Zhitong Hong Kong Stock Early Knowledge | Central Bank: Continue to implement a moderately loose monetary policy, US July non-farm data far below expectations

【Today's Headlines】

People's Bank of China: Establishment of the Macro-Prudential and Financial Stability Committee

On August 1, the People's Bank of China held a work meeting for the second half of 2025 and a regular meeting to promote the rectification of central inspections. Financial risks in key areas have further converged. Significant progress has been made in resolving the debt risks of financing platform support. The reform of small and medium-sized banks is being advanced to mitigate risks, with orderly disposal of financial risks in key institutions and regions. The Macro-Prudential and Financial Stability Committee of the People's Bank of China has been established, continuously improving the macro-prudential and financial stability guarantee system. The macro-prudential management of real estate finance has been improved to support the acceleration of a new model for real estate development. Firm support for the stable operation of the capital market has been provided, optimizing the use of two tools for supporting the capital market and policy arrangements to better stabilize market expectations. Serious investigations into illegal activities in the bond market will be conducted. The electronic vouchers for accounts receivable and other supply chain financial services will be standardized.

【Market Outlook】

U.S. Stock Markets Plunge Last Friday; July Non-Farm Data Falls Short of Expectations

Last Friday, at the close of the U.S. stock market, the Dow Jones Industrial Average fell by 542.40 points, a decrease of 1.23%, closing at 43,588.58 points; the Nasdaq dropped by 472.32 points, a decline of 2.24%, closing at 20,650.13 points; the S&P 500 index fell by 101.38 points, a decrease of 1.60%, closing at 6,238.01 points. On Friday, the index of the seven major U.S. tech stocks fell by 2.90%, closing at 179.80 points, with a cumulative decline of 1.38% for the week. The U.S. job growth in July exceeded expectations but showed a significant slowdown, while the previous month's data was substantially revised down, indicating a notable cooling in the labor market. Popular tech stocks fell broadly, with Amazon down over 8% and Meta down over 3%. The Nasdaq Golden Dragon China Index closed down 1.82%, with popular Chinese concept stocks declining, and the Hang Seng Index ADR fell, closing at 24,337.44 points, down 170.37 points or 0.70% compared to the Hong Kong close.

COMEX gold futures for October rose by 2%, closing at $3,415.70 per ounce, with a cumulative increase of 0.69% for the week.

【Hot Topics Ahead】

People's Bank of China: Continue to Implement a Moderately Loose Monetary Policy

On August 1, the People's Bank of China held a work meeting for the second half of 2025 and a regular meeting to promote the rectification of central inspections. The meeting required the comprehensive use of various monetary policy tools to maintain ample liquidity, guiding financial institutions to maintain reasonable credit growth, aligning the growth of social financing scale and money supply with economic growth and price level expectations. The execution of various monetary policy measures should be well managed, ensuring smooth transmission of monetary policy and enhancing the effectiveness of its implementation. Activate existing funds, make good use of incremental funds, and improve the efficiency of fund utilization. Strengthen the execution and supervision of interest rate policies. Maintain exchange rate flexibility, strengthen expectation guidance, and prevent excessive exchange rate adjustments.

State Administration for Market Regulation Releases "Compliance Guidelines for Charging Behavior of Online Trading Platforms"

On July 31, the State Administration for Market Regulation released and implemented the "Compliance Guidelines for Charging Behavior of Online Trading Platforms," further standardizing the charging behavior of online trading platforms towards operators within the platform, including commissions, fees, membership fees, technical service fees, information service fees, and marketing promotion fees. The "Guidelines" clarify the principles that platform charges should follow, advocate for reducing the burden on operators within the platform, strengthen platform compliance and self-discipline, and standardize platform charging behavior Trump issues ultimatum to 17 global pharmaceutical giants: U.S. drug prices must be lowered within 60 days!

On July 31 local time, U.S. President Trump stated on social media that he has demanded major global pharmaceutical companies to find ways to lower drug prices in the U.S. within the next 60 days, or the government will take action.

OPEC+ agrees to increase oil production by 548,000 barrels per day in September

OPEC+ sources stated during the meeting that eight member countries of OPEC+ agreed to increase oil production by 548,000 barrels per day in September during a meeting on Sunday. OPEC+ will hold its next meeting on September 7. OPEC+ plans to assess the daily increase plan of 1.66 million barrels by the end of December.

InnoCare Pharma (02577): Partners with NVIDIA to jointly promote the scaling of 800 VDC power architecture in AI data centers

According to a report from Zhitong Finance APP, InnoCare Pharma (02577) announced that it has recently partnered with global AI technology leader NVIDIA to jointly promote the scaling of 800 VDC (800-volt direct current) power architecture in AI data centers. This architecture is a new generation power system specifically designed by NVIDIA for future efficient power supply megawatt-level computing infrastructure, which has significant advantages in system efficiency, thermal loss, and reliability compared to traditional 54V power supplies, supporting a 100-1000 times increase in AI computing power.

YeePay (09923): Yeahpay Japan Limited successfully completes registration as "credit card number contract conclusion business operator"

According to a report from Zhitong Finance APP, YeePay (09923) announced that its wholly-owned subsidiary in Japan, Yeahpay Japan Limited, has successfully completed registration as a "credit card number contract conclusion business operator" in accordance with Japan's "Installment Sales Act" and has received official approval from the Ministry of Economy, Trade and Industry of Japan. This approval marks a further expansion of YeePay Group's global payment landscape, forming strong business synergies with payment licenses obtained in other overseas countries, providing convenient and efficient payment services for more overseas merchants and consumers.

Seafront International (01308) signs shipbuilding contract with shipbuilder Huanghai Shipbuilding to build 4 container ships

According to a report from Zhitong Finance APP, Seafront International (01308) announced that on August 2, 2025, the company's wholly-owned subsidiary Seafront Shipowners signed a shipbuilding contract with shipbuilder Huanghai Shipbuilding, under which the shipbuilder agrees to build 4 container ships for the group, with a maximum price of USD 38.18 million (approximately HKD 299.7 million) per ship, and a total maximum price of USD 152.7 million (approximately HKD 1.199 billion).

Sihuan Pharmaceutical (00460) issues profit warning, expects interim net profit not less than 50 million yuan

According to a report from Zhitong Finance APP, Sihuan Pharmaceutical (00460) announced that the group expects to achieve revenue of not less than RMB 1.1 billion and net profit of not less than RMB 50 million for the six months ending June 30, 2025 DHL Global Forwarding (02510) Issues Earnings Upgrade, Expected Mid-term Profit Attributable to Shareholders to Increase by Approximately 220% to 255% Year-on-Year

According to Zhitong Finance APP, DHL Global Forwarding (02510) announced that the group expects to achieve a profit attributable to shareholders of approximately USD 180 million to USD 200 million for the six months ending June 30, 2025, an increase of approximately 220% to 255% compared to the profit attributable to shareholders of approximately USD 56.3 million for the same period in 2024.

【Stock Highlights】

China Shenhua Energy (01088): Planning to Issue Shares and Pay Cash to Acquire Assets and Raise Supporting Funds, A-shares Suspended

On August 1, China Shenhua Energy announced that it received a notification from its controlling shareholder, China Energy Investment Corporation, regarding the planning of significant matters. It is preliminarily considered that the company will issue shares and pay cash to acquire coal, pithead coal power, and coal-to-oil and coal-to-gas chemical assets held by China Energy Group and raise supporting funds. The company's A-shares will be suspended from trading starting August 4, 2025, with the suspension expected to last no more than 10 trading days.

The announcement indicates that the transaction involves assets related to coal, pithead coal power, and coal-to-oil and coal-to-gas chemical assets held by China Energy Group, corresponding to the equity of 13 target companies. After the completion of this transaction, the only remaining major acquisition target previously agreed upon between China Energy Group and China Shenhua Energy will be the equity of the original Shenhua Ningxia Coal Industry Group. Analysts speculate that the transaction amount is expected to rank among the top in current merger and acquisition transactions