Market data as of the close on the 12th shows the Shanghai Composite Index rose 0.32% to 3946.68 points, the Shenzhen Component Index gained 1.09% to 14414.43 points, and the ChiNext Index increased 1.49% to 3602.08 points.

New York's three major stock indexes ended mixed on the 12th. The Dow Jones Industrial Average fell 21.58 points, or 0.04%, to close at 53770.27 points. The S&P 500 rose 20.30 points, or 0.26%, to 7748.5 points. The Nasdaq Composite Index climbed 143.042 points, or 0.54%, to 26588.49 points.

International oil prices edged up on the 12th. Light crude oil for September delivery on the New York Mercantile Exchange rose 7 cents to settle at $83.27 per barrel, an increase of 0.08%. Brent crude oil for October delivery on the London ICE Futures Exchange also rose 7 cents to settle at $88.98 per barrel, a gain of 0.08%.

Financial Highlights

The People's Bank of China (PBOC) will conduct overnight reverse repo operations. On August 12, the central bank issued an open market operations announcement stating that to better match banks' short-term liquidity needs, it will conduct overnight reverse repo operations on August 14 and August 17-19. These operations will use a fixed rate and quantity-based bidding, with a daily maximum of 600 billion yuan.

On August 12, the PBOC released its "Monetary Policy Report for the Second Quarter of 2026," detailing the main approaches for the next phase of monetary policy. The report indicated a continued commitment to moderately accommodative monetary policy, integrating the effects of both incremental and existing policies. It emphasized enhancing the monetary policy's forward-looking, flexible, and targeted nature, making the promotion of stable economic growth and reasonable price recovery key considerations. The pace, timing, and intensity of policy implementation will be carefully calibrated based on domestic and international economic and financial conditions, as well as financial market operations, to sustain a suitable monetary and financial environment.

On August 12, Chinese Foreign Ministry Spokesperson Guo Jiakun responded to a reporter's query. The reporter noted that Chinese automaker SAIC Motor plans to build its first European factory in Ferrol, Spain. However, due to its proximity to sensitive military and shipbuilding facilities, the Spanish government is assessing the investment project from economic, industrial, employment, and national security perspectives. Guo Jiakun stated that China has noted the positive remarks from both central and local Spanish governments. China is willing to deepen pragmatic cooperation with Spain based on mutual respect and mutual benefit, and hopes Spain will provide a fair, just, and non-discriminatory business environment for Chinese enterprises.

Data released by the China Association of Automobile Manufacturers on August 12 showed that in July 2026, the monthly sales share of new energy vehicles exceeded 60% for the first time, and the cumulative share surpassed 50% for the first time. Monthly exports surpassed 1 million vehicles for two consecutive months, with NEV exports accounting for over 50% for two consecutive months. In the first seven months of the year, China's automobile production and sales reached 17.567 million and 17.602 million units, respectively. NEV production and sales were 9.014 million and 9.007 million units, respectively, both growing nearly 10% year-on-year. Specifically, in July, NEV production and sales were 1.576 million and 1.561 million units, up 26.8% and 23.7% year-on-year, respectively. Pure electric vehicle production and sales both exceeded 1 million units, with year-on-year growth exceeding 30%.

On August 12, the China Futures Association reported that the national futures market saw a trading volume of 10.02 billion lots and a turnover of 86.28 trillion yuan in July (single-sided calculation). This represents a 5.31% year-on-year decrease in volume but a 20.99% increase in turnover. For the January-July period, cumulative trading volume was 61.07 billion lots, and cumulative turnover was 568.98 trillion yuan, up 18.93% and 38.43% year-on-year, respectively.

On August 12, Tencent Holdings (00700.HK) released its second-quarter earnings report. Revenue was 204.79 billion yuan, up 11% year-on-year. Non-IFRS operating profit was 75.64 billion yuan, up 9% year-on-year. Excluding the revenue, costs, and expenses of new AI products (primarily Hy, Yuanbao, CodeBuddy, WorkBuddy, and Xiaowei), Non-IFRS operating profit grew 19% year-on-year to 86.1 billion yuan.

On August 12, a disclosure from the Hong Kong Stock Exchange showed that the shareholding of H&H International Investment, LLC, managed by well-known investor Duan Yongping, in Pop Mart's H-shares rose from 5.55% to 7.7% on August 6, representing a holding of 102.576 million shares.

Following the closely watched US July inflation data release, market expectations for a Federal Reserve interest rate hike in September have cooled. The US Bureau of Labor Statistics reported on August 12 that the July CPI rose 3.4% year-on-year, down from 3.5% in June. The core CPI, excluding food and energy, rose 2.5% year-on-year, below June's 2.6%. Month-on-month, the July CPI rose 0.1%, compared to -0.4% in the prior month. The core CPI rose 0.2% month-on-month, in line with expectations, after a 0% reading in June. Following the data release, the market increased bets on the Fed holding rates steady in September. As of the evening of August 12, the CME FedWatch Tool showed a 57% probability of the Fed maintaining rates, up 5 percentage points from the previous day, while the probability of a 25-basis-point rate cut in September was 43%, down 5 percentage points.

US President Donald Trump posted on social media on August 12, claiming that "the United States completely controls the Strait of Hormuz... Iran is helpless against this." Trump added, "I think we will continue to control it!"

On August 12, according to CCTV News, Iran's "Persian Gulf Strait Authority" stated that repeated claims by US officials that the Strait of Hormuz has reopened do not change the fact. The strait remains closed, and it will not reopen unless the US accepts Iran's proposed conditions. (Reported by Wu Yuli of The Paper)