Morning News

Source: Wall Street News

# Market Overview

Last Friday, a sell-off in tech stocks weighed on the market, causing the three major U.S. stock indexes to decline on the final trading day of August. Nevertheless, all three indexes still recorded monthly gains for August. The Nasdaq Composite closed down more than 1%, marking its second consecutive weekly decline, but it extended its monthly winning streak to five months. The semiconductor stock index and NVIDIA both dropped over 3%. Tesla fell 3.50% but still rose more than 8% in August. Oracle declined nearly 6%.

Chinese concept stock indexes bucked the broader market trend, closing up over 1%. They gained more than 6% in August, achieving four consecutive months of growth. Alibaba closed 13% higher, registering its largest single-day increase in nearly two and a half years.

Fed officials mentioned the prospect of an interest rate cut in September. The yield on the 2-year U.S. Treasury note hit a new nearly four-month low. Amid rising expectations of rate cuts in August, the yield plummeted by more than 30 basis points.

Following the release of U.S. PCE data, the U.S. Dollar Index touched a daily high but later reversed course and fell, approaching a more than three-week low. The offshore Chinese Yuan once again rose above the 7.12 mark, reaching a new nearly ten-month high, though it later pulled back by over 100 pips; still, it gained nearly 500 pips for the whole week. Bitcoin dropped by more than 5,000 U.S. dollars at one point, falling below the 108,000 mark. Ethereum declined over 5% at one stage but still advanced more than 10% in August.

Gold posted four consecutive days of gains, with gold futures rising over 1% and closing at a record high. Crude oil prices retreated; U.S. oil fell more than 6% in August, recording its first monthly decline in four months. For domestic futures in the night session, prices closed mixed. Soda ash futures dropped 2.08% in the night session, while caustic soda futures rose 1.24%.

During the Asian trading session, A-shares and Hong Kong stocks concluded their August trading. The ChiNext Index soared by over 24%, the Hang Seng Index remained firmly above the 25,000-point level. Cambricon, the new "stock king," doubled in value, and the market capitalization of Foxconn Industrial Internet exceeded one trillion yuan.

# Key News

- China Securities Regulatory Commission (CSRC): Will continue to consolidate the stable recovery momentum of the capital market and accelerate the advancement of a new round of capital market reform and opening-up.

- National Development and Reform Commission (NDRC): Will develop the "AI +" model, resolutely avoid disorderly competition and blind expansion. The next 1-2 years will be a crucial window period for the implementation of artificial intelligence.

- China's official Manufacturing Purchasing Managers' Index (PMI) for August edged up to 49.4, with the new orders index rising to 49.5. The non-manufacturing sector expanded at an accelerated pace.

- Li Chenggang, China's International Trade Representative and Vice Minister of Commerce, visited the United States and held talks with relevant officials from U.S. government departments and representatives from the business community.

- Ministry of Commerce: Firmly opposes the U.S. revocation of the "Validated End-User" (VEU) authorizations for three semiconductor companies including Samsung operating in China.

- A U.S. appeals court ruled that most of Trump's global tariffs are illegal, but they remain in effect while the lawsuit is pending, giving the Trump administration time to appeal to the Supreme Court.

- The U.S. core PCE price index in July rebounded to 2.9% year-on-year, in line with expectations, and the impact of tariffs remains manageable.

- The court battle between Trump and the Federal Reserve has begun, with intense arguments over whether the dismissal was "legitimate." The Fed board members stated that tweets cannot be used as a reason for dismissal. The Director of the FHFA has initiated a criminal referral regarding Cook's third mortgage.

- Alibaba's Q2 Non-GAAP net profit fell 18% year-on-year; its cloud business revenue increased by 26%, and Taobao Flash Sale boosted monthly active users by 25%. During the earnings call, Alibaba stated that it has a Plan B for AI chip supply, reaffirmed a 380 billion yuan capital expenditure, and expects Flash Sale and instant retail to bring 1 trillion yuan in new transactions in the next three years. Alibaba's U.S. shares closed 13% higher, posting the largest single-day gain in nearly two and a half years. Alibaba Cloud denied purchasing Cambricon's GPUs.

- The Trump family's "core token" is launching, with trading set to start on September 1st. It features a "trinity" of "financial cornerstone, market game, and macro narrative."

- Meituan open-sourced its large model "Longmao" (Dragon Cat), whose performance is on par with DeepSeek V3.1, and it also focuses on "computing power saving."

- Media reports indicate that Meta is considering using Google's Gemini or OpenAI's models in its AI systems; the schedule for the Connect conference has been announced, and Meta's first consumer-grade smart glasses may be launched soon.

# Market Closing Quotes

- U.S. and European Stock Markets: The S&P 500 fell 0.64% to close at 6,460.26 points; the Dow Jones Industrial Average dropped 0.20% to 45,544.88 points; the Nasdaq Composite declined 1.15% to 21,455.552 points. In August, they rose 1.91%, 3.2%, and 1.58% respectively. Europe's STOXX 600 Index closed down 0.64% at 550.14 points, with an August gain of 0.74%.

- A-shares: The Shanghai Composite Index rose 0.37% to 3,857.93 points; the Shenzhen Component Index advanced 0.99% to 12,696.15 points; the ChiNext Index climbed 2.23% to 2,890.13 points.

- Bond Market: By the end of the bond market session, the yield on the 10-year U.S. Treasury note was approximately 4.23%, up about 3 basis points intraday, and down 14 basis points in August. The yield on the 2-year U.S. Treasury note was around 3.62%, down about 1 basis point intraday, and fell 34 basis points in August.

- Commodities: WTI crude oil futures for October closed down 0.91% at $64.01 per barrel, with an August decline of approximately 6.1%. Brent crude oil futures for October dropped 0.73% to $68.12 per barrel, falling about 5% in August. COMEX gold futures for December closed up 1.2% at $3,516.1 per ounce, rising 5% in August.

# Details of Key News

## Global Highlights

- **China Securities Regulatory Commission (CSRC)**: Will continue to consolidate the stable recovery momentum of the capital market and accelerate the advancement of a new round of capital market reform and opening-up. Experts and scholars participating in the "14th Five-Year Plan" Capital Market Planning Symposium put forward targeted and forward-looking opinions and suggestions, mainly including:

 - Improving the multi-level capital market system, further deepening institutional reforms, and enhancing market functions;

 - Enhancing the quality and investment value of listed companies, accelerating the cultivation and expansion of long-term capital, patient capital, and strategic capital, and promoting more medium- and long-term funds to enter the market;

 - Further improving the legal system in key areas of the capital market such as stocks, bonds, derivatives, and cross-border supervision, optimizing the three-dimensional accountability system, and severely cracking down on illegal and irregular behaviors such as financial fraud, market manipulation, and insider trading;

 - Steadily expanding the high-level institutional opening-up of the capital market, optimizing the qualified foreign investor system, and supporting high-quality overseas enterprises in returning to the A-share market.

- **National Development and Reform Commission (NDRC)**: When developing "AI +", we must resolutely avoid disorderly competition and blind expansion. The next 1-2 years will be a crucial window period for the implementation of artificial intelligence. The NDRC emphasized that regarding private investment, it is necessary to promptly study and introduce policy measures to promote the development of private investment, and improve the long-term mechanism for private enterprises to participate in the construction of major national projects. At the same time, it pointed out that in the development of "AI +", we must resolutely avoid disorderly competition and blind expansion, and will take multiple measures to support the development of artificial intelligence, such as issuing computing power vouchers to reduce the R&D costs of innovation entities.

- **China's Official Manufacturing PMI in August Edge Up to 49.4, New Orders Index Rises to 49.5, Non-Manufacturing Sector Expands at Accelerated Pace**: The manufacturing prosperity level has improved, with both the manufacturing production and demand indexes rebounding. The overall price level continues to improve, and the purchasing price index of major raw materials and the ex-factory price index have rebounded for three consecutive months. The non-manufacturing business activity index was 50.3%, and the service industry business activity index was 50.5%, rising to the highest level within the year.

- **Li Chenggang, China's International Trade Representative and Vice Minister of Commerce, Visits the US and Holds Talks with Relevant US Government Officials and Business Community Representatives**: The two sides exchanged views on issues such as implementing the consensus reached in the phone call between the heads of state of China and the US, and advancing China-US economic and trade relations as well as the implementation of the consensus from China-US economic and trade talks.

- **China's Ministry of Commerce**: Firmly Opposes the US Revocation of "Validated End-User" (VEU) Authorizations for Three Semiconductor Companies Including Samsung Operating in China. A spokesperson for the Ministry of Commerce stated on the 30th that China urges the US to immediately correct its wrong practices and safeguard the security and stability of the global industrial and supply chains. China will take necessary measures to resolutely protect the legitimate rights and interests of enterprises.

- **US Appeals Court Rules Most of Trump's Global Tariffs Illegal, but They Remain in Effect Pending Lawsuit Conclusion**: The US Federal Circuit Court of Appeals on Friday upheld an earlier ruling by the Court of International Trade that Trump incorrectly invoked emergency powers to impose tariffs. However, the appellate court judges remanded the case to the lower court to determine whether the ruling applies to all parties affected by the tariffs or only to the parties involved in this case. This gives the Trump administration time and opportunity to further appeal to the Supreme Court.

- Trump stated that all tariffs remain valid, and the appeals court wrongly claimed that the tariffs should be lifted. If these tariffs are removed, it will be a complete disaster for the country.

- **US Core PCE Price Index in July Rebounds to 2.9% YoY, in Line with Expectations, Tariff Impact Remains Manageable**: The inflation rebound is driven by the rising cost of services, with the increase hitting the largest since February. This includes higher portfolio management fees, reflecting the stock market rally that has lasted for several months, as well as an increase in the cost of entertainment services including live sports broadcasts and entertainment activities.

- **Court Battle Between Trump and the Federal Reserve Begins, with Heated Arguments Over the "Legitimacy" of Dismissal; Fed Governors Argue That Tweets Cannot Be Used as a Reason**: The Trump administration argues that defining the reason is the president's prerogative, and the courts have no right to review it. As long as the president determines that the allegation of misconduct constitutes a reasonable reason for dismissal, it is sufficient. Lawyers for Fed Governor Cook claim that she has been subjected to a "smear campaign," and fraud charges have become the Trump administration's "weapon of choice" to achieve its goal of interest rate cuts. Even if the charges are true, they occurred before she took office as a governor and do not reach the level of "just cause" for dismissal. The Federal Reserve stated that it will comply with any court order and hopes for a quick ruling. Media predict that this case may go to the Supreme Court.

- **Trump Steps Up Pressure on the Federal Reserve**: FHFA Director Initiates Criminal Referral Regarding Cook's Third Mortgage. Previously, it was believed that Trump had no authority to dismiss Cook "for cause" because the first criminal referral by Pult involved actions by Cook before she joined the Federal Reserve. However, this new allegation directly points to violations during her tenure, which is equivalent to filling the legal loophole for Trump.

- The two key battles that will determine the fate of Trump's tariffs and the Federal Reserve will both depend on the US Supreme Court. In many cases this year, the Supreme Court has basically supported the Trump camp. However, these two new cases - the global tariffs and the attempt to dismiss Cook - may break this winning streak, as they will put the White House in direct confrontation with another group favored by the courts: the business community.

- **Waller, a Top Contender for Fed Chair**: Ethereum and Stablecoins Are the Next Step in Payment Development, and Institutions Should Adopt Them. Waller, a leading candidate for the next Federal Reserve Chair, publicly expressed optimism about digital assets (especially Ethereum and stablecoins) and urged financial institutions to accept cryptocurrencies as a natural next step in the development of payments. This statement has been interpreted by the market as a positive signal for the revaluation of cryptocurrencies. Regulatory clarity has driven a significant inflow of institutional capital into the crypto market. As of the third quarter of 2025, Ethereum ETFs have attracted $27.6 billion in investment, and corporate staking investments have reached $10.1 billion.

- **San Francisco Fed President Daly Says the Fed Will Cut Interest Rates Soon; Inflation Caused by Tariffs May Be Temporary, Short-Term US Treasury Yields Fall to Intraday Lows**.

- **Alibaba's Q2 Non-GAAP Net Profit Drops 18% YoY, Cloud Business Revenue Rises 26%, Taobao Flash Sale Boosts Monthly Active Users by 25%**; **Earnings Call Highlights**: Has a Plan B for AI Chip Supply, Reaffirms RMB 380 Billion Capital Expenditure, Expects Flash Sale and Instant Retail to Bring RMB 1 Trillion in New Transactions in the Next Three Years.

Alibaba's Q2 revenue increased by 2%, and net profit surged by 76% to RMB 42.4 billion. In the first half of 2025, the revenue of the instant retail business increased by 12% YoY. In Alibaba Cloud's business, the revenue of AI-related products has achieved triple-digit YoY growth for eight consecutive quarters. Capital expenditure jumped from approximately RMB 11.9 billion in the same period last year to approximately RMB 38.7 billion in this quarter.

During the earnings call, management revealed that Taobao Flash Sale has been launched for only four months, and its monthly active users have exceeded 300 million, an increase of 200% compared to before April, and the first-phase target has been exceeded. In the past quarter, the capital expenditure on artificial intelligence and cloud infrastructure reached RMB 38.6 billion. Jiang Fan talked about Taobao Flash Sale's strategy for the first time, stating that one million brand stores will settle in in the next three years, achieving an incremental transaction volume of RMB 1 trillion.

Alibaba Cloud Denies Purchasing Cambricon GPUs. Recently, there were rumors that Alibaba purchased 150,000 Cambricon GPUs. A person from Alibaba Cloud told Wall Street CN that the news is untrue, but Alibaba Cloud does support the domestic supply chain through a multi-chip cloud strategy.

- **Huawei's First-Half Revenue Reaches RMB 427 Billion, Up 3.94% YoY; Net Profit Drops 32% YoY**: Huawei released its performance report, showing that its first-half revenue reached RMB 427 billion, an increase of 3.94% YoY; net profit reached RMB 37.1 billion, a decrease of 32% YoY. At the same time, the amount of assets mortgaged, pledged, or seized did not exceed 50% of the audited net assets at the end of last year, indicating that the company's asset quality is generally controllable.

- **BYD's First-Half Revenue Surpasses Tesla for the First Time, Net Profit Rises 13.79% YoY, Gross Margin Drops to 18.01%**: BYD's first-half operating revenue was RMB 371.3 billion, an increase of 23.30% YoY, reaching a record high; the net profit attributable to shareholders of the parent company was RMB 15.51 billion, an increase of 13.79% YoY. The gross margin slightly decreased from 18.78% in the same period last year, mainly affected by the domestic "price war" and other industry factors.

- **Hon Hai (Foxconn)**: Sovereign AI Investment May Reach $1 Trillion in the Next Five Years, Becoming a New Growth Driver for the Computing Power Market. Hon Hai Precision management also expects that there will be no major transition issues between the GB200 and GB300, and stated that the GB300 will dominate shipments in the second half of 2025.

- **Trump Family's "Core Token" Launches Trading on September 1st, Featuring a "Trinity" of "Financial Cornerstone, Market Game, and Macro Narrative"**: The fully diluted valuation of the WLFI token has exceeded $40 billion, among which the value of the tokens held by Trump personally is expected to exceed $6 billion, becoming a new engine for his family's wealth.

- **Latest Ranking of Global Top 100 AI Applications**: ChatGPT Ranks First, Google Makes Significant Progress to Take the Second Place, Alibaba Kuake Jumps to the 9th Place.

- **Meituan's Large Model Launches! Open-Sources "Longmao" (Dragon Cat), Whose Performance Matches DeepSeek V3.1 and Also Focuses on "Computing Power Saving"**:

From GPT-5 to DeepSeek V3.1, a new direction for top-tier AI large models has emerged. As inference models become increasingly complex, the number of tokens required to complete tasks is skyrocketing, leading to higher rather than lower actual costs. The industry is shifting from simply pursuing the upper limit of model capabilities to pursuing computational efficiency. Currently, "hybrid inference" has become an industry consensus, aiming to enable models to learn to judge when "in-depth thinking" is needed and when only "quick responses" are required.

- **Chaos, Internal Strife, Scandals: Meta Considers Yielding to Google and OpenAI**: According to media reports, facing the reality that its own model performance is insufficient and the user activity of its AI assistant is dismal, senior executives of Meta's Super Intelligence Laboratory have begun discussing the use of Google's Gemini or OpenAI's models in Meta AI as a "stopgap measure" to enhance product capabilities. This potential strategic shift is equivalent to a public admission that Meta is temporarily lagging behind in the AI core technology competition.

- **Meta Connect Conference Schedule Announced: Is Meta's First Consumer-Grade Smart Glasses Really Coming?** According to analysis, this glasses may be equipped with a head-up display and operated via gestures. It is expected to be Meta's most important move in the emerging smart glasses market beyond virtual reality (VR) headsets, and may pave the way for the launch of true augmented reality (AR) glasses in the future.

- **Shock in Silicon Valley! xAI Co-Founder Defects to OpenAI with Confidential Information; Musk: He Uploaded the Entire Codebase**.

## Domestic Macroeconomics

- **State Council Executive Meeting**: Studies the Implementation of Pilot Projects for Comprehensive Reform of Market-Oriented Allocation of Factors in Some Regions Across the Country. The meeting pointed out that it is necessary to continue to promote reforms, give play to the decisive role of the market in resource allocation, and promote market-determined factor prices, orderly free flow, and efficient and fair allocation. It is necessary to stimulate the innovation vitality of technical factors, promote the intensive and efficient allocation of land factors, guide the rational flow of human resource factors, accelerate the cultivation and improvement of the data factor market, enhance the ability of capital factors to serve the real economy, and improve the construction of resource and environmental market systems. It is necessary to focus on key areas and links to advance reform pilots, guide pilot regions to make bold innovations in light of local conditions, carry out differentiated reform explorations, and accelerate the elimination of institutional and mechanism obstacles.

## Domestic Companies

- **Labubu's New Products Sell Out in Seconds After Launch, Snatched by Global Fans; Pop Mart Achieves Another Sales Boom**: Based on a rough calculation with a unit price of RMB 79, the sales volume on Tmall alone has exceeded RMB 23.7 million. Wang Ning previously stated that "it seems easy to achieve RMB 30 billion in revenue this year". Considering that the Labubu series accounts for 35% of the revenue, the sell-out of this new product will undoubtedly add a strong weight to the realization of this optimistic expectation.

- **Miniature LABUBU Is Extremely Popular: Sells Out in 60 Seconds, Payment System Experiences Congestion, Nearly 1.5 Million People Flood into the Live Broadcast Room in 10 Minutes**: Before the official launch, many sellers on the second-hand platform had already released pre-order services for snatching the products. The price of a single miniature LABUBU reached as high as RMB 300, and the snatching fee for a complete set (14 pieces) offered by some sellers even reached RMB 2,699, which has doubled compared with the official original price.

- **Gree Electric's Interim Report Shows Stagnation, Q2 Performance Declines Significantly, No Dividend Distribution; Why Are Air Conditioners Not Selling Well?** From the perspective of product breakdown, the main reason for Gree Electric's stagnation is the sluggish consumer electronics business (mainly air conditioners), which accounts for nearly 80% of its main revenue, with a negative growth of 5.09%. Under such circumstances, Gree Electric announced that "the company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital". In contrast, in the interim report last year, Gree Electric, which is known for its generous dividends, offered a "10 shares for 10 yuan" dividend package.

- **Legend Holdings' First-Half Net Profit Surges 144% YoY, Revenue Rises 20.67% YoY, AI Server Revenue Jumps Over 300% YoY**.

- **Bank of China's First-Half Revenue Increases 3.61% YoY, Non-Interest Income Rises 26.43% YoY**.

- **Guotai Junan and Haitong Securities' First-Half Revenue Increases 77.71% YoY, Net Profit Rises 213.74% YoY, Integration Effects Begin to Emerge**.

- **CITIC Construction Investment's "Investment Operation" Earnings Double; Interim Report Discloses "Upward Trend" of Core Businesses**.

- **China Yangtze Power's First-Half Net Profit Rises 14.86% YoY, Both Revenue and Net Profit Hit Half-Year Highs**.

- **China Shenhua's First-Half Revenue Reaches RMB 138.1 Billion, Cost Control Effective, Self-Produced Coal Cost Drops 7.7% YoY Significantly**.

- **Seres Releases Interim Report: Revenue Declines Slightly, Net Profit Surges 81% YoY**.

- **What Is the Current Share of TMT Transactions?** Zhang Qiyao's team from Xingzheng Strategy believes that the TMT transaction share reached 40.8% on August 28, which is lower than the 46.5% during the Deepseek market at the beginning of the year and 50.24% during the 2023 ChatGPT market. Considering the recent differentiation within the AI market, the transaction share of electronics + communications has reached 25.6%, which has reached the highest level in all rounds of market trends since 2023; the ratio of transaction share to free float market value is 1.49, which is not extreme compared to the previous rounds of extreme values above 1.7.

- **"Disruptive Therapy" for Cancer, the "DeepSeek Moment" for China's Innovative Drugs! The Core Keyword: PD(L)1 bsAb**: Among the global more than 300 PD(L)1 bsAb pipelines, about 90% are developed by Chinese companies. According to HSBC's forecast, the global PD(L)1 market will increase from $53 billion last year to $100 billion this year, of which bsAb will account for about 65% of the share and become the new mainstream. In this process, the first-mover advantage of Chinese pharmaceutical companies will play a key role in market competition.

# Overseas Macroeconomics

- Russian President Putin gave an exclusive interview to Xinhua News Agency, stating that Russia and China will work together to achieve prosperity. Putin said, "Russia will never forget that it was China's heroic resistance that became one of the decisive factors preventing Japan from attacking the Soviet Union and stabbing us in the back between 1941 and 1942—a period when we were going through extremely difficult times."

- The worst month of the year for U.S. stocks is approaching: Beware of the return of the "September curse". Data from Bank of America shows that over the past nearly 100 years, the S&P 500 has a 56% probability of declining in September. In September of the first year of a U.S. president's term, the probability of a decline rises to 58%, with an average drop of 1.62%. Analysis reveals that over the past 30 years, September and October have been the two months with the highest volatility in U.S. stocks throughout the year. This September, U.S. stocks will also face the release of key employment and inflation data, the Federal Reserve's policy decision, and Trump's threats to the independence of the Federal Reserve.

- The Governor of Texas, U.S., signed a law to finalize the state's congressional redistricting map. On the same day, Texas Governor Greg Abbott signed a Republican-friendly redistricting bill, which finally determined the state's new congressional district map. Abbott stated that the Republican Party hopes the signing of this bill will help them gain five more seats in the U.S. House of Representatives.

- Tariff policies dominate the market, as traders plan large-scale copper deliveries on the New York Mercantile Exchange (NYMEX). According to data from CME Group, traders on NYMEX's Comex division plan to deliver 31,712.5 short tons (28,800 metric tons) of copper under September contracts this month. This is the largest single-day delivery since April this year and one of the largest in the past decade. These deliveries reflect how Trump's decision to exclude refined copper from import tariffs has changed the calculation logic of copper traders. This decision has weakened, but not completely eliminated, the price incentive for shipping copper to the United States.

- U.S. crude oil production hits a record high, exceeding the official previous forecast, while market bullish sentiment drops to an 18-year low. The monthly report from the U.S. Energy Information Administration (EIA) shows that U.S. crude oil production per day climbed to 13.58 million barrels in June, not only setting a new historical record but also surpassing the previously released preliminary estimate by approximately 150,000 barrels per day. Meanwhile, data from the Commodity Futures Trading Commission (CFTC) indicates that speculators' net long positions in WTI crude oil have fallen to the lowest level in the past 18 years. As of Friday, U.S. crude oil prices hovered around $64 per barrel.

- India's Q2 GDP grows by 7.8% year-on-year, significantly higher than the expected 6.7% and hitting a new high in over a year, but the shadow of tariffs looms over its future prospects. The higher-than-expected growth is partly due to exporters rushing to ship goods to the United States before tariffs take effect. However, the full impact of high tariffs is expected to emerge in the coming months, which may exert chain pressure on India's exports, employment, and domestic consumption.

- The Indian rupee hits a new all-time low, becoming the worst-performing currency in Asia this year. Due to market concerns that the 50% tariff imposed by the United States will harm India's economic growth and corporate profits, the exchange rate of the Indian rupee against the U.S. dollar has fallen to a historical low. On Friday, the Indian rupee dropped by 0.8% against the U.S. dollar at one point, reaching 88.26, making it the worst-performing currency in Asia so far this year. Citigroup estimates that this round of tariffs may reduce India's annual economic growth rate by 0.6 to 0.8 percentage points.

- Zhao Changpeng talks in detail about popular tracks such as stablecoins, RWA (Real-World Assets), DAT, and AI. Zhao Changpeng stated that stablecoins are a natural application of blockchain technology, and each country should have at least a few stablecoin products; in the future, decentralized exchanges will definitely be larger in scale than centralized ones, and Binance will not remain the largest forever; AI should be regarded as a public good. Currently, many large models are overly closed, and it may be a more reasonable development direction to allow token holders to share profits, making the models more open-source, decentralized, and accessible to all.

# Overseas Companies

- Although facing short-term pressure, Goldman Sachs believes that "NVIDIA has huge room for growth in 2026" and puts forward three key reasons. Firstly, NVIDIA's next-generation platform, Rubin, is expected to enter mass production in mid-2026, which is likely to bring a significant performance leap; secondly, the company's customer base continues to diversify, and revenue from sovereign clients is expected to double in 2025; finally, strong demand from hyperscale data centers and non-traditional clients will jointly drive NVIDIA to achieve explosive growth in 2026.

- Snowflake transforms into an "AI data platform". For enterprise clients, "no data means no AI". After 13 consecutive quarters of decline, its Net Revenue Retention (NRR) rate has rebounded for the first time. Benefiting from steady customer expansion, Snowflake's NRR indicator recorded a quarter-on-quarter increase for the first time in 13 quarters, slightly rising from 124% to 125%. Morgan Stanley stated that this growth not only stems from clients' migration to the cloud but, more importantly, enterprises have realized that their AI ambitions cannot be achieved without a modern data foundation. AI has influenced the acquisition of 50% of new clients in the second quarter.

- Sequoia Capital: AI is leading a $10 trillion revolution, larger in scale than the Industrial Revolution. Artificial intelligence is not just another technological trend but a "cognitive revolution" that will surpass the Industrial Revolution in scale. Konstantine Buhler, a partner at Sequoia Capital, sent a clear signal that one of the major goals of this revolution is the $10 trillion service industry market. AI will spawn a new generation of listed giants in this sector and reshape the global economic landscape. Sequoia Capital will focus on five key investment themes: persistent memory, AI voice, AI security, open-source AI, and communication protocols.

- Citadel Securities' Q2 net trading revenue drops by 8.4%, yet it still records a record-breaking first half of the year.

# Industries/Concepts

1. **Non-Ferrous Metals**: Wanlian Securities stated that since the beginning of this year, the upward shift in the price range of major metal mineral products has provided solid support for corporate profits. At the same time, in terms of sales volume and production capacity, leading enterprises have achieved remarkable results in releasing production capacity.

2. **Satellite Internet**: CITIC Securities pointed out that the Ministry of Industry and Information Technology issued the "Guiding Opinions on Optimizing Business Access to Promote the Development of the Satellite Communications Industry", aiming to promote the opening-up of satellite communications business in an orderly manner. The satellite communications industry has a prominent strategic position and clear policy orientation. Looking ahead, the work on business access in the satellite communications industry is continuously being optimized, and the issuance of licenses may be accelerated. At the domestic industry level, high-frequency launches have arrived, and an industry inflection point is imminent.

3. **3D Printing**: Reports indicate that with the convergence of catalysts, the 3D printing theme is expected to become active. From the perspective of the industry's medium- and long-term development, the scale of China's 3D printing market has grown rapidly since 2020, with a Compound Annual Growth Rate (CAGR) of nearly 20% from 2020 to 2024. The total market scale reached over 40 billion yuan in 2024. IP economy has helped consumer-grade 3D printing gain wider recognition. With the iteration of equipment and material technologies and the reduction of costs, consumer-grade 3D printing is expected to further expand its market space.

4. **TV Panels**: China Securities Journal pointed out that driven by the second-half stockpiling needs of domestic brand owners and foundry clients, the overall shipment volume remains at a high level. Institutions predict that factors such as the shopping peak season will drive the shipment volume of TV panels in the third quarter to increase by 3%-4% quarter-on-quarter, and prices are also expected to stabilize and rebound.

5. **Computing Power**: Institutions believe that the high growth of Alibaba's capital expenditure is expected to drive the domestic AI computing power chain to reach a fundamental inflection point, and they continue to be optimistic about the resonance of the global AI computing power chain. In terms of segmented fields, the data center industry may usher in an intensive bidding period from Internet giants between September and October, bringing new opportunities for fundamental improvement to the AIDC (AI Data Center) industry. In the switch field, in the first half of the year, leading enterprises such as Ruijie and H3C achieved high year-on-year growth in demand for data center switches, with the main demand coming from clients such as ByteDance and Alibaba.

6. **Memory**: Securities Times pointed out that VEU (Validated End-User) is a system established by the Bureau of Industry and Security (BIS) under the U.S. Department of Commerce, aiming to simplify the export process for trusted, low-risk foreign end-users. Enterprises included in the VEU list can import designated controlled items (including semiconductor equipment and technologies) from the United States without applying for a separate export license. Samsung and SK Hynix account for nearly 70% of the global DRAM market and nearly 50% of the NAND Flash market. The revocation of VEU authorization will bring many risks to Samsung and SK Hynix's factories in China, such as production capacity freezing, forced relocation of capital expenditure overseas, customer loss, and supply chain redistribution. In the short term, it is difficult for non-U.S. alternatives to keep up, and there is insufficient time for the relocation of existing production capacity, which may trigger a shortage in the memory supply.

# Preview of Today's Key News

- The 2025 Shanghai Cooperation Organization (SCO) Summit will be held in Tianjin from August 31 to September 1.

- S&P Global will release China's August Manufacturing PMI.

- The decentralized finance project supported by the Trump family plans to officially launch the public trading of its token WLFI on September 1. WLFI will complete its first release—20% of the initially allocated tokens will officially enter circulation.

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