Morning Insight：July 28，2026

Morning Insight:July 28, 2026 LinlinGaoCertification：Z0002332gaolinlin@gtht.comYu Chen WuCertification：Z0024232wuyuchen@gtht.com Main Body Equity Index Futures:The market extended its rebound yesterday, led onceagain by the technology and growth sectors. The key driver was therevival in risk appetite for growth stocks following the recentcorrection, with the strong post-listing performance of CXMT (ChangXinMemory Technologies) providing a notable boost to market sentiment.From a macro perspective, the sharp decline in international crude oilprices has strengthened expectations for a more accommodative FederalReserve policy, while U.S. Treasury yields have retreated and SouthKorean equities have also rebounded. Domestically, the policy backdropremains supportive, making a sustained one-way downside move increasinglyunlikely. In the short term, easing pressure from the U.S. dollar andTreasury yields, together with developments such as the release of theKimi K3 model andpositive news surrounding China's domestic lithographytechnology, have reinforced the investment narrative for the domestic AIsupply chain. That said, overnight developments in U.S. equities—including concernsover NVIDIA's ongoing capital recycling and financing dynamics, as wellas a sharp sell-off in U.S. memory chip stocks—suggest that the AIinvestment narrative is unlikely to return to the exuberant conditionsseen before the recent correction. From a medium-term perspective, a more durable rally will require clearerbullish catalysts, such as an improvement in China's macroeconomicoutlook, a renewed AI investment narrative, or stronger liquidityconditions supporting valuation expansion. On the macro calendar, markets continue to await the outcome of thisweek's "Super Week" events, including the Politburo meeting, the FederalReserve's FOMC meeting, and earnings releases from major technologycompanies. Overall, we expect the market to remain in a phase of range-boundbottoming with elevated volatility. A sustained uptrend is likely torequire more convincing positive catalysts before it can develop. Open Interest Source：iFind, GUOTAIJUNAN FUTURESResearch Source：iFind, GUOTAIJUNAN FUTURESResearch Source：iFind, GUOTAIJUNAN FUTURESResearch Source：iFind, GUOTAIJUNAN FUTURESResearch News Highlights: 1. China's electronics industry posted a 96.9 percent year-on-yearincrease in profits in the first half (H1) of 2026, contributing 8.5percentage points to the overall profit growth of major industrial firms,the National Bureau of Statistics (NBS) said on Monday. Driven by the wide adoption of artificial intelligence (AI) and growingdemand for computing power, profits of computer manufacturing andcomputer peripheral equipment manufacturing (including mice, keyboardsand monitors) surged 689.3 percent and 305.8 percent from a year earlier,respectively. Within electronic device manufacturing, profits of integrated circuitmanufacturing soared 2,579.5 percent, while those of discretesemiconductor device manufacturing, such as transistors and diodes,increased 31.2 percent. In the electronic components sector, profits of specialized electronicmaterials manufacturing rose 209.7 percent, whereas those of electroniccircuit manufacturing recorded an increase of 26.9 percent. Monday's data also showed profits of China's major industrial firms, orthose with an annual main business revenue of at least 20 million yuan(about 2.95 million U.S. dollars), increased 18.7 percent year on year inH1. Yu Weining, an NBS statistician, noted that despite the steady growth,the external environment remains complex and uncertain, withinternational commodity prices still subject to fluctuations. Industrialenterprises also face challenges including insufficient market demand andpressure on capital turnover. Looking ahead, China will continue to foster emerging and futureindustries, upgrade traditional industries, accelerate the replacement ofold growth drivers with new ones, and promote the high-qualitydevelopment of the industrial economy, Yu said. (Source: Xinhua) 2. Chinese memory chipmaker ChangXin Memory Technologies (CXMT) closed at49 yuan (about 7.22 U.S. dollars) on its Shanghai STAR Market debutMonday, up 465.82 percent from its IPO price of 8.66 yuan, with full-dayturnover surpassing 140 billion yuan. The stock ended its first trading day with a market capitalization ofover 3.2 trillion yuan, cementing its position as the largest listedcompany by market value on the A-share market. The blockbuster debut caps a historic IPO run with expected totalproceeds surpassing 66 billion yuan, making it the largest-ever IPO inChina's sci-tech innovation board. CXMT is expected to generate operating revenue of 110 billion to 120billion yuan in the first half of this year, with net profit attributableto shareholders of the parent company reaching 50 billion to 57 billionyuan, according to the company. (Source:Xinhua) 3. Profits of China's industrial firms above desig