Group 1 - The report indicates a shift towards a weaker economic outlook, with liquidity remaining slightly loose and credit indicators showing slight improvement. The macro dimensions suggest a continued trend of weak economy, loose liquidity, and credit contraction [2][8][14] - The asset allocation strategy emphasizes high dividend and low volatility configurations, focusing on factors that are insensitive to economic and credit conditions. The top scoring factors are centered around profitability and dividends, with significant improvements in dividend scores [5][9][30] - The report maintains a high allocation to gold, suggesting a 20% upper limit due to ongoing momentum, while bond views have improved but remain low due to other asset influences [2][27] Group 2 - Economic forward indicators are trending weak, entering the initial phase of a decline since December 2025, with expectations of continued downward movement. Key indicators such as PMI and retail sales are in a downward cycle [14][19] - Liquidity conditions have returned to a slightly loose state, with interest rates stabilizing and short-term rates slightly declining, indicating a shift back to a neutral signal [21][24] - Credit indicators show slight improvement in social financing year-on-year, although the structure of loans to households and enterprises has decreased, indicating a preference in credit indicators [25][26] Group 3 - The market focus remains on PPI, which has surpassed economic indicators in attention, highlighting market concerns regarding future demand recovery [28][29] - Industry selection is biased towards weak cyclical sectors, with top scoring industries including computer and food and beverage sectors, which are less sensitive to economic and credit fluctuations [30][31]

Investment Rating - The report recommends a positive outlook for the shipping industry, particularly for VLCC (Very Large Crude Carrier) and related companies such as COSCO Shipping Energy and China Merchants Energy [2]. Core Insights - The report highlights the potential benefits from the political changes in Venezuela, which could lead to increased oil exports and a shift from black market operations to normal market conditions, positively impacting VLCC demand [2]. - New ship prices have shown an upward trend, with a 0.5% increase, indicating a positive market sentiment for shipbuilding [2]. - The report notes a significant drop in VLCC average freight rates, down 36% week-on-week, reflecting seasonal trends and geopolitical tensions [2]. - The aviation sector is expected to experience a significant boost due to rising passenger volumes and a constrained supply chain, suggesting a favorable environment for airlines [2]. - The express delivery sector is entering a new phase of competition, with potential for profit recovery and industry consolidation [2]. Summary by Sections Shipping Industry - Venezuela's shift to normal market operations could increase oil supply and demand for VLCCs, with a projected increase in compliant VLCC oil transport demand by approximately 1.4% [2]. - The report indicates a notable decline in VLCC freight rates, with Middle East to Far East rates dropping by 45% [2]. - The report recommends companies like COSCO Shipping Energy and China Merchants Energy due to their favorable positioning in the VLCC market [2]. Aviation Sector - The report emphasizes the ongoing challenges in the aircraft manufacturing supply chain and the aging fleet, which is expected to limit supply while demand continues to grow [2]. - Airlines are anticipated to see significant improvements in profitability, marking a potential golden era for the sector [2]. - Recommended airlines include China Eastern Airlines, China Southern Airlines, and Spring Airlines, among others [2]. Express Delivery - The express delivery industry is undergoing a transformation, with three potential scenarios outlined: profit recovery, increased competition, and consolidation [2]. - Companies such as Shentong Express and YTO Express are highlighted for their resilience and growth potential [2]. Rail and Road Transport - The report notes stable growth in railway freight and highway truck traffic, with December data showing a slight decrease in volumes but overall resilience [2]. - Investment opportunities in high-dividend stocks and undervalued companies in the highway sector are suggested [2].

Group 1 - The North Exchange 50 Index decreased by 1.55% this week, with an average daily trading volume of 19.4 billion, reflecting a 2.8% decrease compared to the previous week [6][11][16] - The new stock, Hengdongguang, listed this week, with a first-day increase of 878.16% and a turnover rate of 53.79% [11][30] - The theme investment remains active, particularly in sectors such as humanoid robots, AI, commercial aerospace, and nuclear fusion, with notable performances from Tianming Technology (+65.8%) and Lifan Holdings (+29.9%) [11][12][13] Group 2 - A total of 40 companies were accepted for public offering this week, with several expected to achieve over 200 million yuan in net profit for 2024 [12][13] - The report highlights the potential for high-quality expansion in the North Exchange in 2026, with attention on companies like Jieli Technology and Xianlin Sanwei [12][13] - The report emphasizes the importance of timing in theme investments, particularly in the context of the upcoming "14th Five-Year Plan" and the spring market [13][14] Group 3 - The report indicates a shift in market style from small-cap stocks to growth sectors, with a focus on technology and cyclical industries for the first half of 2026 [13][14] - The North Exchange's PE (TTM) average is 82.98 times, with a median of 39.74 times, indicating a valuation landscape that investors should consider [4][24][26] - The report notes that the financing balance for margin trading on the North Exchange is 7.985 billion yuan, reflecting ongoing investor engagement [6][30] Group 4 - The new third board saw 8 new listings and 3 delistings this week, with a total of 5960 companies listed [47][49] - The report mentions that the new third board completed financing of 769 million yuan this week, indicating active capital movement [47][52] - The report provides insights into the fundraising plans of various companies, highlighting significant amounts raised in the medical and mechanical sectors [52][53]

Core Insights - The report analyzes the impact of the new regulations on public fund sales, which were implemented on January 1, 2026, following the release of the "Public Offering Securities Investment Fund Sales Expense Management Regulations" by the CSRC on December 31, 2025 [4][9] - The new regulations aim to lower investment costs for fund investors and standardize the sales market, thereby protecting investors' rights [9] Group 1: Changes in Sales Fees - The new regulations introduce significant reductions in subscription fees, with the maximum rates set at 0.8% for actively managed equity funds, 0.5% for other mixed funds, and 0.3% for bond and index funds [10][19] - Redemption fees are standardized across all share classes, with specific exemptions for individual investors and bond funds, leading to increased capital costs and limitations on trading strategies [11][24] - The sales service fee for funds held over one year is eliminated, except for money market funds, which significantly affects the cost-effectiveness of C shares [12][25] - Customer maintenance fees are differentiated based on investor and product types, with lower rates for low-risk institutional products [13][28] Group 2: Impact on Different Fund Types - Active equity funds are less sensitive to redemption fees, suggesting limited impact, while the focus for fund managers should be on enhancing long-term investor retention [14] - Index funds, particularly ETFs, are expected to benefit from the new regulations, with recommendations for fund managers to explore the market potential for enhanced index funds [14] - Fixed income funds, especially primary and secondary bond funds, are positively impacted, while low allocation mixed funds may see reduced attractiveness due to redemption fees [14][42] - Pure bond funds may face challenges in liquidity management, benefiting the long-term development of bond ETFs [14][42] - Money market funds are expected to see a slight increase in yields due to the reduction in sales service fees [15] Group 3: Institutional Fund Analysis - The new regulations present challenges primarily for institutional pure bond funds, particularly those requiring high liquidity [29] - The current structure of bond fund holders is predominantly institutional, accounting for 82.97% of the total [29][31] - The estimated scale of public funds held by bank proprietary funds is approximately 9.58 trillion, while insurance proprietary funds account for about 2.35 trillion [32][36] - Institutional investor behavior is expected to shift towards long-term holding strategies, with a focus on quality assessment and reduced trading frequency [40][41]

Investment Rating - The report maintains a positive outlook on the industry, indicating a "Buy" rating for the sector [1]. Core Insights - The report highlights significant developments in the semiconductor and AI sectors, particularly focusing on companies like Wallran Technology and TianShu Intelligent Chip, which are preparing for IPOs and showcasing innovative GPU products [3][28]. - The report emphasizes the rapid growth of revenue in AI-related businesses, with companies like Zhipu and MiniMax leading the way in large model commercialization [39]. Summary by Sections Wallran Technology - Wallran Technology is set to launch its IPO on January 8, 2026, and has developed a range of GPGPU chips and intelligent computing solutions, with significant revenue growth from 0.499 million in 2022 to 58.9 million in 2025H1 [3][4]. - The company has a strong team with backgrounds from major tech firms like AMD and Huawei, focusing on GPGPU architecture and software platforms [4][5]. - Wallran's core products include the BR106 and BR110 series, with a sales volume of 9,344 units for BR106 in 2024 and a projected revenue of 1.24 billion from orders [26][21]. TianShu Intelligent Chip - TianShu Intelligent Chip commenced its IPO process on December 30, 2025, and has developed a comprehensive product line for AI computing, including the TianGai series for training and the ZhiKai series for inference [28][32]. - The company has achieved significant milestones, including the launch of its second-generation training product, TianGai Gen 2, and has a strong financial backing from notable investors [29][32]. - The average selling price for TianGai products is between 30,000 to 40,000 yuan, while ZhiKai products average around 10,000 yuan [34]. Zhipu - Zhipu has established itself as a leader in the B-end localization deployment of AI models, achieving a revenue of 310 million in 2024, with a year-on-year growth of 150.9% [42]. - The company focuses on a comprehensive AI model suite, including language, multi-modal, and intelligent agent models, with a strong emphasis on R&D and high gross margins in localized deployments [41][44]. - Zhipu's models have been adopted by over 8,000 institutional clients, showcasing its significant market presence [47]. MiniMax - MiniMax, founded in 2021, emphasizes efficient model architecture and rapid commercialization of AI products, with a significant portion of its revenue coming from overseas markets [39][50]. - The company has released several innovative products, including the Hailuo AI video generation platform and the M2 series models, which enhance coding capabilities across multiple programming languages [50]. - MiniMax's business model focuses on direct sales and expanding its distribution network, with a notable decrease in revenue concentration from its top clients over recent years [36].

Market Overview - The significant drop in precious metals was driven by the Federal Reserve's internal disagreements on interest rate cuts for 2026 and the CME's increase in futures margin requirements[3] - Gold prices fell by 4.79% during the week, while the 10-year U.S. Treasury yield rose to 4.19%, an increase of 5 basis points[3][15] Capital Flows - Domestic capital inflow into the Chinese stock market was $4.99 million, while foreign capital outflow amounted to $0.65 million in the past week[3] - Global funds saw inflows into money market funds, with U.S. equity markets receiving $11.6 million in inflows[20] Valuation Metrics - The A-share equity risk premium (ERP) slightly decreased but remains at a historically neutral level, with the Shanghai Composite Index's valuation at the 87.8 percentile over the past decade[3][19] - The risk-adjusted return percentile for the Shanghai Composite Index increased from 92% to 94%[3] Risk Sentiment - The VIX index for U.S. stocks showed a slight decrease, indicating a marginally improved risk sentiment, while the Chinese options market displayed increasing divergence in capital positioning[3][19] - The S&P 500 closed at 6858, below the 20-day moving average, with an implied volatility trend on the rise[3] Economic Data - The U.S. unemployment claims significantly dropped, indicating a potential cooling in the economy, while inflation expectations for the U.S. are trending downward[3][19] - The probability of maintaining the current interest rate range of 3.5%-3.75% increased to 83.40% as of January 3, 2026, up from 82.30% the previous week[3]

Investment Rating - The industry investment rating is "Overweight" indicating that the industry is expected to outperform the overall market [10]. Core Insights - The report discusses the recent revision of the "Regulations on the Management of Sales Fees for Publicly Offered Securities Investment Funds" by the China Securities Regulatory Commission (CSRC), which aims to enhance investor benefits and promote long-term value investment [2][3]. - The public fund industry is entering a new phase of healthy and high-quality development following the comprehensive implementation of fee reforms [3]. - The report anticipates continued growth in the scale of publicly offered funds, driven by long-term capital inflows and the need for diversified asset management in a low-interest-rate environment [3]. Summary by Sections Regulatory Changes - The revised regulations differentiate subscription fees for mixed and index funds, aligning the subscription fee for index funds with that of bond funds, which is capped at 0.3% [3][4]. - The redemption fee structure has been adjusted to protect individual investors while encouraging institutional investors to focus on long-term value [3]. Industry Review - In 2025, the public fund industry saw a significant transformation with the implementation of 25 measures aimed at promoting high-quality development, including optimizing fee structures and enhancing performance benchmarks [3]. - The total scale of publicly offered funds grew from 8.3 trillion yuan to 36.3 trillion yuan over the past decade, with a compound annual growth rate (CAGR) of 16% [3]. Future Outlook - The report projects that the scale of publicly offered funds will continue to grow in 2026, supported by the influx of long-term capital from insurance institutions and pension funds [3]. - Equity and fixed-income plus products are expected to become the main drivers of growth, as they align with the demand for asset appreciation in a low-risk environment [3]. Investment Analysis - The comprehensive reform of public funds is expected to benefit brokerage firms in both investment and distribution segments, with a shift towards long-term value investment [3]. - The report highlights the potential for brokerage firms to leverage their expertise in equity and index products as a competitive advantage in the evolving market landscape [3].

Investment Rating - The report maintains an "Overweight" rating for the pharmaceutical industry, indicating a positive outlook compared to the overall market performance [2]. Core Insights - The pharmaceutical sector experienced a decline of 2.1% in the latest week, while the Shanghai Composite Index rose by 0.13%. The pharmaceutical index ranked 28th among 31 sub-industries [2][3]. - The current valuation of the pharmaceutical sector stands at 28.6 times earnings, placing it 10th among 31 primary industries [6]. - Significant developments include Neuralink's announcement of large-scale production of brain-machine interface devices starting in 2026, which is expected to accelerate the growth of the brain-machine interface industry [12]. - Recent collaborations in drug development include a strategic partnership between Heptares Therapeutics and BlueNac, focusing on the development of next-generation radionuclide drug conjugates (RDCs) [13]. - The report highlights the potential of AI in drug development, with Insilico Medicine achieving significant milestones in just eight months [15]. Market Performance - The pharmaceutical sector's performance was notably poor, with various sub-sectors such as raw materials, chemical preparations, and vaccines all experiencing declines ranging from 1.1% to 4.1% [6][3]. - The report emphasizes the need to monitor the recovery of the domestic innovative drug environment, which may present investment opportunities in Contract Research Organizations (CROs) [2]. Company Developments - Zai Lab granted AbbVie exclusive rights for ZG006 outside Greater China, with potential payments reaching up to $1.235 billion [14]. - Frontier Biotech's FB7013, a siRNA drug targeting the MASP-2 protein, has received approval for clinical trials, indicating its potential in treating primary IgA nephropathy [15]. - New drug applications and IPOs are highlighted, including New Tong Pharmaceutical's application for the STAR Market and Jingze Biotech's IPO in Hong Kong [16][20]. Investment Opportunities - The report suggests focusing on companies benefiting from the recovery in the innovative drug sector, including Tigermed, WuXi AppTec, and others [2]. - The anticipated industrialization of brain-machine interfaces presents investment opportunities in related companies such as Botai Bio, Lepu Medical, and others [2].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - Since December 2025, convertible bonds have seen a new round of recovery. High - parity equity - biased convertible bonds led the rise, and the military sector under the commercial space theme had a large increase. High - parity convertible bond valuations returned to high levels, but the valuations of debt - biased convertible bonds loosened. Convertible bonds are expected to benefit from the rise of the equity market and the activity of small and micro - cap stocks, but beware of the valuation risks of "double - high" convertible bonds represented by newly - issued ones [3][4]. - The market declined slightly this week, but the 100 - yuan premium rate rose 0.3% to 31.1%, approaching the high point on August 25, 2025. The overall valuation of the equity - biased area was better than that of the debt - biased and balanced areas this week [3][5]. - This week, Yingtai Convertible Bond announced redemption with a 100% forced redemption rate. One convertible bond proposed a downward revision, and Hongchuan Convertible Bond announced the downward revision result without reaching the bottom. Shanbo Convertible Bond issued a conditional put - back notice [20][26][28]. 3. Summary by Relevant Catalogs 3.1 Weekly View and Outlook - Since December 2025, high - parity equity - biased convertible bonds led the rise in the recovery. Due to the commercial space theme and the release of forced redemption risks, high - parity convertible bond valuations returned to high levels. The valuations of debt - biased convertible bonds loosened due to the shortening of the remaining term and weaker - than - expected downward revisions. Convertible bonds are expected to benefit from the equity market and small - cap stocks, but beware of "double - high" convertible bond valuation risks [3][4]. 3.2 Convertible Bond Valuation - The market declined slightly this week, and the 100 - yuan premium rate rose 0.3% to 31.1%, close to the 2025/8/25 high of 31.4%. After excluding outliers, the market - wide 100 - yuan premium rate was 31.1%, up 0.3% this week, at the 99.8% percentile since 2017 [3][5]. - By observing different parity intervals, the equity - biased area's valuation was better than the debt - biased and balanced areas this week. The 120 - 140 yuan parity interval's valuation rose slightly, and the over - 140 yuan parity interval's valuation was roughly flat [3][9]. - In the high - parity area, convertible bonds with significant valuation declines were those in the redemption process or "double - high" ones. In the medium - and low - parity area, they were near - maturity or non - downward - revised convertible bonds [3][12]. - From the perspective of the conversion premium rate, the 110 - 120 yuan and 80 - 90 yuan parity intervals had relatively low historical quantiles. From the perspective of the bottom - protection premium rate, the 70 - 90 yuan parity interval had relatively low historical quantiles [3][16]. 3.3 Clause Tracking 3.3.1 Redemption - This week, Yingtai Convertible Bond announced redemption, and no convertible bond announced non - redemption, with a forced redemption rate of 100%. There are currently 12 convertible bonds that have issued forced redemption or maturity redemption announcements but have not delisted, with a potential conversion or maturity balance of 4 billion yuan [20]. - There are 27 convertible bonds currently in the redemption process. Seven are expected to meet the redemption conditions next week, and 12 are expected to issue potential redemption trigger announcements. Seventeen convertible bonds are expected to enter the forced redemption counting period within the next month [22]. 3.3.2 Downward Revision - One convertible bond proposed a downward revision this week, and Hongchuan Convertible Bond announced the downward revision result without reaching the bottom. As of now, 111 convertible bonds are in the non - downward - revision interval, 19 cannot be downward - revised due to net asset constraints, 1 has triggered the condition but has not announced, 22 are accumulating downward - revision days, and 2 have issued board proposals for downward revision but have not held a general meeting of shareholders [26]. 3.3.3 Put - back - Shanbo Convertible Bond issued a conditional put - back notice this week. As of now, 5 convertible bonds are accumulating put - back trigger days, among which 3 are also accumulating downward - revision days, and 2 are in the non - downward - revision interval [28]. 3.4 New Issuance Progress - As of now, there are 9 convertible bonds in the approval - in - progress stage, with a to - be - issued scale of 11.2 billion yuan; and 6 in the listing - committee - approved stage, with a to - be - issued scale of 3.4 billion yuan [30].

Valuation Summary - The overall valuation of A-shares as of December 31, 2025, shows the CSI All Share (excluding ST stocks) with a PE of 21.6x and a PB of 1.8x, positioned at the 81st and 42nd historical percentiles respectively [2] - The Shanghai Composite Index has a PE of 11.8x and a PB of 1.3x, at the 63rd and 43rd percentiles [2] - The CSI 300 Index has a PE of 14.2x and a PB of 1.5x, at the 65th and 39th percentiles [2] - The CSI 500 Index shows a PE of 33.8x and a PB of 2.3x, at the 64th and 51st percentiles [2] - The ChiNext Index has a PE of 40.8x and a PB of 5.5x, at the 35th and 63rd percentiles [2] - The STAR 50 Index has a PE of 161.1x and a PB of 6.1x, at the 97th and 66th percentiles [2] Industry Valuation Comparison - Industries with PE valuations above the 85th historical percentile include Real Estate, Retail, and IT Services [2] - Industries with PB valuations above the 85th historical percentile include Electronics (Semiconductors) and Communications [2] - Industries with both PE and PB valuations below the 15th historical percentile include Medical Services and White Goods [2] Industry Sentiment Tracking New Energy - In the photovoltaic sector, prices for silicon wafers increased by 10.8%, while battery cell prices rose by 11.8% [2] - The price of lithium carbonate increased by 0.9%, and lithium hydroxide rose by 8.4% [2] Technology TMT - The Philadelphia Semiconductor Index increased by 2.2%, and the Taiwan Semiconductor Index rose by 5.1% [3] - The DXI Index (DRAM output value) increased by 7.2%, driven by strong demand for high-performance products related to AI [3] Real Estate Chain - The price of rebar increased by 0.1%, while the price of cement decreased by 0.3% [3] - The national cement price index showed a decline of 0.3% [3] Consumer Sector - The average price of live pigs increased by 10.4%, while the wholesale price of pork rose by 1.4% [3] - The price of Moutai liquor decreased by 3.5% to 1505 yuan [3] Cycle - The price of Brent crude oil futures decreased by 2.4%, closing at $60.8 per barrel [3] - The price of LME copper increased by 2.7%, while LME aluminum rose by 2.2% [3]