Wealth Daily
Nvidia Fell A Seventh Day Ahead Of Wed's Earnings
Today’s Must-Know News
Overnight Markets
S&P 500 fell 0.28% Mon, as NVDA -2.91%, MU -5.83%, AVGO -2.63%, TSLA -3.83% & AMD -3.49% weighed, partly offset by AMZN +1.33%, MSFT +0.84%, META +1.66%, V +3.06% & GOOGL +0.94%. Semis (SOXX -2.67%) & Nasdaq 100 (QQQ -1.0%) lagged, while financials (XLF +1.29%) and staples (XLP +1.7%) supported the index. Dow (INDU +0.26%) outperformed as JPM +1.37% & V lifted the index, aided by easing long-end Treasury yields. Gold (XAU +1.07%) rose to USD4,652.22/oz. Nvidia fell for a seventh straight session, its longest losing streak since 2022, ahead of 2QFY27 earnings after-market Wed, while reports of AI-server price increases above 15% added to chip-sector volatility. Options markets imply a roughly 4.6% post-earnings move. J&J (JNJ +1.04%) won FDA approval to expand Imaavy into rare blood disorder wAIHA, while Eli Lilly (LLY -0.67%) launched oral obesity drug Foundayo in the UK, its first European market. Energy (XLE -0.83%) lagged as oil futures fell Mon with investors viewing Bessent’s Iran sanctions campaign as less immediately disruptive to supply. Apart from the Vanguard Dividend Appreciation ETF (VIG +0.27%) sale of USD5–25mn, Trump’s largest June transactions were USD1–5mn trades including purchases of BRK/B +1.71%, V, MA +3.31%, HD +0.54% and SPY -0.29%, alongside sales of META, MSI +0.22%, VGK -0.12% and BSV +0.05%. Watch trade-sensitive China names including PDD -1.48%, 1810.HK -4.14%, 1211.HK -0.38%, 0175.HK -1.49%, 0992.HK -0.47% & 0981.HK -7.93% after reports the US is preparing a 7.5% tariff on Chinese goods over alleged excess capacity. Alibaba (9988.HK -8.54%) fell to HKD112.50 Mon after raising HKD80bn (USD10.2bn) via a share placement priced at HKD112.70, to fund AI investment. PDD slipped after 2Q revenue missed estimates, despite adjusted EPS beat, as Temu faces rising overseas regulatory and tariff pressure. NVDA, AVGO, AMZN, MSFT, META, JNJ, LLY, BRK/B, SPY, XLE & 0175.HK are our Core Recommendations; SOXX is our Trading Buy.
Americas
US prepares another 7.5% China tariff before Trump-Xi talks. The US is set to impose a 7.5% tariff on Chinese goods over alleged excess manufacturing capacity ahead of the planned Trump-Xi summit, taking Trump’s second-term China tariff rate back toward 20% while negotiations continue on extending the trade truce beyond Nov 10. (Bloomberg)
Trump’s June trades span major US stocks. Trump disclosed >1,000 June trades worth USD78.1-263.1mn, including purchases of Berkshire Hathaway (BRK/B +1.71%), Visa (V +3.06%), Mastercard (MA +3.31%), Cintas (CTAS +1.77%), Coinbase (COIN -3.76%) and Home Depot (HD +0.54%), while actively trading Palantir (PLTR -2.25%) & Meta (META +1.66%) around the Jun 14 US-Iran peace deal. Trump also bought USD15,001-50,000 of SpaceX (SPCX -1.44%) on Jun 23 following its Jun 12. The White House said independent financial institutions manage his portfolio. (Reuters) BRK/B & META are our Core Recommendations.
SpaceX plans Nvidia-powered AI satellites. SpaceX (SPCX -1.44%) plans to launch its first AI satellites using Nvidia (NVDA -2.91%) chips in late 2027 before a larger deployment in 2028, extending Musk’s AI infrastructure ambitions into orbit. (Bloomberg) NVDA is our Core Recommendation.
Canada trade escalation weakens the loonie. The Canadian dollar fell about 0.6% Mon to C$1.385/USD after Trump threatened 50% tariffs on Canadian autos, parts and steel from January 1, while Canada plans retaliatory tariffs from Sep 8 following the breakdown in negotiations. The tariff escalation is therefore directly linked to both the currency move and weakness in North American auto shares. (Reuters)
Meta readies consumer AI agent platform. Meta (META +1.66%) plans to launch its consumer OpenClaw agent, internally called Hatch, in late August or early September and is targeting October for its next AI model, Watermelon. The agent is being trained to interact with services including DoorDash, Etsy, Reddit, Yelp and Outlook. (Bloomberg) META is our Core Recommendation.
Eli Lilly launches European oral obesity push. Eli Lilly (LLY -0.67%) launched Foundayo, or orforglipron, in the UK for obesity and type-2 diabetes at an expected private-market price of £100-120 a month, making Britain its first European market and placing it directly against Novo Nordisk’s Wegovy pill. Foundayo remains under EU review while UK public reimbursement awaits NICE assessment. (Reuters) LLY is our Core Recommendation.
J&J gains another indication for Imaavy. Johnson & Johnson (JNJ +1.04%) received FDA approval to use Imaavy in patients aged 12 and above with warm autoimmune hemolytic anemia, making it the first approved treatment for the rare blood disorder after a 115-patient study showed substantially stronger sustained hemoglobin responses than placebo. (Reuters) JNJ is our Core Recommendation.
Exxon targets automated Permian expansion. Exxon (XOM -0.64%) plans to automate half of its more than 30 Permian drilling rigs by 2028 after its first automated rig drilled two horizontal miles in just over six days, part of a technology push supporting a nearly 40% increase in Permian production to 2.5mn boepd by 2030. (Reuters)
Applied Optoelectronics tumbles on dilution risk. Applied Optoelectronics (AAOI -13.77%) fell after filing for a potential equity offering, with Yahoo Finance reporting a USD600mn offering and knock-on weakness in optical-networking peers including Lumentum (LITE -4.22%) & Coherent (COHR -4.85%). (Bloomberg)
Boeing wins large F-15 contracting vehicle. Boeing (BA -1.75%) received a USD131.23bn ceiling-value US Department of War contract covering F-15 production, integration, upgrades and sustainment through August 2037, including foreign military sales to Japan, Israel, Saudi Arabia, South Korea, Singapore, Indonesia and Poland. (Reuters)
Paramount’s Warner deal faces renewed legal uncertainty. California Attorney General Rob Bonta cancelled settlement talks with Paramount Skydance (PSKY flat) over its proposed USD110bn acquisition of Warner Bros Discovery (WBD +0.53%), accusing Paramount of leaking and misrepresenting confidential discussions, leaving state litigation and a Writers Guild lawsuit as key hurdles ahead of a March trial. (Reuters)
Crypto industry expands its US election push. Coinbase-backed (COIN -3.76%) Stand With Crypto endorsed 32 House incumbents for November’s midterms as the sector seeks passage of the stalled Clarity Act, with crypto companies already directing close to USD200mn toward the 2026 election cycle after spending USD170mn in 2024. (Reuters)
Salesforce faces skepticism ahead of 2Q results. Salesforce (CRM -0.05%) reports 2Q earnings on Aug 26, with investors watching for signs of 2H acceleration as channel checks show improving core demand and rising AI budgets. Sentiment remains cautious amid weakness in Tableau and limited interest in Headless 360. (Bloomberg)
Hims slides after Visa monitoring notice. Hims & Hers (HIMS -7.99%) fell after Visa (V +3.06%) placed the telehealth company in its Acquirer Monitoring Program following increased card disputes linked to its weight-loss subscriptions. (Bloomberg)
WikiHow sues OpenAI over AI training. WikiHow sued OpenAI in Manhattan federal court, alleging the AI company scraped more than 11,000 instructional articles to train ChatGPT & infringed at least 1,200 registered copyrights. OpenAI said its models are trained on publicly available data and grounded in fair use, as copyright holders continue to challenge AI companies over training practices. (Reuters)
Aggreko files for US IPO amid power demand boom. Aggreko filed for a US IPO, seeking to capitalize on rising demand for energy infrastructure driven partly by AI data centers. The Glasgow-headquartered power provider reported a 28% rise in 1H revenue to USD 1.92 bn, with data center-related revenue nearly doubling to USD 391 mn in the latest full year. (Reuters)
Greater China
China tech stocks slide as AI funding sparks supply concerns. Chinese technology stocks fell on Mon as Alibaba’s (9988.HK -8.54%) USD 10.2 bn share sale and Yangtze Memory’s potential IPO raised concerns over earnings dilution and further equity fundraising to finance AI investment. HSI fell 1.89%, while the CSI 300 also lost 1.21%, with Tencent (0700.HK -3.72%) & Baidu (9888.HK -3.76%) shares declining. (Yahoo Finance)
Alibaba shares slide after USD 10.2 bn AI funding sale. Alibaba (9988.HK -8.54%; BABA -0.73%) shares fell after the e-commerce giant launched a USD 10.2 bn share sale at an 8.4% discount to fund AI chips, infrastructure and models. The offering drew USD 28 bn in orders, but investors remain concerned about dilution and execution risks despite strong demand for Alibaba’s AI ambitions. (Reuters) 9988.HK is our Core Recommendation.
Alibaba accelerates AI spending after record share sale. Alibaba (9988.HK -8.54%; BABA -0.73%) launched its Wan3.0 AI video model, capable of generating 30-second videos from documents, spreadsheets, slides and webpages, immediately after raising about USD10.2bn in Hong Kong’s largest primary follow-on share offering to fund AI investment. (Reuters) 9988.HK is our Core Recommendation.
PDD beats on earnings but tariffs pressure Temu. PDD (PDD -1.48%) reported 2Q revenue of RMB112.36bn, below the RMB116.35bn consensus, while net income fell 12% to RMB27.2bn. Temu faces a structural margin headwind from Trump-era US tariffs, the removal of duty-free treatment for low-value Chinese parcels & higher European import charges. (Reuters)
Shein targets USD 1.8 bn Hong Kong IPO. Shein plans to raise up to USD 1.8 bn in a HK IPO that values the fast-fashion retailer at about USD 27 bn, roughly 70% below its 2022 private-market peak of nearly USD 100 bn. The lower valuation reflects slower growth prospects, tariffs, rising costs and intensifying competition from PDD's (PDD -1.48%) Temu, with Shein set to begin trading on Sep 1. (Reuters)
Xpeng raises record funding for humanoid robots. Xpeng (9868.HK -0.87%) raised more than USD900mn for its robotics unit at a valuation above USD6.3bn, with Tencent (0700.HK -3.72%) and Alibaba (9988.HK -8.54%; BABA -0.73%) among strategic investors, as it targets monthly production of 1,000 IRON humanoid robots by year-end and commercial deliveries from 2027. (Reuters) 0700.HK & 9988.HK are our Core Recommendations.
ByteDance consolidates AI tools to challenge Tencent. ByteDance is folding its Trae coding platform and Coze agent-building tool into Doubao and plans a separate Doubao Work app, strengthening its push to build an all-in-one AI platform competing with Tencent (0700.HK -3.72%) and other Chinese internet groups. (Bloomberg) 0700.HK is our Core Recommendation.
JD.com joins Hong Kong border development. JD.com (9618.HK -1.65%) and five partners including China Overseas Land (0688.HK -1.91%), China Merchants Land (0978.HK -0.42%) and Sino Land (0083.HK flat) plan to invest HKD16.8bn in a Northern Metropolis logistics, residential and commercial development after winning the site for HKD1bn. (Reuters)
Xiaomi unveils new in-house smartphone chip. Xiaomi (1810.HK -4.14%) unveiled its Xring O3 processor as it seeks greater control over key components and less reliance on external chip suppliers. TSMC (2330.TT -1.45%; TSM -2.11%) will manufacture the chip using its 3-nanometre process, with Xiaomi targeting 200,000 to 300,000 shipments for an upcoming flagship foldable phone that will challenge Huawei. (Reuters) TSM is our Core Recommendation.
Li Auto seen swinging to 2Q loss. Li Auto (2015.HK -3.4%; LI -4.37%) is expected to report a 2Q net loss of CNY 1.52 bn, with revenue down 17% YoY to CNY 25.17 bn. Investors will focus on gross margin, guidance and its BEV strategy, including the i6, i8 and upcoming i9. (Bloomberg)
StanChart becomes first bank distributor of HKDAP. StanChart (2888.HK -1.11%) became the first bank authorised to distribute Hong Kong dollar-backed stablecoin HKDAP, initially targeting institutional uses including tokenised money-market funds, treasury settlement and cross-border payments. (Bloomberg)
China signals limited appetite for a stimulus bazooka. Official commentary suggests Beijing is likely to maintain incremental rather than large-scale stimulus despite slowing growth, with Morgan Stanley cutting its 3Q growth estimate to 4.4%. (Bloomberg)
Xi’s possible India visit signals cautious thaw. Xi Jinping is likely to attend the Sept 12-13 BRICS summit in New Delhi with a roughly 400-member delegation, his first India visit in seven years, as Beijing and New Delhi cautiously rebuild ties while Trump’s trade policies give both governments an additional incentive to strengthen BRICS cooperation. (Reuters)
Asia ex. China
Samsung’s record payout still disappoints. Samsung (005930 KS -5.19%) sold off after guiding to KRW90-110tn of 2026 shareholder returns because investors expected larger buybacks and clearer cancellation plans. SK Hynix (000660 KS -5.51%; SKHY -4.92%), Samsung Life (032830 KS -6.9%) & Samsung Fire (000810 KS -2.4599%) also fell. (Reuters) SKHY is our Trading Buy.
SoftBank taps bonds for AI funding. SoftBank (9984 JP -5.33%) plans a JPY1tn, or USD6.29bn, seven-year retail bond offering with indicative coupons of 4.3%-4.9%, its largest bond sale to date as it finances heavier AI investment through debt issuance and asset sales. (Reuters)
EMEA and Others
European shares traded flat Mon as investors track Iran, ECB outlook. European shares were little changed as investors monitored US-Iran developments and awaited key economic data that could shape ECB policy expectations. STOXX 600 closed flat, with France’s CAC & Germany’s DAX declining 0.37% and 0.11% respectively, while UK’s FTSE rose 0.35%. Energy-intensive travel and leisure stocks led gains and technology shares fell ahead of Nvidia’s (NVDA -2.91%) results. (Reuters)
EU trade curbs could cover 27% of Chinese exports to the bloc. Existing and proposed EU measures including tariffs on plug-in hybrids and an expanded Carbon Border Adjustment Mechanism could affect around 27% of China’s annual nominal exports to Europe, although the bank expects Brussels to avoid measures severe enough to provoke major retaliation from Beijing. (Bloomberg)
Volkswagen employees press management over restructuring. Volkswagen (VOW GR -1.58%) workers criticised management’s communication as the automaker evaluates additional restructuring that could include up to 50,000 further job cuts and potential divisional carve-outs, with CEO Oliver Blume saying no specific plant closures have yet been decided. (Reuters)
Uniper locks in Norwegian gas through 2041. Uniper (UN0 GR +3.07%) agreed to buy more than 30 TWh of gas annually from Equinor (EQNR NO -1.08%) from 2027 through 2041, equivalent to roughly 2.8bn cubic metres or nearly 3% of Germany’s annual imports, reinforcing Norway’s position as Germany’s dominant gas supplier. (Reuters)
Traders’ corner
Our Technical View
Price was capped beneath its gap resistance zone, confirming strong overhead supply.
The current consolidation is taking the shape of a potential bearish flag pattern.
The RSI is turning downward in negative territory below its neutral 50-midline.
- As long as price remains capped by gap resistance, path-of-least-resistance dynamics favor a breakdown below flag support toward lower demand zones.
Our Technical View
Price is currently coiling within a bearish flag pattern, representing a temporary counter-trend consolidation phase following a strong primary downtrend.
Although momentum appears short-term bullish, the RSI is turning downward from elevated levels, indicating that upside energy is rapidly dissipating back toward the primary trend.
This points toward a high probability of a downward breakdown below flag support to extend the broader decline.
S&P 500 fell 0.28% Mon, as NVDA -2.91%, MU -5.83%, AVGO -2.63%, TSLA -3.83% & AMD -3.49% weighed, partly offset by AMZN +1.33%, MSFT +0.84%, META +1.66%, V +3.06% & GOOGL +0.94%. Semis (SOXX -2.67%) & Nasdaq 100 (QQQ -1.0%) lagged, while financials (XLF +1.29%) and staples (XLP +1.7%) supported the index. Dow (INDU +0.26%) outperformed as JPM +1.37% & V lifted the index, aided by easing long-end Treasury yields. Gold (XAU +1.07%) rose to USD4,652.22/oz. Nvidia fell for a seventh straight session, its longest losing streak since 2022, ahead of 2QFY27 earnings after-market Wed, while reports of AI-server price increases above 15% added to chip-sector volatility. Options markets imply a roughly 4.6% post-earnings move. J&J (JNJ +1.04%) won FDA approval to expand Imaavy into rare blood disorder wAIHA, while Eli Lilly (LLY -0.67%) launched oral obesity drug Foundayo in the UK, its first European market. Energy (XLE -0.83%) lagged as oil futures fell Mon with investors viewing Bessent’s Iran sanctions campaign as less immediately disruptive to supply. Apart from the Vanguard Dividend Appreciation ETF (VIG +0.27%) sale of USD5–25mn, Trump’s largest June transactions were USD1–5mn trades including purchases of BRK/B +1.71%, V, MA +3.31%, HD +0.54% and SPY -0.29%, alongside sales of META, MSI +0.22%, VGK -0.12% and BSV +0.05%. Watch trade-sensitive China names including PDD -1.48%, 1810.HK -4.14%, 1211.HK -0.38%, 0175.HK -1.49%, 0992.HK -0.47% & 0981.HK -7.93% after reports the US is preparing a 7.5% tariff on Chinese goods over alleged excess capacity. Alibaba (9988.HK -8.54%) fell to HKD112.50 Mon after raising HKD80bn (USD10.2bn) via a share placement priced at HKD112.70, to fund AI investment. PDD slipped after 2Q revenue missed estimates, despite adjusted EPS beat, as Temu faces rising overseas regulatory and tariff pressure. NVDA, AVGO, AMZN, MSFT, META, JNJ, LLY, BRK/B, SPY, XLE & 0175.HK are our Core Recommendations; SOXX is our Trading Buy.
Americas
US prepares another 7.5% China tariff before Trump-Xi talks. The US is set to impose a 7.5% tariff on Chinese goods over alleged excess manufacturing capacity ahead of the planned Trump-Xi summit, taking Trump’s second-term China tariff rate back toward 20% while negotiations continue on extending the trade truce beyond Nov 10. (Bloomberg)
Trump’s June trades span major US stocks. Trump disclosed >1,000 June trades worth USD78.1-263.1mn, including purchases of Berkshire Hathaway (BRK/B +1.71%), Visa (V +3.06%), Mastercard (MA +3.31%), Cintas (CTAS +1.77%), Coinbase (COIN -3.76%) and Home Depot (HD +0.54%), while actively trading Palantir (PLTR -2.25%) & Meta (META +1.66%) around the Jun 14 US-Iran peace deal. Trump also bought USD15,001-50,000 of SpaceX (SPCX -1.44%) on Jun 23 following its Jun 12. The White House said independent financial institutions manage his portfolio. (Reuters) BRK/B & META are our Core Recommendations.
SpaceX plans Nvidia-powered AI satellites. SpaceX (SPCX -1.44%) plans to launch its first AI satellites using Nvidia (NVDA -2.91%) chips in late 2027 before a larger deployment in 2028, extending Musk’s AI infrastructure ambitions into orbit. (Bloomberg) NVDA is our Core Recommendation.
Canada trade escalation weakens the loonie. The Canadian dollar fell about 0.6% Mon to C$1.385/USD after Trump threatened 50% tariffs on Canadian autos, parts and steel from January 1, while Canada plans retaliatory tariffs from Sep 8 following the breakdown in negotiations. The tariff escalation is therefore directly linked to both the currency move and weakness in North American auto shares. (Reuters)
Meta readies consumer AI agent platform. Meta (META +1.66%) plans to launch its consumer OpenClaw agent, internally called Hatch, in late August or early September and is targeting October for its next AI model, Watermelon. The agent is being trained to interact with services including DoorDash, Etsy, Reddit, Yelp and Outlook. (Bloomberg) META is our Core Recommendation.
Eli Lilly launches European oral obesity push. Eli Lilly (LLY -0.67%) launched Foundayo, or orforglipron, in the UK for obesity and type-2 diabetes at an expected private-market price of £100-120 a month, making Britain its first European market and placing it directly against Novo Nordisk’s Wegovy pill. Foundayo remains under EU review while UK public reimbursement awaits NICE assessment. (Reuters) LLY is our Core Recommendation.
J&J gains another indication for Imaavy. Johnson & Johnson (JNJ +1.04%) received FDA approval to use Imaavy in patients aged 12 and above with warm autoimmune hemolytic anemia, making it the first approved treatment for the rare blood disorder after a 115-patient study showed substantially stronger sustained hemoglobin responses than placebo. (Reuters) JNJ is our Core Recommendation.
Exxon targets automated Permian expansion. Exxon (XOM -0.64%) plans to automate half of its more than 30 Permian drilling rigs by 2028 after its first automated rig drilled two horizontal miles in just over six days, part of a technology push supporting a nearly 40% increase in Permian production to 2.5mn boepd by 2030. (Reuters)
Applied Optoelectronics tumbles on dilution risk. Applied Optoelectronics (AAOI -13.77%) fell after filing for a potential equity offering, with Yahoo Finance reporting a USD600mn offering and knock-on weakness in optical-networking peers including Lumentum (LITE -4.22%) & Coherent (COHR -4.85%). (Bloomberg)
Boeing wins large F-15 contracting vehicle. Boeing (BA -1.75%) received a USD131.23bn ceiling-value US Department of War contract covering F-15 production, integration, upgrades and sustainment through August 2037, including foreign military sales to Japan, Israel, Saudi Arabia, South Korea, Singapore, Indonesia and Poland. (Reuters)
Paramount’s Warner deal faces renewed legal uncertainty. California Attorney General Rob Bonta cancelled settlement talks with Paramount Skydance (PSKY flat) over its proposed USD110bn acquisition of Warner Bros Discovery (WBD +0.53%), accusing Paramount of leaking and misrepresenting confidential discussions, leaving state litigation and a Writers Guild lawsuit as key hurdles ahead of a March trial. (Reuters)
Crypto industry expands its US election push. Coinbase-backed (COIN -3.76%) Stand With Crypto endorsed 32 House incumbents for November’s midterms as the sector seeks passage of the stalled Clarity Act, with crypto companies already directing close to USD200mn toward the 2026 election cycle after spending USD170mn in 2024. (Reuters)
Salesforce faces skepticism ahead of 2Q results. Salesforce (CRM -0.05%) reports 2Q earnings on Aug 26, with investors watching for signs of 2H acceleration as channel checks show improving core demand and rising AI budgets. Sentiment remains cautious amid weakness in Tableau and limited interest in Headless 360. (Bloomberg)
Hims slides after Visa monitoring notice. Hims & Hers (HIMS -7.99%) fell after Visa (V +3.06%) placed the telehealth company in its Acquirer Monitoring Program following increased card disputes linked to its weight-loss subscriptions. (Bloomberg)
WikiHow sues OpenAI over AI training. WikiHow sued OpenAI in Manhattan federal court, alleging the AI company scraped more than 11,000 instructional articles to train ChatGPT & infringed at least 1,200 registered copyrights. OpenAI said its models are trained on publicly available data and grounded in fair use, as copyright holders continue to challenge AI companies over training practices. (Reuters)
Aggreko files for US IPO amid power demand boom. Aggreko filed for a US IPO, seeking to capitalize on rising demand for energy infrastructure driven partly by AI data centers. The Glasgow-headquartered power provider reported a 28% rise in 1H revenue to USD 1.92 bn, with data center-related revenue nearly doubling to USD 391 mn in the latest full year. (Reuters)
Greater China
China tech stocks slide as AI funding sparks supply concerns. Chinese technology stocks fell on Mon as Alibaba’s (9988.HK -8.54%) USD 10.2 bn share sale and Yangtze Memory’s potential IPO raised concerns over earnings dilution and further equity fundraising to finance AI investment. HSI fell 1.89%, while the CSI 300 also lost 1.21%, with Tencent (0700.HK -3.72%) & Baidu (9888.HK -3.76%) shares declining. (Yahoo Finance)
Alibaba shares slide after USD 10.2 bn AI funding sale. Alibaba (9988.HK -8.54%; BABA -0.73%) shares fell after the e-commerce giant launched a USD 10.2 bn share sale at an 8.4% discount to fund AI chips, infrastructure and models. The offering drew USD 28 bn in orders, but investors remain concerned about dilution and execution risks despite strong demand for Alibaba’s AI ambitions. (Reuters) 9988.HK is our Core Recommendation.
Alibaba accelerates AI spending after record share sale. Alibaba (9988.HK -8.54%; BABA -0.73%) launched its Wan3.0 AI video model, capable of generating 30-second videos from documents, spreadsheets, slides and webpages, immediately after raising about USD10.2bn in Hong Kong’s largest primary follow-on share offering to fund AI investment. (Reuters) 9988.HK is our Core Recommendation.
PDD beats on earnings but tariffs pressure Temu. PDD (PDD -1.48%) reported 2Q revenue of RMB112.36bn, below the RMB116.35bn consensus, while net income fell 12% to RMB27.2bn. Temu faces a structural margin headwind from Trump-era US tariffs, the removal of duty-free treatment for low-value Chinese parcels & higher European import charges. (Reuters)
Shein targets USD 1.8 bn Hong Kong IPO. Shein plans to raise up to USD 1.8 bn in a HK IPO that values the fast-fashion retailer at about USD 27 bn, roughly 70% below its 2022 private-market peak of nearly USD 100 bn. The lower valuation reflects slower growth prospects, tariffs, rising costs and intensifying competition from PDD's (PDD -1.48%) Temu, with Shein set to begin trading on Sep 1. (Reuters)
Xpeng raises record funding for humanoid robots. Xpeng (9868.HK -0.87%) raised more than USD900mn for its robotics unit at a valuation above USD6.3bn, with Tencent (0700.HK -3.72%) and Alibaba (9988.HK -8.54%; BABA -0.73%) among strategic investors, as it targets monthly production of 1,000 IRON humanoid robots by year-end and commercial deliveries from 2027. (Reuters) 0700.HK & 9988.HK are our Core Recommendations.
ByteDance consolidates AI tools to challenge Tencent. ByteDance is folding its Trae coding platform and Coze agent-building tool into Doubao and plans a separate Doubao Work app, strengthening its push to build an all-in-one AI platform competing with Tencent (0700.HK -3.72%) and other Chinese internet groups. (Bloomberg) 0700.HK is our Core Recommendation.
JD.com joins Hong Kong border development. JD.com (9618.HK -1.65%) and five partners including China Overseas Land (0688.HK -1.91%), China Merchants Land (0978.HK -0.42%) and Sino Land (0083.HK flat) plan to invest HKD16.8bn in a Northern Metropolis logistics, residential and commercial development after winning the site for HKD1bn. (Reuters)
Xiaomi unveils new in-house smartphone chip. Xiaomi (1810.HK -4.14%) unveiled its Xring O3 processor as it seeks greater control over key components and less reliance on external chip suppliers. TSMC (2330.TT -1.45%; TSM -2.11%) will manufacture the chip using its 3-nanometre process, with Xiaomi targeting 200,000 to 300,000 shipments for an upcoming flagship foldable phone that will challenge Huawei. (Reuters) TSM is our Core Recommendation.
Li Auto seen swinging to 2Q loss. Li Auto (2015.HK -3.4%; LI -4.37%) is expected to report a 2Q net loss of CNY 1.52 bn, with revenue down 17% YoY to CNY 25.17 bn. Investors will focus on gross margin, guidance and its BEV strategy, including the i6, i8 and upcoming i9. (Bloomberg)
StanChart becomes first bank distributor of HKDAP. StanChart (2888.HK -1.11%) became the first bank authorised to distribute Hong Kong dollar-backed stablecoin HKDAP, initially targeting institutional uses including tokenised money-market funds, treasury settlement and cross-border payments. (Bloomberg)
China signals limited appetite for a stimulus bazooka. Official commentary suggests Beijing is likely to maintain incremental rather than large-scale stimulus despite slowing growth, with Morgan Stanley cutting its 3Q growth estimate to 4.4%. (Bloomberg)
Xi’s possible India visit signals cautious thaw. Xi Jinping is likely to attend the Sept 12-13 BRICS summit in New Delhi with a roughly 400-member delegation, his first India visit in seven years, as Beijing and New Delhi cautiously rebuild ties while Trump’s trade policies give both governments an additional incentive to strengthen BRICS cooperation. (Reuters)
Asia ex. China
Samsung’s record payout still disappoints. Samsung (005930 KS -5.19%) sold off after guiding to KRW90-110tn of 2026 shareholder returns because investors expected larger buybacks and clearer cancellation plans. SK Hynix (000660 KS -5.51%; SKHY -4.92%), Samsung Life (032830 KS -6.9%) & Samsung Fire (000810 KS -2.4599%) also fell. (Reuters) SKHY is our Trading Buy.
SoftBank taps bonds for AI funding. SoftBank (9984 JP -5.33%) plans a JPY1tn, or USD6.29bn, seven-year retail bond offering with indicative coupons of 4.3%-4.9%, its largest bond sale to date as it finances heavier AI investment through debt issuance and asset sales. (Reuters)
EMEA and Others
European shares traded flat Mon as investors track Iran, ECB outlook. European shares were little changed as investors monitored US-Iran developments and awaited key economic data that could shape ECB policy expectations. STOXX 600 closed flat, with France’s CAC & Germany’s DAX declining 0.37% and 0.11% respectively, while UK’s FTSE rose 0.35%. Energy-intensive travel and leisure stocks led gains and technology shares fell ahead of Nvidia’s (NVDA -2.91%) results. (Reuters)
EU trade curbs could cover 27% of Chinese exports to the bloc. Existing and proposed EU measures including tariffs on plug-in hybrids and an expanded Carbon Border Adjustment Mechanism could affect around 27% of China’s annual nominal exports to Europe, although the bank expects Brussels to avoid measures severe enough to provoke major retaliation from Beijing. (Bloomberg)
Volkswagen employees press management over restructuring. Volkswagen (VOW GR -1.58%) workers criticised management’s communication as the automaker evaluates additional restructuring that could include up to 50,000 further job cuts and potential divisional carve-outs, with CEO Oliver Blume saying no specific plant closures have yet been decided. (Reuters)
Uniper locks in Norwegian gas through 2041. Uniper (UN0 GR +3.07%) agreed to buy more than 30 TWh of gas annually from Equinor (EQNR NO -1.08%) from 2027 through 2041, equivalent to roughly 2.8bn cubic metres or nearly 3% of Germany’s annual imports, reinforcing Norway’s position as Germany’s dominant gas supplier. (Reuters)
Traders’ corner
Our Technical View
Price was capped beneath its gap resistance zone, confirming strong overhead supply.
The current consolidation is taking the shape of a potential bearish flag pattern.
The RSI is turning downward in negative territory below its neutral 50-midline.
- As long as price remains capped by gap resistance, path-of-least-resistance dynamics favor a breakdown below flag support toward lower demand zones.
Our Technical View
Price is currently coiling within a bearish flag pattern, representing a temporary counter-trend consolidation phase following a strong primary downtrend.
Although momentum appears short-term bullish, the RSI is turning downward from elevated levels, indicating that upside energy is rapidly dissipating back toward the primary trend.
This points toward a high probability of a downward breakdown below flag support to extend the broader decline.
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