GMT EIGHT - OPPORTUNITIES IN CHINA

IBM (IBM.US) preliminary results fall short of expectations, stock price plunges by 24%, profit forecasts slashed by multiple Wall Street institutions.

IBM CEO Arvind Krishna admitted that the quarterly performance was "disappointing".

US Stock Market Move | SK Hynix (SKHY.US) soars nearly 20%, hitting a new high since listing.

On Tuesday, SK Hynix (SKHY.US) surged nearly 20%, hitting a new high since its listing, with a total market capitalization of $1.31 trillion.

Trading revenue hits record high, but cost pressures are hard to hide as operating expenses for Wall Street big banks are generally increasing.

In the second quarter, trading businesses at large Wall Street banks generally hit historic highs. However, while income saw significant growth, increased employee compensation, benefits, and business investments also raised operating costs, becoming a common pressure faced by multiple banks.

Evening hot topics in A shares | Operating scale at a record high! The central bank will conduct a 1.4 trillion yuan buy-back reverse repurchase, what signal does this send?

The People's Bank of China announced on July 14 that it will conduct a 140 billion yuan six-month reverse repurchase operation on July 15 through fixed quantity, interest rate bidding, and multiple price bidding methods.

US Stock Market Move | Software sector as a whole is under pressure, Workday (WDAY.US) fell more than 4%

On Tuesday, after IBM (IBM.US) reported preliminary results below expectations, the stock price plummeted by 25%, putting pressure on the overall software sector.

SK Hynix (SKHY.US) ADR options officially listed for trading, investors betting on the stock price continuing to rise.

On Tuesday, SK Hynix's American depositary receipt options officially began trading on the US options exchange, providing investors in the world's largest derivatives market with a new tool to participate in the fluctuating market of this leading AI storage chip company.

US Stock Market Move | Large bank stocks rose together, with Goldman Sachs Group, Inc. (GS.US) up over 8%.

On Tuesday, large bank stocks rose together.

Uber Technologies, Inc. (UBER.US) plans to acquire the German food delivery platform Delivery Hero. Global food delivery industry consolidation continues to heat up.

According to informed sources, ride-hailing giant Uber is in advanced negotiations with German food delivery platform Delivery Hero regarding a potential acquisition, and an agreement could be reached as early as this week.

US Stock Market Move | Investing $3 billion to strengthen chip manufacturing in Japan, Tower Semiconductor Ltd(TSEM.US) surged more than 10% at the opening of the market.

On Tuesday, Tower Semiconductor (TSEM.US) surged more than 10% in early trading, accumulating a 115% increase for the year, now trading at $254.35.

US Stock Market Move | Space concept stocks collectively rise, Virgin Galactic (SPCE.US) up more than 7%.

US space concept stocks collectively rising

US Stock Market Move | Q2 net profit fell 12% year-on-year, Telefonaktiebolaget LM Ericsson Sponsored ADR Class B (ERIC.US) opened down more than 11%.

On Tuesday, Ericsson (ERIC.US) opened with a sharp drop of over 11%, down 22% from its high in early June, now trading at $10.41.

US Stock Market Move | Storage sector opens collectively strong, SK Hynix (SKHY.US) up over 10%

On Tuesday, the storage sector opened collectively stronger.

US Stock Market Move | Q2 preliminary revenue falls short of expectations IBM (IBM.US) plunges over 25%, the largest single-day drop since 1987.

On Tuesday, IBM (IBM.US) opened with a sharp drop of over 25%, marking the largest single-day decline since 1987, now trading at $215.95.

Another industry chain hard evidence against the "AI computing power surplus theory"! Leading the new cloud Nebius (NBIS.US) with a 10 billion US dollar long contract locked until 2029.

Cloud service provider Nebius Group NV has agreed to sell computing power worth at least over 1 billion US dollars to Reflection AI. Reflection AI is an artificial intelligence model developer founded by two former Google DeepMind researchers.

Estun Automation (02715) announces its financial results with an expected net profit attributable to shareholders of 150 million to 180 million yuan in the first half of the year, a year-on-year increase of 2144.74% to 2593.68%.

Eston (02715) announced that in the first half of 2026, the company expects to achieve a net profit attributable to equity shareholders of the parent company of RMB 150 million to RMB 180 million, an increase of 2144.74% to 2593.68% compared to the same period last year; after deducting non-recurring gains and losses, the net profit is expected to be RMB 60 million to RMB 75 million, turning losses into profits compared to the same period last year. The main reasons are as follows:

Citigroup (US) stock trading revenue hit a record but still lagged behind peers, Q2 performance exceeded expectations across the board.

Citigroup Group (C.US) stock trading business achieved a new high in revenue, driving several core business lines of the company to outperform Wall Street's expectations.

Sinolink International: Hong Kong stock valuation has a rebounding foundation, recommending positioning in high dividend value stocks and leading technology companies with independent controllability.

Sin Yin International expects Hong Kong's full-year GDP growth in 2026 to be around 3.5%. The most favorable interest rate is unlikely to be further reduced in 2026, and the Hong Kong dollar interbank rate will be adjusted accordingly in 2027 depending on the situation of US interest rate hikes.

The overall CPI in the United States cooled off in June, with core inflation unexpectedly remaining stable. However, oil prices rebounded and tensions in the Middle East have raised doubts about further interest rate hikes.

Data released by the US Department of Labor on Tuesday showed that the Consumer Price Index (CPI) for June was lower than expected, marking the largest month-on-month decrease in over six years, with a significant slowdown in the year-on-year growth rate.

Japanese semiconductor manufacturer SK Hynixs US-listed shares rose by 10.7%.

US Stock Market Opening: Three major stock indices show mixed trends.

The Dow fell 0.19%, the S&P 500 rose 0.17%, and the Nasdaq held steady. SanDisk rose 7.58%, Lumentum Holdings Inc. Common Stock When Issued rose 7.01%, IBM fell 21.87%, HCA Holdings fell 8.96%. As for the "Big Seven": Nvidia rose 1.99%, Tesla rose 1.33%, Google fell 0.29%, Meta Platforms fell 0.51%, Amazon fell 0.57%, Apple fell 1.03%, Microsoft fell 2.39%.

Buffett is accelerating donations to his family foundation by donating Berkshire Hathaway (BRK.B.US) stocks! He plans to divest his holdings over the next 8 years, marking the first time in 20 years that the Gates Foundation will not receive donations from him.

Buffett is accelerating the pace of donating shares to the three charitable organizations managed by his children this year.

Changxin Technology: The preliminary inquiry price range for this issuance is 7.26 yuan/share - 65.19 yuan/share.

Changxin Technology Announcement: The preliminary inquiry period for this issuance will be from 9:30 to 15:00 on July 13, 2026. As of 15:00 on July 13, 2026, the joint lead underwriters received preliminary inquiry pricing information from 333 offline investors managing 11,537 allotted objects through the Shanghai Stock Exchange business management system platform. The pricing range is 7.26 yuan/share to 65.19 yuan/share, with a total planned subscription quantity of 12.86062 billion shares.

Asset cap lifting sparks growth momentum! Wells Fargo & Company (WFC.US) Q2 net profit surged 17%, with ROTCE rising to 17.7%.

The second quarter profits announced by Bank of America exceeded Wall Street's expectations, primarily due to strong growth in wealth management and investment banking business fees.

Greed conquers fear! Goldman Sachs Group, Inc. (GS.US) stock trading business has reached a record high of 7.42 billion US dollars, with large orders from companies like SpaceX helping revenue far exceed expectations.

Goldman Sachs Group (GS.US) significantly refreshed its own Wall Street stock trading record, recording $7.42 billion in revenue for the second quarter. Stock indexes increased significantly during the quarter, with market volatility around artificial intelligence and Middle East conflicts continuing.

Bank of America Corp (BAC.US) made a crazy profit of $9.1 billion in Q2, crushing expectations. Trading revenue hit a record high, while investment banking expenses surged by 50%.

The second quarter financial report of Bank of America has been released, with profits significantly surpassing market expectations thanks to record-breaking trading revenue and a strong rebound in investment banking business.

Wash Congress's debut collision CPI exploded cold! "Zero tolerance" testimony was unexpectedly attacked by data, and interest rate hike pressure instantly eased.

Powell stated that the policy makers of the Federal Reserve have "zero tolerance" for high inflation, and reiterated their pledge to curb the sustained five-year high price growth.

YOFC (06869) reported a happy net profit forecast, expecting to achieve a net profit attributable to the parent of approximately 2.4 billion to 3 billion yuan in the first half of the year, a year-on-year increase of 711% to 914%.

Changfei Optic Fiber Cable Co., Ltd. (06869) announced that the company expects to achieve a net profit attributable to shareholders of the listed company of approximately RMB 2.4 billion to 3 billion in the first half of 2026. Compared with the same period last year, it will increase by RMB 2.104 billion to 2.704 billion, a year-on-year increase of 711% to 914%. It is expected that the non-net profit in the first half of 2026 will be approximately RMB 2 billion to 2.6 billion, an increase of 1,349% to 1,784% compared to the same period last year.

Hong Kong Stock Exchange (00388) will lower the minimum price limit for stocks and the second phase will be launched on August 3rd.

The Hong Kong Stock Exchange (00388) announced that the second stage of lowering the minimum tick size for stocks traded on the Hong Kong securities market will be implemented on August 3.

Market news: Traders have reduced their bets on the Federal Reserve raising interest rates this month.

In June, the US non-seasonally adjusted CPI annual rate was 3.5%, lower than the expected 3.8% and down from the previous value of 4.20%. The non-seasonally adjusted core CPI annual rate in June was 2.6%, below the expected 2.8% and lower than the previous value of 2.90%. The seasonally adjusted core CPI monthly rate in June was 0%, lower than the expected 0.2% and the previous value of 0.20%. The seasonally adjusted CPI monthly rate in June was -0.4%, below the expected -0.10% and the previous value of 0.50%.

Spot gold breaks through $4080 per ounce, up 2.03% intraday.

Preview of US Stock Market | The three major stock index futures rise and fall unevenly. CPI, the financial reports of major banks, and the first appearance of the Wash Congress are scheduled to take place one after another. IBM's preliminary performance is not as good as expected, leading to the collapse of software stocks.

Before the U.S. stock market opened on July 14 (Tuesday), the futures of the three major U.S. stock indexes showed mixed movements.

IBM's performance collapsed by more than 20% before the market opened! AI computing power hardware drains corporate budgets, the "end of software stocks theory" resurfaces

IBM's stock price dropped more than 20% after the company announced lower than expected preliminary sales for the second quarter. The company attributed the underperformance to customers redirecting their spending towards chips and servers.

Selected A-share announcements | Several companies' semi-annual performance is expected to be positive, with Tianqi Lithium Corporation (002466.SZ) expecting a net profit increase of 4935%

Saiyi Information announced that the company plans to purchase high-performance computing servers from suppliers and sign related procurement contracts, with the total contract value expected not to exceed 5.079 billion yuan.

The most profitable quarter in history! JPMorgan (JPM.US) second quarter stock trading revenue soared by 86%, raking in a whopping $6 billion.

JPMorgan Chase (JPM.US) announced its all-time highest quarterly profit, with its stock trading revenue far exceeding analyst expectations, and long-term holdings in Visa generating $4.6 billion in profit.

The shift towards caution has come! BofA's "Bull/Bear Indicator" soared to 9.4: the most dangerous thing is not the AI bubble, but excessively crowded positions.

According to a survey of fund managers at Bank of America, asset allocators have become extremely bullish, with cash levels falling to a "super low" level of 3.6% of assets. The Bank of America bull/bear indicator is in an extremely bullish state, leading strategists to recommend reducing equity and high-beta exposure, as allocations to U.S. stocks have reached the most extreme levels since December 2024.

For the first time in over three years! The Bank of Korea raised interest rates on Thursday, with inflation and the depreciation of the Korean won driving a shift towards a hawkish policy.

Survey voting among economists shows that the Bank of Korea is expected to raise interest rates for the first time in over three years on Thursday, as inflation remains well above its 2% target.

"Super Tuesday" strikes! CPI, major bank financial reports, and Wash Congress' first performance caught in three-line squeeze. High US stock market welcomes a crucial pricing window.

On Tuesday, the US stock market will welcome a series of important events, including CPI, financial reports from Wall Street big banks, and the first appearance of Congress in Washington, bringing various key data and agendas one after another.

Six departments: By 2030, the coverage rate of full-process information-based supervision of units related to hazardous waste must reach 100%.

Recently, the Ministry of Ecology and Environment, the National Development and Reform Commission, and other six departments jointly issued the "Fifteenth Five-Year Plan for the Prevention and Control of Solid Waste Pollution".

Northbound funds | Northbound trading net bought 10.97 billion Hong Kong dollars. Northbound investors continue to aggressively buy shares of KNOWLEDGE ATLAS (02513), with total net purchases exceeding 20 billion Hong Kong dollars in the past week.

On July 14th, the Hong Kong stock market saw a net purchase of 10.97 billion Hong Kong dollars by mainland investors. Specifically, the Hong Kong Stock Connect (Shanghai) had a net purchase of 8.05 billion Hong Kong dollars, while the Hong Kong Stock Connect (Shenzhen) had a net purchase of 27.92 billion Hong Kong dollars.

Southbound funds bought a net total of 10.997 billion yuan today. In terms of the Shanghai-Hong Kong Stock Connect, Zhipu and Goertek Innovations received net purchases of 2.29 billion Hong Kong dollars and 810 million Hong Kong dollars respectively; Xiaomi Group-W had the highest net selling amount of 43 million Hong Kong dollars; In terms of the Shenzhen-Hong Kong Stock Connect, NetEase and Kuaishou-W received net purchases of 2.87 billion Hong Kong dollars and 1.46 billion Hong Kong dollars respectively; Meituan-W had the highest net selling amount of 558 million Hong Kong dollars.

Great Wall Motor (02333) is expected to have a half-year net profit attributable to shareholders of 2.35 billion to 2.6 billion yuan, a year-on-year decrease of 58.97% to 62.92%.

Great Wall Motors (02333) announced that the company expects to achieve a net profit attributable to the owners of the parent company of 2.35 billion to 2.6 billion yuan in the first half of 2026, a decrease of 3.737 billion to 3.987 billion yuan compared to the same period last year, a year-on-year decrease of 58.97 % to 62.92%.

High oil prices dividend hedge transformation pains! BP p.l.c. Sponsored ADR (BP.US) announced Q2 performance: oil trading revenue expected to continue increasing, while low-carbon business will take another $1 billion write-down.

In a trading update released on Tuesday, BP predicts that second-quarter oil trading profits will increase slightly from the exceptionally strong first quarter, but also expects to take a write-down of approximately $1 billion in its energy transition business.

SK Hynix's listing in the United States triggers a demonstration effect! Samsung denies evaluating ADR issuance, is it a good opportunity to bottom out for the storage chip sector?

The company has had preliminary discussions with several banks, but has not yet decided whether to continue to advance, and will closely monitor the volatile storage chip stock sector as part of the decision-making process.

Oil prices approaching $90 reignites concerns about inflation, and expectations of interest rate hikes by the Bank of England and the European Central Bank resurface.

Rising oil prices have reignited inflation concerns, prompting traders to increase bets on the Bank of England and the European Central Bank raising interest rates faster.

The central bank: In order to maintain the liquidity of the banking system, on July 15, 2026, the People's Bank of China will conduct a 1400 billion yuan fixed quantity, fixed-rate tender, multiple-price bid reverse repurchase operation with a term of 6 months and a maturity date of January 15, 2027.

Samsung Electronics stated that it has not currently assessed the possibility of issuing American Depositary Receipts.

In June, the overseas assets of Hong Kong's foreign exchange fund decreased by HK$1 billion to HK$368.07 billion.

On July 14, the Hong Kong Monetary Authority disclosed the main analysis accounts of the exchange fund as of the end of June 2026.

The strongest profit growth in three years is expected! Oil, banks and AI launch a trio, European companies finally usher in the "catching up with the United States" moment.

In the upcoming second quarter earnings season, European companies are expected to achieve their highest profit growth in three years, thanks to the impressive performance of oil giants, banks, and beneficiaries in the field of artificial intelligence (AI).

The June CPI in the United States may reach a turning point, but the US-Iran conflict has disrupted the situation and the Fed's expectations for interest rate hikes this year have not diminished.

Consumer inflation in the United States is expected to slow down in June, but this may not bring much comfort to families and does not rule out the possibility of the Federal Reserve raising interest rates this year.

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SK Hynix ADR soared 27%, closing at a premium of 51% compared to the South Korean listed stocks.

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