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China Fund News Taylor

Hello everyone, let me briefly review today's market situation.

A shares opened low and ended high

On July 18, the three major indexes opened low and ended high. The Shanghai Composite Index rose in the afternoon, the ChiNext Index rose by more than 1%, and the Shanghai 50 and CSI 300 both recorded 8 consecutive positive days! As of the close, the Shanghai Composite Index rose by 0.48%, the Shenzhen Component Index rose by 0.5%, and the ChiNext Index rose by 1.25%.

China Mobile and China Yangtze Power set new historical highs!

CATL rose more than 4%.

The semiconductor sector rose in the afternoon, and concept stocks such as lithography machines and photoresists collectively exploded. Taiji shares, Xinyuan Micro, and Shanghai Belling all rose significantly.

Industrial mother machines strengthened in the afternoon, Qinghai Huading and Huadong Heavy Machinery rose straight to the limit, Tanaka Precision Machinery, Huazhong CNC, Huadong CNC, Huachen Equipment and others all surged.

In terms of Hong Kong stocks, Nongfu Spring soared 7%.

Nongfu Spring's old rival, Wahaha, has attracted attention today! On July 18, screenshots of Wahaha's senior personnel changes and Vice Chairman Zong Fuli's resignation were widely circulated on the Internet. The pictures show that because some shareholders questioned the rationality of Zong Fuli's management of Wahaha Group, she decided to resign from the positions of Vice Chairman and General Manager of Wahaha Group from July 15 and no longer participate in the operation and management.

TSMC's second-quarter profit surges

On July 18, TSMC, the global chip foundry giant, released its second quarter 2024 financial report.

TSMC's second-quarter results exceeded analysts' high expectations, thanks to the growth in global investment in artificial intelligence. Among them, TSMC's revenue increased by 40% to NT$673.51 billion (US$20.82 billion), compared with an expected NT$657.58 billion; net profit increased by 36% year-on-year to NT$247.8 billion, compared with an expected NT$235 billion.

TSMC's stock price has skyrocketed since the rise of the artificial intelligence boom at the end of 2022, setting a series of historical highs, and the company's market value briefly exceeded the $1 trillion mark. Demand for Nvidia chips has supported TSMC's performance, and the smartphone market is also recovering.

TSMC said it expects third-quarter business to be supported by strong smartphone and artificial intelligence-related demand, and this year will be a strong growth year. In 2024, the chip foundry business will grow by nearly 10%.

Last night, the tech-heavy Nasdaq Composite fell 2.8%, its biggest one-day drop since December 2022, dragged down by the fall in the share prices of the "Seven Sisters" of the U.S. stock market. Meanwhile, the Dow Jones Industrial Average rose 0.6%, hitting a new high. Many people reduced their holdings of stocks that have seen the biggest gains this year and instead bought stocks of small and medium-sized companies that have been hit hard but are expected to benefit from rate cuts. In addition, investors flocked to stocks that appear to be undervalued. Shares of energy, financial and real estate companies all rose.

Nasdaq futures rose pre-market following TSMC's results.

TSMC's US stocks rose more than 4% in the night trading.