Market Overview - The Shanghai Composite Index increased by 0.69% to 3534.48 points, the Shenzhen Component Index rose by 2.04% to 10913.84 points, and the ChiNext Index gained 3.17% to 2277.15 points [1] - Sectors such as telecommunications and biomedicine showed strong performance, while water conservancy, rare earths, and optical module CPO concepts were notably active [1] Key News - Three food delivery platforms, Ele.me, Meituan, and JD, were summoned by the State Administration for Market Regulation on July 18, emphasizing the need for compliance with the E-commerce Law and promoting a healthy ecosystem among consumers, merchants, delivery riders, and platforms [1] - The 3rd China International Supply Chain Promotion Expo was held in Beijing from July 16 to 20, with Vice Premier He Lifeng highlighting China's role in global supply chains and its commitment to digital, intelligent, and green transformation [1] AI Industry Insights - OpenAI held a live event on July 18, introducing the ChatGPT Agent, which possesses autonomous thinking and action capabilities, selecting appropriate tools from its skill set for complex tasks [2] - Minsheng Securities noted the intensifying tech competition among major powers, stressing the necessity for domestic AI computing power, with a focus on the development of chips and software ecosystems as critical for the AI industry [2] - The Cloud Computing 50 ETF (516630) tracks a high AI computing power index, covering popular concepts such as optical modules, computing leasing, data centers, and AI servers, and is noted for having the lowest total expense ratio among ETFs tracking this index [2]

Investment Rating - The report maintains a "Recommendation" rating for the industry [5] Core Insights - The ongoing technological competition among major countries necessitates the localization of AI computing power in China. Although H20 has been approved for sale, long-term localization remains a priority. The development of the chip and underlying software ecosystem will be crucial for the domestic AI industry. The new round of global AI "arms race" has begun, with the release of significant models and products like ChatGPT Agent and Kimi K2 expected to significantly boost domestic computing power demand. The long-term development prospects for domestic computing power are optimistic [3][36]. Summary by Sections Market Review - During the week of July 14-18, the CSI 300 Index rose by 1.09%, the SME Index increased by 2.26%, and the ChiNext Index grew by 3.17%. The computer sector (CITIC) saw a 2.32% increase. The top five gainers in the sector were Xiling Information, Chunz中科技, Information Development, Dingjie Smart, and Tuoer Si. The top five decliners were Dazhi Hui, Jinzheng Shares, Jingbeifang, Xinyada, and Changliang Technology [1][44]. Industry News - The Ministry of Industry and Information Technology (MIIT) is promoting the synergy between industrial internet and artificial intelligence, accelerating the development of 6G technology [38]. OpenAI has released ChatGPT Agent, which can think independently and select tools to complete complex tasks [39]. The MIIT will also organize the "Artificial Intelligence + Software" initiative to accelerate the software intelligence process [40]. Company Dynamics - Capital Online's shareholder Zhao Yongzhi reduced his stake by 5,200,000 shares, accounting for 1.036% of the total share capital. Guanglian Da repurchased 8,732,100 shares, approximately 0.53% of its total share capital, with a total transaction amount of 121,956,165.8 yuan [2][42]. Investment Suggestions - The report suggests focusing on domestic AI computing power, particularly in the following areas: 1. Chip design: Key players include Cambrian and Haiguang Information 2. Advanced wafer manufacturing: Focus on leading companies like SMIC 3. Domestic AI computing liquid cooling: Companies like Highlan and Yingweike 4. Domestic AI servers: Notable companies include Inspur, Softcom, China Great Wall, Shenzhou Data, Huibo Yuntong, Tuo Wei Information, Zhongke Shuguang, ZTE, Fenghuo Communication, Unisplendour, Industrial Fulian, and Gaoxin Development [3][36].

Core Insights - The "Beautiful Act" expands the total deficit by approximately $4.1 trillion, primarily continuing existing policies [10] - The act is expected to moderately boost the US economy, benefiting traditional sectors while adversely affecting low-income groups [10] - The liquidity of US Treasury bonds remains stable, with manageable supply pressure and interest rate risks, but caution is advised regarding potential market volatility [10] Economic Effects - The "Beautiful Act" is projected to increase the annual GDP growth rate by 0.1 percentage points from 2025 to 2034, with the maximum effect reaching 0.8% between 2026 and 2028 [10] - The act will lead to a 3.9% income decrease for the lowest 10% of households, while the highest 10% may see a 2.3% increase, indicating a redistribution trend favoring higher-income groups [10] - Traditional and capital-intensive industries are expected to benefit, while the renewable energy sector may face challenges due to reduced tax incentives [10] Debt Market Insights - The supply of US Treasury bonds is expected to remain stable, with a projected increase in the deficit rate to around 7% next year [10] - The cumulative tariff revenue could offset 54% of the new deficit, with a long-term potential to reach $2.2 trillion over ten years [10] - The act may not trigger a debt crisis but could elevate the term premium in the bond market [10] Employment and "Involution" Analysis - The phenomenon of "involution" is primarily driven by uneven employment distribution between manufacturing and service sectors, with tariffs potentially accelerating job shifts towards services [11] - Young workers, particularly those aged 25-34, have seen a significant increase in weekly working hours, contributing to the "involution" trend [11] - Policies encouraging flexible work arrangements and paid leave are being implemented to address the "involution" issue, although these measures may not fully resolve the underlying causes [11] Hong Kong Stock Connect Predictions - The Hang Seng Index Company is expected to announce changes to its index constituents in August 2025, with 20 stocks likely to gain eligibility for the Hong Kong Stock Connect [14] - The selection criteria for the Hang Seng Index include market capitalization and trading volume, with a strict "high entry, low exit" policy [14] - The anticipated changes may impact existing stocks, with 13 stocks expected to be removed from the Stock Connect list [14] AI Computing Industry Insights - The IPO applications of domestic GPU companies, Muxi and Moer Thread, have been accepted, indicating a trend towards domestic autonomy in AI computing [13] - Muxi's product matrix includes various GPU series aimed at different applications, with a strong focus on compatibility and performance [15] - Moer Thread is also expanding its product offerings in AI computing and graphics, with a dual-market strategy targeting both consumer and enterprise sectors [15]

Industry Insights - The Chinese government aims to improve the carbon emission rights and water rights trading systems by 2027, establishing a more active market for resource and environmental factors [2] - The U.S. has suspended the sale of certain key technologies, including jet engine technology, to China, which may accelerate China's domestic development of commercial aircraft power systems [4] - Zhejiang province has set a target for AI computing power to reach 60 EFlops by 2027, indicating a strong policy foundation for domestic AI computing infrastructure [11] Company Developments - Dell Technologies has reported that AI server orders have exceeded expectations, leading to a positive revenue outlook and a post-market increase of over 9% [9] - Tesla's Model Y autonomous driving vehicles are set to be delivered to customers in June, signaling a pivotal moment for the autonomous driving industry [10] - Pinggao Group has signed a contract worth 397 million yuan for computing power resource services, indicating growth in the tech services sector [14] - China State Construction has secured three major projects totaling 8.23 billion yuan, reflecting ongoing infrastructure investment [14]

Group 1: Investor Relations Activity - The company held a performance briefing on May 16, 2025, via an online platform, focusing on the 2024 annual report [3] - Key attendees included the Chairman, General Manager, and other senior executives [3] Group 2: Business Development and Strategy - The company aims to expand its high-speed rail business, leveraging opportunities from the government's "signal upgrade" initiative [4] - The high-speed rail sector is seen as a significant growth area due to increasing demand for 5G coverage and infrastructure [4] - The company plans to integrate services and products in the high-speed rail sector to enhance its competitive edge [4] Group 3: Financial Performance and Risks - As of the end of 2024, accounts receivable reached CNY 340 million, with a low risk of bad debts due to the nature of clients being large state-owned enterprises [6] - The company has implemented strict management measures for accounts receivable to improve cash flow [6] Group 4: Technological Advancements - The company has made significant investments in AI and computing power services, with a focus on partnerships with major telecom operators [5][6] - The company is actively developing products in the 5G-A space, having already participated in major projects like the Hangzhou Asian Games [9] Group 5: Future Outlook and R&D Plans - The company plans to enhance its R&D capabilities in AI edge computing and 5G-A technologies in 2025 [10] - There is a strategic focus on optimizing the business structure to improve profitability and return value to investors [10] Group 6: Market Position and Collaborations - The company has signed a distribution agreement with Shanghai Suiruan Technology to strengthen its position in the AI computing market [7][8] - The domestic chip market is expected to reach a 40% share in AI servers by 2025, indicating a shift towards local alternatives [7]

Core Viewpoint - The article discusses the challenges faced by Moore Threads in gaining consumer recognition and market presence compared to Huawei, despite both being leaders in domestic chip technology. It highlights the need for better marketing and product visibility to enhance consumer awareness and acceptance [1][10]. Group 1: Company Overview - Moore Threads is a high-tech company focused on GPU chip design and development, offering a range of products including AI solutions, cloud services, and high-performance rendering [6][12]. - The company has a diverse product line that includes hardware, software, and application platforms, but lacks sufficient market visibility and consumer recognition [8][10]. Group 2: Market Position and Competition - Compared to established brands like NVIDIA and AMD, Moore Threads has low brand awareness and market penetration, which hinders its ability to attract consumers [3][10]. - The company’s GPU architecture relies on IP licensing from Imagination Technologies, which accelerates commercialization but raises concerns about long-term technological independence [10][12]. Group 3: Business Strategy and Challenges - Moore Threads primarily targets the B-end market with products like enterprise servers and AI computing clusters, while its consumer-grade GPUs face performance and software compatibility issues [12][15]. - The company has been affected by being placed on the U.S. Entity List, leading to supply chain disruptions and delays in product launches, which further weaken its competitive position [12][15]. Group 4: Recommendations for Improvement - To improve its market position, Moore Threads should enhance consumer product experiences, optimize its MUSA toolchain to attract developers, and leverage domestic substitution policies to build brand recognition [17][19]. - The company needs to balance its resources between B-end and C-end markets by offering high-cost performance consumer products to gradually build a positive user reputation [17][19].

Investment Rating - The report maintains a "Positive" investment rating for the industry [7]. Core Viewpoints - The U.S. government has intensified export controls on high-end AI chips to China, specifically requiring export licenses for NVIDIA's H20 and AMD's MI308 chips, which could lead to significant financial impacts for these companies [2][4]. - The Chinese AI computing market is vast, and if strict export limitations are enforced without successful license applications, domestic high-end AI chip manufacturers are expected to rapidly increase their market share [2][4]. - The demand for AI computing power is entering a new expansion phase, driven by increased capital expenditures from major Chinese companies, with Alibaba planning to invest over 380 billion yuan in cloud and AI hardware infrastructure over the next three years [10]. Summary by Sections Event Description - NVIDIA announced that its H20 chip and any other high-end chips meeting similar specifications must apply for export licenses indefinitely starting April 14, 2025, with potential costs related to this estimated at up to $5.5 billion [4]. - AMD has also completed its assessment of the new export license requirements for its MI308 product, expecting to apply for the license but uncertain of approval, with potential costs up to $800 million [4]. Market Dynamics - The report highlights that the U.S. has implemented multiple rounds of export controls and restrictions on AI chip access for China, which has led to a significant market share for NVIDIA and AMD's customized products in China despite their reduced performance metrics [10]. - The Chinese accelerated server market is projected to reach $22.1 billion in 2024, growing 134% year-on-year, with GPU servers maintaining a dominant position [10]. Recommendations - The report emphasizes the acceleration of technological self-reliance in China amid external disruptions, recommending investment in leading domestic high-end AI chip manufacturers such as Cambricon and those excelling in CPU and DCU technologies [10].

Group 1 - The China Securities Digital Economy Theme Index (931582) decreased by 1.52% as of March 31, 2025, with mixed performance among constituent stocks [1] - Leading gainers included Huada Jiutian (301269) up 4.43%, Guanglian Da (002410) up 2.28%, and Sanhuan Group (300408) up 2.16%, while leading decliners were Nasda (002180) down 4.51%, Mingzhi Electric (603728) down 4.40%, and Tonghuashun (300033) down 4.32% [1] - The Digital Economy ETF (560800) fell by 1.65%, with the latest price at 0.77 yuan and a trading volume of 10.7362 million yuan [1] Group 2 - The Digital Economy ETF closely tracks the China Securities Digital Economy Theme Index, which selects listed companies in high digitalization sectors to reflect the overall performance of digital economy theme stocks [2] - As of February 28, 2025, the top ten weighted stocks in the index included Dongfang Caifu (300059), SMIC (688981), and Huichuan Technology (300124), collectively accounting for 50.97% of the index [2] Group 3 - The ongoing technological competition among major countries is intensifying, necessitating the localization of AI computing power, supported by policies aimed at increasing the share of self-controlled computing power [1] - The development of leading models like DeepSeek and AIAgent is expected to significantly increase the demand for inference computing power, marking a shift from training-driven to inference-driven demand [1] - Major tech companies are open-sourcing their models, accelerating the democratization of AI and advancing multimodal technology, which presents new development opportunities for AI applications [1]