Market Overview - In October 2025, the equity market experienced an overall upward trend, with the Shanghai Composite Index breaking through 3900 points and reaching a historical high of 3950.3, marking a monthly increase of 0.42% [5] - The bond market remained volatile, influenced by expectations of further monetary policy easing and high risk aversion due to the uncertain Sino-US trade situation. The yield on 10-year government bonds rose by 0.20 basis points to 1.849% by October 24 [5] - The convertible bond market saw a stabilization after an initial valuation compression, with the average price of convertible bonds decreasing by 3.00% to 114.34 yuan, and the median price dropping by 0.48% to 131.01 yuan [5][11] Convertible Bond Strategy - The report suggests a balanced approach to convertible bond investments, emphasizing the need for a wave-like strategy in asset management. It highlights the importance of selecting bonds with high potential for price appreciation while managing risks associated with high premiums and frequent redemptions [17] - The report identifies sectors with high win rates and high odds for convertible bond investments, including lithium batteries, semiconductor equipment, and agricultural chemicals, which are expected to benefit from recent price increases and market demand [17] "Top Ten Convertible Bonds" Portfolio - The report lists the "Top Ten Convertible Bonds" for November 2025, highlighting their respective industries, credit ratings, and reasons for recommendation. For instance, the "Xingye Convertible Bond" is recommended due to its attractive dividend yield of over 5% [19][20] - The portfolio includes bonds from various sectors such as banking, battery manufacturing, medical devices, and semiconductor industries, showcasing a diverse investment strategy aimed at capturing growth across different market segments [19] Sector-Specific Insights - The banking sector, represented by Xingye Bank, is noted for its stable revenue growth and strong asset quality, with a projected dividend yield of 4.6% [20][21] - The battery sector, particularly represented by Yiwei Lithium Energy, is experiencing rapid growth in energy storage battery shipments, positioning the company as a leader in the market [31][34] - The medical device sector, led by Yirui Technology, is benefiting from increased demand for digital X-ray detectors and core component breakthroughs, indicating strong growth potential [43][46] - The semiconductor sector, represented by Weier Technology, is capitalizing on the recovery in consumer electronics demand and the expansion of automotive electronics, leading to significant revenue growth [68][71] - The communication sector, represented by Zhongbei Communication, is seeing explosive growth in its intelligent computing business, driven by the increasing demand for AI-related services [80][83] Conclusion - The report emphasizes the importance of a strategic approach to investing in convertible bonds, focusing on sectors with strong growth potential and favorable market conditions. The "Top Ten Convertible Bonds" portfolio serves as a guide for investors looking to capitalize on these opportunities while managing associated risks [17][19]

Core Insights - The article emphasizes the critical role of electricity in powering artificial intelligence (AI), suggesting that control over stable, cheap, and large-scale electricity supply is essential for technological advancement [1][30] - It highlights a significant shift in global power dynamics, moving from oil to electricity as the defining resource for geopolitical influence [1][28] Electricity Demand and AI Growth - The annual electricity consumption of a large AI data center is equivalent to that of 750,000 households, with global data center electricity use projected to reach 945 terawatt-hours by 2030, comparable to Japan's total annual consumption [3] - In China, the electricity consumption for internet data services surged by 33% year-on-year in the first half of 2025, with AI hubs like Hangzhou experiencing a staggering 237.7% increase [3] Energy Supply Challenges - The increasing demand for electricity due to AI is straining power grids, leading to frequent large-scale blackouts in countries like Spain, Czech Republic, and Brazil, with the U.S. being particularly affected [5] - In Georgia and Virginia, local governments have halted new data center approvals due to grid capacity nearing physical limits, with warnings from the U.S. Department of Energy about a potential doubling of blackout frequency by 2030 [6] Policy Responses and Energy Strategies - The U.S. is shifting towards practical energy solutions, prioritizing natural gas and coal over clean energy goals to meet rising electricity demands, with Georgia's projected demand growth of 16 times over the next seven years [8] - A $92 billion investment plan initiated in early 2025 allocates $15 billion for grid upgrades, with the remainder focused on AI infrastructure and traditional energy expansion [10] Global Energy Dynamics - China is leveraging geopolitical changes to enhance its energy security, increasing electricity imports from Russia significantly post-Ukraine conflict, while also exporting stability through energy projects in countries like Brazil and Thailand [12] - The article notes a structural shift in energy competition, with the U.S. and China adopting different approaches to energy and technology integration, impacting their respective positions in the global AI race [14][21] Future Outlook - The competition for energy resources is expected to intensify, with the next five years being crucial for establishing a stable, clean, and efficient energy-technology system [26] - The article concludes that electricity is becoming the new strategic resource of the 21st century, with implications for everyday life, including potential increases in electricity costs and changes in AI service pricing [28][30]

Core Insights - China's computing power and electricity have been rapidly developing, with total computing power expected to exceed 280 EFlops by the end of 2024, averaging a growth rate of nearly 30% over the past five years [1] - Annual electricity consumption of data centers has surpassed 150 billion kilowatt-hours, highlighting the increasing demand for energy [1] - The structural contradiction between the over 50% share of renewable energy installations in the western region and the electricity shortages in the eastern region is becoming more pronounced [1] - The dual pressure of surging computing demand and energy transition necessitates a deep integration of computing power and electricity [1] - The essence of "computing-electricity synergy" is to break down the barriers between bits (computing power) and watts (electricity), allowing computing power to act as a "regulator" in the electricity system [1] - This synergy aims to promote renewable energy consumption, reduce electricity costs, and optimize resource allocation through the two-way matching of computing load and electricity supply [1]

Core Viewpoint - The company is actively engaged in the development of electric vehicle charging cables and is focusing on expanding its business in the wire and cable market, particularly in the charging infrastructure sector [1]. Group 1: Company Overview - The main products of the company are widely used in various fields including power, rail transit, construction engineering, new energy, and intelligent equipment [1]. - The company's approach to market development is contingent upon the actual application scenarios of downstream customers [1]. Group 2: Market Focus - The company is closely monitoring the developments in the wire and cable market, with a specific emphasis on the cable market for charging facilities [1]. - Electric vehicle charging cables have been designated as a research and development project by the company [1].

Industry Investment Rating No industry investment rating information is provided in the report. Core Views - The long - and short - end of US Treasury yields continued to decline last week, and the long - end briefly fell below 4%, suggesting an increased market bet on US economic recession. The gold price correction on Friday raised concerns about changing market bets. Global liquidity is shifting more firmly towards easing, which will fuel the further bubble of AI themes, strengthen market structuring, benefit the technology sector in the short - term, and be negative for precious metals [1][43][44]. - China's ChiNext and STAR Market weakened with a strong wait - and - see sentiment, and convertible bonds followed suit. Low - price, large - cap, and high - rating convertible bonds were relatively resilient. The high - low rotation in the convertible bond market preceded that in the equity market, possibly due to factors such as the amplification effect of convertible bond valuation, large - scale redemptions of high - standard bonds, and the low risk appetite of convertible bond investors [1][44]. - Considering both external and domestic factors, the main logic of technology computing power and electricity remains valid. With the approaching earnings season, it is recommended to focus on sectors with relatively certain earnings improvement, such as new energy and some chemical fields. Convertible bonds like Pingmei, Yuguang, Xingfa, Aidi, Saite, and Shouhua are recommended for their defensive properties [1]. - The top ten convertible bonds with the highest probability of downward revision next week are Ziyin, Lanfan, Dongshi, Baolai, Longda, Jiangong, Wanqing, Jidong, Shanlu, and Aojia Convertible Bonds [1][44]. - The top ten high - rating, medium - low - price convertible bonds with the greatest potential for par premium rate repair next week are Sheng24, Changji, Pufa, Chunqiu, Ying19, Xiwang, Liqun, Wentai, Liuyao, and Jieneng Convertible Bonds [1][44]. Summary by Directory 1. Week - on - Week Market Review 1.1 Equity Market Declined Overall - From October 13th to 17th, the equity market declined. The Shanghai Composite Index fell 1.47% to 3839.76 points, the Shenzhen Component Index dropped 4.99% to 12688.94 points, the ChiNext Index decreased 5.71% to 2935.37 points, and the CSI 300 Index declined 2.22% to 4514.23 points. The average daily trading volume of the two markets decreased by about 2039.56 billion yuan to 21766.30 billion yuan, a week - on - week decline of 8.57% [6][10]. - Among the 31 Shenwan primary industries, 4 industries rose, with 2 industries rising more than 2%. Banking, coal, food and beverage, and transportation led the gains, rising 4.89%, 4.17%, 0.86%, and 0.37% respectively. Electronics, media, automobiles, communications, and machinery led the losses, with declines of 7.14%, 6.27%, 5.99%, 5.92%, and 5.84% respectively [13]. 1.2 Convertible Bond Market Declined Overall - From October 13th to 17th, the CSI Convertible Bond Index fell 2.35% to 474.22 points. Among the 29 Shenwan primary industries, only the banking industry rose 0.93%. Electronics, communications, national defense and military industry, non - ferrous metals, and computers led the losses, falling 6.45%, 5.71%, 5.25%, 5.13%, and 4.59% respectively [16]. - The average daily trading volume of the convertible bond market was 709.50 billion yuan, a significant decrease of 54.72 billion yuan, a week - on - week change of - 7.16%. The top ten convertible bonds in terms of trading volume were Yuguang, Guanzhong, Huicheng, Wentai, Jingxing, Wujin, Saili, Yiwei, Luwei, and Outong Convertible Bonds [16]. - Approximately 10.66% of convertible bond issues rose, about 6.64% had a gain between 0 - 1%, and 1.66% had a gain of over 2% [16]. 1.3 Comparison of Stock and Bond Market Sentiments - From October 13th to 17th, the weekly weighted average and median of convertible bond and underlying stock returns were negative, and the underlying stocks had a larger decline. In terms of trading volume, the convertible bond market's trading volume increased 16.05% week - on - week, at the 66.60% quantile since 2022, while the underlying stock market's trading volume increased 11.91% week - on - week, at the 94.70% quantile since 2022. About 10.85% of convertible bonds and 17.46% of underlying stocks rose, and about 66.84% of convertible bonds had a higher return than their underlying stocks. Overall, the trading sentiment in the convertible bond market was better [40]. - On specific trading days, the convertible bond market had better trading sentiment on October 13th, 16th, and 17th, while the underlying stock market had better trading sentiment on October 14th and 15th [41]. 2. Outlook and Investment Strategy - The main logic of technology computing power and electricity remains valid, and relevant catalysts have both short - term intermittency and long - term sustainability. Near the earnings season, it is recommended to focus on sectors with relatively certain earnings improvement, such as new energy and some chemical fields. Convertible bonds like Pingmei, Yuguang, Xingfa, Aidi, Saite, and Shouhua are recommended [1][44]. - The top ten convertible bonds with the highest probability of downward revision next week are Ziyin, Lanfan, Dongshi, Baolai, Longda, Jiangong, Wanqing, Jidong, Shanlu, and Aojia Convertible Bonds [1][44][45]. - The top ten high - rating, medium - low - price convertible bonds with the greatest potential for par premium rate repair next week are Sheng24, Changji, Pufa, Chunqiu, Ying19, Xiwang, Liqun, Wentai, Liuyao, and Jieneng Convertible Bonds [1][44][46].

Group 1: Report Industry Investment Rating No relevant content provided. Group 2: Core Views of the Report - The current market's main trend revolves around computing power and electricity, and short - term policy information during festivals and weeks does not reverse the market trend. A marginal loosening of monetary policy expectations in economies like the US and Japan may extend the market bubble and boost the prices of gold and resource - related products while raising inflation expectations [3][46] - Due to the structured nature of the equity market, there are also structured characteristics in convertible bond parity and valuation. In investment strategies, the controllability of drawdown is prioritized, followed by upward elasticity, focusing on definite directions of performance improvement or valuation repair [3][46] - In the extreme market on Friday, some recommended targets from September 22 - 26 still provided hedging space, and overall, their performance was acceptable [3][47] Group 3: Summary by Related Catalogs 1. Weekly Market Review 1.1 Equity Market: Overall Rise with Most Industries Gaining - From September 29 to October 10, the equity market generally rose, with the Shanghai Composite Index up 1.80%, the Shenzhen Component Index up 1.11%, the CSI 300 up 1.47%, while the ChiNext Index fell 1.21%. The average daily trading volume of the two markets increased by about 855.25 billion yuan to 23805.86 billion yuan, a week - on - week increase of 3.73% [9][12] - Among the 31 Shenwan primary industries, 24 industries rose, with 11 industries rising more than 2%. The top - performing industries were non - ferrous metals (up 11.89%), steel (up 7.89%), basic chemicals (up 4.62%), building decoration (up 4.30%), and building materials (up 4.10%) [17] 1.2 Convertible Bond Market: Overall Rise with Most Industries Gaining - From September 29 to October 10, the CSI Convertible Bond Index rose 1.58%. Among the 29 Shenwan primary industries, 17 industries rose, with one industry rising more than 2%. The top - performing industries were beauty care (up 2.12%), environmental protection (up 1.81%), coal (up 1.71%), non - ferrous metals (up 1.25%), and basic chemicals (up 1.15%) [21] - The average daily trading volume of the convertible bond market was 1057.27 billion yuan, a significant decrease of 75.66 billion yuan, a month - on - month decline of 6.68%. The top ten convertible bonds in terms of trading volume were Guanzhong Convertible Bond, Jize Convertible Bond, etc. [21] - The overall conversion premium rate of the market gradually recovered, with an average daily conversion premium rate of 39.22%, an increase of 0.60 pcts compared to the previous period. There were different changes in conversion premium rates and conversion parities in different price, parity, and industry ranges [25][36][37] 1.3 Comparison of Stock and Bond Market Sentiments - From September 29 to October 10, the weekly weighted average and median increases of the convertible bond and underlying stock markets were positive, and the underlying stocks had a larger weekly increase. The trading volume of the convertible bond market decreased by 27.72% month - on - month, at the 51.00% quantile level since 2022, while that of the underlying stock market decreased by 22.26%, at the 92.50% quantile level [41] - Overall, the trading sentiment in the convertible bond market was better during this period, but there were differences on different trading days [41][42][44] 2. Outlook and Investment Strategies for the Future - Continue to be cautious about performance and valuation, and be sensitive to external disturbances such as tariff and non - tariff barriers and the reconstruction of the Fed's monetary policy framework [3][46] - Add several balanced chemical targets for reference, including Xingfa Group/Xingfa Convertible Bond, Hebang Biotech/Hebang Convertible Bond, and Kaisheng New Materials/Kaisheng Convertible Bond. The first two are leading companies in the glyphosate industry, which is in the middle - early stage of a "small - cycle recovery" [2][47][48] - The top ten convertible bonds with the greatest potential for parity premium rate repair next week are Liqun Convertible Bond, Meijin Convertible Bond, etc. [4][50][51]

Report Industry Investment Rating No relevant information provided. Core Views of the Report - AI generalization has entered a large-scale application period, leading to an exponential increase in computing power demand across various industries. The US is facing a power crisis, and China is likely to experience a power shortage in 1 - 2 years. China will win the Sino-US AI game, and the semiconductor equipment and energy storage industries will be highly prosperous. Silver is a commodity that benefits from both endless computing power and endless electricity. The stock market style is shifting, and the CSI 300 Index is well-balanced. Gold will soar due to the Fed's policy shift, and the demand for commodities will decline. The RMB exchange rate is expected to strengthen [1][2][3]. Summary by Relevant Catalogs Economic Cycles - **Kitchin Cycle**: China's current Kitchin cycle is expected to reach its peak in Q4 2025, while the US will reach its peak in Q1 2026 [6]. - **Juglar Cycle**: China's Juglar cycle is currently in an upward phase and is expected to peak in early 2027 [7]. - **Kuznets Cycle**: China's current Kuznets cycle is expected to bottom out around 2030 [8]. - **Kondratieff Cycle**: The current Kondratieff depression started in 2020 due to the COVID-19 impact and is expected to end around 2030, followed by a 10-year recovery period. China is the center of this technological innovation cycle, with AI being the most significant innovation [9]. AI Computing Power Demand - The implementation of the "AI +" action indicates China's full transition to an AI economy. The demand for computing power is growing exponentially, with token usage expected to increase by about 30 times in a year, 900 times in two years, and 27,000 times in three years. Tech giants are making substantial investments in computing power infrastructure, and global AI data center and chip investment is expected to reach $2.9 trillion by 2028 [10][11][14]. Power Demand and Crisis - The exponential growth in computing power demand leads to an exponential increase in power demand, intensifying the Sino-US power competition. The US is facing a power crisis as its aging power grid struggles to meet the growing demand. China is likely to experience a power shortage in 1 - 2 years despite its efforts to expand new energy power generation [15][16][23]. Semiconductor Equipment Industry - Huawei's AI chip computing power supernodes lead the industry, indicating China's full autonomy in the chip industry chain. The surging demand for computing power will drive the semiconductor equipment industry to remain highly prosperous, and related ETFs are expected to perform well [24][25][28]. Energy Storage and Photovoltaic Industries - China's strong power construction mobilization ability ensures its victory in the Sino-US AI game. The energy storage industry is highly prosperous due to the increasing power demand, and the photovoltaic industry is expected to recover in 2026 [33][36]. Silver - Silver benefits from both endless computing power and endless electricity. The demand for silver is expected to surge, widening the supply-demand gap and leading to a shortage of physical silver [37]. Stock Market - The stock market style is shifting, and the CSI 300 Index is well-balanced with limited downside and significant upside potential. The CSI 500 and CSI 300 indices have reached new highs, and the Sci-Tech Innovation 50 Index and ChiNext Index are expected to continue rising. A large amount of domestic and foreign capital is flowing into the A-share market [44][46][47]. Gold - The Fed's policy shift towards full employment and tolerance of inflation, combined with the potential for negative real interest rates in the US, will drive gold prices higher [48][49]. Commodities - Due to the anti-involution in the mid - and downstream industries, the demand for upstream resource commodities is weakening. However, copper prices may strengthen temporarily, and lithium carbonate may enter a new bull market in H2 2026 [50][51][52]. Bonds - As the stock market rises, bond funds are facing large-scale redemptions, and the bond market is becoming a source of funds for the stock market. The real interest rate is trending towards negative values [52]. Foreign Exchange - China is expected to achieve a double surplus in trade and capital, and the offshore RMB exchange rate is likely to enter the 6 - level by the end of the year [53][55][56]. October Outlook for Major Asset Classes - **Equity Assets**: The stock market's wealth effect is attracting savings from the household sector, and overseas funds are flowing into Chinese assets. The semiconductor equipment index and battery index are expected to remain highly prosperous [3][56]. - **Gold and Silver**: Gold will soar due to the Fed's policy shift, and silver may face severe supply shortages [3][56]. - **Commodities**: The demand for upstream resource commodities is weakening [3][56]. - **Bond Assets**: The bond market is becoming a source of funds for the stock market as the real interest rate turns negative [3][56]. - **Foreign Exchange Assets**: The offshore RMB exchange rate is expected to strengthen and enter the 6 - level by the end of the year [3][56].

Investment Rating - The industry rating is "Outperform the Market" [7][16] Core Insights - Oklo, a key player in the Small Modular Reactor (SMR) sector, saw a significant stock increase of 63.5% over the week, driven by a surge in investment interest in SMR technology [3][4] - The demand for energy is expected to rise dramatically, with projections indicating that by 2035, the total computing power in society may increase by 100,000 times, leading to a substantial rise in electricity consumption from data centers [4] - SMRs are characterized by their inherent safety, lower investment requirements, rapid returns, flexible deployment, and wide application scenarios, making them a promising energy solution for the growing needs of data centers and AI [5] Summary by Sections Investment Opportunities - Companies to watch include: 1. Jingye Intelligent: Collaborating with Zhejiang University on micro-reactor/SMR technology, showing significant growth potential in the context of global AI demand and energy transition [5] 2. Jiadian Co.: Leading in the nuclear power sector with its helium fan as the only power device for the fourth-generation high-temperature gas-cooled reactor [5] 3. Guoguang Electric: Key components for the ITER project [5] 4. Lanshi Heavy Industry: Covers upstream nuclear fuel systems, midstream nuclear power plant equipment, and downstream spent fuel processing [5] 5. Kexin Electromechanical: Producing high-temperature gas-cooled reactor products and replacing imports with new fuel transport containers [5] 6. Hailu Heavy Industry: Services for various reactor types including third and fourth generation reactors [5] 7. Jiangsu Shentong: Secured over 90% of orders for nuclear-grade valves in new nuclear power projects [5]

Core Insights - The article emphasizes the importance of computing power as a core competitive element in regional economic development, particularly in the context of the "East Data West Computing" initiative and the implementation of "AI+" actions [1] - Jinan High-tech Zone is undergoing its third entrepreneurial phase aimed at leading regional development by building a comprehensive computing power ecosystem [1][4] Group 1: Power Infrastructure - The demand for reliable electricity for AI computing centers and data centers is surging, leading to structural transformation and technological upgrades in China's power industry [2] - Companies like Hongsheng Huayuan and Huaming Electric Equipment are capitalizing on opportunities in the ultra-high voltage and renewable energy sectors, with Hongsheng's net profit increasing by 96.3% year-on-year in the first half of 2025 [2] - Huaming's export revenue from power equipment grew by 45.21% year-on-year, with indirect exports increasing by 84.03% [2] Group 2: Software and Services - Companies in Jinan High-tech Zone are integrating AI and low-code technologies to enhance the intelligence of power systems, with Jicheng Electronics reporting a 36.26% year-on-year increase in revenue from its energy digitalization business [3] - Shandong Shanda Electric Technology successfully listed on the Growth Enterprise Market, filling a critical gap in the capital market for intelligent operation and new energy consumption [3] Group 3: Computing Power Ecosystem - Jinan High-tech Zone is recognized for producing half of the global AI servers, with Inspur leading the charge in transitioning from hardware manufacturing to intelligent computing services [4][5] - The establishment of the "Meta Brain Computing Factory" by Inspur demonstrates rapid construction and energy-efficient standards, with a construction time reduced by nearly 80% compared to traditional methods [4] Group 4: Industry Expansion - Companies are leveraging stable energy supply and advanced computing facilities to expand AI application scenarios across various sectors, including mining and information security [6][7] - Cloud Ding Technology, in collaboration with Huawei, developed the world's first AI model for the mining industry, enhancing safety and operational efficiency [6] Group 5: Capital Market Support - Jinan High-tech Zone has established a comprehensive capital market service system to support the growth of listed companies, which now number 19 and account for 40% of Jinan's total [8] - The region's listed companies have a combined market value exceeding 200 billion yuan, contributing significantly to the local economy [8]

Market Performance - The Hang Seng Index rose by 1.01% to close at 26,200.26 points, while the Hang Seng Tech Index increased by 1.27% to 5,902.69 points, and the National Enterprises Index gained 0.93% to 9,328.16 points [1] - The Hang Seng Index opened at 26,042.41 points, reaching a peak of 26,296.60 points before slightly retreating, ultimately gaining 262.13 points with a total turnover exceeding 288.2 billion HKD [1] - The southbound trading (Hong Kong Stock Connect) saw a net inflow of over 7.5 billion HKD [1] Sector Performance - Most sectors experienced declines, with notable increases in chips, banks, insurance, and brokerage stocks, while gold, coal, electricity, and hydrogen energy stocks showed mixed results [1] - Biopharmaceuticals, new energy vehicle companies, new consumption, and lithium battery stocks predominantly faced declines [1] Individual Stock Movements - Yunfeng Financial surged by 27.83%, and Yingxing Holdings rose by 23.88%, while Sanofi Pharmaceutical fell by 8.36%, Tianqi Lithium dropped by 7.97%, and Ganfeng Lithium decreased by 7.02% [1] - Bilibili increased by 7.57%, while China Properties Investment soared by 35.71%, and CITIC Bank rose by 2.23% [1] - Alibaba gained 0.63% with a turnover exceeding 26.3 billion HKD, Tencent Holdings rose by 1.04% with over 12.1 billion HKD in turnover, and Meituan increased by 2.06% with a turnover exceeding 9.5 billion HKD [2]