A-shares Evening Highlights | Is "Market Rescue" Just a Temporary Breather? U.S. Long-Term Bond Yields Rise Again, U.S. Stocks Drop, Gold and Silver Plunge

Evening Heavy News Overview 1. Performance and Buybacks: A Wave of Positive News! Chemical Leader Reports Net Profit Soars Over 229 Times Importance: On August 20, A-shares welcomed a flurry of positive news regarding performance and buybacks. Among them, Nantong Jiangtian Chemical disclosed its semi-annual report, showing a net profit of 59.412 million yuan in the first half of the year, a year-on-year increase of 22,955%. Shenzhen Hans CNC Technology, a stock that has grown 13 times, reported a net profit of 957 million yuan, up 263.45% year-on-year; Basic earnings per share stood at 2.06 yuan. Semiconductor leader Piotech Inc. achieved a net profit attributable to shareholders of 1.343 billion yuan in the first half, an increase of 1,324.10% year-on-year; Han's Laser Technology Industry Group, a leader in laser equipment, reported a net profit attributable to shareholders of 1.288 billion yuan, an increase of 163.84% year-on-year. Additionally, several A-share companies, including GigaDevice Semiconductor Inc., YTO Express Group, and Yinchuan Xinhua Commercial, announced buybacks. Industry insiders believe the concentrated occurrence of increased holdings and repurchases is not only a proactive measure by listed companies and industrial capital to respond to market fluctuations but also a behavior based on long-term value judgments. 2. "Market Rescue" Just a Temporary Breather? U.S. Long Bond Yields Resume Climbing, U.S. Stocks Drop, Gold and Silver Plunge Importance: On August 20, the U.S. Treasury Department launched a long-term government bond incremental buyback plan, which briefly boosted market sentiment, but the effects quickly waned. Rising oil prices have again brought inflation risks back into investors' sights, leading to another rise in long bond yields, a drop in U.S. stocks, and a synchronized dive in gold and silver. As of 21:35, U.S. stocks opened lower across the board, with the Dow Jones index down 0.71%, the S&P 500 index down 0.32%, and the Nasdaq Composite index down 0.45%. The decline in U.S. long bonds expanded, with the 30-year treasury yield rising by 6 basis points to 5.25%. J.P. Morgan noted that the U.S. government's financing demand remains enormous. The financing gap over the next several fiscal years is expected to exceed $35 trillion, indicating that long-term treasury supply is more likely to increase rather than decrease in the medium to long term. Although a reduction in auction size has become more probable, it will not have a lasting suppressive effect on long-end yields. Unless the U.S. takes concrete measures to reduce the fiscal deficit, this initiative may only have a temporary impact on long-end yields. 3. National Development and Reform Commission Holds Symposium with Private Enterprises Regarding Economic Stability and Promoting Effective Investment Importance: On August 20, Zheng Zhanjie, Director of the National Development and Reform Commission, hosted a symposium to listen to the opinions and suggestions of private enterprises regarding stabilizing economic operations and promoting effective investment. Attendees included leaders from five companies in various fields such as electrical equipment, pharmaceutical equipment, consumer services, smart terminals, and textiles, including Qingdao TGOOD Electric, Truking Technology, Yucun Technology, Thunderbird Innovation, and Inner Mongolia ERDOS Resources. Zheng stated that the National Development and Reform Commission will fully leverage the effectiveness of existing policies, timely plan and introduce practical and usable incremental policies, collaborate to promote key projects outlined in the "14th Five-Year Plan" framework, and solidly advance "two substantial constructions" and "two new works," while improving the long-term mechanism for private enterprises to participate in national key project construction. They aim to eliminate hidden barriers, expand scenario openness, strengthen element support, and protect legitimate rights and interests, thus fully stimulating private investment vitality and promoting sustainable economic development toward new, improved, and positive directions. 4. Alibaba's Latest Financial Report Released: Investment in AI Infrastructure Pushes Up Capital Expenditure, U.S. Stocks Fall Over 4% at One Point Importance: On August 20, Alibaba Group released its financial data for the first quarter of fiscal 2027 (the second quarter of calendar year 2026), showing revenues of 268.953 billion yuan, a year-on-year increase of 9%, surpassing the expected 268.52 billion yuan. However, under the ongoing ramp-up of investment in AI infrastructure, profits have come under significant pressure, with operating profit dropping by 57% year-on-year to 15.161 billion yuan, and non-GAAP net profit decreasing by 38% year-on-year to 20.715 billion yuan. At the same time, AI and cloud businesses became the highlights of this financial report. Alibaba Cloud's external commercialization revenue grew by 45% year-on-year during this quarter, reaching the highest growth rate in 22 quarters; revenue from AI-related products reached 12.376 billion yuan, achieving triple-digit year-on-year growth for the 12th consecutive quarter. Adjusted EBITA for the AI Cloud and computing services segment increased by 133% year-on-year, with a profit margin rising to 12%, indicating that the AI business is experiencing "high growth and profit improvement." After the financial report was released, Alibaba's U.S. stock fell over 4% at one point. 5. International Banks are Bullish, SK Hynixs U.S. Stocks Soar Over 5% at One Point! Three Key Catalysts Spark Discussion Importance: On August 20, SK Hynix's U.S. stocks surged over 5%. In terms of news, SK Hynix and Samsung Electronics announced large-scale shareholder return plans amounting to a total of 140 trillion won, directly igniting the South Korean stock market. J.P. Morgan stated that after completing the new stock buyback plan, SK Hynix may return at least $130 billion to shareholders next year. The critical information regarding the 40 trillion won stock buyback plan announced on Wednesday is that this South Korean semiconductor manufacturer has decided to raise the upper limit for shareholder returns, with a commitment to allocating more than half of its cumulative free cash flow from 2025 to 2027 for shareholder returns, up from the previous commitment of "up to 50%." This is expected to support the stock price after the recent selling wave. 6. POP MART: Revenue of Six Major IPs Exceeds 1 Billion in the First Half; Plans to Buy Back Up to 5 Billion Yuan of Shares Importance: On August 20, POP MART released its semi-annual report for 2026. The report showed that revenue from the group's six major IPs exceeded 1 billion yuan in the first half, with 11 IPs generating over 100 million yuan. THE MONSTERS led with revenue of 4.45 billion yuan, while the ranking second was the Starlit People with 2.65 billion yuan, achieving a growth rate of over 580%. Additionally, the CEO of POP MART announced plans to buy back 2 to 5 billion yuan of shares within six months. 7. "Epic" Short Squeeze! Bitcoin Surges Violently, Over 180,000 People Liquidated Within 24 Hours Importance: On August 20, Bitcoin "revived," breaking the $71,000 mark and soaring over 10% within 24 hours; Ethereum approached $2,300, rising nearly 19% within the same period. The explosive rise in Bitcoin triggered the largest short squeeze since records began in 2021. According to Coinglass data, in the last 24 hours, a total of 184,821 people have been liquidated worldwide, with a total liquidated amount reaching a record $3.264 billion, highlighting the abruptness of the market's reversal. Analysis indicates that this rebound is not solely driven by a single piece of news, but is a result of a crowded short structure encountering favorable regulatory conditions, a drop in long-end rates, and a return of funds across sectors, which all contributed to a concentrated price release. 8. Ministry of Commerce Responds to U.S. Imposition of Drone Tariffs and European Suppression of Chinese Enterprises Importance: At a routine press conference on August 20, Ministry of Commerce spokesperson He Yadong responded to issues related to the U.S. imposing drone tariffs and the European side's abuse of unilateral tools to suppress Chinese enterprises. He Yadong stated that the U.S.'s Section 232 measures generalize the concept of national security, implementing differentiated tariff rates on trading partners and discriminating against Chinese-related products, which seriously harms Chinese enterprises' interests, disrupts the global drone supply chain cooperation order, and further undermines a fair competitive market environment, to which China strongly opposes. We urge the U.S. to immediately revoke the related Section 232 tariff measures. Additionally, He Yadong stated that China has consistently opposed the European side's abuse of the Foreign Subsidies Regulation (FSR) and other unilateral tools to suppress Chinese enterprises. He hopes that the European side will meet the Chinese side halfway, quickly correct mistakes in the FSR investigations, and strengthen communication through intergovernmental dialogue. China will closely monitor the European side's movements and take necessary measures to safeguard national security and the legitimate rights and interests of enterprises. Opportunities Ahead Self-selected Brother summarizes investment opportunities of market concern, particularly in real estate and others. 1. Concerning Real Estate! Shanghai Unveils Major Moves Post-Market, Is Stability in the September and October Housing Market Secured? On August 20, after the market closed, the Shanghai Municipal Government Office issued the "15th Five-Year Plan for Urban Renewal and Housing Development." It noted the importance of leveraging the urban real estate financing coordination mechanism to expand and enhance the coordination mechanism's whitelist project. The plan emphasizes deepening the reform of the housing provident fund system, expanding the coverage and usage of the housing provident fund, and continuously deepening integrated cooperation of the housing provident fund in the Yangtze River Delta region. It will also increase financial support for residents' housing consumption to better meet reasonable mortgage credit demands. Notably, during this time, the new Eight Policies in Shanghai ignited real estate stocks. The market generally believes that the effects of the new policies are likely to convert into market enthusiasm ahead of the traditional sales peak in "Gold September Silver October." In addition, the following sectors are also worth noting: 2. Satellite Communication | The Ministry of Industry and Information Technology approves Shikong Daoyu to develop satellite IoT business commercialization. 3. Securities Firms | CICC: The stock swap merger involving Dongxing and Cinda will be reviewed on August 27. 4. Semiconductor | TSMC's 1.6nm A16 process has completed development validation, targeting mass production in Q4. 5. Oil and Gas | WTI crude futures prices surged by over 3%, reaching the highest levels in nearly a month. 6. Superconductors | Chinese scientists achieve vacuum fluctuation enhancement superconductivity using "dark cavities," with results published in "Nature." Positive and Negative Company Announcements In terms of positive announcements, Self-selected Brother highlights GigaDevice Semiconductor Inc. planning to repurchase 1 to 2 billion yuan worth of shares; meanwhile, investors should pay attention to negative announcements such as Muyuan Foods Group reporting a net loss of over 6 billion yuan in the first half. Positive Announcements 1. GigaDevice Semiconductor Inc.: Plans to repurchase company shares worth 1 to 2 billion yuan 2. Xiamen Tungsten: Net profit of 2.201 billion yuan in the first half of 2026, a year-on-year increase of 127.04% 3. CITIC SEC: Semi-annual net profit of 23.343 billion yuan in 2026, a year-on-year increase of 69.6% 4. Chongqing Three Gorges Water Conservancy And Electric Power: Net profit increased by 689% year-on-year in the first half, driven by abundant water in the hydropower sector. 5. YTO Express Group: First buyback of 1.1398 million shares, totaling 19.9953 million yuan. Negative Announcements 1. Muyuan Foods Group: A net loss of 6.078 billion yuan in the first half, reversing to loss year-on-year. 2. China Telecom Corporation: Net profit of 19.588 billion yuan in the first half of 2026, down 14.9% year-on-year. 3. Beijing Qianjing Landscape: 9.12% of the total share capital held by the controlling shareholder has been judicially frozen and marked. 4. Inno Laser Technology: Shareholder Hongchui Investment plans to reduce holdings of no more than 3% of shares. 5. Zhejiang Power New Energy: Engaged in a contract dispute, facing an appeal from the other party involving approximately 46.89 million yuan. This article is reproduced from "Tencent Self-Selected Stocks," edited by GMTEight: Xu Wenqiang.