Group 1 - The controllable nuclear fusion technology is regarded as the ultimate solution to human energy problems, attracting significant market attention [1] - The controllable nuclear fusion industry encompasses multiple segments, including materials, main engines, systems, and applications, with China holding a certain position in high-temperature superconducting materials and Tokamak devices [1] - There is a consensus in the industry on the development model driven by Tokamak and the cross-validation of multiple technological routes, with suggestions for enhanced technical collaboration among domestic fusion supply chains and main engine manufacturers [1] Group 2 - The commercial viability of controllable nuclear fusion is accelerating, as evidenced by the steady growth in order and production capacity from upstream enterprises, with the timeline for generating the "first degree of electricity" expected to be advanced [2] - The transition from "experimental pile" to "demonstration pile" and then to "commercial pile" still relies on cost reduction by upstream material component manufacturers and technological breakthroughs by midstream main engine manufacturers, indicating a longer cycle before definitive commercialization [2] - Investment institutions are calling for government support to facilitate diverse financing channels for enterprises, while venture capital feedback suggests that investments should focus on capital expenditure and key parameter improvements [2]

Core Viewpoint - The "Controlled Nuclear Fusion" industry salon held by the Shanghai Stock Exchange highlighted the growing interest and investment in nuclear fusion technology, emphasizing its potential as a key solution for global energy challenges and carbon neutrality [1][2]. Industry Development - Over 20 companies from the nuclear fusion supply chain participated in the salon, discussing the development prospects of high-temperature superconducting materials, fusion experimental reactors, and related technologies [1]. - The industry consensus is forming around a development model that leverages Tokamak technology and various technical routes to achieve breakthroughs in energy output and commercial viability [2]. Company Highlights - China National Nuclear Power (601985) is recognized as a leading player in the domestic nuclear energy sector, actively involved in the CFETR project to advance nuclear fusion from laboratory to commercial application [1]. - China Nuclear Engineering (601611) is responsible for manufacturing and installing core components for the ITER project, showcasing significant technological barriers in the construction of fusion reactors [1]. - Western Superconducting Technologies is the only entity in China tasked with producing superconducting wire for the ITER project, with plans to deliver related materials for domestic fusion projects in 2024 [1]. Investment and Financial Support - The salon participants emphasized the need for enhanced collaboration among upstream material suppliers and midstream manufacturers to overcome technical challenges and reduce costs [2]. - Investment institutions are calling for government support to facilitate discussions on common technical issues and create a favorable ecosystem for industry collaboration [2]. - The China Securities Regulatory Commission's recent reforms aim to expand the Sci-Tech Innovation Board's support for high-potential technology companies, enhancing financial backing for the nuclear fusion sector [3]. Future Industry Initiatives - The Shanghai Stock Exchange has hosted multiple industry salons focusing on future industries, including artificial intelligence and nuclear fusion, to foster collaboration between academia, industry, and investment [4].

Group 1 - The Shanghai Stock Exchange hosted a "Controlled Nuclear Fusion" industry salon on July 17, with over 20 companies from the upstream and downstream sectors in attendance [1] - The event included participation from nearly 30 venture capital institutions, public funds, securities companies, and banks, indicating strong interest from financial institutions [1] - The theme of the salon was "Controlled Nuclear Fusion: The Ultimate Energy 'Core' of the Future," focusing on discussions about the development prospects of high-temperature superconducting materials, fusion experimental reactors, device components, and materials [1] Group 2 - Participants engaged in in-depth discussions regarding the technological breakthrough timelines, national strategic directions, and key areas of capital market support for the nuclear fusion industry [1]

Core Viewpoint - The recent public fund reports reveal that high-performing funds have achieved impressive returns by focusing on sectors like innovative pharmaceuticals and new consumption, while also highlighting a trend towards thematic funds targeting niche markets [1][2][5]. Fund Performance and Holdings - High-performing funds have seen significant returns, with the Changcheng Pharmaceutical Industry Fund achieving a return rate of 102.52% this year, driven primarily by its focus on innovative pharmaceuticals [2]. - Many top-performing funds in the first half of the year are pharmaceutical-themed, including Zhongyin Hong Kong Stock Connect Pharmaceutical and Huashan Pharmaceutical Biotechnology [2][3]. - The top holdings of several funds have shifted towards technology and pharmaceuticals, with notable new additions like Zhongji Xuchuang and Xin Yisheng in the top ten holdings of the China Europe Digital Economy Mixed Fund [3]. Thematic Funds and Sector Focus - Some actively managed funds have undergone significant portfolio changes, with a complete overhaul of their top holdings to focus on emerging sectors like robotics and short dramas [4]. - The Tongtai Industry Upgrade Mixed Fund increased its stock position from 30% to 90% and shifted its focus to robotics, while the Tongtai Huile Mixed Fund transitioned to short drama and gaming stocks [4]. - Fund companies are launching numerous thematic products targeting specific high-growth sectors, such as controllable nuclear fusion and deep-sea technology, indicating a trend towards specialized investment strategies [5]. Market Outlook - Fund managers maintain a positive outlook for the equity market in the third quarter, with confidence in the performance of related sectors [6]. - The Changcheng Pharmaceutical Industry Fund manager anticipates growth in innovative pharmaceuticals driven by overseas licensing and domestic sales, while the Tongtai Industry Upgrade Fund manager expects significant opportunities in the robotics sector due to increased production and technological advancements [6].

Core Insights - The total scale of public funds in China has surpassed 33 trillion yuan, indicating a steady growth in the industry and a diversification of product types [1] - Fund managers are actively exploring niche sectors such as deep-sea technology, controllable nuclear fusion, and satellite communication, alongside popular areas like artificial intelligence and innovative pharmaceuticals [1][3] Group 1: Fund Performance and Focus Areas - As of July 17, 2023, 19 public fund institutions have disclosed a total of 208 second-quarter reports, with Yongying Fund leading with 134 reports [1] - The Yongying Qiyuan Mixed Fund, established in August 2023, focuses on deep-sea technology, particularly in four core areas: deep-sea materials, detection, applications, and infrastructure [1] - The top ten holdings of the Yongying Qiyuan Mixed Fund include China Marine Defense, Zhongke Haixun, and Yaxing Anchor Chain [1] Group 2: Investment Strategies and Market Outlook - The Yongying Manufacturing Upgrade Smart Selection Mixed Fund, launched in June 2023, targets controllable nuclear fusion, with top holdings including Xuguang Electronics and Guoguang Electric [2] - The fund manager emphasizes that controllable nuclear fusion could potentially replace traditional energy sources once commercialized, presenting significant investment opportunities despite its current developmental stage [2] - The exploration of niche investment directions is seen as a way for public fund managers to create differentiated advantages and enhance competitiveness in a highly competitive market [3] Group 3: Fund Structure and Market Dynamics - Initiating funds are considered an important method for public fund managers to enter niche sectors, as they have lower fundraising thresholds and can quickly capitalize on investment opportunities [3] - The requirement for fund managers to hold a portion of the fund shares for a certain period helps convey confidence in the products [3]

Group 1: Core Insights - Public funds are rapidly shifting investment strategies, focusing on sectors like innovative pharmaceuticals, short dramas, robotics, and controllable nuclear fusion, reflecting a proactive approach to structural market trends [1][7] - The Longcheng Pharmaceutical Industry Fund achieved a remarkable 102.52% increase in year-to-date performance, driven by strategic investments in leading innovative pharmaceutical companies [2][4] - The success of the fund is attributed to its combination strategy of investing in both Hong Kong and A-share markets, with significant contributions from partnerships like the $6 billion deal between Sanofi and 3SBio [2][5] Group 2: Sector-Specific Strategies - The Tongtai Industrial Upgrade Mixed Fund, previously on the brink of liquidation, successfully pivoted to a focus on robotics, resulting in a recovery of its scale from 80 million to 140 million yuan, with a net value increase of 42% [3][5] - The Yongying Fund's aggressive strategy includes launching funds focused on controllable nuclear fusion and deep-sea technology, with significant investments in companies like Guoguang Electric and Zhongke Haixun [5][6] - The deep-sea technology sector is projected to see investments exceeding 200 billion yuan by 2025, driven by national strategies and the potential for domestic replacements in materials and exploration technologies [5][8] Group 3: Industry Transformation - The public fund industry is undergoing a transformation from broad-based investment strategies to more targeted approaches, as evidenced by the shift in focus from renewable energy to AI-driven technologies [6] - Innovative fund products, particularly those with a three-year lock-up period, are becoming more prevalent, allowing for long-term strategic investments without short-term redemption pressures [6] - High volatility is becoming a norm in the market, with significant daily fluctuations in sectors like controllable nuclear fusion, yet fund managers remain committed to long-term technological breakthroughs [6][7]

Core Insights - The second quarter saw explosive growth in several fund products, with some "mini funds" experiencing remarkable reversals, notably the Changcheng Medical Industry Selected Mixed Fund, which surged from 0.36 billion to 11.32 billion, a growth of over 30 times [1][2] - Fund managers adopted a more aggressive approach in a volatile market, increasing equity positions and significantly adjusting their heavy holdings, focusing on cutting-edge technology sectors such as artificial intelligence computing, innovative pharmaceuticals, and controllable nuclear fusion [1][3] Fund Performance - The Changcheng Fund's products stood out, with the Changcheng Medical Industry Selected Mixed Fund achieving over 30 times growth, while the Changcheng Prosperity Growth Mixed Fund increased from 0.7 billion to 3.2 billion [2] - The Zhongou Fund also saw significant increases, with the Zhongou Digital Economy Mixed Fund's A-class shares exceeding 220 million subscriptions, and the total fund size growing from less than 800 million to over 9 billion, a more than 10-fold increase [2] - The Zhongou Information Technology Mixed Fund's total subscriptions surpassed 900 million, with a total size exceeding 1 billion, growing over 8 times from the previous quarter [2] Portfolio Adjustments - Fund managers generally opted for aggressive strategies, with the Changcheng Medical Industry Selected Mixed Fund increasing its equity position from 72.48% to 75.89%, focusing on the innovative pharmaceutical sector [3] - The Yongying Fund's products underwent significant portfolio changes, with the Yongying Technology Selected Fund completely renewing its top ten heavy holdings, including companies like Xinyi Technology and Zhongji Xuchuang [3][4] Strategic Focus Areas - Fund managers are strategically focusing on cutting-edge technology sectors, particularly artificial intelligence computing, which is gaining attention due to the increasing demand for model/application and computing power investments [5] - The innovative pharmaceutical sector is expected to undergo a value reassessment, with managers identifying high-potential companies in niche areas for early investment [6] - Controllable nuclear fusion is attracting strategic bets, with funds focusing on companies within the nuclear fusion supply chain, anticipating significant revenue potential despite the technology's current stage [6] Emerging Investment Trends - The Beijing Stock Exchange has become a new hotspot for fund establishment, with new funds rapidly completing high-position layouts, indicating increased institutional participation in small and medium-sized growth enterprises [7]

Investment Rating - The report maintains a positive outlook on the controllable nuclear fusion industry, particularly during the "14th Five-Year Plan" period, suggesting a focus on the expansion of capital expenditures and the associated opportunities in the power supply systems for FRC and Z-pinch devices [2]. Core Insights - The power supply is deemed the "lifeline" of controllable nuclear fusion devices, with a significant value contribution. The report highlights that the power supply systems for nuclear fusion devices require high capacity (around 100MW), high voltage (up to 1MV), and high current (up to 100kA), with low ripple (1%-2%), indicating a higher complexity compared to traditional industrial power supplies [4][18]. - The report emphasizes the expected release of multiple orders due to the expansion of capital expenditures in the controllable nuclear fusion sector, driven by the construction of Tokamak and Z-pinch devices, as well as the commercial development of FRC devices [4][21]. Summary by Sections Section 1: Power Supply as the Lifeline of Controllable Nuclear Fusion Devices - The report categorizes nuclear fusion technology into magnetic confinement, inertial confinement, and magneto-inertial confinement, with Tokamak being the mainstream approach [12][14]. - The power supply system is identified as a core component of nuclear fusion devices, with a high value contribution, particularly in Tokamak systems where the power supply accounts for approximately 15% of the total value [18][23]. Section 2: Tokamak Requires Long Pulse Operation, Core is Pulse Power Supply - The Tokamak pulse power supply consists of magnet power supply, auxiliary heating power supply, and reactive power compensation systems, which are critical for plasma formation and maintenance [27]. - The report details the technical requirements for the magnet power supply, including high current, low ripple, and fast response times, indicating significant technical barriers [30][37]. Section 3: High Value Contribution of FRC and Z-Pinch Power Supply, Focus on Core Components - The FRC device is noted for its simplicity and lower costs, with expectations for early commercialization, while the Z-pinch approach has a high value contribution from its driver components [4][21]. - The report highlights the importance of fast control switches and pulse capacitors in the power supply for both FRC and Z-pinch devices, indicating a growing market opportunity [4][21]. Section 4: Investment Recommendations - Specific companies are highlighted for their potential in the nuclear fusion power supply market, including Xuguang Electronics, Wangzi New Materials, Guoli Co., and others, which are positioned to benefit from the expanding demand in this sector [4][22].

Fund Overview - The fund is named Yongying Manufacturing Upgrade Smart Mixed Initiating Fund, with a main code of 024202, and it operates as a contractual open-end fund [4] - The fund aims to invest in assets related to the theme of manufacturing upgrades, striving for medium to long-term stable appreciation of net asset value while controlling risks [4] - The fund's investment strategies include macroeconomic research, asset allocation strategies, stock investment strategies, fixed income investment strategies, and various bond investment strategies [4] Performance Metrics - As of the end of the reporting period, the total fund shares amounted to 17,444,653.67 shares [4] - The net value growth rate for the fund's Class A shares was -2.76%, while the benchmark return was 2.52% [12] - The net value growth rate for the fund's Class C shares was -2.79%, with the same benchmark return of 2.52% [12] Investment Composition - The fund's total assets primarily consist of stocks, with a fair value of approximately 15,465,487.43 RMB, accounting for 90.66% of the total assets [13] - The manufacturing sector represents the largest portion of the fund's investments, with a fair value of 14,201,090.62 RMB, making up 83.73% of the fund's net asset value [13] - The fund has also invested in the construction industry, with a fair value of 987,392.00 RMB, representing 5.82% of the net asset value [13] Market Insights - The fund manager highlights the increasing focus on controllable nuclear fusion, with significant investments expected in the range of 150-200 billion RMB annually during the 14th Five-Year Plan period [9] - The potential for nuclear fusion to replace traditional energy sources like coal and solar power is emphasized, indicating a future market expansion that could yield substantial returns for investors [9] - Partnerships between tech companies and nuclear fusion firms are noted, suggesting a growing interest in stable energy sources for cloud computing [10][11]

Core Viewpoint - The article discusses the significance of the "Future Science Prize" in promoting groundbreaking scientific research in China, highlighting its role in encouraging young scientists and recognizing impactful contributions in various fields [1][10]. Group 1: Future Science Prize - The "Future Science Prize," often referred to as the "Nobel Prize of China," awards up to $1 million for significant scientific achievements in life sciences, material sciences, and mathematics and computer sciences [1]. - Since its inception, 39 scientists have received the Future Science Prize, emphasizing its growing importance in the scientific community [1]. Group 2: Biomedical Research - The integration of basic, applied, and clinical research in biomedicine is advancing, with potential therapies emerging that could revolutionize disease treatment, such as gene editing for heart disease and cancer [2]. - The scarcity of physician-scientists globally is a challenge that needs to be addressed to bridge the gap between basic research and clinical application [2]. Group 3: Energy Solutions - Controlled nuclear fusion is presented as a clean and safe solution to the current energy crisis, with advancements in laser-driven inertial confinement fusion being a key focus [3]. - The Double-cone ignition scheme (DCI) proposed by Chinese researchers aims to improve the efficiency of energy conversion in fusion processes, potentially leading to higher energy gains with lower laser energy [3]. Group 4: Room Temperature Superconductivity - Achieving room temperature superconductivity could significantly impact energy breakthroughs and support advancements in various fields, including artificial intelligence and quantum computing [4]. - The development of core materials is crucial for progress in AI, quantum computing, and energy sectors, with room temperature superconductors being a transformative material for the next two decades [4]. Group 5: Artificial Intelligence in Science - AI is influencing scientific research across various domains, with potential breakthroughs in aging mechanisms and brain health prediction through AI-driven gene analysis [6]. - The combination of AI and quantum computing is seen as a future direction for scientific development, with the potential to create new algorithms and systems [7]. Group 6: Support for Scientists - There is a growing trend in China to establish private scientific awards to encourage original research, with significant funding initiatives like Tencent's "New Cornerstone Researcher Project" providing substantial financial support to scientists [10]. - The emphasis is on supporting scientists who are ambitious, innovative, and willing to explore uncharted territories in their research [11].