Core Viewpoint - Schroders PLC has reduced its stake in Sanhua Intelligent Control (02050) by selling 11.6683 million shares at a price of HKD 38.7019 per share, totaling approximately HKD 452 million [1] Group 1 - After the reduction, Schroders PLC's remaining shareholding is approximately 54.8266 million shares [1] - The latest shareholding percentage of Schroders PLC in Sanhua Intelligent Control is 11.51% [1]

Core Viewpoint - The A-share market experienced fluctuations with the battery sector under pressure, as evidenced by the decline of the Battery 50 ETF (159796) by 2.55% after four consecutive days of gains, with a trading volume of 322 million yuan [1]. Group 1: Market Performance - The Battery 50 ETF (159796) saw most of its constituent stocks decline, with significant drops including Sunshine Power down over 5%, and others like Xian Dao Intelligent and Multi-Fluorine down over 4% [3]. - The top ten constituent stocks of the Battery 50 ETF include major players such as Sunshine Power and Ningde Times, with varying declines in their stock prices [4]. Group 2: Project Announcements - On January 19, China Energy Construction announced the procurement results for a 153 MW battery storage project in South Africa, with Sunshine Power winning the bid for a total project capacity of 742.22 MWh and a contract value of 528 million yuan (approximately 0.86 yuan/Wh) [5]. Group 3: Industry Trends - The battery sector is expected to recover due to multiple catalysts, including a surge in demand for energy storage, rising material prices, and accelerated solid-state battery technology [6]. - Global demand for large-scale energy storage is projected to exceed expectations, with a forecasted growth of over 60% by 2026, driven by various market factors including the U.S. Inflation Reduction Act [7]. - Prices of upstream raw materials have generally increased, with battery-grade lithium carbonate rising by 64.4% to 157,000 yuan/ton, and lithium hydroxide up by 77.51% to 150,000 yuan/ton as of January 16, 2026 [8]. Group 4: Technological Developments - The solid-state battery sector is witnessing rapid advancements, with significant policy support and market catalysts enhancing industry prospects [9]. - Major automotive manufacturers are accelerating the integration of solid-state batteries, with companies like FAW Hongqi and GAC Group making substantial progress towards mass production by 2027 [9]. Group 5: Investment Opportunities - The Battery 50 ETF (159796) is positioned to benefit significantly from the energy storage sector, with a storage component of 18.7%, and a solid-state battery component of 45%, indicating strong growth potential [10]. - The ETF's focus on energy storage and power batteries, along with its low management fee of 0.15% per year, makes it an attractive investment option for capturing opportunities in the battery sector [16].

Group 1 - The core point of the article is that Schroders PLC has reduced its stake in Sanhua Intelligent Control (02050) by selling 11.6683 million shares at a price of HKD 38.7019 per share, totaling approximately HKD 452 million [1] - After the reduction, Schroders PLC's remaining shareholding is approximately 54.8266 million shares, representing a holding percentage of 11.51% [1]

Investment Rating - The report maintains a "Recommended" rating for the automotive industry [1] Core Insights - The implementation of the China-Europe electric vehicle price commitment mechanism is expected to stabilize sales expectations for Chinese electric vehicles in Europe and promote the high-end and localized transformation of automakers [5][13] - Multiple provinces have opened applications for the 2026 automotive replacement subsidy, indicating a clear path for local governments to implement the policy [14] - Great Wall Motors has launched the "Guiyuan" platform, which is the world's first native AI all-power platform, designed to support various power forms and enhance development efficiency [6][14] - The report expresses a positive outlook for 2026, highlighting opportunities in the high-end upgrade of domestic brands and the acceleration of smart technology penetration [15][16] Summary by Sections Recent Performance - The automotive sector outperformed the Shanghai Composite Index with a 1-week increase of 0.5% from January 12 to January 16, 2026, while the Shanghai Composite Index decreased by 0.4% [17] - The performance of individual stocks varied, with notable increases in companies like Ideal Auto (+2.4%) and declines in others like Li Auto (-3.5%) [17][23] Key Companies and Earnings Forecast - Key companies recommended include: - Jianghuai Automobile - Leap Motor - Great Wall Motors - BYD - SAIC Motor - China National Heavy Duty Truck [7][8] - Earnings per share (EPS) forecasts for selected companies show growth, with Great Wall Motors expected to reach an EPS of 2.03 in 2026 [8] Industry Indicators - In December 2025, automotive production and sales reached 3.296 million and 3.272 million units, respectively, with a year-on-year decrease of 2.1% and 6.2% [42] - New energy vehicles accounted for approximately 52% of total new vehicle sales, indicating a significant market shift towards electrification [42]

Market Overview - A-share major indices showed a significant rebound this week, with the weekly performance of the indices as follows: CSI 300 at -0.57%, ChiNext 300 at 1.39%, STAR 50 at 2.58%, CSI 500 at 2.18%, CSI 1000 at 1.27%, and the humanoid robot index at 1.48%, with the STAR 50 showing the most notable recovery [1] Recent Events and Highlights - China applied to the International Telecommunication Union (ITU) for frequency resources for over 200,000 satellites, with more than 190,000 satellites coming from the newly established Radio Innovation Institute. Experts are optimistic about the institute's role in integrating industry resources and leveraging China's large market to accelerate its industry to catch up with SpaceX [2] Current Perspectives - The establishment of the humanoid robot and embodied intelligence standardization technical committee by the Ministry of Industry and Information Technology is viewed positively for the humanoid robot industry chain, with related companies including Hengshuai Co., Junpu Intelligent, Anpeilong, Keda Li, Lens Technology, Changying Precision, Sanhua Intelligent Control, Fengmao Co., Top Group, and Wuzhou Xinchun [3] - Guangdong has launched its first provincial-level drone governance system, creating a drone resource pool and a provincial management platform to build a "one network for unified flight" service ecosystem, with related companies including Xindong Link, Wanfeng Aowei, Wolong Electric Drive, and Zongshen Power [3] - The China Academy of Information and Communications Technology's Tair System Laboratory recently issued a liquid cooling capability testing report and certificate to Shenzhen Invech Technology Co., indicating that AI data center construction is expected to drive demand for liquid cooling equipment, with related companies including Invech, Nanfeng Co., Chuanrun Co., and Bojie Co. [3] - China's application to the ITU for over 200,000 satellites coincides with the U.S. Federal Communications Commission granting SpaceX significant authorization to build, deploy, and operate an additional 7,500 second-generation Starlink satellites, with related companies including Superjet Co., Xindong Link, Guoji Precision, and Electric Science Digital [3]

Core Viewpoint - The data indicates significant outflows of main funds from various stocks, particularly in the communication equipment and renewable energy sectors, suggesting a potential shift in investor sentiment and market dynamics [1][2][3] Group 1: Stock Performance and Fund Outflows - The top stock with the largest fund outflow is Xinye Technology, with a decrease of 20.21 billion yuan and a drop of 5.01% [2] - Zhongji Xuchuang follows with an outflow of 18.09 billion yuan and a decline of 3.22% [2] - Yangguang Electric Power experienced an outflow of 15.07 billion yuan, with a decrease of 5.25% [2] - Shenghong Technology saw a fund outflow of 14.52 billion yuan and a drop of 5.02% [2] - China Satellite had an outflow of 13.92 billion yuan, with a significant decline of 7.84% [2] Group 2: Sector Analysis - The communication equipment sector is notably affected, with multiple companies like Xinye Technology, Zhongji Xuchuang, and Fenghuo Communication experiencing substantial fund outflows [2][3] - The photovoltaic equipment sector, represented by Yangguang Electric Power and Longi Green Energy, also shows significant outflows, indicating potential challenges in this industry [2][3] - The electronic components sector, including Shenghong Technology and Huadian Co., is facing similar trends with notable fund withdrawals [2][3]

Core Viewpoint - Schroders PLC has reduced its stake in Sanhua Intelligent Control (02050) by selling 3.6481 million shares at a price of HKD 37.47 per share, totaling approximately HKD 137 million, resulting in a new holding of about 66.4949 million shares, which represents a 13.95% ownership [2][5]. Group 1 - On January 15, Schroders PLC sold 3.6481 million shares of Sanhua Intelligent Control [2][5] - The sale price per share was HKD 37.47, leading to a total transaction value of approximately HKD 137 million [2][5] - After the reduction, Schroders PLC's remaining shares in Sanhua Intelligent Control amount to approximately 66.4949 million, equating to a 13.95% ownership stake [2][5]

Group 1 - The core point of the article is that Schroders PLC has reduced its stake in Sanhua Intelligent Control (02050.HK) by selling 3.6481 million shares at an average price of HKD 37.47 per share, amounting to approximately HKD 137 million [1][3]. - Following the sale, Schroders PLC's total shareholding in Sanhua Intelligent Control is now 66.4949 million shares, which represents a decrease in ownership from 14.72% to 13.95% [1][3]. Group 2 - The transaction occurred on January 15, 2026, and the details were disclosed on January 20, 2026 [1][2]. - The reduction in shareholding indicates a strategic decision by Schroders PLC, reflecting potential changes in investment strategy or market conditions [1].

Group 1 - Schroders PLC reduced its stake in Sanhua Intelligent Control (002050) by selling 3.6481 million shares at a price of HKD 37.47 per share, totaling approximately HKD 137 million [1] - After the reduction, Schroders PLC's remaining shareholding is approximately 66.4949 million shares, representing a holding percentage of 13.95% [1]

Group 1 - Schroders PLC reduced its stake in Sanhua Intelligent Control (02050) by 3.6481 million shares at a price of HKD 37.47 per share, totaling approximately HKD 137 million [1] - After the reduction, Schroders PLC's remaining shareholding is approximately 66.4949 million shares, representing a stake of 13.95% [1]