A | Sudden bad news! The U.S. imposes tariffs on polysilicon, and U.S. storage giant shares plummet after earnings report.

Pre-Market News 1. Trump announces tariffs on polysilicon and its derivatives Type: Industry Sentiment Impact: Negative On August 6 local time, U.S. President Trump signed an executive order imposing minimum import prices and additional tariffs on imported polysilicon and its derivatives under Section 232 of the Trade Expansion Act of 1962, in support of the domestic polysilicon, semiconductor, and CECEP Solar Energy supply chains. 2. U.S. stock indices collectively decline; SanDisk and Western Digital plummet after earnings Type: Industry Sentiment Impact: Negative On Thursday Eastern Time, all three major U.S. stock indices declined, with storage stocks experiencing widespread losses. Western Digital fell by 13%, and SanDisk dropped by 6.8% following earnings reports that prompted market sell-offs for both companies. Nonetheless, both companies have seen remarkable increases in their stock prices this year. Additionally, SK Hynix fell by 5%, and Micron Technology dropped by 1.3%. 3. Yushu Technology sets IPO pricing at 150.8 yuan, may achieve over 300,000 yuan profit for single subscription Type: Company Sentiment Impact: Positive Yushu Technology announced its public offering price of 150.80 yuan per share for its listing on the Science and Technology Innovation Board, with subscription starting on August 10. The company expects to raise approximately 6.1 billion yuan, with an anticipated market capitalization of about 61 billion yuan post-listing. If Yushu Technology's first-day price surge matches that of Changxin Technology, exceeding 300%, the profit for a single subscription could exceed 200,000 yuan, while a rise over 450% could lead to profits exceeding 300,000 yuan. 4. Goldman Sachs and JPMorgan significantly increase holdings in Zhongji Innolights H shares, with positions doubling Type: Company Sentiment Impact: Positive Latest disclosures show that as of August 3, 2026, Goldman Sachs has increased its long position in Zhongji Innolights H shares to 12.19%; compared to a week ago, this figure has doubled. Meanwhile, JPMorgans latest disclosure shows that as of July 31, 2026, its long position in Zhongji Innolights H shares has risen from 5.60% to 1.72%, with positions also doubling. 5. Reports: If inflation data remains strong in the coming weeks, Waller is prepared to raise rates in September Type: Macro Sentiment Impact: Negative According to reports cited by Wall Street Insight, if inflation data continues to be hot in the upcoming weeks and market expectations for rate hikes increase, Federal Reserve Chair Waller is ready to raise rates during the September rate decision. Following this announcement, U.S. short-term Treasury bond yields increased. Despite a massive sell-off of U.S. debt following last week's FOMC meeting, Waller remains committed to a streamlined communication strategy. Investment Calendar U.S. July non-farm employment data Investment Nuggets We live in an exponential world - yet our brains are inherently linear. [U.S.] Scott Patterson, "The Cracked Reverse" Institutional Views 1. CMSC: Current market involvement should focus on "oversold rebounds primarily, with rebalancing as a secondary strategy." 2. Huajin Securities: A-shares may continue to fluctuate and bottom out in August; focus on sectors like technology growth and some cyclical industries. 3. Kaiyuan Securities: Historically, a decrease in crowdedness leads to style switching; key focus on rebalancing in sectors such as power and coal. Prospective Positive and Negative Factors 1. Democratic Republic of Congo bans exports of copper and cobalt concentrates Type: Policy Focus Founder: In light of the DRC's strict control over cobalt resource exports, we suggest capitalizing on the upward trend in cobalt prices in the third quarter by focusing on companies such as Zhejiang Huayou Cobalt, Ganzhou Teng Yuan Cobalt New Material, LYGEND RESOURCE, and GEM Co., Ltd. 2. Countermeasures announced U.S. company attached to cybersecurity review Type: Market Buzz CITIC SEC: Domestic core cybersecurity companies are expected to accelerate deep collaboration with leading large model companies, as demand for AI security is likely to penetrate faster, bringing potential incremental demand for domestic cybersecurity firms. 3. ByteDance discusses training for a model with over 50 trillion parameters Type: Institutional Remarks China Great Wall: As our large models continue their iteration, the market is gradually shifting from parameter scale performance rankings to a focus on the efficiency-versus-cost ratio in inference; cost-effectiveness is becoming key to commercializing these large models, and we remain optimistic about the opportunities brought by large model vendors and their entire computing power industrial chain. Announcements Express Neutral Positive Announcements 1. Xingfa Group: Plans to raise no more than 3 billion yuan with participation from the controlling shareholder. 2. Shandong Homey Aquatic Development: Net profit for the first half of the year reached 29.9788 million yuan, a year-on-year increase of 21.74%. 3. Ningbo Sanxing Medical Electric: Subsidiary signs overseas operation contract worth approximately 175 million yuan. Neutral Negative Announcements 1. Shanxi Coking Coal Energy Group: Western Qu Mine suspended operations due to a safety production accident. 2. Tongyu Communication Inc. clarifies: Jiaxian Communication and NVIDIA do not have a research and development partnership. 3. Shenyang Cuihua Gold and Silver Jewelry: Suspected of false reporting that may lead to major illegal mandatory delisting. Overseas Market Self-Choice Reminder: Investors should pay attention to negotiations in the Middle East and corporate earnings as all three major indices closed lower. On the market, storage-related stocks fell broadly, with Western Digital down over 13%, SanDisk down over 6%, and SK Hynix down about 5%; SpaceX rose over 6%, with a market capitalization back above $1.5 trillion, while Microsoft rose over 2%, hitting a new high since last November; the Nasdaq China Golden Dragon Index rose 0.27%. This article is reproduced from "Tencent Self-Selected Stocks," edited by GMTEight: Li Fo.