GMT EIGHT - OPPORTUNITIES IN CHINA

Shanghai Mayor Gong Zheng: Greater effort to empower the development of ten large-scale core industries such as integrated circuits, biomedicine, and artificial intelligence.

At the Shanghai Special Session of the "Start of the 14th Five-Year Plan" press conference, Shanghai Mayor Gong Zheng proposed that, looking towards the "14th Five-Year Plan", it is necessary to deepen the organic connection between reforms such as promoting technological innovation and transforming government functions, continue to advance key breakthroughs in the market-oriented allocation of factors such as cross-border capital flows and international talent introduction, accelerate the exploration of innovative institutional arrangements in bulk commodity trade, high-end shipping services, and other areas, and empower the development of ten billion-dollar level core industries such as integrated circuits, biopharmaceuticals, artificial intelligence. In particular, it is important to make good use of the legislative authorization of Pudong New Area regulations, use the rule of law to better support bold trials, bold moves, and independent reforms in Pudong.

Fu Linghui, spokesperson of the National Bureau of Statistics, chief economist, and director of the Department of National Economic Comprehensive Statistics: It is also important to note that, in the face of fluctuations in the international energy market, China has actively increased energy supply, implemented temporary price controls, increased investment in people's livelihoods, ensured overall stability in domestic production and living standards, and achieved positive results. These circumstances fully demonstrate that China's economy has a strong ability to respond to external risks, continue to maintain a trend of new and better development, and achieve new results in high-quality development. Of course, it must also be acknowledged that there are many uncertainties in the international environment, ongoing geopolitical conflicts, and the contradiction in which domestic supply is strong but demand is weak remains prominent. Some companies are facing operational difficulties, and the foundation for sustained economic stability and improvement still needs to be consolidated.

National Bureau of Statistics: Consumer prices show a moderate increase, while producer prices are rising at a faster pace.

In April, the national consumer price index rose by 0.9% year-on-year. In terms of categories, the prices of food, tobacco, and dining out increased by 0.2%, clothing prices rose by 1.7%, housing prices fell by 0.2%, household goods and services prices rose by 2.0%, transportation and communication prices rose by 0.3%, education, culture, and entertainment prices rose by 1.1%, medical care prices rose by 1.9%, and other goods and services prices rose by 13.3%. In the prices of food, tobacco, and dining out, the price of pork decreased by 12.2%, grain prices decreased by 0.3%, fresh fruit prices rose by 3.0%, and fresh vegetable prices rose by 5.7%. The core CPI, excluding food and energy prices, rose by 1.2% year-on-year. In April, the national consumer price index rose by 1.2% year-on-year, an increase of 0.2 percentage points from the previous month; it rose by 0.3% month-on-month. From January to April, the national industrial producer price index rose by 0.2% year-on-year. In April, it increased by 2.8% year-on-year, an increase of 2.3 percentage points from the previous month, and rose by 1.7% month-on-month. From January to April, the national industrial producer purchasing price index rose by 0.5% year-on-year. In April, it rose by 3.5% year-on-year, an increase of 2.7 percentage points from the previous month, and rose by 2.1% month-on-month.

Chen Maobo: Hong Kong's economy is on a good path with positive prospects, which will help attract more international long-term capital investment.

He believes that information related to evaluation can provide reference for global investors and the business and financial sector, which will help attract more international long-term capital investment in Hong Kong.

South Korean KOSPI index reverses a decline of over 4.5% and is now rising.

The South Korean KOSPI index has reversed a decline of over 4.5% and is now on the rise.

China Securities Regulatory Commission Vice Chairman Li Chao: to promote further reform of the Beijing Stock Exchange with greater efforts

Li Chao, Vice Chairman of the China Securities Regulatory Commission, stated at the 2026 Beijing Listed Companies High-Quality Development Conference and Investment and Financing M&A Docking Meeting on May 18th that the commission will fully stabilize and enhance the confidence in the capital market, and proposed three measures: providing greater support for the deep integration of technological innovation and industrial innovation, promoting deeper reforms of the Beijing Stock Exchange with greater intensity, and strengthening the foundation for the high-quality development of listed companies with greater efforts.

National Bureau of Statistics Interpretation: In April, the sales price of newly built residential buildings in first-tier cities increased by 0.1% month-on-month.

On May 18, Chief Statistician Wang Zhonghua of the Urban Department of the National Bureau of Statistics interpreted the statistical data on the changes in the selling prices of residential properties in April 2026.

A-shares opening news: A-shares collectively opened lower, with the Shanghai Composite Index falling by 0.37%. The oil and gas sector and other related sectors are showing strength.

On May 18th, the three major A-share indices opened lower, with the Shanghai Composite Index falling by 0.37% and the ChiNext Index falling by 0.87%.

Can U.S. stocks break out this week? The storm of GEO Group Inc rises again, keep a close eye on U.S. bonds and NVIDIA Corporation (NVDA.US) earnings report.

Looking ahead to next week, the 10-year US Treasury yield and NVIDIA's financial report are causing market jitters.

First day of new stock | Wing Fei Technology (06871) first listed on the market with an early trading high of 79.18%, 14,900 times oversubscribed, breaking the historical record of Hong Kong stocks.

Wing Fai Technology Limited (06871) debuted on the stock market, with each share priced at HK$30.5. A total of 24.6 million shares were issued, with a net proceeds of approximately HK$673 million. As of the time of writing, the stock has risen by 79.18% to HK$54.65, with a total turnover of HK$376 million.

Six departments: Intensify efforts to optimize the departure tax refund measures and expand inbound consumption.

On May 18th, the Ministry of Commerce and five other departments issued a notification on enhancing and optimizing the measures for tax refunds upon exiting the country to expand inbound consumption.

Missile production capacity surges reshape American small town: a "multi-year cycle" driven by military rebuilding has begun, benefiting the entire supply chain.

With the escalation of global conflicts driving a surge in missile and rocket production, some smaller manufacturing cities in the United States are quickly transforming into key hubs in the U.S. defense supply chain.

Stalemate in US-Iran negotiations combined with the termination of Russia's oil exemption, Brent crude oil rises above $110.

Trump said that the negotiation time for the Iran nuclear agreement is urgent, and oil prices continue to rise.

Xiaomi's Lei Jun: Xiaomi YU7 GT will be launched at 19:00 on May 21. Also released at the same time are a number of new products in the "human-car-home full ecosystem": Xiaomi 17 Max, Xiaomi's first ear-clip earphones, Xiaomi Mi Band 10 Pro, and a variety of Xiaomi's technology home appliances.

New Era Energy (NEE.US) is planning to acquire Dominion (D.US) at a premium of $76 per share. The details of the transaction will be announced on Monday.

Xinjiyuan Energy is discussing the acquisition of Daoming Energy, with an estimated valuation of about $76 per share, resulting in a total value of approximately $66 billion.

A-share pre-market report | Daily profit of nearly 300 million! Leading storage company Changxin Technology accelerates towards IPO, with first quarter revenue up 719.13% year-on-year.

Long Xingtai Technology, a leading storage company, accelerates its sprint towards an IPO, with its revenue in the first quarter increasing by 719.13% year-on-year.

Highlights of the broker's morning meeting | focusing on structural opportunities such as the internationalization of innovative drugs and marginal improvements.

At today's morning briefing of securities companies, CITIC Securities believes that structural opportunities such as the internationalization of innovative drugs and marginal improvement should be focused on.

China Galaxy Securities: With the upcoming change in leadership at the Federal Reserve, is Hong Kong's technology sector even more promising?

The certainty of the trend in the technology industry is high, which is the core driving force of this round of market. Currently, after a short-term pullback, some directional cost-effectiveness is emerging.

Fear vs. AI FOMO! Afraid of missing out and afraid of a crash at the same time? "Retrospective put options" become the new favorite hedge in the AI bubble.

The technology bubble panic prompted investors to use exotic options for hedging.

Japanese and Korean stock markets open.

The Nikkei 225 index opened at 61,299.87 points in the morning, down 0.18%. The South Korea Composite Stock Price Index opened down 0.7% at 7443.29 points.

Inflation alarm bell ringing loudly! Global bond market selloff affecting risky assets, US stock market AI bull market may face interest rate backlash.

Against the backdrop of no clear signs of an end to the Middle East conflict, investors are increasingly being affected by its key economic consequences - rising global interest rates and inflation risks - as they enter a new week.

New Bond King Gundlach: inverted yield curve + continued inflation, no possibility of interest rate cut in next Fed meeting

Golak said that investors will not see a rate cut at the next Federal Reserve policy meeting.

Hong Kong Stock Concept Tracking | Telecommunications Operators Start Selling Tokens Valuation System Reconstruction (Including Concept Stocks)

Telecommunications operators are starting to sell Tokens.

Hong Kong stock concept tracking | Google Developer Conference in 2026 is about to be held, AI edge is expected to receive short-term attention (with concept stocks)

The Google I/O developer conference will be held in California, USA from May 19 to May 20, 2026.

Hong Kong stock concept tracking | Domestic breakthrough! 170GHz ultra-wideband photonic chip is born. Institutions are optimistic about domestic high-speed optical module companies benefiting (with concept stocks)

In the future, this technology will provide the underlying support for 6G communication and will be applied in the next generation of high-speed optical module products.

Guotai Haitong: Computing power futures catalyze new narratives, industry long-term expansion logic continues.

CME plans to launch computing power futures with Silicon Data, anchoring the underlying to the GPU rental price index. In essence, this will transform the cost fluctuations of computing power faced by AI companies, cloud service providers, and data centers into tradable, pricable, and hedgable financial risks. It is expected to become an important foundational commodity in the digital economy era.

Guotai Haitong: Emphasize the value of the Hong Kong stock dividend base, gradually increase the configuration of technology + overseas chains.

Guotai Junan Securities released a research report stating that the risk factors such as short-term interest rate hikes brought negative pricing disruptions, but the focus in the medium term is still on the growth trend of the AI industry.

New stock news | The prospectus for the Hong Kong IPO of Suzhou Dongshan Precision Manufacturing (002384.SZ) is invalid.

The Hong Kong IPO prospectus submitted by Suzhou Dongshan Precision Manufacturing Co., Ltd. (referred to as Dongshan Precision, 002384.SZ) on November 18, 2025 expired on May 18, 2026 after six months.

Sinolink: Agent industry has entered a new round of prosperity cycle with rigid demand for CPU

Along with the exponential growth of the number of agents, the complexity of tasks, and the index of token consumption, the CPU industry has entered a new cycle of prosperity.

New Stock News | Longfeng Group passes the hearing at the Hong Kong Stock Exchange, offering over 700 SKUs of its brands such as pharmaceuticals and cosmetics for sale.

According to the disclosure on May 17 by the Hong Kong Stock Exchange, Longfeng Group Holdings Limited (referred to as Longfeng Group) is going through the listing hearing process on the Main Board of the Hong Kong Stock Exchange, with DBS Group as the sole sponsor.

Industrial: Technological industry trends lead the market, and the effectiveness of investment in prosperity will once again increase.

The upward revision of molecular end profits driven by the trend of the technology industry is the core logic behind the global equity asset recovery since April, but it also leads to a more concentrated market structure.

CITIC SEC: The necessity of returning to a barbell structure in the A-share market increases. AI+Energy will be a more suitable structure this year.

The main source of funding driving this round of structural market trends comes from inventory adjustments and inflows of leverage. After the TMT transaction proportion reaches a temporary peak, it is estimated that the turnover rate of the entire A-share market will gradually decline to below 1.8%.

Changxin Technology: The first quarter revenue increased by 719.13% year-on-year, with a net profit of 33 billion yuan.

Changxin Technology Group Co., Ltd.'s IPO prospectus for the Science and Technology Innovation Board shows that in the first quarter of 2026, due to the continuous growth in global computing power demand, as well as factors such as the global major manufacturers adjusting production capacity, there has been a supply shortage of global DRAM products, leading to a significant price increase since the second half of 2025. Meanwhile, with the company's continued growth in production and sales scale, as well as the continuous optimization of product structure, the company's operating income has rapidly increased. Thanks to the rapid increase in DRAM product prices in the first quarter of 2026, the company's operating profit, total profit, net profit, profit before interest, tax, depreciation and amortization, net profit attributable to the owners of the parent company, and net profit attributable to the owners of the parent company after deducting non-recurring gains and losses have all increased significantly year-on-year. In the first quarter of 2026, the company's operating income was 50,800,145,500 yuan, a year-on-year increase of 719.13%; net profit was 33,011,525,100 yuan; net profit attributable to the owners of the parent company was 24,762,031,500 yuan; net profit attributable to the owners of the parent company after deducting non-recurring gains and losses was 26,340,784,100 yuan.

The State Flood Control and Drought Relief Headquarters has dispatched a working group to Guangxi to assist and guide the search and rescue of personnel for the vehicles that fell into the river.

On May 17, the office of the State Flood Control and Drought Relief Headquarters, together with the Ministry of Emergency Management, organized meteorological, water resources, and natural resources departments, as well as 17 provinces including Guangxi, Hubei, and Chongqing, to discuss and assess the development trend of the current round of rainfall, and to study and deploy prevention and response work in key areas. The State Flood Control and Drought Relief Headquarters maintained a Level IV emergency response for flood prevention in Guizhou, Hubei, and Chongqing. The meeting pointed out that from May 17 to 19, the current widespread heavy rainfall process will gradually move eastward and southward, with some areas in North China, the Huang-Huai region, Jianghan, Jiangnan, and South China experiencing heavy rain. It is necessary to pay close attention to the risk of flash floods and geological disasters, flooding in small and medium-sized rivers, accidents at small and medium-sized reservoirs, urban flash floods and waterlogging in these areas. All relevant departments in various regions must firmly establish the concept of "putting the people first and prioritizing life," overcome any sense of complacency and luck, and respond with a sense of responsibility and action readiness to effectively carry out various tasks related to prevention and response to heavy rainfall, ensuring that the safety of people's lives is paramount.

The national artificial intelligence application test base is unveiled, and 18 companies sign concentrated contracts.

According to Huashu Media, on May 16th, the Hangzhou Municipal Smart Innovation and Development Conference and the unveiling ceremony of the national artificial intelligence application pilot base were held in the Hangzhou High-Tech Zone. Huashu Media, together with Hangzhou High-Tech Technology Innovation Group, Hangzhou City Data Group, Yushu Technology, Galaxy Universal, Moore Thread, Muxi Shares, Huace Film and Television, and other 18 leading companies, signed contracts to form an industry alliance covering the entire industry chain of capital, chips, entity, and applications. Huashu Media will participate in the investment and construction of the base, jointly exploring the application of intelligent entities in urban governance, smart tourism, low-altitude economy, and other scenarios.

Guosheng: SST is currently in the "product validation import period", expecting it to be the starting point of a new wave of market trends.

Why is SST called the "CPO" of electricity?

Battle of Cooling: Who Will Master the Future of High-Power AI Servers?

The power density of AI servers has been skyrocketing all the way, and liquid cooling has transitioned from an optional feature to a rigid entry ticket for high-power models. However, after liquid cooling becomes an industry consensus, the real challenge has just begun.

China Telecom launches a trial commercial Token package.

On May 17th, China Telecom launched a series of trial commercial Token packages, including three main parts. Among them, targeted at developers and small and medium-sized enterprise customers, they provide integrated "Token+ connectivity+ security" services, offering three levels of Token Plans as well as optional packages for broadband speed boost and security protection. For individual and household customers, they provide the same integrated services and options. For Token ecosystem partners, China Telecom is about to launch Tianyi Token currency and Token benefits.

India's gold import restrictions have sparked panic buying, Goldman Sachs: Gold prices could still rise to $5400 by the end of the year.

According to the latest report from the Indian Economic Times, the Indian government recently implemented a series of restrictions on gold imports, but instead of suppressing demand, it has sparked panic buying of wedding jewelry across the country.

US stock market is tense! Goldman Sachs: Continue to be bullish on AI but be sure to hedge, low-quality sectors have deviated from fundamentals.

Goldman Sachs equity basket trading chief Louis Miller stated in the latest research report that Goldman Sachs trading desk's long position on AI themes remains unchanged, but "as we enter a period with relatively few catalysts, it is necessary to protect the gains made since the beginning of the year."

The General Administration of Market Supervision is cracking down on illegal advertising practices and "internal-circulation" competition.

The State Administration for Market Regulation has issued the "Work Points for Market Supervision Departments to Promote the Development and Growth of the Private Economy in 2026", proposing 34 key tasks to promote the high-quality development of the private economy in various aspects such as policy guarantee, market order, regulatory enforcement efficiency, and government services. The State Administration for Market Regulation has put forward that this year will continue to strengthen the legal policy guarantee for the private economy. Improve the legal system of fair competition and the system of regulating fees related to enterprises, accelerate the revision of the "Implementation Measures for Fair Competition Review Regulations", and introduce the "Measures for Handling Illegal and Non-compliant Behaviors Related to Enterprise Fees". Enrich credit incentives and technological measures to enhance enterprises' competitiveness, strengthen policy supply, and establish a solid legal foundation. Carry out special actions to remove obstacles to the unified market and fair competition, and help deepen the construction of a national unified large market. Focus on rectifying illegal advertising practices in live streaming e-commerce, such as advertising, citation advertising, and AI-generated advertising. Deeply rectify the "inward-oriented" competition and maintain the market order of fair competition.

China Galaxy Securities: Hengkezheng is in a historically undervalued state with a high margin of safety.

The historically low valuation of the Hang Seng Technology Index currently indicates that there is limited room for further substantial declines, providing a high margin of safety.

New Stock News | Honghe Electronics submitted to Hong Kong Stock Exchange with integrated production capacity of electronic yarn and electronic fabric

According to the disclosure of the Hong Kong Stock Exchange on May 15, Honghe Electronic Materials Technology Co., Ltd. (referred to as Honghe Electronics) submitted an application for listing on the main board of the Hong Kong Stock Exchange, with CITIC Securities as its sole sponsor.

The reopening of Houthi in June is "unimaginable"! This bank believes that the summer oil prices may hit record highs, thus impacting the stock market.

The head of RBC's commodity department believes that it is almost impossible to reopen the Strait of Hormuz in June, as the cost of US military intervention is too high and diplomatic negotiations have not made any substantial breakthroughs. If production continues to be halted, with the peak summer demand overlapping with inventory consumption, oil prices may surpass the high point of the Russia-Ukraine conflict and approach the peak of 2008. At the same time, global bond yields are showing a significant upward trend, and the stock market is highly sensitive to interest rates. The simultaneous sharp rise in oil prices and interest rates may trigger a stock market crash.

New Stock News | CICC Intelligent Three Times Filed with Hong Kong Stock Exchange, ranking fourth in the domestic intelligent in-house logistics solution industry.

According to the Hong Kong Stock Exchange disclosed on May 15, China Ding Intelligent (Wuxi) Technology Co., Ltd. (referred to as China Ding Intelligent) has submitted its third listing application to the main board of the Hong Kong Stock Exchange, with Guotai Junan International as the exclusive sponsor.

50-100 billion US dollars! "World's largest asset manager" BlackRock considers investing in "largest IPO in history" SpaceX.

BlackRock is considering participating in Space X's IPO with an investment of $5 billion to $10 billion, potentially becoming the core anchor investor of the largest IPO in history. This move will help address its previous shortcomings in lagging behind its peers in terms of holdings. Despite facing challenges such as high valuation, governance risks, and Elon Musk's high level of control, institutional investors generally view Space X favorably for its leading edge in rocket launches and commercial prospects.

New Share News | Hua Cheng Power Files for Listing on the Hong Kong Stock Exchange, Focusing on New Type of Electric Power Energy and Deepening in the Southern Electricity Market.

According to the disclosure by the Hong Kong Stock Exchange on May 15, Guangdong HuaCheng Electric Power Energy Co., Ltd. (referred to as "HuaCheng Electric Power") has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with Ligo Enterprise Finance Limited as its exclusive sponsor.

The General Administration of Market Supervision has clarified 34 key tasks to continuously support and promote the development and growth of the private economy.

Today, reporters learned that the State Administration for Market Regulation has issued the "Key Points for Market Supervision Departments to Promote the Development and Growth of the Private Economy by 2026", proposing 34 key tasks. It emphasizes both regulatory norms and promoting development, continuously creating a fair competition environment, innovating regulatory governance methods, enhancing development service capabilities, and promoting the high-quality development of the private economy with a better environment, more practical measures, and stronger support. In terms of strengthening the legal policy guarantee for the private economy, it will improve the legal system of fair competition and the system of regulating enterprise fees, enrich credit incentive measures and measures to strengthen technical trade, strengthen policies to promote the development of individual industrial and commercial households, and lay a solid legal foundation. In maintaining the order of fair competition in the market, it will resolutely eliminate barriers, deepen the construction of a unified national large market, strengthen the publicity and guidance of anti-monopoly compliance, thoroughly rectify "insider-style" competition, and safeguard fair development. In terms of improving regulatory enforcement efficiency, it will explore non-site, non-contact, QR code entry and other regulatory models, improve the level of administrative law enforcement fairness and civility, increase efforts in key areas of rectification, and optimize governance capabilities. In enhancing the capability to serve the development of the private economy, it will deepen the accurate support for individual industrial and commercial households through classification, continue to build the "credit + service" brand, strengthen the support of quality infrastructure, and help promote high-quality development.

New Stock News | Macro and Electronic Submitted to Hong Kong Stock Exchange

According to the disclosure by the Hong Kong Stock Exchange on May 15, Honghe Electronic Materials Technology Co., Ltd. (referred to as Honghe Electronic) has submitted its listing application to the Main Board of the Hong Kong Stock Exchange, with Citic Securities as its sole sponsor.

For 30 years, US bonds have failed to hold the "life and death line" of 5%! Bank of America's Hartnett: The "door to hell" has been opened. Early June is a "selling window"

Bank of America's Hartnett warned that the 30-year US Treasury yield has broken through the "Maginot Line" of 5%, potentially triggering a large-scale deleveraging shock. If US CPI rises above 4%, risk assets often enter a correction phase, and the current deviation of the semiconductor index from the 200-day moving average has exceeded that of the dot-com bubble period.

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