Investment Rating - The industry investment rating is "Hold" [2] Core Views - In 2025, the automotive production and sales reached 34.53 million and 34.40 million units respectively, marking a historical high and maintaining the position as the world's largest market for 17 consecutive years. Domestic sales were 27.30 million units, a year-on-year increase of 6.7%, while traditional fuel vehicle sales decreased by 4% to 13.43 million units. Exports exceeded 7 million units, reaching 7.10 million, with a year-on-year growth of 21.1%, and new energy vehicle exports doubled to 2.62 million units [6] - The China Association of Automobile Manufacturers (CAAM) forecasts total automotive sales in China for 2026 to be 34.75 million units, a year-on-year increase of 1%, with new energy vehicle sales expected to reach 19 million units, growing by 15.2% [6] Summary by Sections Market Summary - The automotive sector saw a weekly increase of 0.39%, with the best-performing sub-sector being automotive services, which rose by 4.51%. The overall A-share market increased by 0.38%, placing the automotive sector 11th among 31 primary industries [4] Company Performance - The top five companies in terms of weekly performance were Aikelan (+40.53%), Jiaoyun Shares (+39.32%), Kuntai Shares (+18.45%), Xinquan Shares (+16.24%), and Zhejiang Huayuan (+15.99%). Conversely, the bottom five were Taotao Automotive (-10.99%), Aerospace Science and Technology (-12.92%), Yueling Shares (-15.40%), Czhixin (-18.81%), and Tianpu Shares (-25.33%) [5] Investment Recommendations - The report suggests focusing on companies related to intelligent vehicle technology, those with potential in overseas sales, and component manufacturers benefiting from domestic substitution effects. Specific recommendations include Baic Blue Valley for complete vehicles and Bertley, Yinlun Shares, Longsheng Technology, and others for components [8][10]

Trade Data Summary - In December 2025, China's total goods trade value reached 4.26 trillion yuan, growing by 4.9%[12] - Exports amounted to 2.53 trillion yuan, increasing by 5.2%, while imports were 1.73 trillion yuan, up by 4.4%[12] - The trade surplus stood at 808.77 billion yuan, equivalent to 114.14 billion USD[12][22] Export Performance - December exports showed a rebound, with a notable 70% increase in automobile exports[18] - Exports to ASEAN and Japan increased, while exports to the EU declined[13] - The overall export growth rate exceeded market expectations, with a 6.6% increase in USD terms[12] Import Trends - Import growth rebounded significantly, with a notable increase in machinery and electrical products[19] - Major imported goods, excluding crude oil and coal, saw a decline in growth rates[19] - The overall import value in December was 243.64 billion USD, reflecting a 5.7% increase[12] Economic Outlook - The report emphasizes the resilience of China's manufacturing sector amid global trade uncertainties[25] - Continued expansion of domestic demand and adherence to open trade policies are recommended for future growth[27] - The external environment is expected to improve, aiding the recovery of exports to the US[25] Risk Factors - Potential risks include worsening geopolitical events, changes in international financial conditions, and unexpected shifts in US-China policies[28]

Investment Rating - The industry investment rating for the medical biology sector is "Hold" [2]. Core Insights - The report highlights significant advancements in the brain-computer interface (BCI) industry, emphasizing the acceleration of industrial development and the establishment of a robust innovation ecosystem [3][4]. - The Shanghai Municipal Government has released a plan to cultivate the BCI industry, aiming for clinical applications of semi-invasive and invasive BCI products by 2027, with a comprehensive application by 2030 [4]. - The report suggests that the BCI field is entering a rapid development phase, driven by the release of industry standards and supportive government policies [7]. Summary by Sections Industry Overview - The BCI industry is experiencing accelerated industrialization, with recent breakthroughs in invasive devices and the establishment of new treatment paradigms for conditions like epilepsy [4][6]. - The report notes the importance of integrating BCI technology with artificial intelligence and virtual reality to enhance product offerings and market reach [4]. Government Initiatives - The Shanghai action plan outlines key milestones, including the development of over five invasive and semi-invasive BCI products for clinical trials and the establishment of a national-level BCI industry development zone [4]. - The plan also emphasizes the need for collaboration between innovative entities and medical institutions to foster product development in various applications, including rehabilitation and education [4]. Investment Recommendations - The report recommends focusing on companies such as Innovation Medical, Aipeng Medical, and Sanbo Brain Science, which are positioned to benefit from the growing BCI market [7].

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report - A-share investors' risk appetite is expected to remain high, and investment opportunities in sectors such as military, aerospace, satellites, precious metals, storage, innovative drugs, computing power, and artificial intelligence are recommended [12]. - The bond market may continue to fluctuate within a narrow range, but the 10-year Treasury yield above 1.85% has allocation value [12]. - The long-term bullish logic for precious metals like gold remains unchanged, and they have long-term allocation value [12]. 3. Summary According to Relevant Content Stock Market Performance - U.S. stock indexes rose, with the Nasdaq, S&P 500, and Dow Jones Industrial Average changing by 1.88%, 1.57%, and 2.32% respectively, and the Nasdaq China Technology Index changing by 2.83%. The Hang Seng Index fell slightly by -0.41% [5]. - A-shares generally rose, with the wind all-A index changing by 5.11%. Among different indexes, the CSI A100, Shanghai and Shenzhen 300, CSI 500, CSI 1000, CSI 2000, and wind micro-cap stocks changed by 3.61%, 2.79%, 7.92%, 7.03%, 6.54%, and 4.47% respectively. In terms of sectors, blue-chip and growth stocks in both Shanghai and Shenzhen markets rose, and the North Securities 50 Index changed by 5.82%. Among industries, 28 out of 30 CITIC industries rose, with national defense and military industry, media, non-ferrous metals, computers, medicine, and electronics leading the gains with a weekly increase of more than 7.0% [6][7]. Bond Market Performance - The yields of medium- and long-term Treasury bond varieties in China increased. The 10-year Treasury bond futures main contract fell by 0.09% compared to January 2, 2026, and the yield of the 10-year Treasury bond active bond increased by 3.55 BP to 1.8782% [8]. - The yields of ultra-long-term U.S. Treasury bonds decreased. As of January 9, 2026, the 10-year U.S. Treasury bond yield changed by -1 BP to 4.18%, and the yields of 10-year and above varieties decreased [9]. Exchange Rate and Commodity Performance - The U.S. dollar strengthened, with the U.S. dollar index increasing by 0.69%. The U.S. dollar exchange rates against the euro, pound, and yen changed by 0.71%, 0.37%, and 0.64% respectively. The U.S. dollar exchange rate against the RMB decreased, with the U.S. dollar against the offshore RMB increasing by 0.09% to 6.9760 and the U.S. dollar against the onshore RMB decreasing by 0.10% to 6.9821 [10]. - Gold prices rose. The London gold spot price increased by 3.24% to $4493.85 per ounce, and the COMEX gold futures price increased by 3.59% to $4473.00 per ounce. Domestic gold prices also rose, with the Shanghai gold spot increasing by 2.93% to 1003.49 yuan per gram and the futures increasing by 2.05% to 991.62 yuan per gram [11].

Group 1: CPI Analysis - In December 2025, the Consumer Price Index (CPI) rose by 0.8% year-on-year, an increase of 0.1 percentage points, reaching the highest level since March 2023[7] - Month-on-month, CPI turned positive with a 0.2% increase, reversing a previous decline of 0.1%[14] - Food prices increased by 1.1%, contributing approximately 0.17 percentage points to the year-on-year CPI increase[7] Group 2: PPI Analysis - The Producer Price Index (PPI) decreased by 1.9% year-on-year, but the decline narrowed by 0.3 percentage points compared to the previous month[13] - Month-on-month, PPI rose by 0.2%, marking a continuous increase for three months, with the growth rate expanding by 0.1 percentage points[20] - Key industries such as coal mining and black metal smelting saw a reduction in price decline, indicating some improvement in PPI[22] Group 3: Economic Outlook - The core CPI, excluding food and energy, remained stable at a 1.2% year-on-year increase, maintaining above 1% for four consecutive months, indicating steady demand[16] - The overall low price levels create space for policy adjustments, with expectations for more proactive fiscal and moderately loose monetary policies[29] - The central economic work conference emphasized the need for policies to promote stable economic growth and reasonable price recovery[29] Group 4: Risks - Potential risks include worsening geopolitical events, changes in international financial conditions, and unexpected shifts in US-China policies[32]

Investment Rating - The industry investment rating is "Hold" [1] Core Insights - The report highlights the continuous progress in the AI field and the acceleration of commercialization, particularly with the ongoing iterations of large models [1][4] - The computer industry index outperformed major indices, with a 8.49% increase, surpassing the Shanghai Composite Index by 4.67 percentage points [2] - The CES 2026 event showcased significant advancements in AI and embodied intelligence, with notable participation from Chinese companies [4] Summary by Sections Industry Performance - During the week of January 5-9, the Shanghai Composite Index rose by 3.82%, the ChiNext Index by 3.89%, and the CSI 300 Index by 2.79%, while the computer industry index increased by 8.49% [2] AI Developments - The CES 2026 event featured over 4,000 exhibitors, with nearly a quarter being Chinese companies, emphasizing the growing influence of AI technologies [4] - NVIDIA's new Rubin AI platform was introduced, promising significant improvements in inference costs and training efficiency [4] - The upcoming DeepSeek V4 model is expected to launch around the Lunar New Year, boasting enhanced coding capabilities [5] Investment Recommendations - The report suggests focusing on companies in the following areas: 1. Computing power: Cambrian, Haiguang Information, Zhongke Shuguang, Huafeng Technology, Shenling Environment, Yingweike, Oulu Tong, and Zhongheng Electric [6] 2. AIDC: Kehua Data, Yunsai Zhili, Hongxin Electronics, Runjian Co., Runze Technology, and Data Port [6] 3. AI applications: Kingsoft Office, iFlytek, Foxit Software, Wanxing Technology, Dingjie Zhizhi, Hand Information, Nengke Technology, and Zhuoyi Information [7]

Core Insights - The report indicates a downward trend in major indices for December compared to November, with the Hang Seng Technology Index decreasing by 1.48%, the Hang Seng Index by 0.88%, the Hang Seng China Enterprises Index by 2.37%, and the Hang Seng Composite Index by 1.26% [5][11] - The report highlights that the Hang Seng Materials sector saw the highest increase at 11.52%, while the Hang Seng Healthcare sector experienced the largest decline at -9.68% [5][13] Index Performance - In December, the Hang Seng Index had a PE (TTM) of 11.55 times, placing it in the 55.53% percentile since 2002; the PB was 1.25 times, in the 43.04% percentile; and the dividend yield was 3.85%, in the 78.28% percentile [6][16] - The Hang Seng China Enterprises Index had a PE (TTM) of 10.31 times, in the 64.28% percentile; the PB was 1.13 times, in the 47.88% percentile; and the dividend yield was 3.92%, in the 61.28% percentile [6][16] Fund Flow in Hong Kong Stock Connect - In December, the net inflow of funds through the Hong Kong Stock Connect was 20.828 billion RMB, a decrease of 90.226 billion RMB from November, with a cumulative net inflow of 452.957 billion RMB since inception [7][22] - The top three stocks with net inflows were Xiaomi Group-W, Meituan-W, and Agricultural Bank, while the top three with net outflows were China Mobile, Tencent Holdings, and Alibaba-W [23][24] A/H Share Premium Index - The Hang Seng A/H Share Premium Index at the end of December was 123.46, up from 120.90 at the end of November, placing it in the 42.72% percentile since 2006 [8][24] Market Assessment - The report notes that the Federal Reserve announced a 25 basis point rate cut on December 11, lowering the target range for the federal funds rate to 3.50%-3.75%, while signaling a potential pause in future rate cuts [9][28] - China's manufacturing PMI, non-manufacturing business activity index, and composite PMI output index were reported at 50.1%, 50.2%, and 50.7%, respectively, indicating an overall recovery in economic activity [9][28] - The report suggests focusing on cyclical sectors and cultural tourism consumption sectors in the Hong Kong market [9][28]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook on its stock performance relative to the market benchmark [6][7]. Core Insights - The company achieved record monthly sales for both its brands, with total sales surpassing 200,000 units in 2025. The cumulative sales for January to December 2026 reached 209,600 units, reflecting a year-on-year increase of 84.06% [6][7]. - The company’s new vehicle cycle is expected to drive continued sales growth, with multiple new models set to launch in 2026 [6][7]. - The company’s gross margin turned positive in Q3, supported by the scale effect and new vehicle launches, with a projected revenue growth of 93.34% in 2025 [6][7]. Sales Performance - In December, the company sold 35,200 vehicles, marking a year-on-year increase of 114.56%, the highest monthly sales since 2020 [6][7]. - The brand "极狐" (Jihu) achieved annual sales exceeding 160,000 units, maintaining a doubling of sales for three consecutive years [6][7]. - The brand "享界" (Xiangjie) recorded its first monthly sales exceeding 10,000 units in December, solidifying its position as a leader in the luxury new energy vehicle segment [6][7]. New Model Launches - The company launched several new models in the latter half of 2025, including the "极狐T1" and "享界S9T," which contributed to a steady increase in monthly sales from August to December [6][7]. - The "极狐S3" and the first MPV from the brand are expected to launch in 2026, further enhancing the product lineup and sales potential [6][7]. Sales Network Expansion - The company is accelerating its sales network expansion, with the number of operational stores reaching 244 by the end of 2023, and plans to increase to 320 by the end of 2024 and 547 by the end of 2025 [7]. Financial Projections - Revenue projections for 2025-2027 are estimated at 280.57 billion, 583.93 billion, and 847.25 billion yuan, with respective year-on-year growth rates of 93.34%, 108.12%, and 45.09% [7][10]. - The net profit attributable to the parent company is projected to improve from a loss of 45.03 billion yuan in 2025 to a profit of 13.06 billion yuan in 2027 [7][10].

Investment Rating - The industry investment rating is "Hold" [1] Core Insights - The AI sector continues to progress with accelerated commercialization, highlighted by significant acquisitions and funding rounds in the industry [4][6] - The computer industry index outperformed major indices, indicating a positive trend in the sector [2] Summary by Relevant Sections Market Overview - During the past week (December 29 - January 2), the Shanghai Composite Index rose by 0.13%, while the ChiNext Index fell by 1.25%. The CSI 300 Index decreased by 0.59%. The computer (Shenwan) index increased by 1.16%, outperforming the Shanghai Composite Index by 1.03 percentage points, the ChiNext Index by 2.41 percentage points, and the CSI 300 Index by 1.74 percentage points, ranking sixth among all industries [2] AI Sector Developments - Meta announced a multi-billion dollar acquisition of the Chinese company Butterfly Effect, which developed the AI application Manus. Manus has processed over 147 trillion tokens and created over 80 million virtual computers since its launch [4] - The company Moonlight has completed a $500 million Series C financing round, significantly oversubscribed, with cash reserves exceeding 10 billion yuan. The company reported a monthly user growth of over 170% for its K2 model [4] - DeepSeek introduced a more efficient AI development method, aiming to enhance scalability while reducing computational and energy requirements for advanced AI systems [4] IPO Activity - MiniMax has initiated its IPO process, planning to issue approximately 25.39 million shares at a price range of 151 to 165 HKD per share, with an estimated valuation between 46.12 billion and 50.40 billion HKD. The company focuses on consumer-facing AI applications, with over 70% of its revenue coming from this segment [4] - Baidu's Kunlun Chip has submitted a listing application to the Hong Kong Stock Exchange, with plans to expand its capabilities significantly [5]

Investment Rating - The report suggests a positive outlook for the invasive brain-computer interface (BCI) clinical field, indicating a broad application of the technology [5]. Core Insights - The invasive BCI technology has made significant clinical advancements, transitioning from laboratory research to practical applications, particularly in the treatment of drug-resistant epilepsy [4]. - A study conducted by a collaborative team has successfully decoded and personalized interventions for brain network activities in patients with drug-resistant epilepsy, marking a new paradigm in treatment [4]. - The research identified a specific high-frequency oscillation (fast ripple, FR) as a neural biomarker for the severity of epilepsy, allowing for targeted interventions that significantly reduce seizure frequency [4]. - Key nodes in the brain's FR network were found to be stable and safer for stimulation, with 87.5% of patients experiencing a reduction in seizure frequency by over 50% after targeted stimulation [4]. - The new approach shifts the treatment paradigm from localized resection to personalized modulation of abnormal brain networks, enhancing clinical application potential [4]. Summary by Sections Clinical Advancements - The report highlights the establishment of a specialized alliance for neuro-regulation and BCI technology in Chongqing, aimed at improving precision diagnosis and treatment for epilepsy and other neurological disorders [4]. Market Opportunities - The report recommends focusing on companies such as Innovation Medical, Aipeng Medical, and Sanbo Brain Science, which are positioned to benefit from advancements in the invasive BCI sector [5].