GMT EIGHT - OPPORTUNITIES IN CHINA

Industrial and Commercial Bank of China raises year-end target for S&P 500 index to 7950 points, bullish on AI sector and cyclical stocks for further upside.

Fuguo Bank has raised its year-end target for the S&P 500 index from 7300 points to 7950 points by 2026, with about 5% upside from Monday's closing level.

US Stock Market Move | Fox-A (FOXA.US) continued to fall by over 5%, with a total drop of 25% in 3 days.

On Tuesday, Fox-A (FOXA.US) continued to fall by over 5%, hitting a new low for the year with a 25% total decline over the past 3 days.

U.S. import prices in May saw the largest year-on-year increase in nearly four years, as the AI boom and conflicts in the Middle East pushed up inflationary pressures.

In May, import prices in the United States continued to rise significantly, showing that the rise in energy costs caused by conflicts in the Middle East and the data center construction boom driven by artificial intelligence (AI) are continuing to transmit inflationary pressure to the US economy.

US Stock Market Move | Announced to receive a $50 million intention fund from the United States chip act, Coherent (COHR.US) drops more than 5%.

On Tuesday, Coherent's (COHR.US) intraday stock price weakened, closing at $390.18, down 5.72% as of the time of writing.

US Stock Market Move | Taiwan Semiconductor Manufacturing Co., Ltd. and ADR have reached a ten-year cooperation agreement. AMKR.US jumped over 11% in early trading.

On Tuesday, AMKR.US soared more than 11% in early trading, hitting a new all-time high and a 140% gain for the year.

The war inflation effect is far from over! Chief Economist of the European Central Bank warns: Price pressures in the Eurozone may continue into next year.

European Central Bank Chief Economist Philip Lane warned on Tuesday that the continuously high energy prices over the past four months have accumulated effects in the inflation transmission chain, and the Eurozone inflation rate is likely to remain above 3% in the coming months.

Evening hotspots of A shares | NDRC holds a heavyweight symposium! Computational power network and others will benefit from construction

According to the National Development and Reform Commission, on the morning of June 16th, Director Zheng Zhaejie of the National Development and Reform Commission presided over a symposium.

US Stock Market Move | The stock of Intel Corporation (INTC.US) fell more than 4% as technology stocks declined across the board.

On Tuesday, the Nasdaq opened weak and fell by 0.3%, with tech stocks overall declining.

Meta's Threads, a social media platform, has recently surpassed 500 million monthly active users, continuing to enhance its community features.

Meta Platforms announced on Tuesday that the monthly active users (MAU) of its social platform Threads has surpassed 500 million.

US Stock Market Move | Popular Chinese concept stocks mostly fell, Xiaopeng Motors (XPEV.US) fell more than 5%.

On Tuesday, the Nasdaq Golden Dragon China Index fell more than 2%, with most popular Chinese concept stocks also declining.

US Stock Market Move | Qualcomm (QCOM.US) opens up more than 4%, rumored to be in talks to acquire Tenstorrent.

On Tuesday, Qualcomm (QCOM.US) opened up over 4%, up 80% since April, now trading at $229.29 per share.

US Stock Market Move | The majority of optical communication concept stocks pulled back, with Applied Optoelectronics (AAOI.US) falling more than 5%.

The majority of optical communication concept stocks have experienced a pullback.

US Stock Market Move | Cloud computing service provider continues to rise, CoreWeave (CRWV.US) soars by nearly 10%.

The three major U.S. stock indexes opened higher collectively, and cloud computing service providers continued to rise, with CoreWeave (CRWV.US) surging nearly 10%.

US Stock Market Move | Rackspace Technology (RXT.US) signs contract with AMD to deploy 30 megawatts of computing power, with shares opening up more than 13%.

On Tuesday, Rackspace Technology (RXT.US) opened up more than 13%, with a cumulative increase of nearly 600% for the year, now trading at $6.81.

New home construction in the United States has fallen to its lowest level since 2020. The "1996-style soft landing script" is now entering the stress test phase.

Due to the significant decrease in apartment projects, the pace of new residential construction in the United States has slowed to its lowest level in six years. This decline is mainly due to a 40.2% plunge in multi-family housing starts. Single-family housing starts also decreased by 1.9%, with an annualized rate of 882,000 units.

US Stock Market Move | Storage concept continues to rise, Western Digital Corporation (WDC.US) rises over 7%.

On Tuesday, the storage concept continued to rise.

US Stock Market Move | SpaceX (SPCX.US) rises more than 10%, planning to acquire Anysphere for $60 billion.

On Tuesday, SpaceX's stock rose nearly 10% in early trading, pushing its total market value close to $2.8 trillion, surpassing Amazon and jumping into the top five global listed companies by total market value.

Deutsche Bank significantly raised its forecast for Siasun Robot & Automation's shipments: doubling to 50,000 units by 2026 and aiming for 7 million units by 2050.

Iris Zheng stated in the report that the humanoid robot market is transitioning from the hype stage to the early stage of scale commercialization, and this assessment directly drove the upward revision of this round of forecasts. Deutsche Bank's latest forecast has raised the global shipment target for 2026 to nearly 50,000 units, more than double the previous forecast of 17,500 units for 2025; the shipment target for 2030 has further increased to approximately 700,500 units; by 2050, the long-term market size target is as high as 7 million units.

Brent crude oil falls below $80 for the first time in three months, a US-Iran agreement is expected to unleash a "flood" of supply.

As the US and Iran are about to reach an agreement on the navigation of the Strait of Hormuz, and market expectations of a recovery in crude oil supply, the international benchmark Brent crude oil price fell below $80 per barrel for the first time in over three months.

Equinix (EQIX.US) collaborates with NVIDIA Corporation and Cisco Systems, Inc. to address pain points in enterprise AI, standardizing "AI factories" to accelerate global deployment.

Digital infrastructure company Equinix (EQIX.US) announces an expansion of its partnership with Cisco (CSCO.US) and NVIDIA (NVDA.US) to accelerate enterprise AI deployments across its global data center network.

New Stocks News | Rumor has it that Xiaohongshu has hired investment banks such as Goldman Sachs and CICC to handle its Hong Kong IPO affairs.

According to reports from two informed sources cited by the media, Xiaohongshu (RED) has hired investment banks such as Goldman Sachs and China International Capital Corporation (CICC) to prepare for its initial public offering (IPO) in Hong Kong.

Huang Renxun said "trillion dollar market value", how much explosive growth does Marvell Technology, Inc. (MRVL.US) need to achieve in order to fulfill this?

Although Maivell Technologies' cumulative increase in 2026 is still a staggering 263%, and it will officially be included in the S&P 500 index on June 22, in order to truly enter the "trillion-dollar club," this chip manufacturer will need to overcome more than just one or two steps.

Anthropic hits national security red line, Wedbush warns: Prolonged ban on large models will disrupt the deployment process of enterprise AI.

Wedbush: The dispute between Anthropic and the US government surrounding the new AI model needs to be resolved as soon as possible in order to drive businesses to embrace the AI era faster.

Domestic futures night trading session begins.

Polysilicon continuously dropped by 7.25%, fuel oil dropped by 4.29% consecutively, liquefied petroleum gas dropped by 3.87% consecutively, low-sulfur fuel oil dropped by 3.16% consecutively, and Shanghai crude oil dropped by 3.15% consecutively.

Spot gold rose 1% during the day and is now trading at $4352.60 per ounce.

Selected A-share Announcement | Suzhou Dongshan Precision Manufacturing (002384.SZ) plans to invest $1.2 billion in building a photon chip project. Stock of INNOVATIVE DATA (920305.BJ) will be delisted.

China MCC announced that the company's newly signed contracts from January to May 2026 amounted to 304.67 billion yuan, with overseas contracts accounting for 18.6 billion yuan.

Lay off 15% to make way for AI! Rackspace (RXT.US) signed a contract with AMD to deploy 30 megawatts of computing power in stages, causing the stock to surge over 25% in pre-market trading.

AMD (AMD.US) and AI infrastructure solutions provider Rackspace Technology (RXT.US) have signed an agreement to deploy the first phase of 30 megawatts (MW) of AMD AI computing resources in stages.

Brent crude fell 4% intraday and is now trading at $79.84 per barrel.

Brent crude oil fell below $80 per barrel, dropping 3.83% within the day.

SpaceX acquires AI programming leader Cursor, kicking off the 28.5 trillion dollar super AI blueprint.

The highly anticipated IPO prospectus released by SpaceX last month shows that its self-assessed total addressable market (TAM) reaches an astonishing $28.5 trillion. If this so-called "Space AI empire" super blueprint scale can be achieved in the future, it will be close to the entire output of the US economy.

Sun Dong: Director Xia Baolong's inspection injects a "strong heart needle" for Beidou Chuangke, and will fully promote the construction of three major parks.

Next, the Hong Kong SAR Government will continue to implement Director Xia's instructions, and rally the forces of government, industry, academia, and research. Professor Sun Dong will also lead the Innovation and Technology Bureau of Hong Kong and its colleagues to fully promote the construction of three innovation and technology parks in the northern metropolitan area, namely the Hetao Innovation Field, the Shaling Data Park, and the Yuen Long Microelectronics Industrial Park, actively integrating into and serving the country's modern industrial system, contributing Hong Kong's strength to the country's high-level technological self-reliance.

WTI crude oil fell below $77 per barrel, with a 3.07% drop during the day.

Preview of US Stock Market | Three major stock index futures rise together, SpaceX(SPCX.US) continues to rise by more than 5% before the market opens.

Before the opening of the US stock market on Tuesday, June 16th, the futures of the three major US stock indexes rose together.

The Fed may enter a "low communication era": Powell plans to cut forward guidance, market pricing logic faces restructuring.

Former Federal Reserve Chairman Ben Bernanke once had a famous quote: Monetary policy is "98% talk and only 2% action".

DeepSeek completes 50 billion yuan in external financing, setting a new record for single-round financing in the Chinese AI industry.

According to media reports citing informed sources, DeepSeek has completed its first round of external financing since its establishment, raising a total of over 50 billion yuan, setting a record for the largest single-round financing scale in the Chinese AI industry.

New Stock News: Zhejiang Taotao Vehicles (301345.SZ) submits documents to the Hong Kong Stock Exchange for the third time, leading in the field of electric low-speed vehicles.

According to information disclosed by the Hong Kong Stock Exchange on June 16th, Zhejiang Taotao Automobile Co., Ltd. (referred to as Taotao Automobile, 301345.SZ) has submitted documents to the Hong Kong Stock Exchange for the third time to list on the main board, with CITIC Securities as its exclusive sponsor.

SpaceX's market value is surpassing Amazon.com, Inc.'s! Musk's "space AI empire" completely ignites the "MANGOS" trade.

Investors are using a new abbreviation to express a new global core technology asset pricing framework, highlighting that the benchmark index weights in the US stock market are shifting from mature technology cash flows to AI computing power infrastructure monopolies, AI application and model platform pricing rights, and a redistribution of scarce space infrastructure.

Bank of America survey: The AI cycle is still in the "boom" phase, FOMO continues to drive the market, but semiconductors have become the "most crowded trade."

The latest monthly fund manager survey released by Bank of America shows that the upward trend of artificial intelligence (AI) stocks is expected to continue. Most investors believe that the psychology of "fear of missing out" (FOMO) is still dominating this trading theme.

SoftBank partners with OpenAI to enter the network security arena and launch AI network security products in the Japanese market.

SoftBank Group of Japan announced the launch of a cybersecurity product aimed at addressing unknown network vulnerabilities and attacks caused by artificial intelligence (AI).

New stock news | Zhejiang Taotao Vehicles (301345.SZ) submits listing documents to the Hong Kong Stock Exchange for the third time.

According to the disclosure by the Hong Kong Stock Exchange on June 16th, Zhejiang Taotao Automotive Co., Ltd. (referred to as Taotao Automotive, 301345.SZ) has submitted documents to the main board of the Hong Kong Stock Exchange three times, with CITIC Securities as its exclusive sponsor.

After HBM, the "storage super boom" - NAND! AMD (AMD.US) decisively acquired MEXT, flash memory is dominating the "AI reasoning economy".

NAND flash memory, which has long been positioned by industry insiders as a traditional "cold data/capacity storage" asset, is now being upgraded to an "expandable quasi-memory layer" in the AI inference era. It is likely to become one of the most important cutting-edge technologies in the storage chip industry after the HBM super storage system.

Waterdrop, Inc. ADR Class A (WDH.US) released its Q1 2026 financial report showing steady revenue growth driven by AI.

Droplet Company released the unaudited performance report for the first quarter of 2026 ending on March 31, 2026.

National Development and Reform Commission: Director Zheng Zhajie presided over a symposium for private enterprises to gather opinions and suggestions on advancing the construction of the "Six Web" system.

The National Development and Reform Commission will deeply implement the decisions and arrangements of the Party Central Committee and the State Council, strengthen the construction of the "six networks" plan, enhance the coordinated advancement of multiple networks, make coordinated use of various government funds and new types of policy-based financial instruments, strengthen factors such as land and environmental impact assessments, adhere to the emphasis on quality and efficiency, accelerate the transformation and implementation, and promote the formation of more tangible work results.

Northbound funds | Northbound trading saw a net purchase of 3.463 billion yuan. Northbound investors continued to increase their holdings in KNOWLEDGE ATLAS (02513) throughout the day, with total purchases exceeding 3 billion Hong Kong dollars.

On June 16, in the Hong Kong stock market, Northbound capital had a net purchase of 3.463 billion Hong Kong dollars. Among them, the Shanghai-Hong Kong Stock Connect had a net purchase of 4.89 billion Hong Kong dollars, while the Shenzhen-Hong Kong Stock Connect had a net sale of 1.427 billion Hong Kong dollars.

Southbound capital bought a net of HK$3.463 billion today.

In terms of Hong Kong Stock Connect (Shanghai), Ying Fu Fund and Jiantao Ji Ceng Ban respectively received net purchases of 2.35 billion Hong Kong dollars and 1.268 billion Hong Kong dollars; Tencent Holdings ranked first in net sales with an amount of 761 million Hong Kong dollars. As for Hong Kong Stock Connect (Shenzhen), Zhipu and Jiantao Group respectively received net purchases of 662 million Hong Kong dollars and 607 million Hong Kong dollars; Alibaba Group-W ranked first in net sales with an amount of 935 million Hong Kong dollars.

Middle Eastern Risks Recede, U.S. Stocks Face Real Test: Hawkish Fed, AI Regulation, and IPO Boom Pressure

For the stock market, digesting the risks of the Middle East war seems to be just the first step. Next, the market still has to face a series of severe technical and macro challenges.

In May, the overall number of cases receiving comprehensive social assistance in Hong Kong decreased slightly by 81 cases.

In May, the total number of cases receiving Comprehensive Social Security Assistance (CSSA) slightly decreased by 81 compared to April. By the end of May, the total number of cases receiving CSSA was 194,367, benefiting a total of 256,452 individuals.

New stock news | Beijing Sifang Automation (601126.SH) submits listing application to the Hong Kong Stock Exchange, holding a leading position in the China market for protection and automation solutions.

According to the prospectus, the company is a provider of new electric power system solutions. The company's numerous proprietary technologies and products have reached the international leading or advanced level, and it occupies a leading position in the market of protection and automation solutions in China.

Bank of Japan's Uchida Shinichi: Future interest rate hikes will closely monitor the situation in the Middle East, suspending bond purchases to leave "replacement space" for domestic funds.

After raising the policy rate to a 31-year high on Tuesday, Bank of Japan Deputy Governor Masakazu Ueda gave a detailed explanation on topics such as inflation prospects, the wage-price cycle, the impact of a weak yen, and the future policy path at a post-meeting press conference. He also revealed that the central bank has decided to pause reducing the size of asset purchases, in order to wait for domestic investors to fill the market space.

Expenditure soared to 34 billion US dollars! OpenAI continues to burn money wildly before going public, AI arms race enters a stage of "surging income and coexisting with loss black hole"

The preliminary financial data of OpenAI in 2025 displays the typical characteristic of "super growth and super cash consumption coexisting".

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Huawei: The HPE private cloud artificial intelligence developed in partnership with NVIDIA can increase token throughput by up to 20%.

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