A-shares Evening Hotspots | U.S. Non-Farm Payrolls Unexpectedly Cold in July, Investors Reduce Bets on Fed Rate Hike in September

Evening Heavy News Brief 1. Breaking News! Beijing Further Optimizes Real Estate Policies Importance: The Beijing Municipal Commission of Housing and Urban-Rural Development, the Beijing Municipal Planning and Natural Resources Commission, and the Beijing Housing Provident Fund Management Center jointly issued a notice on the evening of August 7, regarding the further optimization and adjustment of the city's real estate policies. It specifies that for non-Beijing households purchasing commercial housing within the Fifth Ring Road, the required years of social security or individual income tax payment is reduced from "2 years" to "1 year". After the adjustment, the social security or individual income tax payment requirements for non-Beijing households buying commercial housing across the city will be unified to "1 year", while the number of properties purchased remains unchanged. 2. U.S. July Non-Farm Payrolls Unexpectedly Decline, Investors Lower Bets on Fed Rate Hike in September Importance: Data from the U.S. Bureau of Labor Statistics showed an unexpected decrease of 23,000 jobs in the non-farm payrolls last month, falling short of market expectations of an increase of 80,000 jobs. With the labor force participation rate continuing to decline, the unemployment rate dropped to 4.1%, the lowest level in two years; the year-on-year increase in average hourly wages fell to 3.2%, lower than the market expectation of 3.5%. Following the data release, futures for the three major U.S. stock indexes surged, with NASDAQ futures rising over 1% at one point; spot gold saw a brief jump, and the dollar index fell by 30 points, as traders lowered their expectations for a Fed rate hike. 3. Positive Signals from "Light"! Giants Plan Significant Capacity Expansion Importance: On August 7, during pre-market trading in the U.S., shares of the optical communication stock Applied Optoelectronics (AAOI) surged significantly, soaring over 18% at one point. According to its latest financial report, the company reported a year-on-year revenue increase of 86% in the second quarter, with 800G products contributing to a doubling of revenue sequentially. The companys management stated during a conference call that demand related to AI (artificial intelligence) infrastructure remains strong, with customer demand exceeding the companys supply capacity by about 20% to 40%. As of the end of the second quarter, the total monthly production capacity for Applied Optoelectronics' 800G and 1.6T products approached 200,000 units. The company plans to increase this capacity to over 650,000 units by the end of 2026 and further raise it to over 930,000 units by the end of 2027. 4. Trump to Meet with Mining Executives: What is the Impact? Importance: According to CCTV International News, U.S. President Trump will convene a meeting with executives from several major global mining companies at the U.S. State Department on August 7, local time, aiming to take action to ensure the supply of critical minerals for the U.S. and its allies. Reflecting on the A-share market, this event may enhance sentiment in the strategic metals sector. On one hand, the logic of military stocking boosts the valuation of rare earths, tungsten, germanium, and scandium; on the other hand, the U.S. acceleration of partnerships with overseas mining companies will compel domestic focus on the protection and development of strategic mineral resources and deep processing industries in the medium to long term. However, domestic mining companies may find it difficult to secure relevant cooperation orders from the U.S.; thus, sentiment and global price expectations will drive the market, and further tracking of the actual documents signed and mineral price trends will be needed. Additionally, the volatile geopolitical situation may significantly amplify sector fluctuations. 5. Chinese Central Bank Increases Gold Holdings for 21 Consecutive Months: A New Upward Window for Gold Prices? Importance: The People's Bank of China has increased its gold holdings for the 21st consecutive month. The latest data from the central bank shows that as of the end of July, Chinas gold reserves reached 76.08 million ounces, up from 75.44 million ounces at the end of June. Notably, with gold prices fluctuating at low levels in July, the central bank ramped up its purchases, acquiring 640,000 ounces, which is the highest monthly purchase volume during the current 21-month accumulation period. CITIC SEC anticipates that the situation in the Strait of Hormuz will shift from suppressing to boosting gold prices, and that the Federal Reserves monetary policy may be more accommodative than market expectations. Coupled with a sharp increase in U.S. military spending pushing higher deficits, gold prices are expected to return to an upward trajectory within the year. Under a neutral assumption, gold prices may surpass historical highs by early 2027. 6. SK Hynix to Invest $38 Billion to Expand Chip Capacity Importance: In the wake of the AI wave, the leading storage chip manufacturer is further enhancing its capacity layout. SK Hynix announced that it will invest approximately 54.3 trillion Korean won (around $38.28 billion) to build two new fabs in Yongin and Cheongju, South Korea, expanding its DRAM and NAND production capacity. The company will gradually increase capacity based on customer demand to meet the growing demand for HBM and advanced storage driven by artificial intelligence. According to the plan, both factories are expected to complete investment before 2031, with the first cleanroom expected to go into production as early as late 2028 to 2029. This indicates that SK Hynix is locking in advanced storage capacity for the coming years to consolidate its leading position in the HBM and next-generation DRAM markets. 7. Yushi Technology Responds to Siasun Robot & Automation Sales Ban Importance: On the afternoon of August 7, Yushi Technology held an online investor communication meeting after its initial public offering (IPO) and listing on the Sci-Tech Innovation Board. Wang Xingxing, Chairman, General Manager, and CTO of Yushi Technology, responded for the first time by stating that the deep cooperation in Yushi Technologys IPO strategic allocation is based on the strategic cooperation memorandum signed by both parties, and will focus on cooperation in three areas. Additionally, an investor inquired how the sales ban on Siasun Robot & Automation in the U.S. would impact Yushi Technology. The Secretary of the Board of Yushi Technology, Fu Fenghua, stated that the current changes in overseas policies will not affect the continued sales of the company's main products in the U.S. market. 8. Multiple Fund Managers Report Start-up Board Computing Power and Financial Technology ETFs Importance: Several fund managers have reported ETFs based on the Start-up Board Computational Infrastructure Index and Financial Technology Index. Among them, E Fund, Huaxia, Southern, GF, Fortune, Cathay, Harvest, Tianhong, Penghua, and Dacheng have reported the Start-up Board Computing Power ETF; and Invesco Great Wall, Huatai-Pb, Wanjia, Dongcai, Great Wall, and Jianxin have reported the Financial Technology ETF products. The Start-up Board Computing Power Index selects 50 stocks from the computing power infrastructure field with large market capitalization and good liquidity, involving leading companies in specific areas like Changsha Jingjia Microelectronics, Zhongji Innolight, and Suzhou TFC Optical Communication. The Financial Technology Index selects 50 stocks from the financial technology sector with large market capitalization and good liquidity, including East Money Information, Hithink RoyalFlush Information Network, and Jiangsu Hoperun Software. 9. Trump Talks Rate Cuts: Hopes for Lower Rates, but It's Not Solely Up to Waller Importance: Trump has again signaled his desire for rate cuts, but his tone is noticeably softer in pressuring the Federal Reserve compared to before, acknowledging that rate decisions are not solely influenced by Fed Chair Waller. According to Wall Street Updates, on August 7, Trump responded to a question about whether Waller should refrain from raising rates before the midterm elections, stating that the decision to cut rates "depends to some extent on him, but not entirely." Investment Opportunities Preview An investment opportunity summary by the selected stock analyst reveals a focus on sectors such as electricity. 1. On August 7, national electricity load reached a record high for the fourth time since entering summer, hitting 1.557 billion kilowatts. According to the National Energy Administration, on August 7, the national electricity load reached a historical high of 1.557 billion kilowatts for the fourth time since entering summer, which is an increase of approximately 4.8 million kilowatts from the previous peak. Since July 29, national electricity load has been running persistently at a high level, with the maximum daily load (excluding weekends and holidays) exceeding last years peak of 1.508 billion kilowatts, and the peak load shows a distinct platform characteristic. This year, national electricity demand continues to grow robustly. The power grids in six regions, including North China, Northeast, and East China, set 21 historical highs, while 25 provinces (autonomous regions, and municipalities) including Beijing, Liaoning, Jiangsu, Jiangxi, Sichuan, and Gansu saw a total of 78 peak load records. Caitong noted that the El Nio phenomenon will be a short-term catalyst for the power sector due to high temperatures and power shortages during peak summer, but in the medium to long term, the core issue is the ongoing losses in new energy operations leading to reduced capital expenditure and new installations in wind and solar energy, compounded by coal prices stabilizing, which will jointly push supply and demand for electricity to tighten in the next two to three years, leading to an upward trend in electricity prices. In addition, the following sectors are also worth monitoring: 2. Aviation | The "14th Five-Year Plan" for civil aviation development has been issued. 3. Storage Chips | The spot price of DDR4 has soared sixfold, with market expectations for significant narrowing of increases in the second half of the year. 4. Zirconia | Shandong Sinocera Functional Material has raised zirconia prices; the outlook for diversified high-end new materials looks positive. 5. Apple Concept | Foxconn is ramping up recruitment to cope with iPhone production capacity increases, with the production peak expected to last until the end of the year. Positive and Negative Announcements from Listed Companies Among the positive announcements, the selected stock analyst suggests paying attention to Cambricon's semi-annual report performance; regarding negative announcements, attention should be paid to Fujian Start Group's disclosures of legal violations. Positive Announcements 1. Cambricon: Net profit of 2.311 billion yuan in the first half of 2026, a year-on-year increase of 122.61%. 2. Biwin Storage Technology: The holding subsidiary plans to increase registered capital and introduce investors. 3. Dynamic Electronics: Plans to invest 2.086 billion yuan in constructing a high multi-layer and HDI circuit board P3 project. 4. China Rare Earth Resources and Technology: Net profit of 237 million yuan in the first half of the year, a year-on-year increase of 46.53%. Negative Announcements 1. Fujian Start Group: Under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws in its 2023 semi-annual report. 2. Jiangsu Olive Sensors High-Tech: Net profit of 32.727 million yuan in the first half of the year, a year-on-year decrease of 42.83%. 3. Telink Semiconductor (Shanghai) Co., Ltd.: Terminated the issuance of shares to purchase assets and withdrew the application documents. 4. Smartgen: Net profit of 41.4091 million yuan in the first half of the year, a year-on-year decrease of 2.76%. This article is reproduced from "Tencent Stock Selection," edited by Xu Wenqiang.