J P M O R G A N Asia Pacific Equity Research 26 January 2026 This material is neither intended to be distributed to Mainland China investors nor to provide securities investment consultancy services within the territory of Mainland China. This material or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P. Morgan. China Utilities & Renewables Blog Continual activity in China offshore wind; 2025 ESS installation beats; selective on gas utilities Daqi Jiao (852) ...

Market Overview - On January 23, A-shares saw all major indices rise, with the Shanghai Composite Index up 0.33% to 4136 points, the Shenzhen Component Index up 0.79%, and the ChiNext Index up 0.63% [1] - The total market turnover reached 3.12 trillion yuan, an increase of 401.7 billion yuan from the previous trading day, with over 3900 stocks rising and 122 stocks hitting the daily limit [1] Index Performance - The Shanghai Composite Index closed at 4136.16, up 13.59 points (+0.33%) - The Shenzhen Component Index closed at 14439.66, up 112.61 points (+0.79%) - The ChiNext Index closed at 3349.50, up 20.86 points (+0.63%) - The North Star 50 Index saw a significant increase of 3.82% [2] Sector Analysis - The A-share market showed a divergence in performance, with the Shanghai 50 Index dropping over 1% and sectors like insurance and banking leading the decline [3] - Notable declines included New Yi Sheng, which fell over 6%, while Guosheng Technology saw a rise of over 3% after a previous surge [3] Commodity Market - Domestic commodity futures experienced widespread gains, with lithium carbonate futures surpassing 180,000 yuan per ton, marking a rise of over 6% [4] - Gold and silver prices continued to rise, with spot gold stabilizing at 4950 USD per ounce and spot silver nearing 100 USD, showing an intraday increase of nearly 3% [4] Solar and Aerospace Sector - The solar energy sector, particularly in space photovoltaic technology, saw a significant surge, with companies like Longi Green Energy and others experiencing limit-up gains [6] - The commercial aerospace sector is also thriving, with stocks like Aerospace Electronics and China Satellite hitting their daily limits [8] - Elon Musk expressed strong support for space photovoltaic technology at the World Economic Forum, indicating plans for significant solar energy production capacity [10] Company Developments - JinkoSolar and Trina Solar are exploring market opportunities in space photovoltaic technology, with advancements in various solar cell technologies [12] - Dongfang Risen highlighted the need for solar wings in satellites to meet market demands, emphasizing the advantages of crystalline silicon photovoltaic cells [13] - Jun Da Co. announced a cash investment of 30 million yuan to acquire a 16.67% stake in Shanghai Xingyi Chip Energy, aiming to enter the low-orbit and space photovoltaic market [13]

Core Insights - The report by JLL highlights that three emerging industries are driving the growth of leasing demand for Grade A office spaces in Guangzhou, contributing approximately 40% of the new leasing area by 2025 [1] Group 1: Emerging Industries Driving Demand - The three key emerging industries identified are: 1. New consumption content industry represented by live e-commerce, mobile gaming, and IP content creation 2. Brand overseas service industry including cross-border payment, international logistics, overseas marketing, and cross-border legal consulting 3. Strategic emerging industries represented by artificial intelligence, low-altitude economy, and semiconductors [1][2] Group 2: Market Supply and Trends - The Grade A office market in Guangzhou is expected to see a supply peak in 2025, with 9 new projects entering the market, adding approximately 739,000 square meters of supply, which is more than double the previous year [1] - New supply is highly concentrated in emerging business districts, with about 40% in Pazhou and 60% in Guangzhou International Financial City [1] - The report indicates that the clustering of cutting-edge industries like AI commercialization and commercial aerospace is forming new economic growth poles in Guangzhou [2]

Core Viewpoint - The stock of Zhite New Materials will be suspended from trading starting January 13, 2026, due to a significant price increase of 198.57% over six consecutive trading days, marking it as the first "doubling stock" of the year in the A-share market [2][5] Summary by Category Company Specifics - Zhite New Materials announced that its stock price closed at 33.38 yuan per share on January 12, 2026, with a rolling P/E ratio of 104 times and a P/B ratio of 6.46 times, significantly higher than the industry averages of 37.24 times and 3.08 times respectively [5] - The company confirmed that there have been no significant changes in its operational situation or external environment, and no undisclosed major matters exist [5] Market Trends - On January 12, 2026, multiple commercial aerospace concept stocks experienced a surge, with the aerospace index rising over 6%, and over 90 related stocks hitting the daily limit or increasing by more than 10% [7] - The commercial aerospace sector has seen a concentrated risk warning, with companies like Aerospace HuanYu and Aerospace Defense indicating potential stock suspensions if prices continue to rise abnormally [6][7] AI Concept Stocks - AI concept stocks also saw significant price increases, with over 150 stocks, including HanDe Information and ZhiYi Information, hitting the daily limit or rising over 10% [14] - Companies like ZhiYi Information and BoRui Broadcasting have issued warnings about their AI-related business models being in early stages, with no substantial revenue generated yet [15][16]

Core Insights - The A-share market has set a new record for single-day trading volume, surpassing 3.47 trillion yuan on January 12, 2026, indicating strong market momentum [1] - The A-share trading volume has exceeded 3 trillion yuan on six occasions, with notable dates including October 8, 2024, and several dates in August and September 2025 [2] - The driving force behind the A-share market's rise on January 12 was the explosive growth in AI application themes and the ongoing development of commercial aerospace stocks [2] Market Trends - Since mid-December 2024, the A-share market has shown a consistent upward trend, with the Shanghai Composite Index achieving a 17-day winning streak by January 12, 2026 [2] - Looking ahead to 2026, the market is expected to remain positive, with technology continuing to be the core focus [2] - The global macroeconomic environment is favorable for capital markets, with major economies showing steady growth and low overall risk [2] Economic Environment - The global interest rate environment is conducive to capital markets, with most countries maintaining relatively low interest rates, and the Federal Reserve having room for potential rate cuts in 2026 [2] - The projected high growth rate of capital expenditures related to artificial intelligence in the U.S. for 2026 suggests that technology stocks are likely to lead the global capital market [2]

Market Performance - The A-share market saw a strong performance on January 9, with the Shanghai Composite Index breaking the 4100-point mark, reaching its highest level since July 2015 [1] - The trading volume in the Shanghai and Shenzhen markets reached 2.06 trillion yuan, an increase of 296.3 billion yuan compared to the previous trading day [1] - By midday, the Shanghai Composite Index was at 4095.33 points, up 0.3%, with a transaction volume of 851.4 billion yuan [1] Sector Highlights - The commercial aerospace concept stocks surged, with over ten stocks including Xinke Mobile and JuLi Sockets hitting the daily limit [1] - AI application concepts also gained traction, with stocks like Yiyuan Media and GuoXin Health seeing significant increases [1] - The controllable nuclear fusion concept continued its strong performance, with Hongxun Technology achieving three consecutive daily limits [1] - Conversely, the brain-computer interface concept saw declines, with Meihua Medical dropping over 10% [1][2] Institutional Insights - CITIC Securities predicts that the chemical industry's capital expenditure will gradually recover, suggesting investment opportunities in high-energy-consuming products like calcium carbide and caustic soda [3] - CICC notes that the monetization of Chatbots is primarily subscription-based overseas, while domestic models are free, indicating a potential shift in business models in the future [3] - CITIC JianTou highlights the white liquor industry's cyclical bottoming phase, suggesting a potential investment opportunity as the market approaches the Spring Festival [3] Economic Indicators - In December, the Consumer Price Index (CPI) rose by 0.2% month-on-month and 0.8% year-on-year, driven by increased consumer demand [4] - The Producer Price Index (PPI) saw a month-on-month increase of 0.2% but a year-on-year decrease of 1.9%, influenced by international commodity prices and domestic capacity management policies [4] Policy Developments - Five departments, including the Ministry of Industry and Information Technology, issued guidelines to promote the construction and application of industrial green microgrids, aiming for a renewable energy self-consumption rate of at least 60% [5] - The Shanghai government plans to boost the advertising industry's revenue to over 450 billion yuan by 2028, emphasizing the integration of AI and digital advertising [6][7]

Market Overview - The market experienced a morning rally with the ChiNext Index rising nearly 1% and significant differentiation between sectors [1][3] - By the end of the morning session, the Shanghai Composite Index increased by 0.34%, the Shenzhen Component Index by 0.65%, and the ChiNext Index by 0.78% [1][3] - The total trading volume in the Shanghai and Shenzhen markets reached 1.24 trillion yuan, an increase of 52.3 billion yuan compared to the previous trading day [1][3] Sector Performance - The lithium battery industry chain showed strong performance, with stocks like Tianji Co. and Tianci Materials hitting the daily limit [1][3] - The non-ferrous tungsten sector was also active, with Xianglu Tungsten and Zhangyuan Tungsten both reaching the daily limit [1][3] - The semiconductor equipment sector continued its strong trend, with Shenghui Integration achieving a historical high after two consecutive trading days of gains [1][3] - Conversely, the commercial aerospace sector saw a pullback, with Aerospace Machinery hitting the daily limit down [1][3] - The film and theater sector experienced declines, with Bona Film Group facing two consecutive limit downs [1][3] Notable Stocks - Key stocks mentioned include Tianji Co., Tianci Materials, Xianglu Tungsten, Bona Film Group, Shenghui Integration, Aerospace Machinery, and Zhangyuan Tungsten [5]

中国证券投资基金业协会(下称"中基协")最新月报显示，私募基金总规模在2025年11月末历史性地突破 22.09万亿元。不过，深入数据肌理可发现，此次行业规模"新高"并非普惠式地全面扩张，而是呈现出 结构性变化。 不过，在这串标志行业体量的数字背后，还有一场更为复杂和深刻的叙事。根据私募排排网数据统计， 私募机构股票仓位飙升至年内顶峰，头部私募近乎"满弓"运行；但另一面则是对年末行情的研判出现分 歧，以及在此分歧下衍生出的多元甚至矛盾的战术动作。 根据中基协披露的数据，在11月新备案的私募证券产品中，量化策略产品占比显著提升，备案产品共计 565只，占比为44%，较10月环比提升，成为吸纳资金的主力。 从备案的私募机构来看，11月新登记的私募管理人数量仅为14家，注销的则有67家，"进出"之间的巨大 差额持续推动行业出清。 在数量收缩的表象下，是新入局者"成色"的十足。11月新设的证券类私募虽仅有3家，但其核心人物均 拥有从头部券商、公募基金到知名私募的跨界、复合背景。 例如，北京垦禾基金的李昆和杭州青燊基金的关家雄，均任职过多家资管机构。 一名长期观察行业发展的法律合规专家对记者表示："'公奔私'现象从未停 ...

Group 1 - The article emphasizes the investment value of significant events, analyzing industry chain companies and interpreting key points of major policies [1] - The company is involved in humanoid robots and AI glasses, launching multiple products that penetrate the domestic leading robotics market, and investing in the world's first company to mass-produce 1,000 high-freedom dexterous hands, which fill a domestic gap with core products compatible with AI glasses [1] - The company is also engaged in space computing and commercial aerospace, deeply binding with domestic leading aerospace enterprises to provide satellite computing power and AI application solutions, with main products targeting the digital transformation of industrial enterprises [1]

Group 1 - The article highlights significant announcements related to the stock market, including "suspensions and resumption of trading, shareholding changes, investment wins, acquisitions, performance reports, unlocks, and high transfers" [1] - Important announcements are marked in red to assist investors in identifying investment hotspots and preventing potential black swan events [1] - The article mentions companies involved in key sectors such as 6G, commercial aerospace, chips, satellite navigation, and military projects, indicating their participation in major national aerospace initiatives like the Chang'e lunar exploration program [1] Group 2 - One company is noted for its products that meet the demands of 6G macro base station scenarios and applications in significant aerospace projects [1] - Another company has participated in various aerospace and military projects, including manned space stations and launch vehicles [1] - A company is collaborating with Huawei Cloud to develop robotic products that integrate artificial intelligence and drones [1]