Key Policy Insights - The "Project Vault" aims to establish a strategic reserve of 60 critical minerals in the U.S., focusing on sectors like semiconductors, defense, and renewable energy[1] - The total funding for the reserve is $12 billion, with $10 billion provided by the Export-Import Bank of the United States and $2 billion from private capital[7] - The U.S. Geological Survey (USGS) identifies minerals based on supply risk, with a threshold of $2 million annual GDP impact for inclusion in the 2025 critical minerals list[8] Historical Context - U.S. strategic reserves have fluctuated historically, with significant expansions during WWII and the 1970s-80s, and reductions post-Cold War due to perceived reliability of foreign supplies[15] - By 1952, the value of military supplies in strategic reserves reached $4.02 billion, reflecting the importance of these reserves during conflicts[11] Current Challenges and Recommendations - The strategic reserve serves as a short-term buffer against supply shocks but cannot replace a resilient supply chain or domestic production capabilities[15] - Effective industrial policy is needed to rebuild the domestic ecosystem and enhance production capacity, which may take around ten years to achieve[15] - Integrating mineral diplomacy into broader national strategies could better manage political risks and enhance supply chain resilience[15] Economic Indicators - In January, the U.S. ADP reported a job increase of 22,000, significantly below the expected 45,000, indicating a weak labor market[20] - The U.S. government ended a partial shutdown with a funding bill that will provide resources until September 30, 2026[23]

Investment Rating - The report recommends an "Overweight" rating for new consumption, solid-state batteries, and innovative drugs, indicating a potential increase in value exceeding the market benchmark by more than 10% over the next 6-12 months [5][21]. Core Insights - The report highlights that adjustments in the market present good buying opportunities, particularly in the sectors of new consumption, solid-state batteries, and innovative drugs, with a focus on recent catalysts in AI applications [5]. - The overall trend in emerging industries is characterized by a strong fundamental outlook but a weak technical position, suggesting potential for growth despite current market pressures [16][17]. Summary by Relevant Categories New Consumption - The sector is rated "Overweight" with a strong technical outlook, indicating a low position that is expected to recover [5]. - Recent government initiatives, such as the "2026 'Happy Shopping Spring' Special Activity Plan," are expected to support growth in this sector [5]. Solid-State Batteries - Rated "Overweight," this sector shows a strong technical outlook with expectations for a low position to rebound [5]. - Companies like Xinwangda are advancing in the production of semi-solid-state batteries, with mass production anticipated by 2027 [5]. Innovative Drugs - The sector is also rated "Overweight," with a strong technical outlook and a low position that is still in the recovery phase [5]. - Recent developments include the completion of Phase III clinical trials for innovative drugs, indicating progress in the sector [5]. AI Applications and Computing Infrastructure - The report notes a neutral rating for AI applications and computing infrastructure, with moderate growth expectations and recent advancements in national supercomputing capabilities [5][10]. - The launch of the national supercomputing internet core node is expected to provide significant AI computing resources [10]. Commercial Aerospace - Rated as "Neutral," the commercial aerospace sector is experiencing high levels of activity but is under adjustment pressure [5]. - Recent developments include SpaceX's application to launch a large number of satellites, which could redefine AI resource competition [10]. Humanoid Robots - The sector is rated "Neutral+" with a strong technical outlook, as Tesla announces plans for mass production of its humanoid robot by 2026 [5][10]. Gaming - The gaming sector is rated "Neutral+" with a strong technical outlook, but recent developments have led to a downward adjustment in expectations [5][10]. - The release of Google's Genie 3 has caused volatility in the market, but it is viewed as a tool for development rather than a disruptive technology [10].

1. Report Industry Investment Rating No relevant content provided in the report. 2. Core Viewpoints of the Report - As of February 5, 2026, provincial - level two sessions have been held. The average GDP growth target of 31 provinces in 2026 is 5.12%, a slight decrease of 0.24 percentage points from 2025. Most provinces set their GDP growth targets in the range of 5% - 5.5% [1][11]. - The key tasks of local governments in 2026 focus on expanding domestic demand and accelerating the development of new - quality productivity, including tapping effective demand potential, strengthening scientific and technological innovation, and building a modern industrial system. Debt - alleviation key provinces also focus on these areas while making differentiated arrangements based on provincial conditions [1][16][18]. - In terms of finance, some provinces have lowered their general public budget revenue growth targets, with the average target growth rate dropping from 3.3% to 2.5%. Local governments will continue to resolve local debt risks, and the transformation and exit tasks of financing platforms will be further strengthened [2][21]. - Looking ahead, the 10Y Treasury bond has fallen to the resistance level around 1.8%, and the bond market may remain volatile in the short term. Attention should be paid to the inflation data in January and the possible disturbances caused by re - inflation expectations [2][27]. 3. Summary of Each Section 3.1 Review and Outlook of the Bond Market - This week, the precious metal market fluctuated, and the central bank maintained cross - festival liquidity. The bond market oscillated, with the ultra - long - end leading the rise. The yields of 10Y and 30Y Treasury bonds decreased by 0.1bp and 4bp respectively [10]. - The GDP growth targets of most provinces in 2026 have been adjusted. 21 provinces lowered their targets, and only Jiangxi raised its target. The average growth target decreased slightly compared to 2025 [11][14]. - The key tasks of economic powerhouse provinces and debt - alleviation key provinces in 2026 mainly include expanding domestic demand, strengthening innovation, and promoting industrial development, with some provinces also emphasizing reform and regional construction [16][18]. - In terms of finance, some provinces have lowered their revenue growth targets, and local governments will continue to resolve debt risks and strengthen the transformation of financing platforms [21][24]. 3.2 Bond Market Review 3.2.1 Capital Situation - This week, the central bank conducted a net withdrawal of 7560 billion yuan in the open market. From February 2 to 6, the central bank injected 10055 billion yuan, and reverse repurchases worth 17615 billion yuan matured. Next week, 1500 billion yuan of treasury cash fixed deposits will be issued, and reverse repurchases worth 4055 billion yuan will mature [28]. - Capital interest rates declined. From February 2 to 6, R007 and DR007 dropped by 11bp and 13bp respectively compared to January 30. The 3M certificate of deposit issuance rate first decreased and then increased, and the FR007 - 1Y swap rate declined after narrow - range fluctuations [31]. 3.2.2 Secondary Market Trends - This week, bond yields oscillated within a range and then declined. Except for the 1Y Treasury bond, the yields of other key - term Treasury bonds decreased. Except for the 7Y - 5Y, 10Y - 7Y, and 50Y - 30Y Treasury bond term spreads, other key - term spreads narrowed [38][40]. 3.2.3 Bond Market Sentiment - This week, the weekly turnover rate of 30Y Treasury bonds slightly decreased to 39%. As of February 6, the 50Y - 30Y Treasury bond spread widened by 0.7bp compared to January 30, and the 30Y - 10Y spread narrowed by 3.7bp to 44bp. The inter - bank leverage ratio rose to 108.0%, and the exchange leverage ratio slightly decreased to 122.9%. The median duration of medium - and long - term pure bond funds increased by 0.01 years to 2.61 years, and the implied tax rate of 10 - year CDB bonds narrowed [45]. 3.2.4 Bond Supply - This week, the net financing of interest - rate bonds increased. From February 2 to 6, the net financing of interest - rate bonds was 8834 billion yuan, a week - on - week increase of 4229 billion yuan. The net financing of Treasury bonds and local government bonds increased, while that of policy - financial bonds decreased [60]. - The issuance scale of Treasury bonds increased this week. A total of 6 Treasury bonds were issued from February 2 to 6, with a total issuance scale of 3970 billion yuan. Next week, the 7Y Treasury bond 250025.IB will be re - issued, with an issuance scale of 1300 billion yuan [63][64]. - The issuance scale of local bonds will decrease next week. This week, 90 local government bonds were issued, with a total issuance scale of 5797 billion yuan. Next week, the planned issuance scale of local government bonds is 3221 billion yuan, a decrease of 2575 billion yuan compared to this week [64]. - This week, inter - bank certificates of deposit changed from net repayment to net financing, and the average issuance rate remained flat. The total issuance of inter - bank certificates of deposit from February 2 to 6 was 5066 billion yuan, and the net financing was 3751 billion yuan [65]. 3.3 Economic Data - Since February, port throughput has been strong, while industrial production has shown a marginal weakening trend. In the real estate sector, new - home sales decreased month - on - month but increased year - on - year, and second - hand home sales in 13 cities decreased less month - on - month and increased more year - on - year. In the consumption sector, movie consumption decreased month - on - month and was weaker than the seasonal level year - on - year, subway travel was basically in line with the seasonal level, and flight travel was slightly weaker than the seasonal level. In the export sector, port throughput increased month - on - month and year - on - year, while the CCFI and SCFI indices decreased [69]. - Industrial production showed a marginal weakening trend. The PTA operating rate increased month - on - month, while other operating rate indicators decreased month - on - month. In terms of infrastructure and price high - frequency data, production indicators decreased month - on - month, and the prices of asphalt, crude oil, and non - ferrous metals turned down [69][73]. 3.4 Overseas Bond Market - The US non - farm payrolls report was postponed. Due to the "technical shutdown" of the US federal government, the release time of multiple economic data reports by the US Bureau of Labor Statistics was adjusted. The original January non - farm payrolls report scheduled for February 6 was rescheduled to February 11, and the January CPI report was adjusted to 8:30 am on February 13, Eastern Time [78]. - Fed's Daly warned of the vulnerability of the labor market and said that one or two more interest rate cuts might be needed. In the overseas bond market, US bonds rose, while emerging markets mostly declined. The 2Y and 10Y US Treasury bond yields decreased by 2bp and 4bp respectively, and the 10Y - 2Y spread narrowed from 74bp on January 30 to 72bp [78][79]. 3.5 Performance of Major Asset Classes - The CSI 300 index adjusted this week. As of February 6, 2026, it closed at 4643.6 points, a decrease of 1.33% compared to January 30. The US dollar index rose slightly this week, and both Shanghai gold and Shanghai copper significantly adjusted. The performance of major asset classes this week was: US dollar > convertible bonds > Chinese - funded US dollar bonds > Chinese bonds > live pigs > crude oil > CSI 300 > rebar > CSI 1000 > Shanghai copper > Shanghai gold [84]. 3.6 Next Week's Bond Market Calendar - In terms of liquidity, there will be reverse repurchase maturities and the issuance of treasury cash fixed deposits. In terms of government bond supply, there will be the issuance of Treasury bonds and local government bonds. In terms of fundamental data, there will be the release of economic data from China, the US, and other countries, as well as reports from EIA, OPEC, and IEA [88].

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The domestic first commercial SAR satellite closed-loop service system is taking shape as Tianyi Research Institute aims for an A-share IPO [1] - The national supercomputing internet core node has been launched, establishing a foundation for a trillion-parameter model computing capacity with a 30,000-card domestic cluster [1] - Tesla has achieved mass production of dry electrode technology, and Changan Automobile will be the first globally to equip sodium-ion batteries from CATL in its vehicles [2] - The State Grid has clarified that the "14th Five-Year Plan" investment will focus on green transformation and enhancing cross-regional transmission capacity [2] - The offshore wind power sector in China is progressing, with an expected addition of 6.12 GW of new grid-connected capacity by 2025 [2] Summary by Sections Section 1: Commercial Space and AI Computing - Tianyi Research Institute is preparing for an A-share IPO, establishing a commercial SAR satellite service system [1] - The national supercomputing internet core node will provide efficient computing services for large-scale AI applications [1] Section 2: Battery Technology and Electric Vehicles - Tesla's dry electrode technology is now in mass production, significantly reducing costs and energy consumption [2] - Changan Automobile's introduction of sodium-ion batteries marks a significant advancement in battery technology for electric vehicles [2] Section 3: Power Infrastructure and Renewable Energy - The State Grid's investment plan for the "14th Five-Year Plan" will reach 4 trillion yuan, focusing on green energy and quality improvement [2] - The offshore wind power sector is set to expand with significant new installations planned for 2025 [2]

Economic Goals - GDP growth targets for most provinces are set around 5%, with Sichuan and Hubei at approximately 5.5%, and Tibet exceeding 7%[8] - Guangdong's growth target is set between 4.5% and 5%[8] Diplomatic Engagements - Frequent diplomatic activities include meetings between Chinese and foreign leaders, with expectations for upcoming meetings between China and the US, Germany, and others[9] Macro Policy Direction - The macro policy emphasizes "stability while seeking progress" and aims to promote a reasonable recovery in prices, focusing on domestic circulation and the real economy[10] Investment Strategy - Investment will focus on both physical and human capital, with an emphasis on increasing the proportion of investments in people's livelihoods[13] Consumer Growth - Expanding domestic demand is prioritized, with initiatives to support consumption upgrades and new growth points in service consumption[15] Unified Market Development - Key sectors such as electricity, transportation, technology, and data are targeted for breakthroughs in the construction of a unified national market[20] Agricultural Modernization - The focus shifts to agricultural modernization, emphasizing food security and improving agricultural quality and efficiency[21] Energy Transition - The dual control of energy consumption is transitioning to carbon emissions control, with a planned investment of 4 trillion yuan in the new power system during the 14th Five-Year Plan[22] Technological Innovation - Local governments are encouraged to develop new productive forces, with a focus on building international technology innovation centers in key regions[23] Urban Development - A multi-level modern urban system is being constructed, with efforts to enhance the capital metropolitan area and promote regional coordinated development[24]

Investment Rating - The industry investment rating is "Overweight" [5] Core Insights - The report discusses the new regulatory framework established by the China Securities Regulatory Commission (CSRC) for the issuance of asset-backed securities (ABS) tokens based on domestic assets in overseas markets, which aims to provide a compliant pathway for asset tokenization [1][2] - The regulatory guidelines define the business activities related to tokenization, ensuring they are embedded within existing laws on cross-border investment, foreign exchange management, and data security, thus eliminating the previous "grey area" of regulation [1] - The guidelines introduce a strict admission mechanism based on a "negative list" that prohibits certain entities from engaging in tokenization activities, ensuring the legitimacy and purity of the underlying assets [2] - The CSRC will oversee a pre-filing system for domestic entities wishing to issue ABS tokens, requiring comprehensive documentation to prevent false representations and ensure compliance [2] - Continuous monitoring and international regulatory cooperation are mandated post-issuance, addressing regulatory asymmetries and reducing opportunities for regulatory arbitrage [3] Summary by Sections Regulatory Framework - The CSRC's announcement on February 6, 2026, introduces a structured approach to the issuance of ABS tokens, marking a significant shift towards compliance in the asset tokenization space [5] Admission Mechanism - The guidelines specify six categories of entities that are barred from engaging in tokenization, including those posing national security risks or involved in recent criminal activities, ensuring a high standard for participation [2] Compliance Pathway - The pre-filing requirement emphasizes the CSRC's role in regulating the process, mandating detailed disclosures from domestic entities to maintain transparency and integrity in the market [2] Post-Issuance Management - The report highlights the importance of ongoing oversight and collaboration with international regulators to manage risks associated with cross-border transactions and ensure consistent regulatory practices [3]

Investment Rating - The investment rating for the company is "Buy" [4][9]. Core Insights - The company has launched the visionJet G3, which features significant upgrades in consumer orientation, including a fully upgraded avionics system, enhanced cabin comfort, and improved performance metrics such as maximum flight speed and payload capacity [1][4]. - The target customer base is high-net-worth individuals rather than professional pilots, focusing on smart and safe performance upgrades to address pain points during flights, which is expected to enhance customer acquisition and market penetration [1]. - The company is expanding its production capacity and improving its delivery structure, which is anticipated to lead to better order fulfillment and increased revenue from new product lines [1][4]. Financial Projections - Revenue is projected to grow from $1,068 million in 2023 to $1,902 million in 2027, with a compound annual growth rate (CAGR) of approximately 17.1% [3][8]. - Net profit is expected to increase from $91 million in 2023 to $237 million in 2027, reflecting a CAGR of about 22.8% [3][8]. - Earnings per share (EPS) is forecasted to rise from $0.59 in 2023 to $0.65 in 2027, with a decreasing price-to-earnings (P/E) ratio from 32.4 in 2023 to 12.4 in 2027, indicating potential valuation recovery [3][8].

Core Conclusions - The report indicates that the North Exchange (北交所) is experiencing a period of consolidation with accelerated rotation of main lines, suggesting that the North Exchange 50 index may continue to fluctuate in the short term due to style rotation in the A-share market. However, increasing transaction volumes, the quality improvement of specialized and innovative enterprises, and the ongoing profitability from IPOs will provide long-term support for the sector. It is recommended to focus on high-end manufacturing and leading companies in the new energy sector that possess technological barriers, as well as specialized and innovative companies with a good match between valuation and growth [1][5]. Market Overview - On February 4, the total transaction amount of A-shares on the North Exchange reached 22.508 billion yuan, an increase of 0.958 billion yuan from the previous trading day. The North Exchange 50 index closed at 1,538.571, down 0.71%, with a PE TTM of 63.71 times. The specialized and innovative index closed at 2,573.440, down 0.37% [3]. - Among the 292 companies listed on the North Exchange, 113 saw their stock prices rise, 9 remained flat, and 170 experienced declines. The top five gainers were *ST Yun Chuang (up 24.1%), Hai Tai New Energy (up 14.1%), Ou Pu Tai (up 13.0%), Kai Te Co. (up 8.7%), and Te Rui Si (up 8.4%). The top five decliners were Lian Cheng CNC (down 9.1%), Tian Li Composite (down 8.8%), Mei Bang Technology (down 7.6%), Mei Deng Technology (down 6.9%), and Liu Jin Technology (down 5.8%) [3]. Industry Insights - The report highlights significant developments in the solar energy sector, noting that Elon Musk's teams from SPACEX and Tesla are currently assessing Chinese photovoltaic companies, with orders already placed with a leading heterojunction equipment manufacturer. Additionally, a new satellite launch technology facility has been established, which is expected to double the efficiency of single-launch capabilities and reduce network costs by over 30% [4]. - The market structure on the North Exchange is characterized by a few leading stocks declining while many others show divergence. Notably, Kai Te Co. rebounded significantly as an undervalued stock, while Lian Cheng CNC, a heavyweight stock, fell by 9.14%, impacting the overall index performance. This trend correlates with the broader A-share market, where hard technology stocks are experiencing a pullback while cyclical consumer sectors are gaining strength [5]. Investment Recommendations - The report suggests that despite short-term fluctuations influenced by A-share style rotation, the North Exchange's long-term positive factors are accumulating. The central bank is promoting quality financial services focused on key areas such as technology and green sectors, providing credit support. The successful IPOs of national-level specialized and innovative "little giant" enterprises are accelerating the review and issuance process. The report recommends focusing on high-end manufacturing and leading companies in the new energy sector, as well as specialized and innovative companies with favorable valuation and growth profiles [5].

Investment Rating - The report does not explicitly provide an investment rating for the industry or specific companies [23] Core Insights - The North Exchange A-share trading volume reached 22.508 billion yuan on February 4, an increase of 0.958 billion yuan from the previous trading day, with the North Exchange 50 Index closing at 1,538.571, down 0.71% [1][7] - The market exhibited characteristics of "few leading stocks declining, many individual stocks diverging," with notable rebounds in undervalued stocks like Kaiter Co., while weighted stocks like Liancheng CNC dragged down the index [3] - The report highlights ongoing positive factors for the North Exchange market, including policy support from the central bank for technology and green sectors, and successful IPOs of national-level specialized and innovative "little giant" enterprises [3] Market Review - On February 4, among 292 companies listed on the North Exchange, 113 stocks rose, 9 remained flat, and 170 declined [15] - The top five gainers were *ST Yunchuang (24.1%), Haitai New Energy (14.1%), Oputai (13.0%), Kaiter Co. (8.7%), and Tress (8.4%) [15] - The top five decliners were Liancheng CNC (-9.1%), Tianli Composite (-8.8%), Meibang Technology (-7.6%), Meideng Technology (-6.9%), and Liujin Technology (-5.8%) [15] Important News - Elon Musk's teams from SpaceX and Tesla are exploring China's photovoltaic industry, with the Tesla team currently in the factory inspection phase and SpaceX having placed orders with a leading heterojunction equipment manufacturer [2][17] - The first satellite launch technology facility for commercial aerospace has been established, which is expected to double the efficiency of single-rocket launches and reduce network costs by over 30% [2][18] Company Announcements - Yizhi Magic Yam announced the completion of a share buyback of 17,521 shares, accounting for 0.0170% of the total share capital before the buyback [19] - Tress plans to repurchase shares primarily to reduce registered capital, with a total repurchase amount between 10 million and 20 million yuan, representing 0.41%-0.82% of the current total share capital [20]

Group 1: Real Estate Industry Insights - The report analyzes the real estate cycle in the UK, highlighting a significant decline in transaction volumes and prices post-2007 crisis, with second-hand home transactions dropping for 23 months by 64% and new home transactions falling for 54 months by 59% [1][5] - Currently, second-hand transaction volumes have recovered to 66% of their peak, while new home transactions are at 45% of their peak. House prices have increased to 1.55 times the pre-crisis peak after 83 months of recovery [1][5] - The report notes that the UK real estate market has been influenced by quantitative easing (QE) and stamp duty adjustments, with the latter having a more significant impact on market fluctuations [6] Group 2: Transportation Sector - China Southern Airlines - China Southern Airlines is projected to achieve a net profit of RMB 8 billion to RMB 10 billion for the year 2025, with a loss in Q4 2025 expected to be between RMB 13.07 billion and RMB 15.07 billion, indicating a reduction in losses compared to Q4 2024 [10][11] - The airline's operational metrics show steady improvement, with available seat kilometers (ASK) and revenue passenger kilometers (RPK) increasing by 6.57% and 8.28% respectively in 2025, and a slight rise in passenger load factor to 85.74% [10][11] - The long-term demand for civil aviation in China is viewed positively, supported by the airline's strategic route planning, leading to a maintained "overweight" rating for the stock [10][11] Group 3: Fixed Income Market Analysis - The report indicates that convertible bond valuations are becoming increasingly bubble-like, with lower cost-effectiveness for investors. However, the long-term bullish trend in equities remains intact, suggesting potential upward movement in convertible bond valuations [14] - The report emphasizes the importance of focusing on sectors with sustained growth and high earnings realization, particularly in AI technology and commodities, while advising caution regarding high-risk convertible bonds [14][16] - In January, the convertible bond market saw a slight increase in issuance, with a total of 57.8 billion RMB in new bonds, reflecting a mixed demand from various investor types [16]