**Market Overview**

The A-share market's continued decline today was somewhat unexpected, as yesterday's session had already reached freezing point with the Shanghai Composite falling directly to the 20-day moving average. Further declines could significantly dampen market sentiment. Hong Kong stocks also fell 1.12% today.

Market rumors circulated unverified claims that Chinese financial regulators are considering a series of measures to cool stock market speculation. Sources indicated that measures presented to policymakers in recent weeks include removing some short-selling restrictions. Authorities remain deliberating whether to control speculation due to concerns that sharp market reversals could cause serious losses for retail investors. This is clearly inconsistent with facts, as regulators naturally hope for market improvement - otherwise, why would they introduce subsidized personal loan policies? Securities firms have already refuted these claims. However, their influence is limited; regulators should clarify to provide market reassurance, with major capital cooperation needed to dispel market doubts.

Observing US market practices, after 30-year Treasury yields broke through 5%, the Bureau of Labor Statistics immediately announced that US job openings in July fell to a 10-month low, with 0.99 job openings per unemployed person, down from 1.05 in June. This marked the first time below 1.0 since April 2021 when the economy emerged from pandemic-induced weakness, effectively giving the Federal Reserve advance notice to encourage rate cuts.

Beyond releasing rumors, short sellers directly targeted technology stocks. On August 29, the Shanghai Stock Exchange and CSI announced adjustments to STAR 50 and other index constituents, effective after market close on September 12. Due to the STAR 50 index methodology limiting individual constituent weights to 10%, Cambricon's weight had reached approximately 15% after recent gains. According to Wind data, products tracking the STAR 50 need to sell approximately 10 billion yuan worth of Cambricon shares, excluding price movements and other factors. The "King of Cambricon" fell over 14%, with other CPO and chip stocks hitting daily limits.

In Hong Kong, Yangtze Optical Fibre and Cable announced that Yangtze Communications plans to reduce holdings by no more than 0.15% of company shares, with H-shares falling 11% directly.

This coincided with NASDAQ's September 3 announcement proposing revised listing standards: 1) Companies choosing net income standards for listing must maintain minimum public float market value of $15 million (currently $5 million); 2) Accelerated suspension and delisting processes for companies with listing deficiencies and securities market value below $5 million; 3) New listed companies primarily operating in China must raise minimum $25 million in public offerings. The proposed rules are being submitted to the SEC for review and would be implemented immediately if approved, creating various barriers.

Market weakness is evident from UBTECH Robotics (09880): securing a 250 million yuan embodied intelligent humanoid robot product and solution procurement contract from a renowned domestic enterprise. This follows the company's record-breaking near-100 million yuan global humanoid robot order in July, representing the largest global humanoid robot contract to date. Despite this significant positive news, the stock still declined.

Today's market focus was solid-state battery stocks mentioned in yesterday's sector analysis, perfectly overlapping with energy storage themes and driving the surge. Multiple research reports indicate global energy storage demand exceeding expectations with strong growth potential for 2026. Following the removal of mandatory storage requirements domestically, independent energy storage is booming, maintaining 20-30% annual growth. US projects are rushing installations before OBBB implementation, expected to maintain 30-40% growth. Europe and emerging markets are exploding with 1-2x growth rates, with annual energy storage battery demand projected at 500-550 GWh, up 50-70% year-over-year. The sustainability of European and emerging markets suggests 30% global energy storage demand growth to 700+ GWh in 2026.

The strongest performer in Hong Kong was CALB (03931). According to Ashok Leyland's official website, the company announced investments in developing and manufacturing next-generation battery products for automotive and non-automotive applications, including energy storage system solutions. Indian commercial vehicle manufacturer Ashok Leyland announced a long-term exclusive partnership with CALB (03931), investing over 500 billion rupees (40.45 billion yuan) in battery manufacturing projects over the next 7-10 years to meet automotive and energy storage system demands while promoting localized battery supply chains in India. This major project makes the Indian market highly anticipated, with CALB (03931) surging nearly 14% today. Other performers included Ruipu Energy (00666) up nearly 7% and Tianneng Power (00819) up nearly 2%.

Solar stocks have shown relatively stable trends recently, with polysilicon stockpiling plans progressing and production-sales restriction measures initially implemented. The target of reaching final agreements in September remains unchanged. Additionally, polysilicon energy consumption may become a capacity exit mechanism, with energy consumption standards to be discussed at next week's silicon industry conference. Solar price increases represent a major trend ahead, with related stocks Flat Glass (06865) rising over 5% and Xinyi Solar (00968), September's featured stock, up over 2%.

The Ministry of Finance and other departments recently released the "Implementation Plan for Personal Consumer Loan Financial Subsidy Policy," marking the first time central government provides subsidies for personal consumer loans. The Mid-Autumn and National Day holidays create an 8-day super-long vacation, combined with recent consumer policy support, making this year's "Golden September and Silver October" a golden window for releasing consumption potential. Tourism stocks began warming up early.

Hong Kong tourism is expected to be popular, with August visitor arrivals reaching 5.15 million. The 2025 National Day Golden Week visitor numbers could likely exceed last year's levels, anticipated to be a peak period. The National Day evening fireworks display is also a major attraction, with China Travel International Investment Hong Kong (00308) rising over 10%.

In dining, local governments introduced tiered banquet subsidy policies, with alcohol restrictions loosening since August. Fundamentally solid Tai Hing Group (00999) rose nearly 4% today.

**Sector Focus**

Huawei officially launched its tri-fold smartphone Mate XT Extraordinary Master, publicly unveiling the Kirin 9020 chip for the first time. Starting at 17,999 yuan, it will officially launch on September 12, representing a 2,000 yuan reduction from the previous generation's 19,999 yuan starting price.

According to IDC's latest data, China's foldable smartphone shipments reached 4.98 million units in the first half of 2025, up 12.6% year-over-year. Huawei captured 75% market share with 3.74 million unit shipments.

TrendForce consulting indicates Apple will soon release four flagship models: iPhone 17, iPhone 17 Air (tentative name), iPhone 17 Pro, and Pro Max. Beyond upgraded appearance recognition, improvements in processor performance, heat dissipation, and photography functions are expected to drive demand. TrendForce estimates 2025 iPhone 17 series shipments could grow 3.5% compared to iPhone 16 series performance in 2024, with Pro series remaining the market sales leader.

Key stocks: BYD ELECTRONIC (00285), LENS (06613), AAC TECH (02018), SUNNY OPTICAL (02382), COWELL (01415).

**Individual Stock Analysis**

COSCO SHIP ENGY (01138): COA Agreements Lock in Long-term Returns, Achieving Global Operations

The company reported first-half revenue of 11.642 billion yuan, down 2.55%, with net profit attributable to shareholders of 1.869 billion yuan, declining 29.16%. However, second-quarter net profit surged 64.16% sequentially, with LNG business growing 5.7% against the trend.

Commentary: Under the dual effects of cost control and freight rate recovery, the company's profitability efficiency has begun recovering. Foreign trade oil transportation is COSCO SHIP ENGY's core business, primarily relying on Middle East-China routes (approximately 60%). In the first half of 2025, the company increased capacity deployment, with Brazil-China route volumes up 35% year-over-year and North America-China route volumes up 28% year-over-year.

COA agreements lock in long-term returns. In the first half of 2025, COSCO SHIP ENGY added 12 new COA agreements and renewed 8, covering approximately 20 million tons of volume, representing 38% of total foreign trade oil transportation volume, up 5 percentage points year-over-year. Renewed contracts with international oil companies like Shell and BP achieved freight rates 5%-8% above market averages, providing guarantees for second-quarter gross margin recovery.

Among the company's four major businesses, LNG transportation was the only segment achieving year-over-year net profit growth: first-half net profit attributable to listed company shareholders reached 424 million yuan, up 5.7% year-over-year, becoming a company performance highlight.

LNG transportation growth stems primarily from long-term global energy transition demand. As of June 2025, COSCO SHIP ENGY owned 50 LNG carriers with 8.7 million cubic meters capacity, holding 28% domestic market share and ranking first domestically. The company has also secured orders for 41 LNG vessels scheduled for delivery between 2026-2030.

LNG transportation represents COSCO SHIP ENGY's most core future growth engine. The company plans to expand its LNG fleet from the current 50 vessels to 90 vessels between 2025-2030, with capacity exceeding 16 million cubic meters, becoming a top-five global LNG transportation enterprise.