Group 1: Political Context - Japanese Prime Minister Kishi Sanae intends to dissolve the House of Representatives at the beginning of the regular Diet session on January 23, with elections expected in early to mid-February[1] - The last dissolution of the House of Representatives occurred during the Ishiba regime, where the ruling Liberal Democratic Party (LDP) only secured 191 seats, a decrease of 56 seats from before the dissolution[1][2] Group 2: Government Support and Strategy - Kishi's intention to reorganize the House stems from a mismatch between a weak Diet and a strong cabinet approval rating, which is significantly higher than that of the previous Ishiba government[2] - The current ruling coalition barely holds a majority in the House of Representatives, while the LDP's support rate remains high, prompting Kishi to seek a new election to strengthen her position[2][3] Group 3: Market Implications - A successful election could provide Kishi with a majority in the House, facilitating the implementation of aggressive fiscal and industrial policies, which may lead to a bullish stock market but raise concerns about Japan's debt sustainability[3][4] - The Nikkei 225 index has shown a significant increase, reflecting market optimism about Kishi's potential electoral success, with expectations that it could rise to 55,000 points by the end of March[3][4] Group 4: Economic Concerns - Japan's government debt-to-GDP ratio has reached 240%, raising questions about fiscal sustainability amid plans for record budget increases and substantial bond issuance[3][4] - The bond market is under pressure, with the five-year government bond yield reaching its highest level since its introduction in 2000, reflecting investor concerns over fiscal expansion and increased debt supply[4]

Investment Rating - The report indicates a focus on technology sectors and policy-supported areas, suggesting a positive outlook for specialized and innovative companies in the semiconductor and robotics fields [3]. Core Insights - The market is currently experiencing a rotation with clear policy guidance, emphasizing the importance of technology and innovation in driving growth [3]. - The North Exchange A-share trading volume reached 30.43 billion yuan, a decrease of 2.79 billion yuan from the previous trading day, with the North Exchange 50 Index closing at 1548.33, up 0.23% [7]. - The report highlights the performance of individual stocks, with 119 out of 288 companies rising, while 165 fell, indicating a mixed market sentiment [16]. Summary by Sections Market Review - On January 16, the North Exchange A-share trading volume was 30.43 billion yuan, down from the previous day [7]. - The North Exchange 50 Index closed at 1548.33, with a PE_TTM of 64.92 times, while the specialized and innovative index closed at 2666.88, up 0.46% [7][16]. Stock Performance - The top five gainers included Kema Materials (371.3%), Kaide Quartz (20.3%), and Tietuo Machinery (10.2%) [16]. - The top five losers were Liujin Technology (-13.9%), Keli Co., Ltd. (-11.8%), and Meideng Technology (-9.2%) [16]. Important News - Significant advancements in liquid metal flexible electronics manufacturing have been reported, providing innovative solutions for high-performance and green applications [2]. - The Chinese FAST telescope has made a breakthrough in capturing the evolution of fast radio bursts, marking a significant achievement in astrophysics [19]. Company Announcements - Ximic Technology has been re-certified as a high-tech enterprise, enhancing its innovation capabilities [20]. - Kangbiter announced the lifting of restrictions on 211,500 shares, representing 0.17% of its total share capital, effective January 21, 2026 [22].

Investment Rating - The report recommends investment in the wind power sector, highlighting companies such as Daikin Heavy Industries, Zhongtian Technology, Goldwind, Trina Solar, and Mingyang Smart Energy, while suggesting to pay attention to Haili Wind Power, Yunda Co., and Delijia [1] Core Insights - The UK AR7 auction has secured 8.4GW of offshore wind capacity, accelerating the development of offshore wind power in Europe [1] - Tesla's Optimus V3 is expected to be released soon, indicating ongoing growth in the robotics industry [1] - The establishment of an AI industry innovation center between China and ASEAN is set for this year, with a five-year digital ecological cooperation plan [1] Summary by Sections Offshore Wind Power - The UK has announced the results of the AR7 offshore wind auction, locking in 8.4GW of installed capacity [1] - Recommended companies in the wind power sector include Daikin Heavy Industries, Zhongtian Technology, Goldwind, Trina Solar, and Mingyang Smart Energy, with additional attention to Haili Wind Power, Yunda Co., and Delijia [1] Robotics Industry - Tesla's third-generation robot, Optimus V3, is anticipated to be released soon, as confirmed by a close associate of Elon Musk [1] - Recommended companies in the robotics sector include UBTECH, Wuzhou New Spring, Zhaowei Electromechanical, and Keda Li, with a focus on Hanwei Technology and Xinjie Electric [1] AI and Data Centers - China and ASEAN are set to establish an AI industry innovation center within the year, along with a five-year digital ecological cooperation plan [1] - Recommended companies for AI computing data centers include Siyuan Electric, Dongfang Electric, Sifang Co., and Igor, with additional attention to Liande Co., Xizi Clean Energy, and Keda [1] Energy Investment - The State Grid has announced that fixed asset investment during the 14th Five-Year Plan is expected to exceed 4 trillion yuan, focusing on new energy and smart grid development [2] - Recommended companies in the power equipment sector include Pinggao Electric, Siyuan Electric, Shunhua Electric, and Guoneng Rixin, with a suggestion to pay attention to TBEA [2] Solid-State Battery Technology - The Ministry of Industry and Information Technology emphasizes the need to accelerate breakthroughs in solid-state batteries and advanced autonomous driving technologies [2] - Recommended companies in the solid-state battery sector include Dangsheng Technology, with additional attention to Xianhui Technology, Xian Dao Intelligent, Naconor, and Honggong Technology [2] Nickel and Cobalt Sector - Indonesia is tightening its nickel ore production quotas, with expected quotas between 250 million to 260 million tons for the year [2] - Recommended companies in the nickel and cobalt sector include Greeenme, Huayou Cobalt, with additional attention to Fangyuan Co. and Zhongwei New Materials [2] Electric Vehicle Sector - The report highlights the electric vehicle sector, recommending companies such as CATL, Yiwei Lithium Energy, Enjie, Tianci Materials, Terui, and Zhongrong Electric [2] - The consumption battery sector includes recommendations for Haopeng Technology, Zhuhai Guanyu, and Xinwangda, with additional attention to Zhi Jian Electronics [2]

Investment Rating - The industry investment rating is "Overweight" [5] Core Views - The report maintains the "Overweight" rating, indicating expectations for the industry to outperform the market benchmark by over 10% in the next 6-12 months [5][9] - The report highlights significant developments in the home appliance sector, including Midea Group's successful bid for a centralized procurement project with China Mobile, which is expected to enhance its market position [1] - Anker's UV printer shipments have accelerated, with a notable increase in output, reflecting strong demand in the consumer technology segment [3] Summary by Relevant Sections White Goods & Small Appliances - Midea Group has won a centralized procurement project from China Mobile for high-pressure centrifugal chillers, which will support data center cooling needs [1] - The company has previously provided cooling systems for a large-scale liquid-cooled intelligent data center in the Guangdong-Hong Kong-Macao Greater Bay Area [1] Consumer Technology - Anker's E1 printer has seen a significant increase in shipments, with 4,950 units shipped as of January 15, 2026, compared to earlier figures of 100 units in December [3] - Stone Technology has announced a pre-sale for its flagship model G30S Pro, with a starting price of 5,499 yuan, and a new P20 Ultra model priced at 3,899 yuan [3] Company Performance Forecasts - Beiding Co. expects Q4 revenue and net profit to be 30 million and 3 million yuan, respectively, with a year-on-year increase of 20.9% in revenue but a decrease of 9.8% in net profit [2] - For the full year 2025, Beiding anticipates revenue of 95 million yuan and a net profit of 11 million yuan, representing increases of 26.0% and 59.1% year-on-year [2] Investment Recommendations - The report suggests focusing on three main investment lines: 1. White goods, recommending Haier Smart Home, Midea Group, and Gree Electric, with a particular emphasis on Haier due to its transformation success and benefits from the overseas interest rate cycle [7] 2. Selective consumer technology stocks, including Anker Innovation and Ecovacs, while also monitoring Stone Technology and others in the 3D printing supply chain [7] 3. Companies with good growth prospects in international markets, such as TCL Electronics and Chunfeng Power [7]

Investment Rating - The report does not explicitly state an overall investment rating for the financial industry, but it provides specific recommendations for various sectors and companies within the industry [3][21]. Core Insights - The financial industry experienced a decline this week, with the non-bank financial index down by 2.63%, underperforming the CSI 300 index by 2.06 percentage points. The banking sector saw a decline of 3.03%, also underperforming the CSI 300 index by 2.46 percentage points [1][9]. - The report highlights a structural interest rate cut by the central bank, which is expected to impact various financial sectors, particularly banks and insurance companies. The insurance sector is viewed as being in a critical window for performance and valuation recovery [3][21]. - Regulatory measures have been introduced to stabilize the derivatives market, which is expected to benefit well-capitalized and compliant brokerage firms [2][17]. Summary by Sections 1. Weekly Performance and Sector Insights - The non-bank financial index decreased by 2.63%, with the securities, insurance, and diversified financial indices down by 2.21%, 3.59%, and 1.83% respectively [1][9]. - The banking sector's performance was notably poor, with state-owned banks, joint-stock banks, city commercial banks, and rural commercial banks experiencing declines of 2.20%, 4.08%, 2.40%, and 2.20% respectively [1][9]. 2. Insurance Sector Insights - The insurance sector's index fell by 3.59%, underperforming the CSI 300 index by 3.02 percentage points. The report indicates that regulatory cooling measures have created short-term pressure on the insurance sector, but the long-term outlook remains positive due to asset growth and interest margin recovery [1][13][15]. - Key companies such as China Pacific Insurance, China Life, and New China Life are recommended for investment due to their strong fundamentals and recovery potential [3][16]. 3. Brokerage Sector Insights - The brokerage sector saw a decline of 2.21%, with the report emphasizing the potential benefits of new regulatory measures aimed at enhancing the derivatives market. The focus is on larger, well-capitalized firms that can navigate the evolving regulatory landscape [2][17]. - Recommendations include major brokerages like Guotai Junan and Huatai Securities, which are expected to benefit from the anticipated recovery in profitability and valuation [2][18]. 4. Banking Sector Insights - The banking sector's index fell by 3.03%, with the central bank's recent interest rate cut expected to support the sector's performance in the long run. The report suggests that banks may see a gradual recovery in net interest income and profitability [3][21][22]. - Specific banks such as Hangzhou Bank and Ningbo Bank are highlighted as potential investment opportunities, particularly those with previously undervalued positions [3][22].

Global and A-share Market Overview - The A-share market showed mixed performance last week, with the Sci-Tech 50 Index recording the highest increase of 2.58%. The Hong Kong market also saw an uptick, with the Hang Seng Index rising by 2.34%. The top-performing ETFs primarily tracked TMT sector indices [1][11][14]. ETF New Issuance Statistics - Last week, 10 stock ETFs were reported in the A-share market, including 2 focused on non-ferrous metals. A total of 8 new stock ETFs were established. In the US market, 8 equity ETFs were newly established [1][16][18]. Fund Flows in A-share Market - The top 10 ETFs with net inflows were predominantly from the TMT sector, while the top 10 with net outflows were mainly from the CSI 300 Index ETFs. The ETF tracking the Sci-Tech 100 Index had the highest net inflow, while the CSI 300 Index ETF had the highest net outflow [2][25][27]. - In the A-share market, the net inflow for the top 10 broad-based indices included the Sci-Tech 100 with 9.59 billion yuan, while the CSI 300 saw a net outflow of 1,034.75 billion yuan [28][32]. Industry ETF Fund Flows - The TMT sector led the A-share market with a net inflow of 465.84 billion yuan, followed by upstream and materials with 216.32 billion yuan. Other sectors like new energy and consumption also saw positive inflows, while sectors such as low-carbon environmental and agriculture experienced outflows [33][35].

Investment Rating - The industry is rated as "Overweight," indicating an expected increase in value exceeding 10% compared to the market benchmark index over the next 6-12 months [6]. Core Insights - The report highlights the launch of the Qianwen App by Alibaba, which integrates with various Alibaba ecosystem services, enabling a seamless shopping experience within the app. This positions Qianwen as the first AI chatbot capable of completing transactions from selection to payment [1]. - Qianwen has also connected with Ant Group's life services, allowing it to handle 50 common civil affairs, thus transforming the way users interact with service requests by automating the process [2]. - The report suggests that AI applications are expected to directly address user needs, with platforms leveraging their computational and model advantages to create AI applications with agent capabilities, thereby establishing competitive barriers [2]. Summary by Sections AI Applications - Companies to watch include Hehe Information, Dingjie Smart, Hanshu Technology, Hande Information, Tax Friend Co., Hongsoft Technology, Foxit Software, and Zhuoyi Information [3]. Platforms - Key players in the platform sector include Tencent Holdings and Alibaba [3]. Domestic Computing Power - Notable companies in the domestic computing power space include Cambricon and Haiguang Information [3]. IDC - Companies to monitor in the IDC sector are Dongyangguang and Runze Technology [3].

1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - Short - term bond market may face downward pressure. Small - position active participation in band trading after adjustments, emphasizing reverse operations. Consider the market's concerns about factors such as the supply pressure of ultra - long - term government bonds in Q1, the impulse of credit issuance at the beginning of the year, and the continuous rise of equity and commodity prices. Long - term bonds may continue to be under pressure. The strategy is mainly based on short - duration carry strategies, and small - position participation in band trading after adjustments [3][15]. - Next week, the capital market will face phased pressure, but the pressure during the tax period is expected to be controllable. It is necessary to pay attention to the central bank's capital injection during the tax period [2]. 3. Summary According to the Directory 3.1 Review and Outlook of the Bond Market - This week, under the combined effects of equity market adjustment, policy game, and capital market fluctuations, the bond market oscillated and recovered with increased volatility. The yields of 10Y and 30Y government bonds changed by - 4bp and + 0.1bp respectively. The capital price first rose and then fell due to the reserve payment day and the delayed release of outright repos [10][11]. - Next week, the capital market will face phased pressure. The net withdrawal of the open - market will increase to 1.1015 trillion yuan, and the government bond issuance scale will increase to 706.6 billion yuan. However, due to the relatively late Spring Festival this year and the structural interest rate cut, the capital pressure is expected to be controllable [2][14]. 3.2 Bond Market Review 3.2.1 Funding: Central Bank Net Injection, Funding Rates First Up Then Down - This week, the central bank's open - market net injection was 81.28 billion yuan. From January 12th to January 16th, the central bank injected 951.5 billion yuan and had 138.7 billion yuan of reverse repos mature. The capital price first rose and then fell. R001 and DR001 rose by 3bp and 5bp respectively compared with January 9th [19][20]. 3.2.2 Secondary Trend: Oscillating Downward, Increased Volatility - This week, yields oscillated downward with increased volatility. Except for 3M and 30Y, the yields of other key - term government bonds declined. Except for 5Y - 3Y and 50Y - 30Y, the term spreads of other key - term government bonds widened. As of January 16th, the yields of 10Y and 30Y government bonds changed by - 4bp and + 0.1bp respectively compared with January 9th [27]. 3.2.3 Bond Market Sentiment: Widening of 30Y - 10Y Government Bond Spread, Recovery of Bond Fund Duration - From January 12th to January 16th, the weekly turnover rate of 30Y government bonds dropped to 37%. As of January 16th, the 50Y - 30Y government bond spread narrowed by 1.9bp compared with January 9th, and the 30Y - 10Y government bond spread widened by 3.7bp. The inter - bank leverage ratio slightly decreased to 108.1%, and the exchange leverage ratio decreased to 123.2%. The median duration of medium - and long - term pure - bond funds recovered, and the divergence decreased [33]. 3.2.4 Bond Supply: Increase in Government Bond Issuance Scale Next Week - This week, the net financing of interest - rate bonds decreased and turned negative, with a net financing of - 174.4 billion yuan. The net financing of government bonds and local government bonds decreased, while that of policy - bank bonds increased. Next week, the planned issuance of government bonds is 475 billion yuan, and the planned issuance of local government bonds is 231.6 billion yuan [49][52][53]. 3.3 Economic Data: Improvement in Real Estate Transactions, Weak Performance in Automobile Consumption - In December, imports and exports ended at a high level. The growth rate of social financing slightly declined, and household credit remained weak. Since January, real estate transactions have improved, and automobile consumption has been weak. High - frequency data shows that new - home transactions have turned positive month - on - month, and the year - on - year decline has narrowed. Thirteen - city second - hand housing transactions have increased month - on - month, and the year - on - year decline has narrowed. Automobile consumption has turned negative both month - on - month and year - on - year [58][59]. 3.4 Overseas Bond Market: Cooling of Core Inflation in the US in December - In December, the core inflation in the US cooled down. The Fed's interest - rate cut expectation was further dampened. Overseas bond markets showed that US bonds declined, and emerging markets mostly declined. This week, the 2Y US bond yield rose 5bp to 3.59%, and the 10Y US bond yield rose 6bp to 4.24%. The 10Y - 2Y US bond spread widened from 64bp on January 9th to 65bp [68][69]. 3.5 Major Asset Classes: Strength in Shanghai Gold and Crude Oil, Adjustment in Shanghai Copper - The CSI 300 index slightly adjusted this week. As of January 16th, 2026, it closed at 4731.9 points, down 0.57% from January 9th. This week, Shanghai gold, the Nanhua Pig Index, and the Nanhua Crude Oil Index rose, while Shanghai copper weakened. The performance of major asset classes was: Shanghai gold > Pig > CSI 1000 > Crude oil > Rebar > US dollar > Chinese bonds > Chinese - funded US dollar bonds > Convertible bonds > CSI 300 > Shanghai copper [75]. 3.6 Next Week's Bond Market Calendar - The calendar includes information on liquidity injection and maturity, government bond supply, fundamental data, and important domestic and international events from January 19th to January 25th, 2026 [80].

Investment Rating - The industry investment rating is "Overweight" and has been maintained from the previous rating [9]. Core Insights - Liquid cooling technology is expected to become the mainstream cooling solution for AIDC due to the increasing demand for AI computing power and the rising power density of server cabinets, which traditional air cooling cannot meet [6][24]. - The global data center liquid cooling component market is projected to reach $15.7 billion by 2027, with a CAGR of 35% from 2025 to 2027 [7][37]. - Automotive parts suppliers are expected to become upstream component suppliers for liquid cooling systems, with several companies having Tier 1 supply capabilities [8]. Summary by Sections AIDC Liquid Cooling Industry Chain and Core Components - The current mainstream solution is cold plate liquid cooling, while immersion liquid cooling offers better efficiency but is limited by high coolant costs [7][29]. - Key components for upgrading include CDU, liquid cooling plates, manifolds, and UQDs, which have a higher value proportion [7][8]. Investment Opportunities for Automotive Parts Suppliers - Automotive parts companies can leverage existing customer bases and strong business capabilities to collaborate with Taiwanese and local manufacturers in the liquid cooling supply chain [8]. - Recommended companies include Yinlun, Minth Group, Feilong, Meilixin, Chuanhuan Technology, Zhongding, Xiangxin Technology, Sulian Technology, and Pengling [8]. Liquid Cooling Technology as the Mainstream Cooling Solution - The average power density of server cabinets is expected to exceed 25 kW by 2025, making traditional air cooling inadequate [24]. - Liquid cooling can achieve a PUE of less than 1.25, aligning with policy directives for energy efficiency [6][19]. Market Size and Growth Projections - The global data center market is projected to reach $128.9 billion by 2025, with a CAGR of 13% from 2019 to 2025 [13]. - The penetration rate of liquid cooling systems in data centers is expected to grow to 30% by 2027 [41]. Key Components and Their Evolution - The evolution of liquid cooling components, particularly the liquid cooling plates and UQDs, is driven by the increasing power requirements of GPUs, with significant upgrades expected in the next generation of GPUs [46][48]. - The design of CDU is also evolving to enhance heat exchange efficiency and prevent leaks, which are critical for the industry's advancement [61][66].

Core Insights - The underlying logic of commodities and liquor is interconnected, primarily revolving around the trading of Federal Reserve QE, which is expected to lead to increased dollar liquidity by 2026, marking the beginning of a new cycle for the liquor industry [1][11]. - The probability of the Federal Reserve initiating QE significantly increases by mid-2026, driven by the current administration's push for interest rate cuts, which are anticipated to alleviate inflationary pressures in the U.S. [2][14]. - Once the Federal Reserve begins QE, the People's Bank of China is expected to follow suit with debt monetization, leading to a recovery in the real economy and a return to prosperity in 2026 [3][20]. Group 1: Commodity and Liquor Logic - The current commodity supercycle is driven by the expectation of rampant dollar liquidity due to the Federal Reserve's QE, which will also enhance the appeal of commodities with monetary and safety attributes [1][11]. - The initiation of QE by the Federal Reserve is anticipated to prompt the People's Bank of China to quickly implement debt monetization, thereby improving the balance sheets of the real economy and enhancing consumer capacity and willingness [1][11]. Group 2: Federal Reserve's QE Probability - The current administration's core demand for interest rate cuts is expected to lead to a significant reduction in inflationary pressures, which will likely force the Federal Reserve to initiate QE [2][14]. - By mid-2026, the Federal Reserve is projected to face a liquidity crunch that may compel it to expand its balance sheet through QE, marking a critical window for such actions [2][16]. Group 3: Liquor Industry Revival - The liquor industry has experienced four cycles since 2003, and the anticipated QE in 2026 is expected to initiate a new cycle, driven by a return to prosperity and increased consumer spending [4][25]. - The combination of Federal Reserve interest rate cuts and a strengthening yuan is expected to accelerate the return of national wealth, thereby enhancing consumer demand and initiating a new cycle for the liquor industry [7][28]. Group 4: Investment Recommendations - The report suggests focusing on sectors that will benefit from the anticipated QE, including oil, chemicals, liquor, and high-end manufacturing, as the market is expected to reach new highs [8][31]. - Specific investment strategies include emphasizing metals, consumer goods, and high-end manufacturing sectors that are poised to benefit from the return of cross-border capital and improved consumer sentiment [8][31].