A-shares Evening Highlights | July Financial Data Released, Here Comes the Latest Interpretation

1. July financial data released: Direct financing continues to strengthen its support for the market Latest expert interpretation Importance: On August 14, the central bank announced the financial data for July. The data showed that, by the end of July, the total social financing stock was 46.327 trillion yuan, a year-on-year increase of 7.4%. Among this, the balance of RMB loans issued to the real economy was 27.857 trillion yuan, reflecting a year-on-year increase of 5.2%. Overall, the cumulative increment of total social financing for the first seven months of 2026 amounted to 2.225 trillion yuan. Furthermore, by the end of July, the broad money supply (M2) was 35.557 trillion yuan, up 7.7% year-on-year. The narrow money supply (M1) stood at 11.546 trillion yuan, a year-on-year increase of 4%. Authoritative experts indicated that both the growth rates of M2 and total social financing are maintained at reasonable levels, creating a conducive monetary and financial environment for sustained economic improvement. It is noteworthy that the proportion of direct financing is steadily increasing. Industry experts stated that the "14th Five-Year Plan" explicitly proposed to enhance the ratio of direct financing, develop diversified equity financing, and accelerate the construction of a multi-layered bond market. In the future, diversified financing channels like the bond and stock markets will continue to strengthen their support for market entities and positively substitute for loan growth. 2. Kweichow Moutai's semi-annual report released: Net profit down 1.95% year-on-year, Central Huijin and the Securities Company both exit the top ten shareholder list Importance: On August 14, the leading liquor company Kweichow Moutai reported its performance for the first half of 2026. During the reporting period, the company achieved an operating revenue of 90.703 billion yuan, a year-on-year increase of 1.47%; the net profit attributable to shareholders of the listed company was 44.517 billion yuan, a year-on-year decrease of 1.95%. Under the pattern of revenue increase without profit increase, Moutai still demonstrated strong cash generation capabilities, with net cash flow from operating activities reaching 70.691 billion yuan, an astonishing year-on-year increase of 438.84%, making it the most noteworthy figure in this financial report. It is noteworthy that, as of the end of the second quarter, both Central Huijin and the Securities Company exited the top ten shareholder list of Kweichow Moutai. Compared to the end of the first quarter, Central Huijin and the Securities Company held 0.83% and 0.32% of Kweichow Moutai shares, respectively, ranking as the fifth and tenth largest shareholders of the company. 3. $50 billion accelerates influx, global capital rushes to allocate Chinese assets, configuration direction emerges Importance: Recently, international funds are accelerating their layout in Chinese equity assets. The latest capital flow data indicates that in the past month, there was a net inflow of $50.82 billion into Chinese stock funds, accounting for nearly 60% of the total in emerging markets, while the scale of Chinese ETFs listed overseas is expanding simultaneously. Recently, several foreign institutions have also raised their voices, believing that the recovery in earnings and industrial upgrades of Chinese enterprises will drive continued valuation re-evaluation, with semiconductors, the internet, electricity, and healthcare sectors regarded as core allocation directions. 4. Trump wields the "tariff club" again, US drone sector surges; how significant is the impact? Importance: On August 14, drone concept stocks saw a substantial surge across the board, with Unusual Machines' stock price soaring over 15% at one point. This surge follows the announcement on August 13 by US President Trump, who signed a notice that the US will impose import tariffs of 10% to 100% on drones and drone components. Some analysts pointed out that the US government is attempting to guide more production of drone hardware, software, core technologies, and essential components back to the US through differentiated tariffs, while also reducing reliance on some foreign sources. 5. Shenzhen Stock Exchange: This week, "Anhui Landun Photoelectron" with recent severe stock price volatility under key monitoring Importance: According to the Shenzhen Stock Exchange, from August 10 to August 14, 2026, the exchange took self-regulatory measures on 114 instances of abnormal securities trading behavior, which involved activities such as market manipulation and false declarations; it is conducting key monitoring of "Anhui Landun Photoelectron" due to its recent severe stock price fluctuations; the exchange also verified 8 instances of significant matters of listed companies and reported two potential illegal cases to the China Securities Regulatory Commission. Additionally, news on August 14 stated that from August 10 to August 14, 2026, the Shanghai Stock Exchange took self-regulatory measures on 98 instances of abnormal securities trading behaviors involving manipulation and false declarations, with a focus on severely abnormal stocks such as Elegant Home-Tech and Xinjiang Bai Hua Cun Pharma Tech, as well as on funds like LOF that exhibit high premiums. A total of 38 significant issues of listed companies were subjected to special verification while 6 potential illegal cases were reported to the CSRC. 6. Four departments release enterprise income tax policies for non-monetary asset exchanges by integrated circuit and industrial mother machine companies Importance: On August 14, the Ministry of Finance, the State Administration of Taxation, the National Development and Reform Commission, and the Ministry of Industry and Information Technology announced the enterprise income tax policies for non-monetary asset exchanges by integrated circuit and industrial mother machine companies. These policies will be implemented from January 1, 2026, to December 31, 2028. The "Announcement" mentions that integrated circuit companies and industrial mother machine companies carrying out non-monetary asset exchanges between January 1, 2026, and December 31, 2028, can confirm the earned income from these exchanges as stipulated, which may be apportioned over a maximum of five years into the respective annual taxable incomes for calculating and paying enterprise income tax according to the current policy; losses resulting from non-monetary asset exchanges cannot be recognized over multiple periods. 7. Substantial measures to support the development of small and medium-sized fund companies; a new batch of 15 amortized cost method bond funds has been reported Importance: As part of measures to support the standardized and healthy development of small and medium-sized fund companies, new quotas for amortized cost method bond funds are being introduced. According to reports from CaiLianShe, the first 15 fund companies in this new quota have submitted their application materials today, with the product types predominantly being closed-end bond funds with a duration of over five years (63 months). The CSRC's official website indicates that the approved 15 small and medium-sized fund companies include Shangzheng Fund, Guorong Fund, Huaxi Fund, Peng'an Fund, Caixin Fund, Hongtu Innovation Fund, Baijia Fund, Zhuque Fund, Lianbo Fund, Xinghe Fund, Xinghua Fund, Lubomai Fund, BlackRock Fund, Allianz Fund, and Yimi Fund, which are all in the "receiving materials" status. Return on investment opportunities that the market is focusing on reveals attention towards the token economy. 1. Guangdong Province's first special financial product in the token economy "Token Loan" launched in Haizhu on August 14. For example, Bank of Chinas Guangzhou branch has developed exclusive financing products targeting micro and small enterprises in Haizhu, known as computing power tokens, which set limits based on contract/token consumption amounts. This includes mainly guarantees such as credit, accounts receivable pledge, and order financing, as well as combinations of guarantees and mortgages, to further extend the limits. China Galaxy Securities stated that the consumption of tokens continues to rise along with the large-scale release of A-level reasoning demands across society. As tokens become the unified value settlement unit in the intelligent era, the commercial model of cloud computing is undergoing fundamental reconstruction, gradually moving away from the traditional IaaS model of server leasing and duration billing, fully transitioning to a MaaS intelligent service billing system centered around token consumption. This promotes the expansion of high-margin AI service incomes for cloud vendors, optimizing the overall profit structure, and signaling the industry's entry into a rising cycle characterized by demand expansion and price-volume resonance. Additionally, the following sectors also deserve attention: 2. Embodied Intelligence | Over 93.5 billion yuan flowed into the embodied intelligence sector in the first half of 2026, with financing in this area increasing by 500%. 3. Cross-border Payments | The People's Bank of China and the State Administration of Foreign Exchange released a notice regarding the centralized operation of cross-border funds in domestic and foreign currencies by multinational corporations. In terms of positive announcements, focus on Ning Wang's 4.1 billion yuan increase in Hangzhou Zhonhen Electric, while negative announcements include Biwin Storage Technology's shareholder reducing holdings by over 2.3 million shares. Positive Announcements 1. Metallurgical Corporation of China: New contracts signed from January to July 2026 totaled 447.46 billion yuan. 2. China Petroleum Engineering: New contracts signed from January to July 2026 totaled 97.3 billion yuan, a year-on-year increase of 19.37%. 3. Hangzhou Zhonhen Electric: The controlling shareholder received an investment of 4.1 billion yuan from Contemporary Amperex Technology. 4. Zhuzhou Huarui Precision Cutting Tools Co., Ltd: Net profit in the first half reached 238 million yuan, a year-on-year increase of 178.32%. 5. NARI Technology: Plans to repurchase shares worth 500 million to 1 billion yuan for equity incentive purposes. Negative Announcements 1. Biwin Storage Technology: Shareholder Sun Jing's reduction plan concluded with a total reduction of 2.3542 million shares. 2. Greenland Holdings Corporation: The company and its controlled subsidiaries added overdue debts of 2.071 billion yuan. 3. Hainan Huluwa Pharmaceutical Group: Received a warning letter for a rectification report where related party transactions have been reviewed and disclosed. 4. Chenguang Biotech Group: Received a rectification order and warning letter from the Xinjiang Securities Regulatory Bureau. 5. Wiscom System: Equity held by one of the ultimate controllers of the controlling shareholder has been frozen. This article is reproduced from "Tencent Self-Selected Stocks," edited by GMTEight: Li Fo.