BIDU(US:BIDU) Sou Hu Cai Jing·2026-01-03 17:00Core Viewpoint - The U.S. stock market experienced a dramatic divergence on the first trading day of 2026, with the Dow Jones index rising by 0.66% while the Nasdaq index fell by 0.03%. However, the Nasdaq China Golden Dragon Index surged by 4.38%, marking its largest increase in nearly eight months, driven by significant gains in Chinese tech stocks like Baidu, which rose by 15.03% [1][2]. Group 1: Market Performance - The surge in Chinese tech stocks was not an isolated event, as Alibaba rose over 6%, and NetEase and Bilibili saw increases of over 7%. Even lesser-known stocks like Haohong Technology experienced a staggering rise of 72.41% [2]. - The trading volume in Chinese concept stocks increased significantly, with a 45% rise in transaction amounts and tech-related Chinese stocks seeing a volume 1.8 times higher than the previous day, indicating institutional investment rather than mere retail speculation [2]. Group 2: Key Drivers - Three main factors are driving this market behavior: 1. Policy incentives are being released, with the 2026 "14th Five-Year Plan" emphasizing artificial intelligence and semiconductors as key areas. AI hardware is now included in the "old-for-new" subsidy policy, and the overseas listing process has become more transparent, reassuring international investors [4]. 2. The hard power of companies is becoming a strong foundation, exemplified by Baidu's stock surge following its AI chip subsidiary Kunlun's application for a Hong Kong listing and securing a significant order from China Mobile [4]. 3. A strategic shift in global capital flows is occurring, with rising expectations for U.S. Federal Reserve interest rate cuts leading to a weaker dollar and increased investment in high-growth assets. In 2025, net inflows into ETFs investing in Chinese assets reached $83.1 billion, with over $5 billion invested in Chinese tech stocks on January 3 alone [4]. Group 3: Sector Trends - The semiconductor sector is also experiencing a significant rally, with the Philadelphia Semiconductor Index rising by 4.01% and major companies like Micron Technology and ASML seeing gains of over 10% and 5%, respectively. This indicates a consensus on the importance of AI computing power in the tech landscape [6]. - The offshore RMB exchange rate has surpassed 6.97, reaching its highest point since May 2023, reflecting a fundamental shift in overseas investors' attitudes towards Chinese assets [6]. - The preference for large-cap stocks like Baidu and Alibaba over smaller stocks indicates a shift from speculative trading to value investing, as institutional investors seek companies that are shaping the future [9]. Group 4: Broader Market Implications - The surge in Chinese tech stocks has also positively impacted the Hong Kong market, with the Hang Seng Index rising by 2.76% and the Hang Seng Tech Index soaring by 4%. The A-share market has shown strong performance as well, with the Shanghai Composite Index achieving an unusual "11 consecutive days of gains" [10]. - Despite the enthusiasm for AI chips and semiconductors, some consumer tech stocks like Tesla and Netflix are showing signs of weakness, highlighting the selective nature of capital allocation in this market environment [10].