Core Viewpoint - The report from China Galaxy Securities indicates that investor sentiment has become highly active since the beginning of 2026, with a continuous increase in margin financing balance, reflecting policy signals aimed at guiding rational investment and maintaining market stability [1][4]. Group 1: Market Performance - During the week of January 12-16, the A-share market showed mixed performance, with the overall index rising by 0.49%. The Sci-Tech 50 index led with a 2.58% increase, while the Shanghai Composite Index and CSI 300 recorded declines [2]. - Small-cap stocks outperformed, with the CSI 1000 index rising by 1.27%, compared to a 0.57% drop in the CSI 300. Growth and cyclical styles also saw gains of 1.78% and 0.94%, respectively, while financial stocks fell by 2.73% [2]. Group 2: Fund Flows - A-share market trading activity significantly increased, with daily trading volume averaging 34,651 billion yuan, up by 6,131.1 billion yuan from the previous week. The average turnover rate rose to 2.705%, an increase of 0.47 percentage points [3]. - As of Thursday, the margin financing balance reached 27,187.27 billion yuan, an increase of 911.36 billion yuan from the previous week [3]. - In the week, 17 new equity funds were established, with a total issuance of 13.152 billion units, up by 12.191 billion units from the previous week, representing 68.17% of total issuance [3]. - From January 8 to January 14, global funds saw a net inflow of 4.111 billion USD into A-shares, accelerating from a previous inflow of 0.374 billion USD [3]. Group 3: Valuation Changes - The overall A-share index's PE (TTM) valuation increased by 0.28% to 23.28 times, placing it at the 94.63 percentile since 2010. The PB (LF) valuation also rose by 0.28% to 1.92 times, at the 56.28 percentile since 2010 [3]. Group 4: Investment Outlook - The report emphasizes that the recent increase in margin financing balance and the adjustment of financing margin ratios are intended to stabilize the market and promote rational investment. The central bank has implemented a series of monetary policy measures to support economic transformation and indicated that there is still room for further rate cuts, which is expected to boost market confidence [4].

Core Viewpoint - The computer industry is expected to experience a strong start in early 2026, with a potential bottom reversal in industry prosperity driven by AI applications and opportunities in the domestic computing power supply chain [1][5]. Industry Performance - As of early 2026, the computer industry index has increased by 18.04%, ranking third among SW primary industries, significantly outperforming major indices such as the Shanghai Composite Index (3.96%), CSI 300 (2.42%), ChiNext Index (4.56%), and STAR Market 50 Index (11.66%) [6]. - The Wind AI application index has risen by 19.25%, indicating strong market recognition of the AI application sector, which is becoming a core driver for the rebound in the computer sector's prosperity [6]. AI Application Trends - The AI application sector is witnessing a series of favorable catalysts, reshaping flow logic. Major AI model companies like Zhipu and MiniMax have recently gone public and performed strongly, while international movements, such as NVIDIA's $1 billion collaboration with Eli Lilly and OpenAI's acquisition of Torch, further enhance the positive outlook for AI applications [2][6]. - The transition from traditional SEO (Search Engine Optimization) to GEO (Generative Engine Optimization) is accelerating, pushing AI applications from a technology validation phase to a commercial value realization phase [2][6]. Commercialization Pathways - B-end AI applications are expected to see the first wave of explosive growth, with a focus on sectors such as AI + marketing, AI + industrial software, AI + healthcare, and AI + finance [7]. - Traditional C-end companies with strong user bases and brand influence can further solidify their competitive advantages through AI empowerment, making them worthy of long-term investment tracking [7]. Computing Power Infrastructure - The domestic computing power sector is entering a new development cycle, with a recovery trend in AIDC bidding observed in Q4 2025. Major internet companies in China are expected to accelerate data center layouts in 2026 [3][7]. - If H200 supply is restored, it will significantly enhance large model training efficiency, further accelerating the implementation of AI applications and driving demand for domestic computing power chips in inference [3][7]. Investment Recommendations - The report suggests focusing on two main investment lines for 2026, with eight specific sub-sector recommendations: 1. Large model and MaaS vendors, including Alibaba-W, Zhipu, MiniMax, and iFlytek 2. Domestic computing power and data center supply chain, including Cambrian, Haiguang Information, Runze Technology, and Inspur 3. AI + marketing sector, including BlueFocus and Visual China 4. AI + industrial software sector, including Dingjie Zhizhi and BGI 5. AI + healthcare sector, including Jingtai Holdings and Weining Health 6. AI + office sector, including Kingsoft Office and Wanjing Technology 7. AI + ERP sector, including Kingdee International and Yonyou Network 8. AI + finance sector, including Hengsheng Electronics and Tonghuashun [8].

Core Insights - The AI glasses are evolving into a new generation of human-computer interaction core carriers, with the industry experiencing a critical turning point in 2023 due to breakthroughs in multiple core technologies [1][2] - The integration of AI functionalities presents a high-value logic of "small incremental costs for large incremental experiences," which can naturally attract a large existing user base from traditional glasses and sunglasses [2] Technology Breakthroughs and Interaction Innovations - AI glasses are becoming the core carriers of human-computer interaction, with significant technological breakthroughs enabling lightweight devices to support complex voice and environmental interactions [1] - The introduction of specialized low-power chips provides the hardware foundation for offline voice interaction and real-time translation, optimizing power consumption and battery life [1] Market Expansion and Competitive Landscape - The global AI glasses market is in a phase of rapid expansion and structural differentiation, with AI glasses expected to account for 78% of smart glasses shipments by mid-2025, and global shipments projected to reach 20 million units by 2028 [3] - The market features a "one strong leader and many strong followers" structure, with leading companies taking the initiative while numerous brands follow suit, employing a dual-line product strategy [3] User Base and Market Potential - There are currently 2.2 billion people globally with vision impairment, and the global sunglasses market is projected to reach approximately $22.32 billion in 2024, providing a substantial user base for AI glasses [2] - The advancements in technology are transforming AI glasses from smartphone accessories to independent smart devices that can deliver value across multiple scenarios [2] Challenges in User Experience and Cost - The path to large-scale adoption of AI glasses faces challenges such as poor user experience leading to high return rates and high costs hindering market penetration [4] - Optical display (43%) and main control chips (31%) constitute a significant portion of the overall cost, with optical waveguide lenses and display technology being key cost constraints [4] Application Ecosystem and Privacy Concerns - The domestic market shows a fragmented brand ecosystem, limiting the core value of devices in daily scenarios, although some companies are making strides in ecosystem integration [4] - The lack of privacy and security standards needs to be addressed through industry collaboration to build user trust, which is essential for the growth of AI glasses [4]

Core Insights - The report from China Galaxy Securities highlights a significant increase in attention towards AI applications, driven by intensive catalysts in the application sector, transitioning from traditional SEO to GEO, which is expected to facilitate the commercialization of AI [1][2] Group 1: AI Application Trends - AI applications are anticipated to see a surge in commercialization, particularly in B-end applications, as GEO leads the market by controlling traffic in the AI era, thereby enhancing its commercial value [2] - The internal application of AI models in enterprises is beginning to show cost-reduction and efficiency-enhancement effects, suggesting a focus on B-end applications such as AI in marketing, industrial software, healthcare, and finance [2] Group 2: Data Center and Domestic Computing Power - The demand for data centers is expected to rebound starting in Q4 2025, with major internet companies accelerating their data center layouts, potentially outpacing the 2025 timeline [3] - The recovery of H200 supply could enhance the efficiency of large model training, further accelerating the deployment of AI applications and increasing demand for domestic computing power chips [3] Group 3: Investment Recommendations - Key investment targets include major model and MaaS vendors such as Alibaba-W, Zhizhu AI, and MINIMAX-WP, as well as companies in the domestic computing power and data center supply chain [4][5] - Specific sectors for investment include AI in marketing, industrial software, healthcare, office applications, ERP, and finance, with recommended companies listed for each category [4][5]

Core Viewpoint - China Galaxy Securities predicts that during the "14th Five-Year Plan" period, the investment scale in the power grid may reach around 1 trillion yuan annually, with significant growth expected in the investment from State Grid and Southern Grid in 2026 [1] Group 1: Investment Outlook - The total fixed asset investment by State Grid is expected to reach 4 trillion yuan during the "14th Five-Year Plan," a 40% increase compared to the previous plan, while Southern Grid's investment is projected to be around 1 trillion yuan [1] - The anticipated investment amounts for State Grid and Southern Grid in 2026 are 700 billion yuan and 189 billion yuan, respectively, representing year-on-year growth of 7.6% and 8.0% [1] Group 2: High Voltage and Main Network - By the end of 2025, State Grid plans to complete 42 high-voltage projects, with expectations for further approvals and construction of additional projects in 2026 [2] - The demand for core equipment in the power system is increasing, with a projected tender amount for State Grid's transmission and transformation equipment reaching 91.88 billion yuan in 2025, a year-on-year increase of 25.3% [2] Group 3: Distribution Network and Metering - The distribution network is expected to see significant growth, with a total tender amount of 124.57 billion yuan in 2025, driven by the demand for smart upgrades [3] - The new standards for metering equipment are expected to lead to a recovery in prices, with 2026 anticipated to be a year of simultaneous volume and price increases [3] Group 4: Global Trends and AI Demand - North America is facing a significant electricity shortfall, with AI data center (AIDC) demand projected to increase electricity consumption from 176 TWh in 2023 to between 325-580 TWh by 2028 [4] - Global electricity and grid investment is expected to reach new highs, with projections of $1.5 trillion in 2024 and over $3.3 trillion by 2035, reflecting a compound annual growth rate (CAGR) of 8% from 2025 to 2035 [4] Group 5: Export Opportunities - The overseas supply of power equipment is expected to face shortages, with delivery times for transformers and high-voltage cables in Europe and the U.S. nearly doubling [5] - In the first 11 months of 2025, exports of transformers, meters, and other electrical equipment showed significant growth, indicating a continued upward trend in 2026 [6]

Core Viewpoint - The focus is on the historic moment of the Hainan Free Trade Port's official operation, highlighting the significant role of China Galaxy Securities in this development and its contributions to the global supply chain [1][2]. Group 1: Market Performance and Company Growth - The domestic capital market is experiencing a robust recovery, with the A-share index reaching a ten-year high, driven by high-growth sectors such as AI, semiconductors, and smart manufacturing [2]. - China Galaxy Securities reported its best performance in 25 years for 2025, with total assets increasing from 445.7 billion to 861.1 billion yuan and net assets rising from 82 billion to 152.4 billion yuan, marking nearly a twofold growth [2]. - The company has seen a customer increase of over 7 million accounts and a market capitalization growth of over 50 billion yuan, significantly enhancing its overall strength [2]. Group 2: Strategic Initiatives in Hainan - China Galaxy Securities is deeply involved in the development of the Hainan Free Trade Port, aiming to transform Hainan from a logistics channel to a "super interface" for global supply chains entering China [2][3]. - The company has organized high-profile events in Hainan, such as the Southeast Asia Two-Way Investment Forum and the International Consumption and Investment Theme Exchange, to foster regional cooperation and investment [3]. - A strategic cooperation agreement was signed with the Hainan International Economic Development Bureau to leverage tax incentives and financial facilities for comprehensive financial services [3]. Group 3: Financing Solutions and Green Development - China Galaxy Securities has provided extensive financing solutions, including assisting the Hainan provincial government in issuing offshore RMB bonds totaling 13 billion yuan and supporting major enterprises with tailored financial services [4]. - The company has introduced innovative products for green development, such as the first domestic cross-border carbon emission rights swap product, which has received multiple international awards [4]. Group 4: Regional Connectivity and Global Strategy - The company has established itself as the most widely positioned Chinese investment bank in the ASEAN region, exemplified by the successful launch of a direct flight route from Haikou to Kuala Lumpur [5]. - China Galaxy Securities aims to integrate its marketing network to support Chinese enterprises in leveraging Hainan's advantages for global expansion, aligning with the evolving global economic landscape [6]. - A new platform for high-quality services for enterprises going abroad has been established in collaboration with the Hainan Provincial Financial Office, enhancing support for domestic and international businesses [6].

Core Viewpoint - The conference "New Pattern · New Hub - Hainan Free Trade Port Empowering Global Supply Chain Construction" highlights Hainan's strategic role in China's modernization and its commitment to higher levels of openness, with China Galaxy Securities positioning itself as a key partner in this development [1][2]. Group 1: Conference Overview - The conference is the first of its kind focused on global supply chain construction since Hainan's full closure, aiming to gather consensus and outline a new blueprint for global supply chain hubs [1]. - The event was hosted by the Hainan Provincial Financial Office and organized by China Galaxy Securities, emphasizing the importance of Hainan's unique geographical and institutional advantages [1][2]. Group 2: Economic and Strategic Insights - The global economic landscape is undergoing significant changes, with supply chains being restructured, and Hainan is poised to seize new development opportunities [2]. - The "New Pattern" refers to a new international economic cooperation framework amidst de-globalization, while the "New Hub" signifies Hainan's ambition to become a key node in global supply chain resource allocation [2]. Group 3: Achievements and Initiatives - China Galaxy Securities has made substantial progress in five areas: 1. Establishing platforms for investment forums and international exchanges to enhance communication [2]. 2. Launching a 10 billion yuan fund for the construction of the free trade port, with a total fund size reaching 20.9 billion yuan [2]. 3. Assisting in the issuance of 13 billion yuan in offshore RMB local government bonds and providing comprehensive financial services to key state-owned enterprises [3]. 4. Promoting green development through the establishment of a carbon market and innovative financial products [3]. 5. Expanding its presence in Southeast Asia, aligning with Hainan's strategic positioning [3]. Group 4: Cross-Border Financial Services - China Galaxy Securities is actively building a bridge between Hainan and ASEAN capital markets, leveraging its extensive network and resources [4]. - The firm supports cross-border mergers and acquisitions and financing for Chinese enterprises venturing abroad, enhancing their global competitiveness [5]. Group 5: Ecosystem Development - The establishment of the "Hainan Free Trade Port High-Quality Service Platform for Enterprises Going Abroad" aims to integrate resources and provide comprehensive solutions for businesses [6]. - The "Gathering Hainan · Connecting the World" initiative was launched, with participation from leading companies, showcasing a strong consensus on utilizing Hainan as a strategic base for global operations [6]. Group 6: Future Outlook - China Galaxy Securities is committed to supporting national strategies and aims to create a comprehensive financial service ecosystem that facilitates Hainan's role as an important gateway for international trade [5][7].

Core Viewpoint - The conference "New Pattern · New Hub" highlighted the role of Hainan Free Trade Port in enhancing global supply chain construction, with China Galaxy Securities positioning itself as a key strategic partner in this initiative [1][2]. Group 1: Conference Overview - The conference was the first of its kind focused on global supply chain construction since the full closure of Hainan Free Trade Port, aiming to gather consensus and outline a new blueprint for global supply chain key hubs [1]. - The event was hosted by the Hainan Provincial Financial Office and organized by China Galaxy Securities, emphasizing the importance of Hainan's unique geographical and institutional advantages in the new global economic landscape [1][2]. Group 2: Company Achievements and Initiatives - China Galaxy Securities has made significant progress in five areas to support the construction of Hainan Free Trade Port: platform building, fund investment, investment banking services, green development, and international expansion [2][3]. - The company has established a total scale of 10 billion yuan for a mother fund aimed at Hainan Free Trade Port construction, with sub-funds reaching a cumulative scale of 20.9 billion yuan, and recently approved to expand the mother fund to 20 billion yuan [2][3]. - The company has assisted the Hainan provincial government in issuing a total of 13 billion yuan in offshore RMB local government bonds and has provided comprehensive financial services to key state-owned enterprises in Hainan [3]. Group 3: Strategic Positioning and Future Plans - Hainan's geographical position as a hub between China and Southeast Asia is increasingly significant, with China Galaxy Securities leveraging its resources to build a solid bridge between Hainan and ASEAN capital markets [4][5]. - The company has launched the "Galaxy Starry Entrepreneur Office" platform to provide integrated services for enterprises, including market value management and cross-border merger consulting, aiming to become a crucial bridge for high-growth Chinese enterprises and global capital [5]. - China Galaxy Securities is committed to supporting national strategies and aims to create a comprehensive financial service ecosystem to enhance Hainan's role as an important gateway for international trade [6][7]. Group 4: Ecosystem Development - The conference also marked the establishment of the "Hainan Free Trade Port High-Quality Service Platform for Enterprises Going Abroad," which integrates top institutions to create a comprehensive service system for global supply chains [6]. - The initiative received support from leading enterprises, showcasing a strong consensus among industry leaders to use Hainan as a strategic base for global operations [6]. - China Galaxy Securities plays a pivotal role in this ecosystem, facilitating the development of a safe and efficient cross-border investment service environment [6][7].

Group 1 - China Galaxy Securities executed three block trades on January 15, totaling 2.598 million shares and a transaction value of 37.3593 million yuan, with a transaction price of 14.38 yuan, reflecting an 8.29% discount compared to the closing price of the day [1][2] - The closing price of China Galaxy on the same day was 15.68 yuan, down 1.88%, with a turnover rate of 0.89% and a total transaction amount of 1.015 billion yuan, indicating a net outflow of 51.4924 million yuan in main funds [1][2] - Over the past five days, the stock has declined by 2.24%, with a cumulative net outflow of funds amounting to 74.1534 million yuan [1][2] Group 2 - The latest margin financing balance for China Galaxy is 3.006 billion yuan, which has decreased by 6.9368 million yuan over the past five days, representing a decline of 0.23% [2] - China Galaxy Securities Co., Ltd. was established on January 26, 2007, with a registered capital of 1.0934402256 billion yuan [2]

Core Viewpoint - China Galaxy Securities (06881.HK) has successfully completed the public issuance of its 2026 perpetual subordinated bonds (Phase 1) on January 15, 2026, with a total issuance size of RMB 5 billion [1] Group 1: Bond Issuance Details - The bonds were issued at a price of RMB 100 per unit [1] - The bonds have a repricing cycle of five years, with the first coupon rate set at 2.37% for the initial five-year period [1] - The company has the option to extend the bond term for an additional repricing cycle or fully redeem the bonds at the end of each cycle [1] Group 2: Fund Utilization - Proceeds from the bond issuance will be used to supplement the company's working capital [1] Group 3: Underwriting Participation - The main underwriter, CITIC Securities Co., Ltd., subscribed to RMB 150 million of the bonds [1] - Other participating underwriters include Shenwan Hongyuan Securities Co., Ltd. and its affiliate, which subscribed for RMB 120 million, and Guotai Junan Securities Co., Ltd. and its affiliates, which subscribed for RMB 140 million and RMB 50 million respectively [1]