A-share pre-market report | The U.S. Treasury's market rescue fails miserably! U.S. stocks and bonds fall together, while storage and optical communications rebound.

Pre-Market News 1. Bessenet's "Market Rescue" is effective for only one day, U.S. Treasuries and stocks fall, while cryptocurrencies surge. Type: Market Sentiment Impact: Negative As the effectiveness of the U.S. Treasurys measures to stabilize the bond market quickly dissipates, the three major U.S. stock indices have also fallen, with selling pressure on long-term U.S. Treasuries continuing to rise (Note: an increase in Treasury yields means a decline in the bonds themselves); amidst the weakening market, the storage and optical communication sectors, which had declined for the previous two trading days, rebounded together, with SK Hynix rising 4.43% and Micron Technology gaining 3.97% on Thursday. 2. Alibaba opens low and closes high after earnings report; conference call indicates that Capex investment is expected to break even in three years. Type: Company Sentiment Impact: Positive On August 20, during the earnings conference call, Alibaba Group CEO Wu Yongming stated that the annualized revenue for Alibaba's AI-related products has surpassed 49.5 billion RMB (7.3 billion USD) this quarter, with a high certainty of return on AI computing power Capex investment, and that the overall investment is expected to break even within three years. Overnight, Alibaba's U.S. stock opened low but closed up over 1%. 3. The National Development and Reform Commission holds a symposium on private enterprises related to stabilizing economic operations and promoting effective investment. Type: Macro Sentiment Impact: Positive On August 20, Zheng Zhanjie, Director of the National Development and Reform Commission, hosted a symposium to gather opinions and suggestions from private enterprises on stabilizing economic operations and promoting effective investment. Representatives from five companies, including Qingdao TGOOD Electric, Truking Technology, Yucun Technology, Thunderbird Innovation, and Inner Mongolia ERDOS Resources, participated in the discussion. 4. Trump signs memorandum to promote U.S. aerospace launches and explore commercial Siasun Robot & Automation landing on Mars. Type: Industry Sentiment Impact: Positive On August 20 local time, the White House announced that U.S. President Trump has signed a memorandum proposing that by 2030, U.S. space transport ranges and related facilities should have the capacity to support over 1,000 launches and re-entry missions annually. In addition, NASA has been tasked with developing a commercial lunar logistics framework, exploring commercial Siasun Robot & Automation's landing on Mars, as well as frameworks for manned round trips to Mars. 5. Anthropic aims to surpass SpaceX with the largest IPO in history. Type: Company Sentiment Impact: Positive According to sources, Anthropic is expected to file its IPO documents as early as the end of this month, and the company is currently assessing the scale of fundraising. SpaceX previously set the record for the largest IPO in history with a $75 billion initial offering, which increased to $86.2 billion when accounting for the overallotment. If Anthropic successfully surpasses this threshold, 2026 will easily become the largest year for financing in the history of the U.S. IPO market. Investment Calendar State Council Information Office press conference; Ministry of Finance introduces relevant policies. Investment Insight Firmly believe that "choosing the right stock can yield more profit than frequently trading popular stocks and cash during market fluctuations." John Maynard Keynes, "The Investor Against the Trend" Institutional Views 1. Soochow: The characteristics of the "fan market" are prominent, and the market has yet to nurture a sustainable core theme. 2. CICC: With increased external shocks leading to greater market volatility, the A-share market's recovery trend since the end of July is still expected to continue. 3. Orient: As market risk appetite gradually recovers, it is recommended to focus on areas with strong earnings visibility. Prospective Good and Bad News 1. After the "Eight Measures" in Shanghai, the city issues the "14th Five-Year Plan" for urban renewal and housing development. Type: Policy Focus China Great Wall: Currently, the valuations and fund positions in the real estate sector are at historically low levels. With a series of policies driving improvement, the industry is expected to gradually stop plummeting and stabilize, enhancing the investment allure of the sector, with potential upward price elasticity. 2. Apples fall event is approaching; Foxconn urgently hires workers to ramp up production of the iPhone 18 Pro. Type: Market Buzz CMSC: Apple is continuously expanding its market share relative to Android. We remain optimistic about the scarcity of quality supply chain resources for Apple further highlighting its value, and we recommend selecting high-quality targets in the Apple supply chain. 3. The Ministry of Industry and Information Technology approves Space-Time Daoyu to conduct commercial trials for satellite IoT business. Type: Institutional Commentary CITIC SEC: Looking at the medium to long term, the core contradiction in commercial aerospace will shift from supply capacity to satellite network utilization and commercial applications, with investment lines gradually moving downstream. Announcement Express Slightly Positive Announcements 1. GigaDevice Semiconductor Inc.: Plans to repurchase company shares worth 1-2 billion RMB. 2. Xiamen Tungsten: Reports a net profit of 2.201 billion RMB for the first half of 2026, a year-on-year increase of 127.04%. 3. CITIC SEC: Reports a net profit of 23.343 billion RMB for the first half of 2026, a year-on-year increase of 69.6%. Slightly Negative Announcements 1. Muyuan Foods Group: Reports a net loss of 6.078 billion RMB for the first half of the year, a shift from profit to loss. 2. China Telecom Corporation: Reports a net profit of 19.588 billion RMB for the first half of 2026, a year-on-year decrease of 14.9%. 3. Beijing Qianjing Landscape: 9.12% of the company's total shares held by the controlling shareholder have been judicially frozen and marked. Overseas Markets Selected Tips: As the effect of the U.S. Treasury's measures to stabilize the bond market fades quickly, the three major indices have fallen. The "Big Seven Tech Giants" have collectively declined, while the storage and optical communication sectors have strengthened, with SK Hynix up over 4% and Lumentum up over 6%; Moderna, which soared 176% yesterday, has declined by 23.55%; the Nasdaq Golden Dragon China Index has dropped by 1.15%. This article is reproduced from "Tencent Stock Selection," edited by Jiang Yuanhua.