A-shares Evening Hotspots | Cancer Vaccine Achieves Milestone Breakthrough! Moderna Soared 150% at One Point, U.S. Pharmaceutical Stocks Explode Collectively

Evening Heavyweight News Brief 1. National Development and Reform Commission Holds Major Project Coordination Meeting for the "Six Networks," Improving the Promotion Mechanism for "Six Networks Coordination" Importance: On August 19, Comrade Yue Xiuhu, a member of the Party Leadership Group and Deputy Director of the National Development and Reform Commission, presided over a meeting to coordinate and schedule major projects related to the "Six Networks." The meeting discussed establishing a coordination mechanism for the Computing Network, New Type Power Grid, and Next Generation Communication Network under the "2+3+N" model (2 power grids + 3 telecom operators + N computing-related enterprises) to enhance overall planning efforts, create collaborative work dynamics, and collectively accelerate the construction of major projects. The term "Six Networks" specifically refers to the Water Network, New Type Power Grid, Computing Network, Next Generation Communication Network, Urban Underground Pipeline Network, and Logistics Network. Galaxy Securities believes that the "Six Networks," as key infrastructure supporting the implementation of technology strategies, are expected to accelerate progress. Notably, the Computing Network, Next Generation Communication Network, and New Type Power Grid are closely related to the technology industry. The Computing Network is currently in the implementation phase, and the technology industry is poised to encounter three substantial opportunities: technical breakthroughs, scenario integration, and ecological collaboration, with leading enterprises set to gain significant market growth. 2. Cancer Vaccine Achieves Milestone Breakthrough! Moderna Surges 150%, U.S. Pharmaceutical Stocks Explode Importance: On August 19, U.S. pharmaceutical stocks soared, with pharmaceutical giant Moderna spiking over 150%. Additionally, BioNTech SE rose over 17%; Merck & Co., Inc. gained over 10%, hitting a historic high; Eli Lilly rose 5.3%, also reaching a historic high, with a total market capitalization of $1.21 trillion, becoming the first pharmaceutical company in human history to achieve a market value of $1.2 trillion. As of 22:05, Moderna had surged 120%, which boosted the broader U.S. pharmaceutical sector, causing the Nasdaq Biotech Index to rise by 5%, its largest intraday increase since April 2025, while Merck & Co., Inc. (MRK.US) increased by 11.3%. This surge was driven by the news that the personalized mRNA cancer vaccine jointly developed by Moderna and Merck & Co., Inc. succeeded in a large Phase III clinical trial, becoming the first personalized cancer vaccine to demonstrate efficacy in a Phase III trial, regarded by the industry as a milestone breakthrough in tumor immunotherapy. 3. SK Hynix Saw a Significant Surge! Plans to Buy Back 40 Trillion Won in Stock, Not Just for Market Support? Importance: On August 19, SK Hynix's U.S. shares surged by up to 5%. The company announced that it would buy back and cancel shares worth 40 trillion won and pledged to use at least 50% of the free cash flow generated between 2025 and 2027 for shareholder returns. Additionally, the company stated it would continue to promote further stock buybacks and cancellations and plans to disclose more details regarding shareholder returns in the third quarter performance report. Analysis indicates that as the price increase for memory chips begins to slow, the logic of relying solely on profit growth to drive valuation faces challenges. Stock buybacks and cancellations will directly reduce the circulating share capital, leading to an increase in earnings per share and net assets; coupled with the large-scale cash return, this lowers holding costs and helps establish a bottom support for stock prices during the transition period as investors gradually digest peak growth expectations. 4. China Northern Rare Earth Releases Semi-Annual Report, "Super Bull" Zhang Jianping Exits Top Ten Shareholders List Importance: On August 19, China Northern Rare Earth released its semi-annual report, showing that in the first half of 2026, the company achieved operating revenue of 25.799 billion yuan, a year-on-year increase of 36.75%; the net profit attributable to the parent company was 2.053 billion yuan, an increase of 120.46%; basic earnings per share were 0.5679 yuan. Notably, according to the semi-annual report, as of June 30, 2026, Zhang Jianping was not among the top ten shareholders; however, in the first-quarter report for 2026, as of March 31, 2026, Zhang Jianping held 72.2544 million shares, making him the fourth largest shareholder. 5. Less Than a Month Apart, Broad-based ETFs Experience Volume Explosion! Who is Using ETFs to Make a Bulk Purchase? Importance: On August 19, several broad-based ETFs exhibited significant volume in late trading. By the close, both the Huaxia Sci-Tech Innovation 50 ETF and the E Fund ChiNext ETF saw trading volumes exceed 10 billion yuan, reaching 10.889 billion and 10.611 billion yuan, respectively; the Huaxia Sci-Tech Semiconductor ETF and the Huatai-Pboc CSI 300 ETF followed closely with 9.965 billion and 7.147 billion yuan. The combined trading volume of these four ETFs reached 38.5 billion yuan, marking another instance of concentrated volume in broad-based ETFs within less than a month. Institutions view the concentrated volume at the close of these "giant" ETFs as a reflection of market confidence in future performance. In addition to broad-based ETFs, several industry ETFs focused on the semiconductor and semiconductor equipment sectors also showed active trading. Analysts suggest that while short-term volatility risks in the semiconductor sector are indeed increasing, the extreme volume itself indicates a high level of market attention. 6. Kuaishou Reports Q2 Revenue of 35.54 Billion Yuan, In-Line with Expectations; Kegong AI Revenue Surges Over 200% Importance: Kuaishou Technology's second-quarter performance generally met market expectations, but the strong performance of its AI business and unexpectedly high user growth emerged as highlights of the earnings report, showcasing continuous expansion of platform user scale. According to Kuaishou's announcement, for the three months ending June 30, 2026, total revenue increased by 1.4% year-on-year to 35.54 billion yuan. The net profit was 3.15 billion yuan, with adjusted net profit of 3.91 billion yuan, slightly exceeding market estimates. In Q2, Kegong AI generated over 850 million yuan in revenue, growing over 200% year-on-year and significantly accelerating compared to Q1. 7. The U.S. Seeks To Have Multiple Countries "Take Sides" in AI, China Responds Importance: On August 19, Foreign Ministry spokesperson Lin Jian hosted a regular press conference. A reporter questioned reports that the U.S. government intends to send letters to signatories of the "AI Opportunity Partnership Joint Statement," urging them not to join both the U.S. initiatives and other conflicting mechanisms simultaneously. What is China's comment on this? In response, Lin Jian stated that artificial intelligence is the joint wisdom and invaluable treasure of all humanity. The international community generally anticipates wide-ranging collaboration in AI, and countries have the right to choose their partners based on their national conditions and development needs. China firmly opposes making dichotomous choices on issues related to AI and camp-based confrontations. It hopes all parties discard zero-sum thinking, work together in harmony, respect each country's digital sovereignty, and collaboratively build a fair and reasonable global governance system for AI, allowing AI to promote common prosperity and safeguard common security. 8. Iran Warns of Countermeasures by Increasing Tariffs in the Strait of Hormuz if Interests are Harmed Importance: On August 19, Iranian officials stated that the management, supervision, and inspection of the Strait of Hormuz are entirely the responsibility of Iran, supervised by the General Staff of the Armed Forces. The standards for charging passing ships for fees and services are set by the General Staff; it is strictly forbidden for hostile or spy ships that threaten Iran's national security to enter the Strait of Hormuz. If Iran's interests are harmed anywhere in the world, the country will retaliate against hostile nations and governments by increasing tariffs or confiscating assets in the Strait of Hormuz. 9. Justice Ministry Issues Announcement Recognizing EU's Conduct as Improper Extraterritorial Jurisdiction Importance: On August 19, the Justice Ministry released an announcement regarding the European Union's practices in foreign subsidy investigations constituting improper extraterritorial jurisdiction. The content is as follows: According to Articles 3 and 6 of the "Regulations on the Extraterritorial Jurisdiction of Foreign Unfair Subsidies of the People's Republic of China," the Justice Ministry, together with relevant departments such as the Ministry of Commerce, investigated and determined that the EU's cross-border investigation practices against Chinese entities in the investigation of JD.com, Inc. Sponsored ADR Class A, using its "Foreign Subsidies Regulation," constitute improper extraterritorial jurisdiction measures. Opportunities to Watch Stock selections have highlighted investment opportunities in the market, particularly in chips and related sectors. 1. AI Demand Pressures Production Capacity! Samsung Raises Chip Manufacturing Prices by Up to 15% Reports indicate that Samsung Electronics has raised prices on new orders for some advanced process foundry services, with increases reaching up to 15%. This move signals a crucial shift for the tech giant's long-struggling foundry business, driven primarily by the ongoing explosion in AI chip demand. CMSC believes that the supply-demand gap in the memory industry will persist until 2027. The domestic trend for memory expansion is clear, with an increase in domestic production rates, a continuous uptrend in equipment orders, and material supply expected to scale up as production capacity breaks bottlenecks. They suggest focusing on storage, computing, and OEM sectors benefiting from tight supply-demand dynamics, as well as equipment materials in the expansion cycle, while also keeping an eye on core stocks in various tech innovation indices and semiconductor indices. Additionally, the following sectors are also worth monitoring: 2. Coal | Low-sulfur coke price in Lliang rises by 250 yuan, with large-scale increases in local coking coal prices. 3. Carbon Trading | Further improvement of the national carbon emissions measurement technical system, with three departments jointly issuing a guidance catalog. Positive and Negative Announcements from Listed Companies On the positive announcement front, attention is drawn to Foxconn Industrial Internet's investment of 1.49 billion to repurchase 2.41 million shares, among others. On the negative side, note National Silicon Industry Group's net loss of 965 million yuan in the first half of the year, among others. Positive Announcements 1. Foxconn Industrial Internet: First repurchase of 2.4144 million shares, costing 1.49 billion yuan. 2. Advanced Micro-Fabrication Equipment Inc. China: Net profit for the first half of 2026 reached 2.825 billion yuan, a year-on-year increase of 300.22%. 3. Jiangsu Hengrui Pharmaceuticals: Plans to repurchase A-shares worth 1 to 2 billion yuan. 4. Hunan Yuneng New Energy Battery Material: Net profit for the first half of 2026 reached 2.91 billion yuan, a year-on-year increase of 853.51%. 5. Kunlun Tech: Achieved net profit of 1.088 billion yuan in the first half of the year, turning a loss into profit. Negative Announcements 1. National Silicon Industry Group: Net loss of 965 million yuan in the first half of the year. 2. North Huajin Chemical Industries: Deputy General Manager Yan Zenghui under investigation, has been dismissed from his position. 3. Infotmic Co., Ltd: Received a decision letter not to proceed with further review of antitrust examination of business operators' concentration. 4. Jiangsu Huifeng Bio Agriculture: Received a warning letter for inaccurate disclosure in regular reports for 2023 and 2025. 5. Beijing Wantai Biological Pharmacy Enterprise: Net loss of 128 million yuan in the first half of 2026. This article is reproduced from "Tencent Self-selected Stocks," GMTEight edited by Xu Wenqiang.