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]

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The UK real estate market has experienced significant fluctuations, with a recovery in second-hand home sales reaching 66% of pre-crisis peak levels and house prices recovering to 1.55 times the pre-crisis peak after 83 months [5][12][25] - The impact of policies such as quantitative easing (QE) and stamp duty adjustments has been significant, with the latter showing more pronounced effects on the real estate cycle [5][27] - Population dynamics, including high homeownership rates among local residents and the influx of new immigrants, have influenced housing demand, although immigration has not significantly impacted house prices [5][46][50] Summary by Sections Transaction Volume and Price Cycle Review - The UK housing market saw a decline in second-hand home sales by 64% and new home sales by 59% during the crisis period from 2007 to 2009 [12] - Currently, second-hand sales have recovered to 66% of their peak, while new home sales are at 45% of their peak [12] - House prices have increased to 1.55 times the pre-crisis peak, indicating a strong recovery [12][25] Policy Cycle Impact Review - The report highlights that the focus of policy responses during the 2007-2009 financial crisis was on stabilizing the banking system rather than directly stimulating housing transactions or prices [28] - Key measures included bank nationalization, emergency liquidity support, and the initiation of QE, which helped stabilize the housing market [28][29] Core Influencing Factors: Population Migration, Rent, and Mortgage Loans - The homeownership rate among UK-born residents is 67%, while EU-born residents have a lower homeownership rate of 35% [39][42] - New immigrants tend to rent initially, with homeownership rates increasing significantly after 20 years of residence in the UK [44] - Rental prices have shown a consistent upward trend, with recent yields recovering to 6.08% after a decline [50][62] Mortgage and Holding Costs - The average holding cost for properties is estimated to be between 1.0% and 2.5% of the property value annually [5][78] - The typical loan-to-value ratio for owner-occupied homes ranges from 75% to 90%, while investment properties usually do not exceed 75% [78] Price-to-Income Ratio and Monthly Payment Burden - The national price-to-income ratio was 4.9 in Q3 2025, with a peak of 5.8 in Q3 2022 and a low of 4.1 in Q1 2009 [73] - The monthly payment burden ratio was 33.8% in Q3 2025, with a peak of 46% in Q4 2007 and a low of 27.1% in Q3 2020 [77] Mortgage Loan Dynamics - The total amount of mortgage loans issued has seen a recovery post-crisis, with significant fluctuations in new loan commitments reflecting market sensitivity [80][83] - The pricing of mortgage loans has shifted from being risk-premium driven to being more influenced by policy interest rates [86]

Report Industry Investment Rating No investment rating information provided in the report. Core Views of the Report - Although the convertible bond valuation is becoming increasingly frothy and the allocation cost - effectiveness is low, the long - term and slow - bull pattern of the equity market remains unchanged. With potential incremental funds in the future, the A - share market's long - term and slow - bull market is expected to continue. Against this backdrop, the convertible bond valuation may have room for further upside and still holds trading value, but with high volatility. In trading, avoid high - price and high - premium and near - call convertible bonds, and focus on industries with continuous upward momentum and high performance realization [1][25]. - Specific investment suggestions include: (1) Pay attention to convertible bonds in the AI technology field such as Aiwei Convertible Bond, Luwei Convertible Bond, Huamao Convertible Bond, and Chun23 Convertible Bond; (2) Focus on large - scale chemical, coal, and precious metal sectors, and suggest paying attention to Naipu Zhuan02 and Pingmei Convertible Bond; (3) Consider individual bonds at relatively low levels and on the verge of rising from the cycle bottom, such as Huitian Convertible Bond and Huakang Convertible Bond [1][25]. Summary by Relevant Catalogs 2.1 26 - year 1 - month Market Review - Equity Market - The equity market had a strong start in January 2026, driven by the continuation of the bullish sentiment at the end of 2025 and the capital allocation demand at the beginning of the year. The Shanghai Composite Index reached 4190.9 points on January 14, hitting a new high since September 24, 2024. The main market trends were driven by commercial space, AI, and the pro - cyclical market spurred by record - high precious metal prices. The market was cooled down by the increase in the minimum margin ratio for margin trading, but the bullish sentiment remained strong, and the index fluctuated upward. The monthly returns of the CSI 300, CSI 2000, and Wind Micro - cap Index were + 1.7%, + 8.2%, and + 10.6% respectively, and the Shanghai Composite and ChiNext Index rose by + 3.8% and + 4.5% respectively. The average daily trading volume of the Shanghai, Shenzhen, and Beijing stock exchanges was 3.04 trillion yuan, a significant increase from December 2025 [26]. - Most industry sectors in the equity market closed higher in January. The non - ferrous metals sector led the rise due to the sharp increase in COMEX gold, silver, and copper prices. The pro - cyclical sectors such as petrochemicals, chemicals, coal, and steel also performed well. The media and computer sectors were boosted by the development of AI applications. The electronics, power equipment, and military industries also showed some performance, while the consumption and large - scale financial sectors underperformed [29]. 2.2 26 - year 1 - month Market Review - Convertible Bond Market - In January, the convertible bond market was driven by both the underlying stocks and valuation, with the CSI Convertible Bond Index rising 5.8%, the same as the Wind All - A Index. Structurally, high - price, small - cap, and low - rating convertible bonds outperformed, and the high - price and low - premium convertible bonds significantly outperformed the double - low index. The average daily trading volume of the convertible bond market was 920.3 billion yuan, an increase from December 2025. In terms of industries, most of the 29 Shenwan industry convertible bond indexes rose, with machinery and communication leading the way. Among individual bonds, semiconductor - related convertible bonds such as Jingce Zhuan2, Huayi, and Dinglong Convertible Bond had the highest monthly returns [36][38]. 3. Convertible Bond Valuation - In January, the convertible bond valuation became more frothy. The 100 - yuan premium rate of the convertible bond market at the end of the month was 42.6%, up 4.45 percentage points from the end of December 2025, reaching the 99.5% and 99.3% quantiles since 2018 and 2021 respectively. The conversion premium rates for different par values of 40, 60, 80, 90, 110, 120, and 130 yuan increased by varying degrees compared to the end of December 2025 and were at high quantile levels [40]. - Measured by the median price of the whole market, the median price of convertible bonds at the end of the month was 140.0 yuan, up 6.3 yuan from the end of December 2025, and the median par value was 108.6 yuan, up 6.9 yuan. The median conversion premium rate and pure bond premium rate also changed compared to the end of December 2025 [47]. 4. Convertible Bond Supply and Demand 4.1 Convertible Bond Supply - In January 2026, the issuance scale of convertible bonds increased slightly year - on - year and month - on - month. Five new convertible bonds were issued, with a total scale of 57.8 billion yuan. Eight convertible bonds with a total scale of 55.87 billion yuan obtained registration approval, and 11 public convertible bond board proposals were announced, with a to - be - issued scale of 137.99 billion yuan. Thirteen convertible bonds announced call redemption and two matured and were redeemed [55][59][60]. 4.2 Convertible Bond Demand - In the context of the A - share market's trend, the share of convertible bond ETFs stopped falling and rebounded, and public funds further increased their positions in convertible bonds. Insurance funds continued to reduce their positions in convertible bonds due to the high valuation. The enterprise annuity's holdings of convertible bonds on the Shanghai and Shenzhen stock exchanges showed different trends, but overall, it was expected to maintain a slight reduction trend [61]. 5. Clause Tracking 5.1 Redemption - As of January 30, 13 convertible bonds were confirmed for call redemption, 21 were likely to be called, and 14 were not to be called [64]. 5.2 Downward Revision - As of January 30, four convertible bonds confirmed downward revisions, five proposed downward revisions, five were likely to trigger downward revisions, and 18 announced no downward revisions for the time being [67].

Group 1: Market Strategy and Economic Outlook - The "Walsh Shock" marks the beginning of the dollar's credit enhancement process, with potential actions from Trump to restore dollar credibility, possibly leading to higher oil prices and a favorable position for US-China assets [1][10] - The report maintains a positive outlook on RMB assets such as AH shares and government bonds, focusing on sectors that benefit from cyclical recovery and abundant liquidity, including oil, chemicals, liquor, and technology [1][10] - Short-term gold prices may struggle to rise significantly, but a strategic allocation is recommended [1][10] Group 2: CDN Industry Growth and AI Integration - The demand for CDN services is expected to grow rapidly in line with the increasing number and usage of AI Agents, as these agents require low-latency, high-concurrency content delivery [13][14] - CDN is evolving towards edge computing, with nodes transitioning from mere transmission units to distributed intelligent units capable of computation, storage, and AI inference [14] - Recent price increases in cloud services, including CDN, indicate a potential new growth cycle for the industry, with significant price hikes reported by major providers like Google Cloud and AWS [15] Group 3: Company Performance and Strategic Initiatives - Bosideng's core down jacket business saw an 8.3% year-on-year revenue increase to 6.568 billion yuan, accounting for 73.6% of total revenue, outperforming the industry [19][20] - The company is enhancing its brand image through innovative product lines and collaborations, while also expanding its seasonal product offerings to mitigate seasonal fluctuations in down jacket sales [19][20] - Bosideng is leveraging AI technology across design, retail, and supply chain operations, and is expanding its international presence to support brand globalization and supply chain development [21]

Investment Rating - The industry investment rating is "Overweight" [5] Core Insights - The demand for CDN (Content Delivery Network) is expected to grow rapidly as it is directly proportional to the number and usage of AI Agents, which require low-latency and high-concurrency capabilities provided by CDN for real-time interactions [1][2] - CDN is evolving towards edge computing, transforming from a simple transmission unit to a distributed intelligent unit that integrates computing, storage, and AI inference capabilities [2] - Recent price increases by cloud service providers, such as Google Cloud and Amazon AWS, indicate a shift in the long-term downward trend of cloud service prices, suggesting a new growth cycle for the CDN industry characterized by simultaneous volume and price increases [3] Summary by Sections CDN Demand and AI Integration - CDN's core function is to accelerate data transmission by distributing content closer to users, thus reducing access delays and improving website responsiveness [1] - The growth in AI Agents will drive the demand for CDN services as these agents require frequent access to external content for information retrieval and response generation [1] Technological Advancements - Major CDN players are upgrading their nodes to support edge computing, enhancing their capabilities to include storage, computation, and security functions [2] - Akamai's partnership with NVIDIA to launch Akamai Inference Cloud exemplifies this trend, enabling AI inference at the edge of the network [2] Market Dynamics - Google Cloud's price adjustments, including a 100% increase in North America for data transfer, reflect the rising value and performance of CDN services [3] - Amazon AWS has also raised prices for its machine learning services, breaking a long-standing trend of price reductions [3] Recommended Companies - The report suggests focusing on companies such as Wangsu Science & Technology and Alibaba [4]