Zhitong Hong Kong Stock Exchange Unravels | The heads of state of the US and Russia may soon hold talks and the brain-computer interface will usher in a major release

[Anatomy Dashboard]

Uncertainties have finally been eliminated. Hong Kong stocks once again fluctuated upward today. The Hang Seng Index closed up 0.69%, once again reaching the 25,000 point mark.

There is good news about sanctions against third parties against Russia. On August 6, Russian President Vladimir Putin met with the US Special Envoy on Middle East issues, Witkov, who visited the same day at the Moscow Kremlin. Trump: The talks were “productive and significant progress has been achieved.” Trump also said on the 6th that the heads of state of the US and Russia are likely to hold talks soon. The White House, on the other hand, said that Russia has expressed its desire to meet with Trump, and that Trump is open to meeting with Putin and Zelensky.

On August 7, local time, Russian presidential assistant Ushakov said that Russia is working with the US to prepare specific matters for a meeting between the two heads of state. This shows that Russia and the US have reached a consensus, and the next cease-fire is worth looking forward to. Then maybe there won't be any more against us. And sanctions against India are not a bad thing; Modi chose to be tough: never compromise in the face of 50% tariffs, and he is ready to pay a heavy price. Meanwhile, Modi is expected to visit China again at the end of August. Brazilian President Lula: I want to call China and India to discuss the BRICS's joint response to Trump. So, the situation is in our favor.

Additionally, S&P International Credit Ratings released a report deciding to keep China's sovereign credit rating “A+” and outlook “stable.” According to the Ministry of Finance, the S&P report shows high recognition of China's economic growth resilience and debt control effectiveness, and shows confidence in the positive prospects of China's economy. Don't underestimate ratings. This is also a financial weapon. Whether the ratings are good or bad have a great influence on global capital investment.

The current environment in the stock market is quite friendly. After the market confirmed that the Federal Reserve would cut interest rates in September, the US dollar fell for five consecutive days, while spot gold rose more than 0.7% to break through 3,390 US dollars. The rise in gold generally corresponds to the trend weakening of the US dollar. Today, China Gold International (02099) and Chifeng Gold (06693) both increased by more than 6%. In the gold jewelry category, the old store gold (06181) mentioned yesterday continued to rise by more than 3%, and Lukfook Group (03738) exceeded 6%.

In anticipation of interest rate cuts, Hong Kong stocks are most sensitive to real estate agents. It just so happened that New World Development (00017) is rumoring that the Zheng family is negotiating financing or privatization initiatives. Today, Hong Kong's local real estate stocks all rose by more than 10%. For example, Jiulongchang (01997) and Henderson Land (00012) all rose 4%; Mainland real estate also began to follow suit, with C&D International Group (01908), Xincheng Development (01030), and Yuexiu Real Estate (00123) all exceeding 3%.

Foreign trade is also good. According to data from the General Administration of Customs, ASEAN was my largest trading partner in the first 7 months. My total trade value with ASEAN was 4.29 trillion yuan, an increase of 9.4%, accounting for 16.7% of our total foreign trade value. The EU is my second largest trading partner. My total trade value with the EU was 3.35 trillion yuan, an increase of 3.9%, accounting for 13% of our total foreign trade value. The US is my third largest trading partner. My total trade value with the US was 2.42 trillion yuan, a decrease of 11.1%, accounting for 9.4% of our total foreign trade value. The structure is reasonable, and trade transfers to ASEAN and Europe are gradually being increased.

Trump said that 100% tariffs will be imposed on imported products, including semiconductors, to increase export pressure on the Chinese semiconductor industry in the short term, but it will further strengthen China's determination to become autonomous in the medium to long term. Huahong Semiconductor (01347) continues to rise steadily. The rare earth type Jinli Permanent Magnet (06680) will release its results on August 19 and is up more than 4% today.

To obtain a tariff exemption, the company's CEO Tim Cook announced a new $100 billion investment in the Oval Office aimed at moving more apple production to the US. In addition to the previously announced plans to invest 500 billion US dollars in the US within the next four years, Apple's cumulative investment commitment in the US reached 600 billion US dollars. The US stock Apple surged more than 5%, directly driven by the industrial chain. In August, the multi-attribute Zhitong Jinshun Hongteng Precision (06088) rose nearly 7%; more than 90% of Gaowei Electronics (01415)'s revenue came from Apple orders, and today it also rose more than 9%; while BOE (00710) will supply OLED panels for the iPhone 17 Pro series. Relevant data shows that LG's share of Apple's OLED share in the second quarter of this year was 21.3%. BOE accounts for 22.7%, Samsung accounts for 56.0%, and BOE (00710) surged today.

The reverse “internal roll” express delivery system was officially launched. Starting August 4, the overall express reserve price in Guangdong Province was raised by 0.4 yuan/ticket, and the average price rose to more than 1.4 yuan. According to the requirements of the relevant departments, each company must not collect it at a cost price of less than 1.4 yuan, otherwise they will be severely punished. Zhongtong Express-W (02057) rose more than 4%; lithium salt was also quite serious. The increase in the main lithium carbonate futures contract increased to 5% during the day to 7,2,140 yuan/ton. Tianqi Lithium (09696) rose nearly 7%, and Ganfeng Lithium (01772) rose more than 4%.

Brain-computer interface once again ushered in the release of major documents from seven departments: by 2030, the brain-computer interface industry's ability to innovate will improve significantly, form a safe and reliable industrial system, cultivate 2 to 3 leading global enterprises and a group of specialized and innovative small and medium-sized enterprises, and build an international competitive industrial ecosystem. The reason for the joint announcement by the seven departments is because brain-computer interfaces are cutting-edge science. In addition to being used as auxiliary medicine, they can also drive a large number of industries, including chips, brain-controlled robots, brain-controlled smart homes, sensors, software, sports training, driver monitoring, etc. Currently, the market is dominated by the US and Europe, but China's policy support, combined with China's advantages in various fields, is worth looking forward to. The main types of Hong Kong stocks include Nanjing Panda Electronics (00553), which surged more than 19%, and minimally invasive brain science (02172).

RWA also issued a new standard. The travel platform Cao Cao Travel (02643) announced that it has signed a virtual asset strategic cooperation memorandum with Shengli Securities (08540), a licensed financial institution in Hong Kong. The two sides will focus on the three core areas of real-world asset (RWA) tokenization, stablecoin payment applications, and compliant digital currency issuance, and carry out in-depth cooperation. The company's Robotaxi business has stable and predictable operating characteristics. It naturally meets RWA's requirements for underlying assets, and is regarded as a cutting-edge RWA target with great potential for development. The cooperation between the two sides is expected to use blockchain technology and the Web3.0 innovation model to accelerate the asset tokenization process in the Robotaxi industry. Today, Cao Cao Chuxing (02643) surged nearly 18%.

[Section Focus]

Shipping giants have raised freight rates one after another: Hapag-Lloyd announced that it will levy a peak season surcharge (PSS) for routes from Asia to Africa starting August 16: Asia/Oceania → Southwest Africa (Angola, Congo, etc.): $600/TEU (refrigerator to Cameroon $800/TEU). Asia/Oceania → South Africa: $200/TEU (excluding refrigerator). Asia/Oceania→Port of Guineacry: $600/TEU (refrigerator $800/TEU).

Since July 15, Maersk has raised fares on several routes: China to the east coast of South America (Brazil, Argentina, etc.): an increase of 1,000 US dollars/TEU. Far East to West Africa route: increase of 50 USD/TEU; Middle East to East Africa route: increase of 750 USD/TEU.

Dafei charged an additional $300/TEU for routes from Asia (excluding Japan) to the Red Sea during the same period.

Main beneficial varieties: Dexiang Shipping (02510), Haifeng International (01308), COSCO Maritime Control (01919), Dongfang Overseas International (00316).

[Individual Stock Mining]

Dongyue Group (00189): Profit pre-increased year-on-year in the first half of the year, and the refrigerant boom continued to improve

Recently, Dongyue Group plans to invest nearly HK$200 million to improve the quality of PTFE, green and intelligent transformation of tetrafluoroethylene, and pilot production of tetrafluoropropylene. Dongyue Group announced a profit forecast for the first half of the year. It is estimated that the net profit attributable to company owners for the year ending June 30, 2025 may increase sharply by about 150% year over year.

Comment: The company is benefiting from the continued improvement in the refrigerant boom, and the performance is expected to enter an upward cycle. In June-August, the downstream air conditioning industry maintained a year-on-year growth trend. Demand was strong, providing support for refrigerant prices. Refrigerant prices have been rising steadily since 2025.

The demand for refrigerants has entered the peak season, and there is strong certainty about price increases. The company's own advantages are prominent, and it is expected to fully benefit as a leader in the fluorosilicon industry. Dongyue Group is a leading enterprise with R22 and R32 production capacity and quota in China. The company has about 220,000 tons of R22 production capacity and 60,000 tons of R32 production capacity.

In terms of quotas, according to the Ministry of Ecology and Environment, in 2025, the company has an R22 quota of 44,900 tons, accounting for about 29.46% of the total quota, the largest quota in the country; it has an R32 quota of 56,300 tons, accounting for about 20.09% of the total quota, second only to the quota share of Juhua shares; the company has a total production quota of 129,900 tons of second-generation and third-generation refrigerants, which is among the highest in the country. The price of R22 is expected to rise significantly. Dongyue Group is the leader in the second-generation refrigerant industry. It has a large R22 quota and is expected to fully enjoy the dividends of price increases.

The company is the world's largest supplier of PTFE materials and has become a key material for humanoid robot tracks. Most of the company's R22/R142b production capacity is used for fluoropolymer raw materials. Domestic demand is high, and it may support prices for non-refrigeration applications in the medium to long term. As refrigerant prices continue to rise in a tight balance between supply and demand, the company's gross profit and net profit of refrigerant products continue to increase. Refrigerants are in a long-term boom cycle, and the company is expected to fully benefit as a leader in the fluorosilicon industry. At the same time, with the gradual increase in export demand in September-October, the market may further boost expectations.