Core Viewpoint - The report from GF Securities highlights that the biotechnology, new energy vehicles, and next-generation information technology sectors are currently leading in terms of industry prosperity, with these three sectors consistently ranking in the top three since October 2025 [1] Industry Summaries Biotechnology - The biotechnology sector is experiencing a turning point driven by innovation, with the past five years seeing major Chinese biotechnology companies filing 52.2% of total patent applications and 63.8% of total patent grants in history [1] New Energy Vehicles - The new energy vehicle sector is benefiting from both domestic sales and exports, with the China Passenger Car Association noting that the export performance of Chinese new energy vehicles has exceeded expectations. The growth in exports is primarily driven by plug-in hybrid and hybrid vehicles replacing pure electric vehicles as new growth points [1] Next-Generation Information Technology - The high prosperity in the next-generation information technology sector is attributed to the accelerated construction of AI computing power and extensive exploration of AI applications across various industries [1] High-End Equipment Manufacturing, New Materials, and Energy Conservation - The high-end equipment manufacturing, new materials, and energy conservation sectors are experiencing weaker prosperity, remaining in the contraction zone for three consecutive months [1]

Group 1: EPMI Overview - In January 2026, the Strategic Emerging Industries Purchasing Managers' Index (EPMI) increased by 0.9 points to 50.0, aligning with seasonal trends observed in previous years[3] - Historical data shows that in years with a late Spring Festival, the average EPMI change in January is an increase of 0.8 points, with 2015 showing a decrease of 1.5 points, while 2018 and 2024 showed increases of 2.8 and 1.0 points respectively[3] Group 2: Industry Performance - Among the seven sub-sectors of strategic emerging industries, three are in the expansion zone, consistent with November and December 2025[4] - Key indicators such as production volume, product orders, and export orders improved by 1.6, 1.5, and 1.0 points respectively in January 2026[4] - The production-demand ratio increased to 4.9, up from 4.8, indicating a positive outlook for demand post-holiday[5] Group 3: Price and Loan Indicators - In January 2026, purchase prices rose by 0.4 points and sales prices by 0.3 points, continuing an upward trend since July 2025[5] - The difficulty of obtaining loans increased by 0.4 points, marking a two-month recovery, potentially linked to liquidity conditions in early January[5] Group 4: Sector-Specific Insights - The biotechnology, new energy vehicles, and next-generation information technology sectors are leading in terms of economic performance, with biotechnology remaining above 60 in the high prosperity zone[6] - Compared to December 2025, the biotechnology sector increased by 1.2 points, while other sectors saw increases between 0.7 and 1.0 points[7] Group 5: Manufacturing PMI Expectations - Seasonal patterns suggest that the manufacturing PMI may experience slight declines in January, as seen in previous years, with an average decrease of 0.13 points historically[7] - High-frequency data indicates mixed performance in traditional industries, with some sectors like steel showing increased operational rates while others like automotive parts declined[8]