Zhitong Hong Kong Stock Early Knowledge | The U.S. plans to ban the import of new data center equipment from China. China responds: Stop the smear campaign and threats of sanctions

【Today's Headlines】

The U.S. Plans to Ban Imports of New Data Center Equipment from China; Our Embassy Urges the U.S. to Stop Smearing Chinese Companies and Threatening Sanctions

According to media reports on the 4th, informed sources revealed that the U.S. government is drafting a ban to prohibit the import of new models of data center components from China to protect the critical infrastructure supporting artificial intelligence (AI) development. In response, the Chinese Embassy in the U.S. stated that Beijing urges the U.S. to "listen to the objective and rational voices of the business communities of both countries" and to stop smearing Chinese companies and threatening sanctions. The embassy also said, "China will take all necessary measures to respond to any actions that seriously harm its interests."

CICC stated that the core function of optical modules is the conversion of optical signals, and they do not store business data themselves. Compared to active devices, their risk boundaries and attack capabilities are significantly different. Therefore, whether the "FCC security logic cited by sources" is valid and whether the proposed restrictions comply with the principle of necessity is itself debatable. Moreover, since 2020, similar stories have been told many times. The market has been concerned that Chinese manufacturers' market share would be taken by North American competitors, but discussions have actually decreased in the past two years—because after several years of verification, even as industrial policies continue to tilt towards the U.S. domestic supply chain, Chinese manufacturers' market share has not only remained stable but has even increased. CICC indicated that this matter is about short-term trading sentiment, mid-term observation of regulatory standards, and long-term competition in products, yield, and delivery. Policies can change shipping addresses, but they may not change who is best at making optical modules.

【Market Outlook】

Overnight, U.S. stocks closed higher across the board, with both the Dow and S&P reaching all-time highs. At the close, the Dow Jones Industrial Average rose 907.47 points from the previous trading day, closing at 54,085.88 points, an increase of 1.71%; the S&P 500 index rose 136.02 points, closing at 7,736.52 points, an increase of 1.79%; the NASDAQ Composite Index rose 671.09 points, closing at 26,584.99 points, an increase of 2.59%.

Most large tech stocks rose, with NVIDIA up over 2%, Apple up nearly 2%, and AI hardware concept stocks soaring, as the Philadelphia Semiconductor Index rose 6.55%. Applied Optoelectronics rose over 19%, ARM rose over 17%, MaxLinear and Coherent rose over 12%, Intel and SanDisk rose over 10%, Corning rose over 9%, Lumentum rose nearly 9%, SK Hynix rose over 8%, and Micron Technology and Qualcomm rose over 7%.

Most popular Chinese concept stocks fell, with the NASDAQ Golden Dragon China Index down 0.35%. The Hang Seng Index ADR rose, closing at 25,953.07 points, an increase of 100.15 points or 0.39% compared to the Hong Kong close.

WTI crude oil futures for the current month on the New York Mercantile Exchange fell by $5.20, closing at $75.14 per barrel, a decrease of 6.47%. COMEX gold futures for the current month rose by $43.70, an increase of 1.07%, closing at $4,134.2 per ounce.

【Hot Topics Ahead】 Tencent Hunyuan officially releases the next-generation voice recognition model Hy ASR 3.0 preview

On August 4th, Tencent Hunyuan officially released the next-generation voice recognition model Hy ASR 3.0 preview. Currently, Hy ASR 3.0 preview is available on the Tencent Cloud official website providing API services, which can be widely applied in scenarios such as intelligent customer service, content understanding, and voice search. Yuanbao has deeply participated in the joint research and has completed the initial launch. Users can experience dialect recognition, context-aware intelligent error correction, and stable transcription in complex environments by pressing and holding the Yuanbao while speaking, making voice input more accurate and stable, and it is open for free; products like WorkBuddy are also being integrated gradually.

Dajin Heavy Industry (01081): Subsidiary signs contract for the construction of 2 bulk carriers with Norwegian shipowner

Dajin Heavy Industry (01081) announced that recently, its subsidiary Tangshan Dajin Marine Engineering Co., Ltd. signed a contract for the construction of 2 bulk carriers with a Norwegian shipowner. The company will design, build, and deliver 211,000 DWT (deadweight ton) bulk carriers for the aforementioned shipowner, with each ship measuring approximately 299.95 meters in length, 50 meters in width, and 25 meters in depth. The total amount of the shipbuilding contract is approximately RMB 1 billion, with delivery scheduled in batches by 2029.

Aston (02715): Subsidiary plans to acquire all equity of Nanjing Aston Kuozhu Technology Co., Ltd.

Aston Robotics conditionally agreed to acquire, while the original shareholders conditionally agreed to sell approximately 83.26% of the equity of the target company, with a total consideration of RMB 406 million. Upon completion, the target company will become a wholly-owned subsidiary of the company, and the financial performance of the target company will be consolidated into the group's financial statements.

Basic Semiconductor (09971) has reached a strategic cooperation with Hanlei Technology

In this strategic cooperation, both parties will accelerate the development and mass production of 8-inch silicon carbide wafers based on their previous long-term cooperation. Leveraging Basic Semiconductor's advanced product technology and market advantages along with Hanlei Technology's high-quality large-scale wafer manufacturing capabilities, they will jointly promote the development and mass production of new process platforms, enhancing the market share of silicon carbide products in fields such as new energy vehicles and AI computing centers. Additionally, both parties will conduct research on core processes and application technologies of new compound semiconductors in cutting-edge application fields.

Techtronic Industries (00669) releases interim results, with shareholders' profit attributable of USD 738 million, an increase of 17.52% year-on-year

The announcement states that for the six months ending June 30, 2026, Techtronic Industries achieved record sales of USD 8.3 billion, representing a 5.9% increase on a reported basis, with a currency surplus contributing 1.9 percentage points to the growth. Basic earnings per share are 40.5 cents; an interim dividend of HKD 1.50 per share (approximately 19.31 cents) is proposed.

Zibuyu (02420) issues profit warning, expecting interim net profit of approximately RMB 130 million to RMB 150 million, a year-on-year increase of approximately 23% to 42% The main channel, Amazon platform business, is steadily growing, while other channels such as TikTok platform have achieved several times growth. Brand momentum continues to be released, and new products perform brilliantly, driving a significant increase in revenue.

Skyworth Group (00751) issues positive profit alert, expecting mid-term after-tax profit to increase by no less than 170% year-on-year

The expected growth in after-tax profit has two main factors. First, the value of certain listed and unlisted equity securities held by the group has significantly increased due to the substantial growth in market valuation of the semiconductor industry at the end of this period, resulting in a non-cash and unrealized gain of approximately RMB 530 million in the fair value of financial assets recognized in profit or loss compared to the same period last year. Second, the smart system technology business segment has seen growth in the sales volume, revenue scale, and gross profit margin of smart terminals compared to the same period last year.

Wynn Macau (01128) major shareholder Wynn Resorts, Limited reports second-quarter operating revenue of $163 million in Macau, an increase of 26.93% year-on-year

Wynn Resorts, Limited CEO Craig Billings stated: "Our performance in the second quarter was impressive, with the Las Vegas business setting a new monthly record for adjusted property EBITDAR in May, and the Macau business also performed strongly, reflecting the continued robust demand for our overall business. I am very proud of the performance of our teams in both locations."

【Stock Highlights】

Nine Dragons Paper (02689): Recently announced a new round of price adjustment plan

Recently, several large paper companies have consecutively announced price increase plans, and various paper products are experiencing a new wave of price increases. On July 29, Nine Dragons Paper's three major bases issued a price increase notice, with Dongguan Nine Dragons and Taicang Nine Dragons announcing price increases for corrugated paper, recycled kraft paper, high-quality kraft paper, and kraft paper by 50 yuan/ton; Beihai Nine Dragons announced a price increase for high-quality V kraft paper, also by 50 yuan/ton.

Huafu Securities believes that with August approaching the consumption peaks of Mid-Autumn Festival, National Day, and e-commerce promotions, the downstream demand for pre-stocking will continue to heat up, providing certain demand support for paper price increases. Bohai Securities maintains the judgment that rising paper prices will drive improvements in paper companies' performance and is optimistic about the marginal profitability of packaging paper-related companies in the second quarter of this year