Here are the key macro and corporate developments that are likely to influence trading in the session ahead.

Macroeconomic Policy Updates

The People's Bank of China and the National Financial Regulatory Administration have jointly issued new guidelines on reforming real estate credit management. Key changes to individual housing loan policies include extending the maximum loan term to 40 years, allowing borrowers with existing floating-rate mortgages to negotiate rate adjustments or refinancing, and introducing new requirements for the timing of loan disbursement. Additionally, provisions have been made for borrowers facing repayment difficulties to negotiate revised repayment plans.

The Ministry of Housing and Urban-Rural Development, along with the Ministry of Natural Resources and the National Financial Regulatory Administration, has issued a notice to improve the commercial housing sales system. The notice requires local governments to actively promote the sale of completed commercial housing, ensuring that what buyers see is what they get. For land parcels sold after the notice's effective date, and for existing projects without a construction project planning permit, the priority will be to sell finished homes. Projects that have already obtained the planning permit are encouraged to adopt this practice.

The Ministry of Finance, the State Administration of Taxation, and the China Securities Regulatory Commission have issued a new policy announcement regarding the individual income tax on the transfer of restricted shares in listed companies. The policy clarifies that income derived from the transfer of such shares by individuals will be taxed at a rate of 20% under the category of "income from property transfers".

Liu Liehong, Director of the National Data Administration, speaking at the 2026 China International Big Data Industry Expo, emphasized the need to explore new business models such as token-value-added subscriptions and pay-for-performance pricing for significant national economic scenarios.

Sector and Industry Highlights

China has achieved a significant breakthrough in Earth-Moon laser communication. The country successfully established a two-way laser link over a distance of more than 400,000 kilometers, marking the first instance of two-way high-speed laser communication between the Earth and the Moon. This advancement moves China's space laser communication technology from low-Earth orbit into cislunar space, providing crucial technical support for future crewed lunar missions, lunar research station construction, and deep-space exploration.

According to the National Data Administration, more than 20 computing power scheduling entities have officially joined the national integrated computing network's monitoring and scheduling trial platform, enhancing the service capabilities of computing power scheduling and operations. The national integrated computing network is recognized as one of the six major networks and is a significant project proposed in the "15th Five-Year Plan".

High-power AI computing clusters are driving the adoption of liquid cooling technology to replace traditional air cooling. Different rack power levels require different liquid cooling solutions, leading to rapid growth in domestic production line orders and market size. According to CCID Consulting data, the market size for liquid-cooled data centers in China is estimated to reach 15.98 billion yuan in 2025, a year-on-year increase of 45.2%. Industry forecasts suggest the global smart computing liquid cooling market could exceed 100 billion yuan in 2026.

Kingboard Laminates, a leading copper-clad laminate manufacturer, has issued a notice to raise prices. Due to tight supply and significant price increases in upstream core materials such as glass fiber cloth and copper foil, the company will uniformly raise the price of all thicknesses of FR-4 copper-clad laminates by 10%.

Following repeated warnings of a food crisis from major Wall Street banks, corn and wheat prices have both surged to their highest levels in over three years.

CITIC Securities research indicates that as trade frictions enter a high-incidence period and the impact of exchange rate fluctuations amplifies, the "going global" theme, one of the most important earnings drivers for A-shares, is facing valuation constraints. This is limiting the breadth of the market rally and likely leading to rapid sector rotation. Breaking this deadlock requires fresh catalysts. Recent progress in AI reinforces the existing trend of rapidly growing computing power demand, but it is insufficient to change the long-term commercialization narrative. However, new developments, such as innovations in RSI and anti-distillation techniques, could potentially open up long-term valuation headroom.

Corporate News Flash

ChangXin Memory announced on August 29 that its LPDDR6 memory has officially entered mass production, with the Xiaomi 18 Fold, a new foldable flagship smartphone, being the first to feature it.

PetroChina, CNOOC, and Sinopec have all released their 2026 interim reports. Driven by higher oil and gas product prices and sales volumes, all three companies posted double-digit year-on-year growth in operating results for the first half of the year. In a show of commitment to shareholder returns, all three have proposed interim dividend plans.

LONGi Green Energy Technology Co., Ltd. (ASX: LGE) published its 2026 semi-annual report, revealing a net loss of 3.684 billion yuan for the first half of the year.

The 2026 semi-annual report from Meinian Onehealth Healthcare Holdings Co., Ltd. (SZSE: 002044) shows that the prominent investor Zhang Jianping has exited its list of top ten shareholders, having been the tenth-largest in the first quarter.

MetaX Institute of Integrated Circuit Technology reported a net profit of 612 million yuan for the first half of 2026, turning around from a loss in the same period last year, with a significant increase in GPU product shipments.

Weihai Huazheng New Materials Co., Ltd. (SZSE: 603186) announced that its first-half net profit surged by 305% year-on-year, driven by higher selling prices and volumes of copper-clad laminates.

*ST Cuihua (formerly Cuihua) has announced that it is expected to be unable to disclose its 2026 semi-annual report on time, and its shares will be suspended from trading starting September 1.

BOE Technology Group Co., Ltd. (SZSE: 000725) announced a net profit of 5.248 billion yuan for the first half of the year, an increase of 62% year-on-year.

Yuanjie Semiconductor Co., Ltd. announced a net profit of 607 million yuan for the first half of the year, a significant increase of 1212% year-on-year.

BYD Company Limited (HKEX: 1211) announced a net profit of 12.33 billion yuan for the first half of the year, a decrease of 20.5% year-on-year.

Wuliangye Yibin Co., Ltd. (SZSE: 000858) announced a net profit of 8.753 billion yuan for the first half, an increase of 89% year-on-year.

Global Market Roundup

Federal Reserve Chair Kevin Warsh delivered a key speech at the Jackson Hole symposium on Friday evening Beijing time but did not provide clear forward policy guidance. He stated that the U.S. economy is performing well and the labor market is at full employment, but inflation remains too high. In response, former Fed Vice Chair Alan Blinder suggested that this stance could be seen as a form of forward guidance, possibly indicating a lean towards rate hikes. Following Warsh's speech, market expectations for a September rate hike by the Fed rose from 35% to approximately 60%.

Venezuela's acting president, Delcy Rodríguez, announced on the 28th that the country has reached a large-scale oil cooperation agreement with the United States. The agreement includes developing 17 strategic oil fields with an investment exceeding $100 billion and is expected to generate over $209 billion in tax revenue for the Venezuelan government.

Reports indicate that the capital of Niger, Niamey, experienced intense overnight gun battles starting early on August 29. According to sources, the conflict was a mutiny initiated by young officers within Niger's armed forces. The rebel troops converged on the capital from the directions of Tillabéri and Dosso, with targets including the presidential palace, Diori Hamani International Airport, and the national television station.

WTI crude oil futures opened higher on Monday and quickly accelerated, at one point rising more than 2% to $85.69 per barrel. Brent crude futures touched $90 per barrel. This follows statements from Iran's Revolutionary Guard that missiles were fired at a U.S. military base. Earlier, explosions were reported near Larak Island in Iran, with foreign media reporting that U.S. forces had bombed military facilities on the island.

Investment Opportunities

A number of regions are accelerating the development of domestic token plants and intelligent computing complexes. As of the end of June, China's daily token invocation volume has exceeded 500 trillion. The competition among large models and the implementation of AI applications is directly driving rapid growth in computing power demand. With global intelligent computing resources currently experiencing supply tightness, many domestic regions are accelerating the construction of local token plants and intelligent computing complexes, moving the domestic computing power industry chain from "product verification" to "batch delivery". In Guangzhou's Huangpu Comprehensive Bonded Zone, a 950 million yuan intelligent computing complex project recently received approval. Liu Miao, founder of Guangzhou Turing New Intelligent Computing, noted that demand may be more than 10 times the supply, and there is a firm shift towards domestic ecosystems this year. Zhang Chen, Deputy General Manager of the Market Development Department at China Power Engineering Consulting Group, stated that domestic chips are fully booked, with orders potentially scheduled over a year out. Computing power demand is now rapidly shifting from model training to large-scale application inference. Analyst Ye Zi from Guosen Securities believes that with the diminishing marginal effects of Moore's Law, the core of computing power competition has shifted from single-chip peak performance to the comprehensive efficiency optimization of chip, software ecosystem, and system-level cluster. Against the backdrop of restricted high-end chip imports, domestic demand for IT infrastructure innovation combined with large model iteration is accelerating the adoption of domestic AI chips, presenting growth opportunities for the entire domestic computing stack ecosystem.

The continuous iteration of AI large models is driving up market demand in the cybersecurity industry. As the global AI boom continues, concerns over AI-related cybersecurity risks are escalating, consequently raising demand for security solutions. Everbright Securities points out that the logic in the cybersecurity sector is shifting from "AI disrupting security" to "AI amplifying security needs". The security increment brought by AI is not just a simple expansion of software modules but a systemic upgrade spanning computing infrastructure, Agent identity governance, and security operations platforms. As enterprises face rising risks to identity, data, traffic, and model invocation, their willingness to pay for security, along with the platform moats of leading vendors, is likely to strengthen. Domestic vendors capable of delivering platform-based solutions in areas like cloud security, zero trust, identity security, AI security operations, data security, and managed security services stand to benefit from the increased value of security in the AI era and accelerated domestic substitution.

Trading Halts and Resumptions

The following companies will see their shares suspended from trading: Xueyan Salt Industry, Yubang New Materials, Youyan Silicon, and *ST Yuandao. Companies resuming trading include Weihai Guangwei Composites and Jinglan Technology.

Key Corporate Announcements

Guangzhou Development Group has announced a plan to invest 853 million yuan in constructing a fishery-solar complementary photovoltaic power station project in Nanjing County, Fujian Province. The project, with a planned installed capacity of 200MW, will also include a 20MW/40MWh energy storage system and a 220kV booster station.

LONGi Green Energy Technology Co., Ltd. (ASX: LGE) reported a first-half net loss of 3.684 billion yuan, with operating revenue down 17.58% year-on-year to 27.045 billion yuan.

China State Shipbuilding Corporation Limited (CSSC) announced a net profit of 9.954 billion yuan for the first half of 2026, a 163.51% increase year-on-year. Revenue grew 26.01% to 91.53 billion yuan, driven by increased deliveries of commercial vessels, a higher proportion of mid-to-high-end vessel types, and higher average prices per vessel. The company plans a cash dividend of 4.65 yuan per 10 shares.

Changguang Huaxin reported a 238% year-on-year increase in first-half net profit to 30.34 million yuan, with revenue up 82.67% to 391 million yuan, fueled by rapid growth in its optical communications business and gains from fund investments.

Weihai Huazheng New Materials reported a first-half net profit of 173 million yuan, a 305.28% year-on-year increase, with revenue up 41.28% to 2.96 billion yuan, primarily due to higher CCL selling prices and sales volumes.

China Merchants Energy Shipping posted a net profit of 6.96 billion yuan for the first half of 2026, a 227.57% year-on-year surge, with revenue up 56.15% to 19.651 billion yuan. The company plans a cash dividend of 1.30 yuan per 10 shares.

PetroChina reported a first-half net profit of 103.936 billion yuan, up 22% year-on-year, with revenue up 5.3% to 1.527491 trillion yuan.

China Shipbuilding Power announced a 42.74% year-on-year increase in first-half net profit to 1.312 billion yuan, with revenue up 11.54% to 30.842 billion yuan. Growth was driven by the thriving shipbuilding industry and expanded diesel engine sales, which improved profit margins for marine low-speed engines. A cash dividend of 1.1569 yuan per 10 shares is planned.

Fuchuang Precision reported a net profit of 134 million yuan for the first half of 2026, a 992.9% year-on-year increase, with revenue up 34.45% to 2.318 billion yuan. A cash dividend of 2 yuan per 10 shares is planned.

Semtech Electronics posted a first-half net profit of 31.17 million yuan, a 20.79% year-on-year decrease, despite an 11.98% increase in revenue to 245 million yuan. The decline is due to rising supply chain costs from tight semiconductor foundry and packaging capacity, which have not been fully passed on to product prices, as well as increased R&D investment and asset impairment provisions.

Regal Electronics reported a first-half net loss of 191 million yuan, turning from a profit of 159 million yuan in the same period last year, while revenue grew 33.29% to 2.912 billion yuan. The losses are attributed to significant exchange rate fluctuations increasing exchange losses, high fixed costs at its Thailand plant which is still ramping up production, and rising material prices.

Air China posted a net loss of 2.286 billion yuan for the first half of 2026, despite an 10.54% increase in revenue to 89.268 billion yuan.

China Energy Engineering Corporation announced a first-half net profit of 2.279 billion yuan, down 18.67% year-on-year, with revenue declining 1.78% to 208.312 billion yuan, impacted by the contraction in the construction industry.

Gold Mantis Construction Decoration has won several project bids totaling approximately 516 million yuan this month. The projects include a commercial complex in Tianjin, a hotel renovation project in Wuhu, and an interior fit-out contract in Vietnam.