GMT EIGHT - OPPORTUNITIES IN CHINA

50-100 billion US dollars! "World's largest asset manager" BlackRock considers investing in "largest IPO in history" SpaceX.

BlackRock is considering participating in Space X's IPO with an investment of $5 billion to $10 billion, potentially becoming the core anchor investor of the largest IPO in history. This move will help address its previous shortcomings in lagging behind its peers in terms of holdings. Despite facing challenges such as high valuation, governance risks, and Elon Musk's high level of control, institutional investors generally view Space X favorably for its leading edge in rocket launches and commercial prospects.

New Share News | Hua Cheng Power Files for Listing on the Hong Kong Stock Exchange, Focusing on New Type of Electric Power Energy and Deepening in the Southern Electricity Market.

According to the disclosure by the Hong Kong Stock Exchange on May 15, Guangdong HuaCheng Electric Power Energy Co., Ltd. (referred to as "HuaCheng Electric Power") has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with Ligo Enterprise Finance Limited as its exclusive sponsor.

The General Administration of Market Supervision has clarified 34 key tasks to continuously support and promote the development and growth of the private economy.

Today, reporters learned that the State Administration for Market Regulation has issued the "Key Points for Market Supervision Departments to Promote the Development and Growth of the Private Economy by 2026", proposing 34 key tasks. It emphasizes both regulatory norms and promoting development, continuously creating a fair competition environment, innovating regulatory governance methods, enhancing development service capabilities, and promoting the high-quality development of the private economy with a better environment, more practical measures, and stronger support. In terms of strengthening the legal policy guarantee for the private economy, it will improve the legal system of fair competition and the system of regulating enterprise fees, enrich credit incentive measures and measures to strengthen technical trade, strengthen policies to promote the development of individual industrial and commercial households, and lay a solid legal foundation. In maintaining the order of fair competition in the market, it will resolutely eliminate barriers, deepen the construction of a unified national large market, strengthen the publicity and guidance of anti-monopoly compliance, thoroughly rectify "insider-style" competition, and safeguard fair development. In terms of improving regulatory enforcement efficiency, it will explore non-site, non-contact, QR code entry and other regulatory models, improve the level of administrative law enforcement fairness and civility, increase efforts in key areas of rectification, and optimize governance capabilities. In enhancing the capability to serve the development of the private economy, it will deepen the accurate support for individual industrial and commercial households through classification, continue to build the "credit + service" brand, strengthen the support of quality infrastructure, and help promote high-quality development.

New Stock News | Macro and Electronic Submitted to Hong Kong Stock Exchange

According to the disclosure by the Hong Kong Stock Exchange on May 15, Honghe Electronic Materials Technology Co., Ltd. (referred to as Honghe Electronic) has submitted its listing application to the Main Board of the Hong Kong Stock Exchange, with Citic Securities as its sole sponsor.

For 30 years, US bonds have failed to hold the "life and death line" of 5%! Bank of America's Hartnett: The "door to hell" has been opened. Early June is a "selling window"

Bank of America's Hartnett warned that the 30-year US Treasury yield has broken through the "Maginot Line" of 5%, potentially triggering a large-scale deleveraging shock. If US CPI rises above 4%, risk assets often enter a correction phase, and the current deviation of the semiconductor index from the 200-day moving average has exceeded that of the dot-com bubble period.

New Stock News: China Ding Intelligence files for the third time with the Hong Kong Stock Exchange.

According to the disclosure by the Hong Kong Stock Exchange on May 15th, China Ding Intelligence (Wuxi) Technology Co., Ltd. (referred to as China Ding Intelligence) has submitted its third application for listing on the main board of the Hong Kong Stock Exchange, with Guotai Junan International as the exclusive sponsor.

New stock news | Huacheng Power submitted an application to the Hong Kong Stock Exchange.

According to the disclosure of Hong Kong Stock Exchange on May 15, Guangdong Huacheng Electric Power Energy Co., Ltd. (referred to as "Huacheng Electric Power") submitted its application for listing on the main board of Hong Kong Stock Exchange, with Force High Enterprise Finance Limited as its exclusive sponsor.

Zhongtai: AI focuses on core strengths and is also expected to be a "latecomer first" reiterating a "buy" rating for Tencent (00700).

Considering the company's continuous investment in the field of AI, it is expected that the company's revenues in 2026-2028 will reach 835.4/923.8/1021 billion yuan, with adjusted net profits of 270.7/297.5/326.2 billion yuan (compared to 280.8/312.4/346.8 billion yuan previously). The "buy" rating is maintained.

CMSC: The net profit growth rate of A-shares in Q1 2026 turned positive year-on-year, and the profitability is expected to continue to recover.

The net profit of A shares in Q1 2026 has turned from negative to positive year-on-year, with significant recovery in profits of non-financial, petroleum, and petrochemical industries. With moderate inflation recovery, continuous promotion of anti-overwork policies, and high demand in TMT and new energy industry chains, overall A-share profitability is expected to continue its recovery trend.

Observation on the first line of the Nikkei 225: Highly similar to 1999, investors are being forced to participate in what may be a "once-in-a-lifetime" bull market.

Daiwa Securities stated that the factor structure of the Japanese stock market in April is almost identical to that during the 1999 internet bubble period, with heavy buying focusing on AI and semiconductor sectors.

Bank of America's "macro picture" for the next decade: the first 5 years will see "continued inflation," followed by "super deflation" in the next 5 years?

Bank of America predicts that in the next few years, the AI infrastructure frenzy of $90 trillion will push energy, power grids, and data centers into hyperinflation.

Huachuang Securities April Overseas Monthly Observation: Energy Inflation Further Fermentation, Four Major Central Banks Cautiously Weighing Options

Since April 2026, the negotiations between the US and Iran have been slow, with core differences still unresolved. However, market sensitivity to geopolitical impacts has significantly decreased, risk preferences have improved, and the global stock market and commodity market have shown signs of temporary stabilization.

In the past month, the US stock market hit 14 new highs, with momentum stocks surging. Goldman Sachs has uncovered a pattern from the past 40 years: similar market trends usually lead to a decline one month later.

Goldman Sachs momentum factor has surged by 25% over the past three months. There have been a total of 11 instances in history where similar rapid momentum surges have occurred. Following these surges, the momentum factor typically peaks and falls back down after about a month. When the S&P 500 is near its peak, these rapid momentum surges often indicate that future stock market returns will be below average for the next few months.

Negotiations on the brink of collapse, the US may resume strikes against Iran as early as next week, options including seizing nuclear materials on the ground.

American sources say the Pentagon is preparing to resume military action against Iran, with the United States and Israel potentially resuming military strikes against Iran as early as next week.

Bitcoin fell below $78,000, dropping 1.42% during the day.

Cui Dongshu: In April, the passenger vehicle market's focus was on "cool fuel, hot new energy." The historical retail penetration rate of new energy vehicles exceeded 60% for the first time.

In 2026, the new energy vehicle market experienced a downturn, but most provinces and cities implemented the policy of replacing old vehicles with new ones slowly. Demand from middle and low-end consumers was weak, and market trends were clearly polarized.

Summary of CITIC SEC's New Energy Reports for 2025 and the first quarter of 2026: Energy storage industry is significantly improving with a bullish trend, and wind power profits continue to improve.

The three major sectors of wind power storage present structural differentiation, with the value of storage and wind power configuration with performance certainty highlighted, and it is also suggested to pay attention to potential reversal signals in the photovoltaic industry.

JP Morgan raises target price for the three hardware giants Dell Technologies, Inc. Class C (DELL.US), Hewlett Packard Enterprise Co. (HPE.US) most favored.

On the eve of the release of earnings in the hardware and networking sectors, JPMorgan Chase expressed that it is most bullish on Dell Technologies and Hewlett Packard Enterprise.

Goldman Sachs: The current market's biggest threat is the "Iran risk compounded by a rate storm". The stock market will continue to fluctuate even if it rises.

The market has clearly underpriced the tail risks of Iran, and once optimistic expectations suffer greater impact, the repricing will be more severe.

"GDKGBA Holdings" is renamed "Guangdong-Hong Kong Bay Calculus" (01396): A new look for the Hong Kong stock pure intelligence target.

On April 2, 2026, Guangdong-Hong Kong-Macao Greater Bay Area Holdings Limited (01396.HK), a main board-listed company on the Hong Kong Stock Exchange, passed a resolution to change its name to "Greater Bay Area AI Computing Tech Co., Ltd." at a special shareholders' meeting with unanimous votes.

Starbucks Corporation (SBUX.US) implements the technology "insource outsourcing" and plans to establish its first technology center in India to reduce costs by $2 billion.

Starbucks plans to open a technology office in India as the coffee chain seeks to cut $2 billion in costs.

Buffett has long scoffed at the aviation industry, and Berkshire's "new king" bought $2.6 billion of Delta Air Lines.

Berkshire's "new king" has a heavy position in Delta Airlines worth $26 billion, marking the investment giant's third foray into the airline industry.

JD.com, Inc. Sponsored ADR Class A (JD.US) and MasterCard (MA.US) have initiated a strategic partnership to jointly build an open commercial ecosystem.

On May 15th, the strategic cooperation agreement signing ceremony between JD Group (JD.US) and MasterCard (MA.US) was held in Beijing.

Li Lecheng's article in "Seeking Truth" magazine: Developing and strengthening the real economy based on the manufacturing industry.

The article mentions that the real economy is an important pillar for a strong nation and a crucial support for building strategic advantages for future development. The manufacturing industry is the foundation for a nation's establishment and a key element for national strength, serving as the basis for the real economy. 1. Focus on maintaining a reasonable proportion of the manufacturing industry. Promoting high-quality development of the manufacturing industry and maintaining a reasonable proportion of the manufacturing industry is a prerequisite and foundation. Currently, China is in a critical period of transition from a major manufacturing country to a strong manufacturing country. The proportion of the manufacturing industry must be kept within a reasonable range and should not be allowed to continue declining, as it can lead to industrial security risks, weaken economic risk resistance, and international competitiveness. 2. Enhance industrial innovation capabilities comprehensively. Emphasize industrial demand-oriented innovation, strengthen fundamental technology development, and optimize and improve the industrial innovation ecosystem. 3. Accelerate the optimization and upgrading of industrial structure. First, vigorously develop advanced manufacturing industries. Second, promote the deep integration of informatization and industrialization. 4. Effectively improve the level of industry governance. First, further deepen comprehensive reforms. Second, adhere to governance in accordance with the law. Third, strengthen industry self-discipline.

Electric power giant NextEra Energy (NEE.US) may be in talks to merge with Dominion Energy Inc (D.US), with an announcement expected as early as next week.

According to reports, New Era Energy is in talks to merge with its utility competitor, Dominion Energy, and the deal will mainly be in the form of stock.

The launch of Shenzhou 23 mission is scheduled to take place in the near future, with the spacecraft and rocket already transported to the launch site.

SpaceX shareholders approved a 1-for-5 stock split.

The biggest IPO in history is coming! SpaceX confirms the "target date" for listing: June 12th.

SpaceX is accelerating the process of going public, aiming to achieve the largest initial public offering in history.

Shanghai Telecom is the first to release Token tariff plans, with 1 yuan corresponding to 250,000 credit points, supporting payment through mobile phone bills.

Facing the growing demand for Tokens in the AI era, Shanghai Telecom announced that it has officially launched Token computing power services for Shanghai Telecom users, becoming the first operator in Shanghai to release Token tariff packages. Specifically, users can choose to subscribe on demand, with 1 yuan equivalent to 250,000 points; or choose to buy as needed, with discounts available for buying more, and support for payment through phone bills.

HK Bull/Bear Outstanding Qty Ratio(73:27) | May 16th

As of May 16, the latest bull-bear ratio of the Hang Seng Index is 73:27.

Domestic flight fuel surcharge to increase starting today

Starting today, the fuel surcharge for domestic flights in mainland China has been increased. The specific standards are as follows: For flights under 800 kilometers, each passenger will be charged 90 yuan; for flights over 800 kilometers, each passenger will be charged 170 yuan. Infants are exempt from the fuel surcharge, while children, revolutionary disabled soldiers, and police officers disabled in the line of duty will only be charged half of the fuel surcharge.

Goldman Sachs remains bullish on gold and reiterates its target price for gold at the end of 2026 to be $5400 per ounce.

Overnight US stocks | The rising yield of US Treasury bonds suppresses risk assets, causing a pullback in the three major indexes. Micron Technology, Inc. (MU.US) fell by 6.62%.

As of the close, the Dow fell 537.35 points, down 1.07%, to 49526.11 points; the Nasdaq fell 410.08 points, down 1.54%, to 26225.14 points; the S&P 500 index fell 92.74 points, down 1.24%, to 7408.50 points.

Global bond market sell-off impacting risky assets, US bond yields surpassing 4.5%, technology stocks leading the decline in US stocks.

The global bond market encountered intense selling this week, and began to impact the previously soaring risk asset markets.

The Federal Reserve appointed Powell as interim chairman until Yellen formally sworn in.

The Federal Reserve announced on Friday that it has appointed Powell as the interim chairman of the Federal Reserve Board until his successor Wash is officially sworn in.

Berkshire Hathaway (BRK.A.US, BRK.B.US) reduced its holdings in Chevron Corporation (CVX.US) by approximately $8 billion in the first quarter, bringing its stake down to 4.2%.

Berkshire Hathaway significantly reduced its stake in Chevron in the first quarter of this year.

US inflation "burst" changes market expectations! Federal funds rate futures priced in the possibility of a rate hike within the year for the first time.

In the context of continuous higher-than-expected inflation data in the United States, the financial markets have undergone a significant shift in their expectations for the Federal Reserve's policy path. For the first time, the market is starting to bet that the Fed's next move may be a rate hike rather than a rate cut.

Standard & Poor's Dow Jones Indices said that Cerebras meets the criteria to be included in the index on Monday.

The Federal Reserve announced on Friday that Jerome Powell has been appointed as interim chairman until his successor, Kevin Wash, is officially sworn in. Powell's term as chairman ends on Friday. The Federal Reserve stated, "This practice during the transition period from old to new chairmen is consistent with past practice."

SEC filings show that Nvidia increased its stake in Coreweave by 94.5%, raising its ownership to 47.2 million shares of Class A common stock.

US stocks close: three major indices all close lower

The Dow fell 1.07%, the S&P 500 fell 1.24%, and the Nasdaq fell 1.55%. Arm Holdings fell 8.48%, Coinbase Global fell 7.85%, Corning fell 7.71%, Ford Motor Co. fell 7.35%, Micron fell 6.60%, and Ciena Technologies fell 6.26%. As for the "Big Tech Seven Sisters": Microsoft rose 3.04%, Apple rose 0.69%, Meta Platforms fell 0.65%, Google fell 0.99%, Amazon fell 1.20%, Nvidia fell 4.40%, and Tesla fell 4.76%.

UnitedHealth Group Incorporated (UNH.US) is accelerating its AI strategy: tracking employees' use of ChatGPT frequency with AI investments reaching $1.5 billion within the year.

United Health is further increasing its investment in artificial intelligence (AI) layout.

Inflation and oil price concerns hit risk assets, bitcoin fell to a two-week low of below $79,000, and all cryptocurrency stocks fell.

Against the backdrop of rising inflation concerns and continuously increasing international oil prices, global risk assets faced selling on Friday, and the cryptocurrency market was also not spared.

Prepare for the "618" big promotion! Apple Inc. (AAPL.US) has lowered the prices of some iPhone 17 models in the Chinese market.

As the "618" shopping festival approaches, Apple has started to lower the prices of some iPhone 17 models in the Chinese market.

Figma (FIG.US) AI's monetization capabilities recognized by Wall Street, financial report far exceeds expectations, stock price rises more than 16% against the market trend.

As of the time of filing, Figma's stock price has risen over 16%, to $23.66.

Inflation concerns fuel interest rate hike panic, causing spot silver to widen its decline to 9%.

Spot silver plummeted by 9.00% intraday, breaking below $76 per ounce.

US Stock Market Move | NVIDIA Corporation (NVDA.US) fell more than 4% as US bond yields surged, causing concerns about the valuation of technology stocks.

On Friday, Nvidia (NVDA.US) fell more than 4%, closing at $225.71.

New Stock News | GreenShine Technology submits application to Hong Kong Stock Exchange, ranked second in the world's lithium-ion battery cutting machine provider.

Green Sheng Technology is one of the leading market participants in the global mid-end intelligent equipment industry for lithium-ion batteries, focusing on the research, development, and manufacturing of stacking technology and equipment for the new energy battery industry.

US Stock Market Move | Gold and silver prices plunged, and the precious metals sector collectively fell.

On Friday, the precious metals sector collectively took a dive, with Coeur Mining (CDE.US) falling over 8%.

Continued brushing since 1998 high! Political instability sparks deficit concerns, with 30-year UK bond yields surging to 5.86%.

The UK 30-year government bond yield rose 20 basis points intraday to 5.86%, hitting its highest level since 1998.

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Ministry of Housing and Urban-Rural Development: Promoting integrated urban physical examination and urban renewal.

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