**Market Overview**
A-shares significantly outpaced Hong Kong stocks recently, with the Shanghai Composite Index rising 0.85% today to reach a near 10-year high. The combined trading volume of both mainland markets exceeded 2.7 trillion yuan, marking the first time in history that A-share market capitalization surpassed 100 trillion yuan, adding 14.5 trillion yuan year-to-date. This is equivalent to adding "two Maotai companies plus six major banks" during the year.
Although Hong Kong stocks saw increased trading volume reaching HK$312.8 billion, they remained influenced by external factors, declining 0.37%. The US-Russia talks yielded minimal results with no agreements signed or ceasefire achieved, leaving Europe perplexed. However, Trump appeared satisfied, as the talks were primarily business-oriented from the start. The likely outcome involves the US purchasing discounted Russian oil and reselling it to Europe at higher prices, while also participating in Arctic shipping route projects.
For China, this development isn't necessarily negative. India may lose access to cheap Russian oil, as the White House trade advisor indicated India must stop purchasing Russian petroleum. With India facing US sanctions, alignment with China becomes its primary option, and Europe may finally face reality.
Trump set expectations by stating the Russia-Ukraine conflict could end "almost immediately" if Zelensky agrees, asserting that Ukraine cannot "recover" Crimea or join NATO. However, Zelensky maintained a firm stance, emphasizing territorial integrity and hoping for US-Ukraine-Europe unity to force Russia toward "genuine peace."
**Individual Stock Performance**
Hong Kong stocks continued the stock-picking over market-wide strategy, with individual stocks remaining highly active, driven primarily by momentum from A-shares. According to People's Bank of China data released August 13, non-bank deposits increased by 2.14 trillion yuan, representing a 1.39 trillion yuan year-over-year increase. The July surge in non-bank deposits reflects the trend of household savings shifting toward financial products.
Recent surveys reveal that multiple brokerage offices have experienced peak client inquiry periods with significantly increased consultation volumes. Long-term capital market entry also shows new progress, with insurance-backed private funds totaling over 120 billion yuan increasing to seven funds. Insurance capital currently invests only 8% of its available 30 trillion yuan in markets, indicating substantial room for growth.
Nine Holdings Limited (09636), mentioned last Friday, surged over 15% again today. CITIC Securities (06030) and Country Garden Services (01456) both gained approximately 3%.
**Liquid Cooling Server Concept Heats Up**
The liquid cooling server concept has performed strongly recently. Beijing, Shanghai, and other cities offer substantial subsidies for liquid cooling data centers with PUE<1.3. NVIDIA announced its next-generation GPUs will fully transition to liquid cooling. IDC forecasts China's liquid cooling server market will reach $16.2 billion by 2029.
ZTE Corporation (00763) has been rediscovered by the market. The company's smart computing server orders account for over 60% of total orders, with server and storage revenue growing rapidly, particularly achieving doubled revenue growth among leading internet clients and financial sector clients (banks and insurance). As a core partner for power, liquid cooling, and energy storage companies with comprehensive data center solutions and end-to-end delivery capabilities, ZTE surged over 7% today.
Related server stocks include Lenovo Group Limited (03396), up over 4%. Data center concept stocks include Yangtze Optical Fibre and Cable Joint Stock Limited Company (06869), up over 10%, and SENSETIME-W (00020), up over 5%.
Notably, Midea Group Co., Ltd. (00300) has undertaken China Telecom's first large-scale fully liquid-cooled intelligent computing data center project in the Guangdong-Hong Kong-Macao Greater Bay Area.
**Overseas Expansion Momentum**
The overseas expansion theme remains highly active. Great Wall Motor Company Limited (02333) Chairman Wei Jianjun posted on Weibo that the company's Brazil factory officially opened in the early morning of August 16 Beijing time, with Brazilian President Lula attending the ceremony. Current production volume is approximately 50,000 units, with the company seeking locations for a second factory. Future North American business will represent significant incremental growth, with shares surging over 10% today.
NIO Inc. (09866) will gradually enter Singapore, Uzbekistan, and Costa Rica markets over the next two years, gaining over 7% today.
Ming Yuan Cloud Group Holdings Limited (00909) recently announced its expansion into Japan through the acquisition of 100% equity in ASIOT Co., Ltd. from an independent third party. The target company provides artificial intelligence (AI) and Internet of Things (IoT) solutions specifically for Japan's real estate industry, with a cash consideration of 700 million yen. Shares surged nearly 20% today, with August 26 earnings expected to be positive.
**Earnings Expectations**
AAC Technologies Holdings Inc. (02018) will report earnings this Thursday, gaining over 6% today.
The State Administration of Radio, Film and Television's new 21-point regulations represent a significant breakthrough: eliminating episode limits, lifting restrictions on period dramas, and piloting simultaneous review and broadcast policies. This creates a breakthrough moment for the long-form drama market.
China Literature Limited (00772), with its extensive IP portfolio, stands to benefit from increased revenue as long-form dramas flourish. The company's collaboration with Tencent on merchandise is now available for pre-order through official flagship stores and the "Honor of Kings" official mall. Additionally, the popular fantasy novel "Lord of the Mysteries" from China Literature's platform will collaborate with "Honor of Kings" to launch novel-related exclusive game skins. Shares surged 15% today.
**Entertainment Sector Highlights**
According to online platform data, the 2025 summer box office (including pre-sales) reached 9.956 billion yuan as of 4 AM on August 18, with expectations to exceed 10 billion yuan on August 18. Total viewership has surpassed 260 million, showing significant year-over-year growth. Maoyan Entertainment's professional version statistics show domestic animated film "Langlang Mountain Little Monster" has exceeded 1.0026 billion yuan in cumulative box office.
Lemon Group Co. Ltd. (09857) rose over 21%, while Damai Entertainment (01060) gained nearly 10%.
**Strategic Partnerships**
According to CMGE Technology Group Limited (00302) official announcement, on August 15, the company and OSL Group Limited (00863) jointly announced a strategic partnership. This cooperation will effectively connect OSL's stablecoin service network for financial institutions with CMGE's extensive gaming payment application scenarios, injecting "vitality" into the market and accelerating compliant stablecoin applications in real economy and digital entertainment sectors. This represents a win-win situation, with both companies gaining over 7%.
**Healthcare and Demographics**
Tianmen City, Hubei Province, recently attracted widespread attention for implementing unprecedented fertility incentive policies, providing substantial subsidies to multi-child families, resulting in a direct "turnaround" in birth population. This situation is expected to be replicated elsewhere, indicating promising prospects for assisted reproduction. Jinxin Fertility Group Limited (01951) rose over 9% today.
Conversely, population aging continues driving demand for healthcare, particularly internet medical stocks. Ping An Healthcare and Technology Company Limited (01833), featured in July's intelligent stock selections, gained nearly 9% again. JD Health International Inc. (06618) reported interim results with total revenue of RMB 35.3 billion, up 24.5% year-over-year, gaining over 8% today.
**Semiconductor Sector**
Hua Hong Semiconductor Limited (01347) shares declined significantly after announcing plans to acquire controlling interest in Advanced Semiconductor Manufacturing Corporation (ASMC). Market concerns stem from potential overlap between ASMC's main asset, Huahong Fab Five (12-inch facility with 38,000 wafer monthly capacity), which operates 65/55 nm-40 nm process nodes overlapping with Hua Hong's existing production lines. Additionally, the acquisition scheme involves dual equity dilution through "share issuance and cash payment for asset acquisition + supporting financing."
Long-term prospects remain positive as ASMC's 12-inch production lines (Huahong Fab Five and Six) will strengthen Hua Hong's advanced logic process capabilities. Post-merger, 12-inch capacity proportion is expected to exceed 70%, eliminating industry conflicts and enhancing competitiveness.
**Sector Focus**
The State Council Information Office will hold a press conference at 10 AM on Wednesday, August 20, 2025. The conference will feature Deputy Director of the Military Parade Leading Group Office and Deputy Director of the Operations Bureau of the Central Military Commission Joint Staff Department, Major General Wu Zeke, and Executive Deputy Director of the Central Theater Command Military Parade Command Office and Deputy Director of the Political Work Department, Major General Xu Guizhong, introducing military parade preparation work and answering questions.
Should the press conference reveal beyond-expectations content, it could provide new stimulus for military-industrial concept stocks. Key stocks include China Shipbuilding Industry Group Power Company Limited (00317) and AVIC Heavy Machinery Co., Ltd. (02357).
**Stock Spotlight**
**SENSETIME-W (00020): Global Leading Technology Stack Competitiveness, Large Model Interactive Platform Integrates with Xiaomi AI Glasses**
Recently, SenseTime's "SenseNova" large model interactive platform has integrated with AI glasses, serving as users' "second brain," helping users achieve integrated "see, speak, remember, think" capabilities in real-life and work scenarios, featuring full-duplex real-time audio-video interaction capabilities.
**Analysis:** The company ranks second globally and first domestically in technology stack innovation index, particularly leading Alibaba Cloud and Baidu Intelligent Cloud in resource utilization optimization and model compression. Its "SenseNova" large model matches GPT-4 in multimodal capabilities, with 2025 Q2 model call volume increasing 300% year-over-year and customer payment willingness in financial and government sectors increasing sixfold.
The company's intelligent cockpit visual AI software has maintained global market leadership for five consecutive years (38% in 2025 Q1). Jueying autonomous driving holds 7.2% market share in urban NOA (third place), with end-to-end solution UniAD completing high-difficulty real vehicle testing and over 2.6 million units delivered.
The company possesses over 1,200 patents, with self-developed AI chip "SenseCore" achieving international mainstream efficiency levels. Solid-state battery R&D has entered pilot testing (energy density 350Wh/kg) with planned 2027 mass production.
Global expansion shows overseas revenue proportion increasing from 18% in 2023 to 27% in 2024, though 2025 Q1 growth slowed to 15%, requiring attention to geopolitical risks including US-Europe AI regulatory policies.
The company collaborates with Chinese Academy of Sciences on semi-solid-state battery development and holds stakes in SinoHytec (hydrogen fuel cell stacks). In 2024, it participated in establishing Shanghai Artificial Intelligence Ecosystem Fund (10 billion yuan scale), focusing on large model industry chain deployment.
Order catalysts include 2025 Q2 signed overseas computing power orders of 800 million yuan (+120% year-over-year), primarily from Southeast Asia and Middle East. We are optimistic about catalysts from major tech companies' intensive AI+AR glasses releases and large model multimodal iterations enhancing AI+AR glasses interaction capabilities.
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