A-share Pre-market Briefing | AI slowdown concerns intensify! Chip stocks plunge, chip index drops nearly 6%

Pre-market Briefing 1. Concerns over slowing AI development intensify! US stock indices all closed lower, chip index plunged nearly 6%, cybersecurity concept stocks surged Type: Industry Sentiment impact: Negative As US artificial intelligence industry leaders raised concerns over safety issues and called for slowing the pace of AI development, chip stocks such as Nvidia suffered heavy losses, dragging the broader market lower. The Philadelphia Semiconductor Index plunged 5.9%, the biggest drop since July 1. Optical communications and memory sectors fell sharply, with Corning down more than 13%; on the other hand, cybersecurity concept stocks led the gains, with CrowdStrike up 13.85% and Palo Alto Networks up 13.1%. 2. Paying for FAW Toyota consideration with shares? FAW to become GAC's second-largest shareholder, auto central SOE integration curtain rises again Type: Industry Sentiment impact: Positive The integration plan between Guangzhou Automobile Group and China FAW has begun to take shape. Guangzhou Automobile Group will use share issuance as consideration for acquiring equity in a target joint venture company, making FAW the second-largest shareholder of GAC; an industry insider close to FAW revealed that the target joint venture may be FAW Toyota. Industry insiders said that the current wave of industry restructuring has landed in multiple dimensions, including both internal brand streamlining and integration within groups, as well as cross-entity equity restructuring, and market discussions about multiple automaker restructurings continue to heat up. 3. August financial data released! Bond and stock financing now account for more of aggregate financing increment than loans Type: Macro Sentiment impact: Positive Central bank data showed that at the end of August, the stock of aggregate financing was 464.8 trillion yuan, up 7.2% year-on-year; broad money (M2) balance was 356.81 trillion yuan, up 7.5% year-on-year. Notably, bond and stock financing now account for a significantly higher share of the aggregate financing increment than loans. Experts said that China's total financial volume is growing reasonably, and social financing conditions remain relatively loose. 4. 10-year US Treasury yield breaks through 5%! Wall Street raises forecasts, analysts say selloff is not over Type: Market Sentiment impact: Negative US Treasuries suffered a new round of fierce selling, with the 10-year yield breaking through the 5% mark on Monday, a new high since 2023, as inflation concerns and supply pressure resonated, weighing on global bond markets. Institutions including Goldman Sachs and TD raised their year-end US Treasury yield forecasts. One analyst said the selloff is far from over. He raised his year-end 10-year yield forecast to 5.2% and expects it to rise further to 5.3% in Q1 2027. Investment Calendar National Economic Performance Press Conference Investment Tips The reason those who make great fortunes become rich is mainly long-term diligence, thrift, and careful management. [UK] Adam Smith, The Wealth of Nations Institutional Views 1. Galaxy Securities: Domestic fundamentals remain stable, providing bottom support for the market, and expectations for further policy strengthening still exist. 2. Sinolink: The core issue in the market is actually the race between interest rates and inflation; focus on the AI chain, energy chain, and precious metals. 3. China Securities Co.,Ltd.: The overall judgment of an A-share oscillating market remains unchanged; in allocation, maintain a balanced allocation + flexible adjustment strategy. Positive and Negative Outlook 1. BYD Company Limited executives say they plan to launch the first model equipped with solid-state batteries in 2027 Type: Market hot topic Tebon Securities: The industrialization inflection point for solid-state batteries is approaching. It is recommended to prioritize upstream segments with high certainty: first, on the equipment side, focus on segments with significantly increased value such as dry electrode and isostatic pressing equipment; second, on the materials side, focus on core incremental materials such as sulfide electrolytes and silicon-based anodes. 2. The Ministry of Commerce and 8 other departments issue documents to promote smart home consumption, activating the trillion-yuan smart home market Type: Policy focus Soochow: In 2022, the overall penetration rate of AI technology in smart homes was 25%, and by 2025 it is expected to be close to 50%. Smart cleaning is the highest at 70%, and smart white goods the lowest at 5%; white goods and lighting have the greatest room for AI penetration improvement. 3. The United States, the United Kingdom, and many other countries have successively adjusted tungsten-related policies, and the global competition for tungsten resources is heating up Type: Market hot topic Sinolink: The US ban on tungsten scrap exports further strengthens the logic of strategic stockpiling, and the restructuring of the landscape benefits domestic tungsten materials. Supply pressure is expected to create a window for domestic companies to accelerate product validation, customer introduction, and capacity expansion, promoting faster import substitution of high-end tungsten materials. Announcement Express Positive announcements 1. Guangdong Senssun Weighing Apparatus: Plans to acquire 100% equity of Wuluo Smart for 800 million yuan, adding AI computing power business 2. Range Intelligent Computing Technology Group: Plans to add no more than 50 billion yuan in credit lines, continuously increasing investment in the AIDC field 3. Guangzhou Automobile Group: Planning to issue shares to purchase part of the equity of a vehicle joint venture company held by FAW Shares Negative announcements 1. Chutian Dragon: Controlling shareholder Wenzhou Xianghongwan plans to reduce holdings by no more than 3% 2. Beijing JCZ Technology: Terminates acquisition of controlling stake in Zhibo Taike, stock resumes trading 3. Fujian Mindong Electric Power Group: The offshore wind power projects in which it holds stakes are all in a state of not yet starting construction or not yet in production Overseas Markets Editor's note: Calls for slowing AI development dealt heavy blows to chip stocks such as Nvidia, dragging the broader market lower, with all three major indices closing down. The Philadelphia Semiconductor Index closed down 5.86%, the biggest drop since July 1. Optical communications and memory chip sectors fell sharply. Cybersecurity concept stocks strengthened against the trend, with the Global X Cybersecurity ETF up 10.66%. This article is reprinted from "Tencent Self-Selected Stocks", GMTEight editor: Chen Siyu.