China Merchants Securities, citing Microsoft and SK Hynix results, concludes the AI sector still faces genuine supply constraints and shows no clear signs of broad overcapacity. Large tech firms are increasing AI infrastructure investment and customer follow-on orders are rising; earnings do not yet provide solid evidence of an AI compute glut. Microsoft compute utilization and SK Hynix order flows indicate the current imbalance is shortages of high-performance compute, advanced storage and data

Since July, China’s bond market has traded choppily: falls in ultra‑long government bond yields compressed long‑end spreads and lifted long‑duration asset prices. Mid‑to‑long duration pure bond funds outperformed short‑term funds in July, with the top monthly return at 5.45%. Market action has been more structural, limiting institutional follow‑through and leaving allocation demand muted. Market participants recommend extending duration to preserve liquidity. Everbright Futures notes that accelerated fiscal spending and faster use of bond proceeds have strengthened expectations of a government bond supply peak, which will temporarily raise market absorption pressure. At the same time, 1H GDP growth remained within the annual target, external demand showed resilience, and new drivers such as the digital economy continued to expand, so the economy faces no obvious deep downside. Against this backdrop, short‑term policy is likely to focus on accelerating implementation of existing measures, and neither a sustained one‑way rise nor fall in interest rates looks likely.

Goldman Sachs adds Applied Materials (AMAT.O), Delta Air Lines (DAL.N), Microsoft (MSFT.O) and United Parcel Service (UPS.N) to its U.S. Conviction Buy List, and removes Broadcom (AVGO.O), Dick's Sporting Goods (DKS.N), Johnson & Johnson (JNJ.N) and ServiceNow.