Core Insights - The "Bet on China" top ten core asset portfolio launched by the company has shown strong performance, with a 3.6% increase on January 5, 2026, outperforming the Shanghai Composite Index and Hang Seng Index [1] - The portfolio has continued to rise, with a 2.65% increase on January 6, 2026, further exceeding the performance of major indices [1] - Year-to-date, the portfolio has accumulated a 6.14% increase, significantly surpassing the Shanghai Composite Index's 2.89% and Hang Seng Index's 4.29% [1] Company Performance - Alibaba-W (HK09988) saw a total increase of 7.0% over two trading days [1] - China Ping An (SH601318) increased by 5.8% [1] - WuXi AppTec (HK02268) rose by 4.4% [1] - Tencent Holdings (HK00700) increased by 4.3% [1] - Trip.com Group-S (HK09961) rose by 4.1% [1] - Oriental Fortune (SZ300059) increased by 2.5% [1] - Zhongji Xuchuang (SZ300308) rose by 2.2% [1] - Luoyang Molybdenum (SH603993) increased by 2.2% [1] - Gold ETF (SH518880) rose by 2.1% [1] - Wanhua Chemical (SH600309) increased by 0.9% [1] Future Outlook - The strong performance of core assets is attributed to the company's deep insights into industry trends and the economic pulse of China [2] - The company aims to continue identifying quality assets in the context of China's economic transformation, providing investors with precise asset allocation references [2] - The recent performance is seen as just the beginning of the value release of the core assets [2]

Market Overview - A-shares experienced a collective rise on January 5, with the Shanghai Composite Index recovering the 4000-point mark and total market turnover reaching approximately 1.65 trillion yuan, an increase of 324 billion yuan compared to the previous half-day session [1] - Over 4000 stocks in the market showed gains, with notable increases in sectors such as brain-computer interfaces, insurance, semiconductors, commercial aerospace, innovative pharmaceuticals, gaming, and non-ferrous metals [1] Index Performance - The CSI A500 Index rose by 1.8%, while the CSI 300 Index increased by 1.6% [3] - The ChiNext Index saw a rise of 2.2%, and the STAR Market 50 Index surged by 4.1% [1] - The Hang Seng China Enterprises Index declined by 0.2% [1] Sector Highlights - The innovative pharmaceutical sector experienced a significant surge, while technology stocks showed mixed performance [1] - The A-shares market saw strong performances in sectors like tourism and hotels, banking, cross-border payments, and pork, which were among the top gainers [1]

Group 1: Industry News - In 2025, the sales revenue from the trade-in program in China is expected to exceed 2.6 trillion yuan, benefiting over 360 million people. This includes over 11.5 million cars, 129 million home appliances, 9.1 million digital products, 12 million home renovation items, and 1.25 million electric bicycles [1] - The total box office revenue for Chinese films in 2025 is projected to reach 51.832 billion yuan, with total audience attendance at 1.238 billion. Domestic films are expected to generate 41.293 billion yuan, accounting for 79.67% of the total [1] Group 2: Company News - Wallen Technology, known as the "first GPU stock in Hong Kong," was listed today, marking the first new stock listing in the Hong Kong market for 2026. The final issue price was set at 19.6 HKD, with 285 million shares issued, raising a total of 5.583 billion HKD. After deducting listing expenses, the net amount raised is 5.375 billion HKD, with a subscription multiple of 2347.53 times. The funds will primarily be used for the development of intelligent computing solutions [2] - Baidu announced plans to spin off its Kunlun Chip business and seek independent listing on the Hong Kong Stock Exchange. The application for listing has been submitted confidentially [2] Group 3: New Energy Vehicle Industry - In 2025, new energy vehicle sales for BYD reached 4,602,436 units, with December sales at 420,398 units [3] - Geely Automobile reported a total sales volume of 3,024,567 units for 2025, exceeding its annual sales target and achieving a historical high with a year-on-year growth of 39%. The sales target for 2026 is set at 3.45 million units [3] - Among new car manufacturers, Leap Motor topped the annual sales with 596,555 units, followed by Hongmeng Zhixing with 589,107 units, and Xpeng Motors with 429,445 units [3]

Core Insights - Zhang Yidong, a prominent strategist at Industrial Securities, has submitted his resignation due to personal career planning and family considerations, planning to focus on overseas business in Hong Kong and international capital markets [1][2] - Zhang has been a significant figure in sell-side research for over 20 years, achieving multiple accolades including the title of the top strategist in China’s capital market analysis and becoming the first New Fortune Diamond Analyst in the total research field in 2023 [1][2] Group 1: Career Development - Zhang Yidong began his research career in 2002 at Polaroid Securities in Taiwan, focusing on A-share and Hong Kong stock strategies [1] - He joined Industrial Securities in March 2006, where he faced challenges but successfully established the firm’s strategy research, elevating it from fourth to first place in industry rankings [2] - In 2009, Industrial Securities made a strategic investment in research, which helped both the firm and Zhang achieve mutual growth [2] Group 2: Key Contributions - Zhang introduced the concept of "core assets" in 2007, identifying leading companies with core competitiveness across various industries, which gained widespread acceptance in the capital market [2] - During the 2008 global financial crisis, he published a report titled "Fearless Hope," advocating for a bullish market outlook, which was validated by subsequent economic recovery [3] - In 2011, he warned of systemic risks in a report titled "Dunkirk Retreat," predicting a downturn in A-shares, which occurred as he anticipated [3] Group 3: Team Transition - With Zhang's departure, Industrial Securities is undergoing a new round of team iteration, having previously established a robust research team of over 200 members covering A-shares, Hong Kong stocks, and overseas Chinese concept stocks [5][6] - The firm has seen a stable core structure in its research team, despite facing talent outflow pressures, and aims to maintain its competitive advantage post-leadership transition [6]

Core Insights - Zhang Yidong, a prominent strategist at Industrial Securities, has officially submitted his resignation due to personal career planning and family considerations [1] - He will transition to focus on overseas business, particularly in the Hong Kong and international capital markets [2] Career Development - Zhang began his research career in 2002 at Polaroid Securities in Taiwan, covering A-shares and Hong Kong stocks, and joined Industrial Securities in 2006 [3] - Under his leadership, Industrial Securities' research team grew from a small group to a leading force in the industry, achieving top rankings in analyst evaluations [3] - He has been instrumental in establishing a strong overseas research team, which is now recognized as a leader in the industry [3] Key Contributions - Zhang introduced the concept of "core assets" in 2007, identifying leading companies with core competitiveness across various industries [4] - His bullish stance during the 2008 financial crisis and subsequent predictions about China's economic recovery were validated by government stimulus measures [4] - He has consistently advocated for the long-term potential of A-shares and Hong Kong stocks, predicting a "super long bull market" that could last for over 20 years [5] Team Transition - With Zhang's departure, Industrial Securities' research team is undergoing a new phase of leadership transition, with younger analysts stepping up [7] - The research team has maintained stability despite industry-wide talent competition and has built a robust team of over 200 professionals [8] - The company expresses respect for Zhang's decision and gratitude for his contributions to the development of both sell-side and overseas research [7]

Core Viewpoint - The year 2025 marked a significant turnaround for active equity funds, with a notable performance improvement after three years of underperformance against the market, driven by structural market trends favoring technology and healthcare sectors [4][7]. Group 1: Market Performance - The Shanghai Composite Index closed at 3968.84 points, reflecting an annual increase of 18.41%, while the CSI 300 rose by 17.66% [3]. - The active equity fund index recorded a total return of 33.81% for the year, with over 90% of active equity funds achieving positive returns [4][5]. - The top-performing fund, Yongying Technology Select Mixed A, achieved a cumulative return of 239.78%, breaking the previous record held by Wang Yawei for 18 years [6][12]. Group 2: Sector Analysis - In 2025, 28 out of 31 sectors reported positive returns, with the top five sectors being non-ferrous metals (92.64%), telecommunications (87.27%), electronics (49.39%), comprehensive (44.9%), and power equipment (43.12%) [7]. - The bottom five sectors included food and beverage (-9.15%), coal (-4.77%), beauty and personal care (-0.44%), transportation (0.47%), and real estate (0.71%) [7]. - The market's structural trends were heavily influenced by the narrative surrounding technology and artificial intelligence, which dominated the year [7][8]. Group 3: Fund Issuance and Growth - The total scale of public funds reached a historic high of 37.02 trillion yuan by the end of November 2025, marking a continuous increase over eight months [8]. - A total of 1498 new funds were issued in 2025, the second-highest annual issuance on record, with index funds accounting for a quarter of all index funds issued since 2002 [9][10]. - The ETF market saw a significant growth of nearly 2.3 trillion yuan in 2025, with the total market size reaching 601.87 billion yuan, a 60% increase from the beginning of the year [10][11]. Group 4: Fund Manager Insights - The top 30 fund managers saw a significant number of their funds outperforming the market, with 130 out of 136 funds achieving positive returns [64]. - Notable fund managers included Du Meng from Morgan Stanley and Chen Hao from E Fund, both of whom saw substantial performance improvements in their managed products [65][67]. - The performance of funds was heavily influenced by their sector allocations, particularly in technology and communication sectors, which were common among the top-performing funds [47][49].

Group 1 - The A-share market saw a rebound in the afternoon, with the Shanghai Composite Index turning positive again. The Kexin 50 ETF (588000) continued to show weakness, with a maximum decline of 1.10% [1] - Commercial aerospace concept stocks remained active, with Guobo Electronics rising over 6%, reaching a historical high. Shengke Communication increased by 2.23%, and Times Electric rose by 1.82%. Other stocks like Yingstone Network and Kingsoft Office also saw gains of over 1% [1] - Samsung's HBM4 chip production may be ahead of schedule, with the global HBM market expected to reach $98 billion by 2030. The construction of Samsung's P4 factory is accelerating, with equipment installation and testing running 2-3 months ahead of the original plan [1] Group 2 - The Kexin 50 ETF (588000) tracks the Kexin 50 Index, with 69.39% of its holdings in the electronics sector and 4.88% in the computer sector, totaling 74.27%. This aligns well with the development direction of cutting-edge industries such as artificial intelligence and robotics [2] - The ETF also covers multiple sub-sectors, including semiconductors, medical devices, software development, and photovoltaic equipment, indicating a high content of hard technology. Investors optimistic about the long-term development prospects of China's hard technology are advised to continue monitoring [2] Group 3 - Huatai Securities expresses a positive outlook for 2026, focusing on three main investment lines: 1) Embracing AI computing power, with attention to domestic and international investment opportunities in the computing power industry; 2) New productive forces, with emerging sectors like commercial aerospace, satellite internet, low-altitude economy, and quantum communication expected to accelerate; 3) Core assets, where leading companies with long-term competitiveness and performance resilience are likely to see valuation improvement opportunities as market liquidity improves [1]

Core Viewpoint - The report from Huatai Securities indicates that the communication sector index will experience fluctuations in 2025, influenced by skepticism surrounding AI computing power narratives and geopolitical impacts, but will gradually return to pricing logic based on industry trends, with AI computing power becoming the main market theme [1] Investment Outlook for 2026 - The company is optimistic about three investment themes for 2026, categorized as "one main and two secondary": 1. Continue to embrace the main theme of AI computing power, focusing on investment opportunities in the domestic and international computing power supply chain [1] 2. The first secondary theme is new productive forces, with the new cycle of the 14th Five-Year Plan starting, and emerging sectors such as commercial aerospace, satellite internet, low-altitude economy, and quantum communication and computing expected to accelerate [1] 3. The second secondary theme is core assets, where leading companies with long-term competitiveness and resilient performance, such as telecom operators, are likely to see valuation enhancement opportunities as market liquidity improves [1]

Core Viewpoint - Huatai Securities highlights that the communication index has experienced significant volatility in 2025 due to concerns over AI computing power narratives and geopolitical impacts, but is expected to gradually return to pricing logic based on industry trends, with AI computing power becoming the main market theme [1] Investment Themes for 2026 - The company is optimistic about three main investment lines for 2026: 1) Embrace the AI computing power theme, focusing on investment opportunities in both domestic and international computing power supply chains [1] 2) The first secondary theme is new productive forces, with emerging sectors such as commercial aerospace, satellite internet, low-altitude economy, and quantum communication and computing expected to accelerate development due to the initiation of the 14th Five-Year Plan [1] 3) The second secondary theme is core assets, where leading companies with long-term competitiveness and resilient performance, such as telecom operators, are anticipated to see valuation enhancement opportunities as market liquidity improves [1]

Group 1 - The A-shares market showed a positive trend with the A500 ETF fund (512050) gaining 0.51% and achieving a trading volume exceeding 13.3 billion yuan, indicating strong investor interest in core assets as the year-end approaches [1] - The A500 ETF fund has seen a net inflow of over 18.88 billion yuan in the last 20 trading days, with its total scale surpassing 40 billion yuan, reflecting a growing confidence in the market [1] - Citic Securities predicts that China's macroeconomic environment will maintain a steady recovery supported by policy measures, with five major trends expected for 2026, including a recovery in domestic demand and resilient export growth [1] Group 2 - The A500 ETF fund (512050) is designed to efficiently capture market growth by tracking the CSI A500 Index, employing a dual strategy of "industry balanced allocation + leading selection" to cover industry leaders while balancing value and growth [2] - The fund features three core highlights: a low fee rate of 0.2%, high liquidity with an average daily trading volume exceeding 5 billion yuan over the past month, and a leading scale of over 40 billion yuan, making it an effective investment choice for capturing valuation increases in A-shares [2] - Investors are encouraged to consider related products such as the A500 ETF fund (512050) and the A500 Enhanced ETF fund (512370) for further investment opportunities [2]