Tong Oil Tools

At the open on July 20, major A-share indices rallied across the board. The ChiNext Index rose nearly 2%, and the SSE 50 gained over 2%. On the sector front, semiconductors, MLCC concept stocks, CPO concept stocks, memory chips, and optical communications led the gains, while traditional Chinese medicine and white goods were among the laggards. Oil and gas stocks strengthened collectively, with Shandong Molong hitting its daily limit up in a straight line, and Keli Shares and Tongyuan Petroleum following higher. Brent crude topped 91 dollars per barrel, up 3.77% intraday. Computing power leasing concepts were active, with Litong Electronics hitting its daily limit up. In news, Moonshot AI's Kimi suspended new consumer subscriptions to focus on existing subscribers and expand computing power capacity. Kimi concept stocks opened sharply higher, with Jiuan Medical hitting the daily limit up for the fourth time in five sessions, and Mio Exhibition notching its second consecutive limit up. CPO concept stocks fluctuated higher, with Gongjin Shares hitting its daily limit up. Eoptolink Technology expects first-half 2026 net profit of 7 billion to 8 billion yuan, a year-on-year increase of 77.56% to 102.93%. The power sector was repeatedly active, with Huayin Electric Power hitting its second consecutive limit up. Jiangsu's power grid reached a peak load of 157.59 gigawatts, topping the 100-million-kilowatt mark for the tenth consecutive year. In Hong Kong, the Hang Seng Index and Hang Seng Tech Index rose, with Yangtze Optical Fibre and Cable surging over 9% and Alibaba gaining over 5%.

The oilfield services engineering sector rose 2.18% intraday, with Xinjin Power up 3.85%, Beiken Energy up 3.64%, Tongyuan Petroleum up 3.50%, Zhongman Petroleum up 3.14%, and Qianneng Hengxin up 2.36%. A research note from CICC pointed out that the global FLNG market is accelerating its expansion, with global FLNG liquefaction capacity expected to exceed 20 million tonnes per year by 2026 and surpass 30 million tonnes per year by 2030, driving sustained demand for offshore engineering equipment and related technical services. The Middle East oilfield services market offers vast opportunities, projected to grow from 83 billion US dollars in 2023 to 131 billion US dollars in 2029. Chinese oilfield service companies currently hold a relatively low share in the region, presenting significant potential for import substitution and market share gains. Coupled with high utilization rates of domestic drilling equipment and the accelerated phase-out of older assets, there is upside potential for drilling rig day rates, as the industry transitions from an asset-heavy model to one focused on technology and services.

On the morning of July 9, A-share memory chip concept stocks opened collectively higher. Huatian Technology quickly hit the daily limit, achieving three boards in two days. Lingxian Shares also surged to its daily limit, with its stock price reaching a record high. Domestic memory chip leader Changxin Technology released its STAR Market IPO prospectus, expecting to raise 29.5 billion yuan. Its prospectus forecasts net profit growth of 2,244.03 percent to 2,544.19 percent year-on-year in the first half of 2026. Meanwhile, amid renewed US-Iran tensions, international oil prices soared, and the entire oil industry chain strengthened. Tongyuan Petroleum briefly touched a 20 percent daily limit, and PetroChina rose for seven consecutive days.

Youyan Silicon has surged 104 percent over the past ten trading sessions, doubling its share price. In early trading it briefly approached the 20 percent daily limit up, closing the morning session up 17.47 percent with a latest market value of 65.82 billion yuan. The company produces silicon wafers and silicon materials for etching equipment. On July 1, it laid the foundation for its large-size semiconductor silicon single crystal project in Baotou, Inner Mongolia. Once fully operational, the project will have an annual supply capacity of over 1,000 tonnes of single crystal silicon for integrated circuits and etching equipment. The broader chip sector strengthened, with the Shenwan Semiconductor Index rising 3.07 percent by midday. Shanghai Hejing hit the 20 percent daily limit up, Muxi shares jumped over 19 percent, and Moore Threads gained more than 14 percent. The rally was mainly fueled by news that ChangXin Technology has set its STAR Market IPO subscription date for July 16, aiming to raise 29.5 billion yuan to launch a major capacity expansion. In addition, US military strikes on Iran for a second consecutive day triggered geopolitical risks, pushing international oil prices higher. The domestic Shanghai SC crude oil futures traded at 482.9 yuan per barrel at midday, up 5.99 percent, sparking movement in the oil and gas sector. Tongyuan Petroleum rose over 17 percent, and Qianneng Hengxin gained more than 10 percent.