Core Viewpoint - The article discusses the launch of the BEST research plan by the Chinese Academy of Sciences, aimed at developing controlled nuclear fusion technology, often referred to as the "artificial sun," which promises to provide a nearly limitless source of clean energy and potentially enable interstellar travel in the future [4][11]. Group 1: Introduction to Controlled Nuclear Fusion - Controlled nuclear fusion can replace fossil fuels, providing a sustainable and clean energy source [4]. - The process simulates the nuclear fusion reactions occurring in the sun, continuously releasing vast amounts of energy, thus being termed humanity's "ultimate energy" [4]. Group 2: Advantages of Controlled Nuclear Fusion - **Abundant Fuel Supply**: The primary fuels for controlled nuclear fusion, deuterium and tritium, are plentiful on Earth. One liter of seawater can yield deuterium equivalent to the energy released from burning 300 liters of gasoline [5]. - **Environmental Benefits**: The byproducts of controlled nuclear fusion are helium and neutrons, which do not emit harmful gases and have minimal radioactive pollution, making it environmentally friendly [5]. - **High Safety Standards**: The fusion process occurs in a vacuum container, with the plasma density significantly lower than air, reducing the risk of explosions or leaks [6]. Group 3: Development of Fusion Technology in China - China has designed and constructed several controlled nuclear fusion devices, including EAST, BEST, and CRAFT, which are pivotal to the country's nuclear fusion efforts [7][8]. - The BEST project is set to be completed by the end of 2027, with plans to demonstrate fusion energy generation [11]. Group 4: Future Implications - Successful implementation of nuclear fusion energy could enable humanity to travel to other planets, making interstellar travel a possibility [12]. - The advancements in fusion technology reflect China's strong capabilities in independent innovation within high-tech fields [13].

Investment Rating - The report maintains an "Overweight" rating for the defense and military industry [6]. Core Insights - The geopolitical uncertainty, particularly regarding Japan's shift from "strategic ambiguity" to potential military intervention in the Taiwan Strait, has heightened the focus on the military industry [19][20]. - The defense sector is expected to see increased attention and potential investment opportunities due to the evolving geopolitical landscape [11][20]. Market Overview - The defense and military index of Shenwan fell by 1.72% this week, while the Shanghai Composite Index dropped by 3.90% [29]. - The defense and military sector's PE (TTM) stands at 67.3 times, with sub-sectors like aviation equipment at 71.5 times and aerospace equipment at 271.2 times [36]. Key Sector Dynamics Controlled Nuclear Fusion - Shanghai Electric has disclosed its involvement in multiple major fusion projects, including the domestic first plasma burning experiment device BEST and the international ITER project [21]. Low-altitude Economy - The 27th High-Tech Fair's low-altitude economy exhibition in Shenzhen showcased over 200 companies, covering the entire supply chain from eVTOL to drone components [22]. Aviation Engines & Turbines - China Aviation Power showcased 19 types of power products at the Dubai Airshow, marking the first appearance of the C919 in the Middle East [23]. Satellite Internet - The World Internet Conference highlighted the application of satellite internet in enhancing county-level economic development [26]. Suggested Focus Areas - **Missile and Military Electronics**: Companies like Zhenhua Technology, Hongyuan Electronics, and Huada Electronics are recommended for investment [16]. - **Aviation Engines**: Focus on companies like AVIC Engine and AVIC Control [16]. - **Military Trade**: Companies such as AVIC Chengfei, AVIC Shenyang, and AVIC Xi'an are highlighted [16]. - **New Domains and Quality Construction**: Emphasis on commercial aerospace and low-altitude economy companies [16].

Market News - The three major US stock indices closed higher, with the Dow Jones up 0.44%, S&P 500 up 1.55%, and Nasdaq Composite up 598 points, a 2.69% increase. Major tech stocks rose collectively, with Tesla and Google up over 6%. Broadcom increased by over 11%, Micron Technology by nearly 8%, AMD by over 5%, and Nvidia by over 2% [1] - International oil prices rose, with light crude oil futures for January delivery closing at $58.84 per barrel, up $0.78, a 1.34% increase. Brent crude oil futures for January delivery closed at $63.37 per barrel, up $0.81, a 1.29% increase [1] - European stock indices had mixed results, with the Euro Stoxx 50 up 0.20%, the UK FTSE 100 down 0.03%, the French CAC 40 down 0.29%, the German DAX 30 up 0.64%, and the Italian FTSE MIB down 0.85% [1] Industry Insights - The AI assistant Lingguang reached over 2 million downloads within six days of its launch, breaking the record for the fastest app to reach 1 million downloads in 4 days, and then achieving the next million in just 2 days. It ranks sixth in the App Store's free apps in China and first in the free tools category [2] - Google's new multimodal AI model, the second generation of Nano Banana, was updated on November 20, enhancing image quality, accuracy, and multilingual long text rendering capabilities. This follows the release of the Gemini 3 AI model, marking significant advancements in AI technology [2] - The launch of the "Burning Plasma" international scientific project by the Chinese Academy of Sciences aims to open multiple leading fusion energy experimental platforms globally, including the compact fusion energy experimental device BEST, to tackle scientific challenges collaboratively [3] - Controlled nuclear fusion is viewed as the ultimate energy solution for future human development, providing clean, safe, and limitless energy with nearly zero carbon emissions. Concept stocks in this sector include Antai Technology, Xuguang Electronics, and Zhongzhou Special Materials [4] - The 2025 Asia General Aviation Exhibition will take place from November 27 to 30, attracting over 300 companies from 21 countries and regions. The event focuses on the theme "New Era of General Aviation, Exploring Unlimited Possibilities in Low Altitude" [5] - The low-altitude economy is in its early development stage, with infrastructure needs evolving from traditional general aviation to enhanced information processing capabilities. Drones are the leading industry in this sector, and eVTOLs are significant vehicles for low-altitude economic expansion [5][6]

Group 1: Economic and Financial Developments - The People's Bank of China announced a 1 trillion yuan MLF operation to maintain liquidity in the banking system, set to take place on November 25, 2025, with a one-year term [2] - Four private equity investment institutions in Beijing plan to issue a total of 930 million yuan in science and technology innovation bonds, marking the second batch supported by the central bank's risk-sharing tool [3] - The National Development and Reform Commission reported a decrease in domestic gasoline and diesel prices by 70 yuan and 65 yuan per ton, respectively, effective from November 24 [3] Group 2: Energy and Power Sector - The National Energy Administration released statistics indicating that as of October, the total installed power generation capacity reached 3.75 billion kilowatts, a year-on-year increase of 17.3%, with solar power capacity growing by 43.8% [3] - The average utilization hours of power generation equipment from January to October were 2,619 hours, a decrease of 260 hours compared to the previous year [3] Group 3: Technology and Innovation - China has officially launched the "Burning Plasma International Science Program" to accelerate research in fusion energy, with scientists from over ten countries signing the "Hefei Fusion Declaration" [4] - Shanghai's government has issued measures to promote the digital transformation of the pharmaceutical industry, encouraging the integration of AI technology across the entire industry chain [4] Group 4: Company News - Xiaomi's controlling shareholder Lei Jun invested approximately 100 million Hong Kong dollars to increase his stake in the company [6] - Alibaba's AI assistant app, Qianwen, has surpassed 10 million downloads within a week of its public testing [6] - Several companies, including Petty Holdings and Lege Co., are planning significant share buybacks, with amounts ranging from 50 million to 800 million yuan [7]

Group 1: Tariff Policy Changes - The U.S. Supreme Court is considering whether to invalidate Trump's "reciprocal tariff" policy, which could require the government to refund over $88 billion in tariffs if ruled against [2] - The Trump administration is preparing alternative strategies to maintain tariffs, potentially invoking sections 301 and 122 of the Trade Act, which allow unilateral tariff imposition [2][3] - The global response to U.S. tariff threats has led many countries to sign trade agreements with the U.S., committing to purchase American goods and invest domestically [3] Group 2: Low-altitude Economy Growth - The low-altitude economy market in China is projected to reach 1.5 trillion yuan by 2025 and exceed 2 trillion yuan by 2030, indicating strong growth [4] - As of now, 969 companies have registered in the civil unmanned aerial vehicle product information system, with over 478,000 aircraft [4] - Cities like Shenzhen, Chengdu, and Nanchang are developing low-altitude industry clusters, particularly in drone logistics and low-altitude tourism [4][5] Group 3: Nuclear Fusion Research - China's nuclear fusion research has entered a new phase with the launch of the BEST research plan, aiming to conduct plasma experiments by the end of 2027 [6] - The BEST device seeks to achieve a fusion power output of 20 to 200 megawatts, demonstrating energy production exceeding consumption [6][7] - Successful breakthroughs in material durability and plasma stability are critical for the advancement of controlled nuclear fusion technology [7] Group 4: Inbound Tourism Surge - Inbound tourist numbers to China have more than doubled this year, with significant increases in spending from American (up 50%) and French (up 160%) tourists [8] - Policy changes, such as the introduction of a one-click tax refund service, have facilitated this growth in tourism [8] - To sustain this influx, improvements in service quality and payment processes at tourist sites are necessary [9] Group 5: Childcare Leave Policy in Shanghai - Shanghai has implemented a new policy allowing caregivers of elderly patients to take up to 5 days of paid leave, with 7 days for only children [10] - This policy applies to all working individuals in Shanghai, regardless of their or the elderly person's residency status [10][11] - The initiative aims to alleviate the caregiving burden on working individuals as the population ages [11] Group 6: Development of Intelligent Insurance Products - Major Chinese insurance companies are launching specialized insurance products for humanoid robots to address safety concerns in their market applications [12] - The introduction of these insurance products aims to mitigate risks associated with robot malfunctions and accidents [12] - The growing use of household robots raises privacy concerns, necessitating clearer regulations and insurance coverage [13] Group 7: Domestic GPU Company IPO - The domestic GPU company, Moore Threads, has begun its IPO process with a high issuance price, indicating strong market interest [14] - Despite significant revenue growth, the company remains in a loss-making position, with projected revenues of 0.46 billion yuan in 2022 and 4.38 billion yuan in 2024 [14] - The company's products are positioned as alternatives to NVIDIA's offerings, catering to both B2B and B2C markets [14][15] Group 8: Stock Market Overview - The stock market experienced a slight recovery, with major indices closing in the green, driven by interest in AI applications and military sectors [16] - Market sentiment remains cautious, with trading volumes decreasing as the year-end approaches [17] - The overall market is expected to enter a new consolidation phase amid ongoing economic uncertainties [17]

Group 1: Market Dynamics - On November 24, the Hang Seng Index rose by 1.97%, and the Hang Seng Tech Index increased by 2.78%. Southbound funds recorded a net purchase of approximately 8.571 billion HKD, with Alibaba and Tencent receiving net buys of about 4.066 billion HKD and 1.167 billion HKD respectively [4][4] - In November, the net subscription of the Hang Seng Tech ETF exceeded 25 billion shares, marking the second consecutive month of net subscriptions above 20 billion shares [4] - Investors continued to pour into emerging market stocks and bond ETFs for the fifth consecutive week, with a total inflow of 34.4 billion USD year-to-date, including 412.7 million USD into China [4] Group 2: AI and Technology Developments - Alibaba's AI assistant, Qianwen App, surpassed 10 million downloads within a week of its public testing, becoming the fastest-growing AI application in history [2] - HSBC predicts a new AI supercycle is beginning, estimating that OpenAI may require up to 207 billion USD in new financing by 2030 [3] - The Chinese government is advancing its commercial space initiatives, with plans for three satellite constellations totaling over 30,000 satellites by 2025, indicating a significant growth potential in the commercial space market [8][9] Group 3: Economic Indicators - The People's Bank of China announced a 10 billion CNY MLF operation to maintain liquidity in the banking system [10] - In October, sales revenue in high-tech industries grew by 13.6% year-on-year, with significant increases in integrated circuits, industrial robots, and drone manufacturing [10] - As of October, China's total installed power generation capacity reached 3.75 billion kW, a year-on-year increase of 17.3%, with solar power capacity growing by 43.8% [11] Group 4: Corporate Actions - Xiaomi's founder Lei Jun invested over 100 million HKD to increase his stake in the company to 23.26%, while the company repurchased 21.5 million shares in two days [7] - Industrial Fulian clarified market rumors regarding a reduction in its fourth-quarter performance targets, stating that such claims are untrue [6] - The IPO of Moer Thread saw a subscription rate of 4126.49 times, with a final allotment rate of 0.03635054% [6]

Group 1 - Trump signed an executive order to launch the "Genesis Program" for artificial intelligence [1] - The second batch of technology innovation bonds supported by risk-sharing tools for private enterprises is about to be issued [1] - Xiaomi Group's controlling shareholder Lei Jun invested approximately 100 million Hong Kong dollars to increase his stake in the company [1] Group 2 - Shanghai is promoting the integration of artificial intelligence technology with the entire pharmaceutical industry chain, accelerating the application of AI in drug discovery and design systems [1] - Antai Technology secured a significant contract worth nearly 70 million yuan related to controllable nuclear fusion [1]

Group 1: 2025 A-Share Market Review - As of November 14, 2025, the overall A-Share index increased by 26.58%, with the ChiNext index and STAR 50 leading at 45.29% and 37.65% respectively [6] - Among 31 primary industries, 30 saw an increase in closing prices compared to the end of the previous year, with non-ferrous metals, communication, and electric equipment leading with gains exceeding 50% [4][19] - The food and beverage industry experienced a decline of 3.40% [4][19] Group 2: 2026 Investment Environment Analysis - The 2026 investment environment is characterized by a stable macroeconomic policy in China, with expected resilience in economic growth and a potential recovery in inflation from low levels [4][36] - The international landscape remains uncertain, with geopolitical risks and trade order challenges impacting global economic growth [36][40] - The "14th Five-Year Plan" is expected to provide a clear development blueprint, enhancing market confidence in China's long-term economic resilience [4][36] Group 3: Market Trend Predictions for 2026 - The A-Share market is anticipated to benefit from improved liquidity, with the current valuation being relatively reasonable compared to global equity markets [4][36] - Earnings growth is expected to become a key focus, driven by the deepening of China's economic transformation and the continuous development of emerging industries [4][36] - The PPI decline is expected to narrow, potentially leading to an increase in corporate profit margins [4][36] Group 4: Style Judgments for 2026 - Small-cap stocks are expected to perform well, particularly in the context of a favorable environment for risk appetite driven by the Fed's anticipated rate cuts and the upward trend in emerging industries [4][36] - Growth stocks are projected to continue outperforming value stocks in the first three quarters of 2026, supported by favorable policies and market conditions [4][36] - In the fourth quarter, as the U.S. midterm elections approach, market risk appetite may shift, potentially favoring value stocks [4][36] Group 5: Structural Investment Opportunities - The "14th Five-Year Plan" is expected to create significant policy dividends and industry opportunities, focusing on two main lines: new productivity driven by technology and the "anti-involution" policy promoting supply-demand optimization [4][36] - Key sectors to watch include artificial intelligence, new energy, and quantum technology, which are highlighted in the "14th Five-Year Plan" [4][36] - The consumer sector is seen as a potential area for investment, with policies aimed at expanding domestic demand [4][36]

Core Viewpoint - The defense and military industry sector has emerged as a leading performer, with significant capital inflow and stock price increases, driven by geopolitical factors and increased defense spending [1][4]. Group 1: Market Performance - The defense and military sector saw a net inflow of over 13.3 billion yuan, the highest across all industries [1]. - The defense military ETF (512810) experienced a daily increase of 3.78%, marking the largest single-day gain since July, with trading volume exceeding 1 billion yuan [2]. - Key stocks such as China Shipbuilding Defense, China Aerospace Development, and Great Wall Military Technology hit the daily limit, with notable price increases of 13.13% and 11.6% for Tianhai Defense and Guoke Military Technology, respectively [1][2]. Group 2: Geopolitical Factors - Ongoing geopolitical tensions are seen as a catalyst for the defense and military sector's performance, with expectations of increased defense spending in response to external threats [4]. - Analysts suggest that the importance of national defense is rising amid global conflicts, which may support the valuation of the defense and military industry [4]. Group 3: Future Outlook - The defense and military industry is anticipated to undergo a critical transformation in 2026, coinciding with the start of the 14th Five-Year Plan and the centenary of the military, leading to increased demand and structural upgrades [4]. - Analysts recommend heightened attention to the defense and military sector, indicating a robust outlook for high-quality development [4]. Group 4: Investment Tools - The defense military ETF (512810) is highlighted as an efficient investment tool, covering various themes such as commercial aerospace, low-altitude economy, and military AI [5].

Core Points - The International Scientific Program for Burning Plasma initiated by the Chinese Academy of Sciences was officially launched in Hefei on November 24, 2023, alongside the global research plan for the compact fusion energy experimental device BEST [1][3] - Scientists from over ten countries, including France, the UK, Germany, and Italy, gathered in Hefei to sign the Hefei Fusion Declaration, emphasizing the need for international collaboration in advancing fusion energy research [3] - The announcement led to significant activity in the secondary market for controllable nuclear fusion concepts, with stocks like Srey New Materials rising over 14% and others like Lanshi Heavy Industry and Sichuan Chuang Electronics increasing by over 7% [4] Industry Overview - The fusion research is entering a new phase termed "burning plasma," driven by advancements in international projects like ITER and BEST [3] - The investment landscape for controllable nuclear fusion is changing, with increased interest from investors, as evidenced by recent funding rounds for companies like Xingneng Xuanguang and Nova Fusion [9] - Controllable nuclear fusion is seen as a promising energy source due to its minimal environmental impact compared to nuclear fission and the abundance of raw materials like deuterium from seawater [9] Market Potential - The nuclear fusion market is expected to grow rapidly, with projections indicating that the Tokamak fusion market could reach 681 billion yuan by 2025-2030 and potentially rise to 3 trillion yuan by 2030-2035 as commercial reactors become viable [12] - The supply chain for nuclear fusion includes raw material suppliers, technology development, equipment manufacturing, and nuclear power construction and operation, indicating a comprehensive industry ecosystem [10]