China's Q2 GDP expands 4.3%; June industrial output up 5.3%

Daily A-Share Market Brief — Key Developments 1) China H1 GDP rises 4.7% y/y The National Bureau of Statistics (NBS) said preliminary estimates put China's gross domestic product (GDP) in the first half of the year at RMB 6,957.04 billion, up 4.7% year-on-year in constant prices. By sector, value added in the primary industry reached RMB 315.22 billion (+3.7%); the secondary industry RMB 2,504.73 billion (+3.9%); and the tertiary industry RMB 4,137.09 billion (+5.2%). By quarter, GDP grew 5.0% in Q1 and 4.3% in Q2. On a quarter-on-quarter basis, Q2 GDP increased 0.9%. 2) June industrial value added up 5.3% y/y NBS data showed value-added output of industrial enterprises above designated size rose 5.3% year-on-year in June 2026 in real terms, 0.8 percentage point faster than the previous month. Month on month, industrial value added increased 0.76% in June. For January–June, industrial value added was up 5.4% year-on-year. 3) NBS calls for stronger counter-cyclical and cross-cycle policy support The NBS said the economy stayed within a reasonable range in the first half, with new quality productive forces gaining traction and high-quality development continuing to improve. It also noted heightened external uncertainties and persistent domestic supply-demand mismatches, underscoring that the recovery still needs firmer footing. Looking ahead, the NBS said China will strengthen counter-cyclical and cross-cycle adjustments, expand domestic demand, optimize supply, foster new growth drivers while revitalizing existing resources, build a strong domestic market, and step up efforts to stabilize employment, businesses, markets and expectations, with the goal of improving both economic quality and maintaining reasonable growth. 4) H1 per-capita disposable income at RMB 22,981 NBS data showed nationwide per-capita disposable income reached RMB 22,981 in the first half, up 5.2% year-on-year in nominal terms and 4.2% in real terms after price adjustments. Urban residents reported per-capita disposable income of RMB 30,126 (+4.4% nominal; +3.4% real). Rural residents posted RMB 12,699 (+6.4% nominal; +5.5% real). The national median per-capita disposable income was RMB 19,036, up 4.7%, equal to 82.8% of the mean. The urban median was RMB 26,389 (+4.0%), representing 87.6% of the mean, while the rural median was RMB 10,649 (+5.9%), representing 83.9%. Healthcare policy — DRG/DIP Payment 3.0 grouping scheme nears release The National Healthcare Security Administration held another consultation meeting ahead of the rollout of the DRG/DIP Payment 3.0 grouping scheme to strengthen communication and policy interpretation. Participants included representatives from the Hospital Management Research Institute of the National Health Commission, members of the national DRG and DIP technical guidance groups, staff from seven hospitals (including Peking Union Medical College Hospital, Peking University People's Hospital, the Second Affiliated Hospital of Zhejiang University School of Medicine, and West China Hospital of Sichuan University), along with healthcare insurance experts and self-media representatives. The agency said it collected extensive feedback to build consensus around the reform. (National Healthcare Security Administration) Stock highlights 1) Major fund flows Data showed Changfei Fiber Optic topped major inflows at RMB 1.382 billion. Other names with notable inflows included Hengrui Medicine, Giant Network, CATL, and OmniVision. Changdian Technology led major outflows at RMB 4.989 billion, followed by Huatian Technology, Biwin Storage, BOE, and Jiangbo Long. 2) NIO takes strategic stake in ChangXin Technology NIO has become a strategic investor in ChangXin Technology (CXMT), subscribing RMB 158 million with an 18-month lock-up. The two sides plan to cooperate on automotive-grade LPDDR4X and LPDDR5X products and build a stable, trust-based strategic supply relationship. (Securities Times) 3) Kelun Pharma: Phase 3 lung cancer study meets primary endpoint Kelun Pharmaceutical said its subsidiary, Kulun Botai, achieved the primary endpoint of progression-free survival (PFS) in the Phase 3 OptiTROPLung06 trial. The study evaluates a TROP2 ADC combination (lurbinectedin plus pembrolizumab) as first-line treatment for PD-L1-negative, locally advanced or metastatic non-squamous non-small cell lung cancer. An independent data monitoring committee found the regimen delivered a statistically significant and clinically meaningful PFS improvement versus chemotherapy plus pembrolizumab, with a positive overall survival (OS) trend and a favorable safety profile. Kulun Botai plans to discuss the results with the Center for Drug Evaluation of the National Medical Products Administration. 4) HKC: Oxide LCD panels in mass production; OLED progressing On July 15, Huakai Holdings said on an investor platform that the display industry follows multiple technology routes. The company said it has established mainstream aSi TFT-LCD capabilities and achieved a domestic breakthrough in G8.6 high-generation Oxide backplane technology, enabling mass production and sales of Oxide LCD display panels and laptop panels. It added that it is advancing R&D and mass production of OLED products based on Oxide backplane technology and has already shipped small batches of in-house developed OLED smartphone display panels. The company also said it continues to industrialize Mini LED technology and has achieved mass production and sales of Mini LED display end products. 5) Liguangke: No exposure to outdoor service robots On July 15, Liangong Guangke (300557) said on an interactive platform that it is not engaged in any business related to outdoor operation/service robots. The company said its fiber optic sensing systems are mainly used in oil and gas, pipelines, power, tunnels, and bridges. 6) Yingxin Development to build high-end memory storage base with Jiaozhou, Qingdao Yingxin Development said it recently signed a project cooperation agreement with Jiaozhou City, Qingdao. The parties plan to set up a joint venture to develop the high-end memory chip sector. Yingxin Development said it will coordinate resources across its listed entity and technology subsidiaries to establish an intelligent memory industry base in Jiaozhou integrating R&D, packaging, testing and module manufacturing. The base will focus on advanced packaging and testing products including NAND FLASH, LPDDR and DDR5 chips, as well as high-performance memory modules, with the aim of strengthening the local supporting ecosystem. 7) Kangguan Technology discusses product upgrades with Jiepao Xingchen Kangguan Technology (001308) said on July 15 on an interactive platform that it invested RMB 150 million in cash to acquire shares in Jiepao Xingchen, and the two sides have signed a Strategic Investment Agreement. The company said they are discussing improvement plans for products such as the BFF Machine, electronic whiteboards, beauty mirrors and AI glasses, and intend to jointly develop innovative new products.