products Administration Center for Drug Evaluation (CDE). Additionally, the IND application for this vaccine in the US has also been approved by the FDA.
The recombinant RSV vaccine approved by AB&B BIO-TECH-B's subsidiary innovatively applies big data analysis to drug development research, utilizes completely proprietary innovative technology, and employs highly stable pre-F antigen sequences. In preclinical studies, the vaccine demonstrated positive performance across all indicators, not only stimulating high-titer neutralizing antibodies against both RSV A2 and B types but also activating high-level cellular immune responses. In cotton rat challenge protection studies, it showed excellent protective efficacy, reducing lung viral loads below detection limits without observed vaccine-enhanced disease (VED) phenomena, demonstrating superior safety performance.
Public information shows that currently three RSV vaccines have received FDA approval globally, while no RSV vaccines have been approved for market in China. According to Frost & Sullivan research data, the global RSV pharmaceutical market (including therapeutic drugs, preventive drugs, and vaccines) is projected to surge from $1.8 billion in 2020 to $12.8 billion in 2030, representing a compound annual growth rate of 21.4%.
AB&B BIO-TECH-B has established a complete commercial product and R&D pipeline layout. Its core product, Huerkangxin®, is China's first and currently only approved quadrivalent influenza virus subunit vaccine, having completed market access in 30 provinces nationwide and being selected by over 1,100 district and county-level CDC centers. Beyond marketed products, the company's research pipeline includes 11 other investigational vaccines covering influenza, pneumonia, recombinant herpes zoster, and other fields. To date, multiple new drug clinical approvals have been obtained, with clinical trials and NDA submissions proceeding systematically.
**Industry Watch**
On July 31, the Ministry of Industry and Information Technology held a symposium on the solar photovoltaic glass industry operations. According to industry insiders, the meeting adjusted August solar glass pricing to 11 yuan/m², with companies previously accepting orders below this price required to cancel and re-quote. Production-wise, the trend of continued capacity reduction continues.
Recent enterprise solar glass quotations have increased, with prices rebounding from the bottom under "anti-involution" measures. According to SMM, 2.0mm single-layer coated solar glass was quoted at 10.5-11.0 yuan/m² on August 4, slightly higher than the previous week's quotations. Leading enterprises consistently quoted above 11 yuan/m², with some glass companies having better early orders even raising quotes to 11.5 yuan/m². According to some glass companies, current order volumes extend delivery completion to mid-September.
Recent solar "anti-involution" efforts have elevated to national strategic action level, focusing on addressing homogeneous expansion and low-price disorderly competition among enterprises. July domestic solar glass cold repair capacity accumulated to 7,750 tons/day, with effective capacity declining below 90,000 tons/day. Considering the industry's expected continuation of cold repair plans, capacity clearance should lead to inventory level declines, with industry expectations of solar glass price recovery.
Key Hong Kong-listed stocks include FLAT GLASS (06865), XINYI SOLAR (00968), GCL TECH (03800), and New Energy Holdings (01799).
**Market Data Analysis**
Hong Kong Exchange data shows Hang Seng Index futures (August) total outstanding contracts at 129,395, with net outstanding at 54,163. Hang Seng Index futures settlement date is August 28, 2024.
With the Hang Seng Index at 25,270 points, the bull-bear warrant concentration zone deviates from the central axis, indicating current index hesitation. The market believes Powell's September interest rate cut restart is inevitable. Data suggests Hang Seng Index adjustment this week.
**Editor's Perspective**
Weekend institutional grassroots research from brokerage departments indicates that mainland retail investor market entry enthusiasm remains generally moderate, with capital inflow volume within 5%, significantly weaker than September-October 2024 levels. Comparatively, enthusiasm slightly exceeds June 2020 but remains significantly weaker than July 2020.
Margin trading has increased approximately 5% since August, with minimal off-exchange leverage. Last year, clients accessed northbound markets through Hong Kong stock off-exchange individual stock options, but due to non-payment issues last year, client adoption of this model has significantly decreased this year.
Mainland retail allocation remains focused on small and mid-cap stocks, with limited attention to valuations. Overall, retail market entry remains conservative, market sentiment has not reached overheated status, and indices retain upward potential.
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