Report Industry Investment Rating - The industry rating is "Overweight", expecting a gain of more than 10% relative to the benchmark index in the next 6 - 12 months [19] Core Viewpoints of the Report - Since the beginning of 2026, the A - share market style has changed from unilateral upward movement to high - frequency rotation. It is better to hold the core main line firmly than to chase the market in high - frequency rotation. The AI industry chain remains the market consensus, and the current market cooling is a "slope adjustment" rather than a "trend end" [3] - The acceleration of industry rotation is a benign spread of funds from "point" to "surface". The market is seeking a pricing balance between technology and prosperous industries [3] - The net inflow of industry ETFs has increased, showing a configuration pattern of "cycles as shields and technology as spears". It is recommended to adopt a "dumbbell - shaped" configuration strategy [3] Summary by Directory Market Focus Always on the Main Line, AI Industry Chain Remains the Consensus - From the perspective of trading volume proportion, industries such as electronics, computers, and national defense and military industry have always been at the core of the market. Even with short - term disturbances, the electronics sector's trading volume proportion remains at a high level of 17% - 20%, and that of national defense and military industry has gradually recovered, indicating strong capital stickiness [3][8] - The current market cooling is a "slope adjustment" rather than a "trend end". The high concentration of the chip structure proves that the AI industry chain is an investment main line with in - depth consensus, and high activity provides strong resilience and upward elasticity [3][8] Liquidity Spillover, the Advantage of "Technology + Prosperity" Portfolio Highlights - As the market enters the adjustment period, liquidity begins to spread from high - consensus varieties to prosperous industries with catch - up logic. When the technology main line adjusts, funds flow to industries such as chemicals, non - ferrous metals, and banks [10] - This shows that it is not the ebb of the main line but the natural spread of liquidity from "point" to "surface". The market is seeking a pricing balance between technology and prosperous industries [11] - Since the beginning of the year, some sectors have shown high weekly and year - to - date excess returns. The strategy of holding the AI bottom position and combining bull - market varieties has a higher winning rate than blind rotation [12] ETF Fund Flows: Driven by the Resilience of Prosperity and Technology - Although the broad - based ETFs are still experiencing net outflows (the weekly outflow of CSI 300ETF is 724.2 billion yuan), the industry ETFs are in a state of net buying, with a cumulative net inflow of 78.82 billion yuan [13] - There has been a significant pulsed inflow of funds into the non - ferrous sector without siphoning other sectors. The technology sector also has a large net inflow, especially software and satellite sub - industries, showing a configuration pattern of "cycles as shields and technology as spears" [14] It's Better to Be Part of the Wind Than to Chase It - The main line of this bull market is clear, with technology being the best offensive variety. It is recommended to adopt a "dumbbell - shaped" configuration and hold firmly [3][17] - One end of the "dumbbell" is the technology main line, including storage, equipment, advanced packaging, AI applications, commercial aerospace, and robots. The other end is the prosperous cyclical sectors such as non - ferrous metals and chemicals, and also pay attention to stable sectors like home appliances and transportation [3][17]

Investment Rating - The report maintains a bullish outlook, focusing on long-term opportunities in cyclical industries [2][24]. Core Viewpoints - The macro timing model for January 2026 scored 0, indicating a 76.92% probability of an increase in the Wande All A Index over the following month, with an average expected gain of 3.18% [24][31]. - The report emphasizes the strong upward momentum in cyclical industries, particularly in non-ferrous metals and chemicals, driven by global macro events [24][25]. - Short-term investments in thematic sectors such as commercial aerospace, AI applications, and space photovoltaics have shown significant rebounds, although caution is advised due to potential volatility from rapid price increases [25][27]. Fund Size Statistics - In the period from January 19 to January 23, 2026, the top three increasing equity ETF types were: thematic index ETFs (59.135 billion), industry index ETFs (7.975 billion), and cross-border industry index ETFs (5.346 billion) [9][10]. - The top three increasing equity ETF products were: power grid equipment ETF (7.326 billion), chemical ETF (5.717 billion), and sci-tech chip ETF (3.953 billion) [10][14]. - The top three increasing equity ETF tracking indices were: segmented chemical index (9.829 billion), power grid equipment thematic index (7.326 billion), and SSH gold stock index (5.251 billion) [18][20]. Market Outlook - The report suggests a positive outlook for the A-share market in January 2026, with a focus on the micro-cap index and the CSI 500 leading the market [24][25]. - Long-term recommendations include a focus on non-ferrous metals and chemicals, with silver prices surpassing the psychological level of 100, indicating potential for further increases [24][25]. - The report anticipates a market characterized by oscillating upward trends, recommending a growth-oriented ETF allocation [67][68].

Fund Size Changes - The top three increasing equity ETF types from January 19 to January 23, 2026, are: Theme Index ETF (¥591.35 billion), Industry Index ETF (¥79.75 billion), and Cross-Border Industry Index ETF (¥53.46 billion) [9] - The top three decreasing equity ETF types during the same period are: Scale Index ETF (-¥3348.87 billion), Cross-Border Strategy Index ETF (-¥7.12 billion), and Style Index ETF (-¥0.19 billion) [9] Market Outlook - The macro timing model's score for January 2026 is 0, indicating a 76.92% probability of the Wande All A Index rising in the following month, with an average increase of 3.18% [24] - The report maintains a bullish outlook, emphasizing long-term opportunities in cyclical industries, particularly in non-ferrous metals and chemicals [24] - The price of London silver surpassed the psychological level of 100 on January 23, 2026, indicating potential for further increases [24] Investment Recommendations - The report suggests a focus on growth-oriented ETF allocations, particularly in sectors like commercial aerospace, AI applications, and space photovoltaics, which have shown short-term rebounds [27] - The recommended ETFs include those focused on chemical, electric grid equipment, and semiconductor sectors, with specific stocks highlighted for each ETF [69] Risk Considerations - The model's predictions are based on historical data, which may not hold in the future, and there are risks associated with macroeconomic performance falling short of expectations [70]

Core Viewpoint - The near-Earth orbit has become one of the most crowded and dangerous areas in the solar system, with over 12,000 active satellites and countless pieces of space debris posing significant risks to space activities [3][10]. Group 1: Current Situation - The near-Earth orbit, located approximately 200 to 2000 kilometers above the Earth's surface, is the most active area for human space activities, particularly between 400 to 600 kilometers where many satellites, including China's space station and the U.S. Starlink satellites, operate [6]. - Satellites in this region travel at nearly 8 kilometers per second, with distances between them potentially as close as several dozen kilometers, increasing the risk of collisions [6][10]. Group 2: Collision Risks - A collision in this crowded space could result in catastrophic outcomes, with two satellites potentially exploding into thousands of high-speed fragments, each acting like a deadly projectile [10]. - The creation of new debris could trigger a domino effect, leading to a lethal ring of space debris around Earth, which could ultimately block humanity's access to space [10]. Group 3: Mitigation Efforts - In response to these threats, China has initiated the "Star Eye" space awareness constellation plan, which aims to establish a "space traffic management" system [10]. - This system consists of 156 satellites designed to monitor and track tens of thousands of objects in space, creating real-time digital records for each satellite and debris, and providing collision risk calculations and warnings to facilitate evasive maneuvers [10]. Group 4: Global Cooperation - Establishing a unified global "space traffic regulation" is deemed essential for ensuring the safety of thousands of satellites and protecting shared human interests in space [13]. - Any uncontrolled collision could jeopardize humanity's aspirations in space, highlighting the need for collaborative efforts in space governance [13].

Core Viewpoint - Beijing is implementing measures to promote the development and utilization of commercial satellite remote sensing data resources from 2026 to 2030, focusing on expanding international cooperation and market outreach [1] Group 1: Policy Initiatives - The new measures support various entities in actively expanding the international market for remote sensing data resources [1] - The initiative leverages the advantages of Beijing's Free Trade Pilot Zone and the National Comprehensive Demonstration Zone for Service Industry Expansion to test policies [1] - The plan aims to establish Beijing as a pilot for geographic information service export bases [1] Group 2: Strategic Goals - The measures are designed to deepen satellite exports and enhance regulatory frameworks for satellite data sandbox and cross-border flow trials [1] - The initiative contributes to the construction of the "Digital Silk Road" and the "Belt and Road" spatial information corridor, providing a "Beijing solution" [1]

Core Viewpoint - Guobo Electronics (688375.SH) has a diverse product application in mobile communication base stations, terminals, satellite fields, and radar detection [1] Group 1 - Guobo Electronics' products are widely used in mobile communication base stations [1] - The company also provides solutions for satellite applications [1] - Radar detection is another key area where Guobo Electronics' products are utilized [1]

Core Insights - The report emphasizes the importance of discovering investment opportunities with a proactive attitude rather than merely relaying information [1] Macro News Summary - The Ministry of Industry and Information Technology (MIIT) supports local governments in building future industries and increasing government investment fund efforts [4] - MIIT will promote collaborative innovation across the entire supply chain for advanced materials [4] - The Ministry of Housing and Urban-Rural Development supports reasonable financing needs of real estate companies and addresses both rigid and improved housing demands of residents [4] Industry Developments - Glass substrates are expected to become the next generation of core materials for advanced packaging, replacing traditional organic substrates, with related stocks including Di'er Laser (300776) and Hongtian Co., Ltd. (603800) [5] - Six departments have extended tax and fee incentives for the childcare industry, indicating a potential boom for the maternal and infant sector, with related stocks including Kidswant (301078) and Aiyingshi (603214) [5] - Several banks have recently launched satellites, accelerating the operational value of the satellite industry, with related stocks including Hangyu Micro (300053) and Aerospace Hongtu (688066) [5] Company Focus - Ruike Laser (300747) is taking measures to resist malicious low-price sales and irregular channel sales that disrupt market pricing [6] - Betta Pharmaceuticals (300558) is progressing steadily with multiple clinical studies for MCLA-129 [6] - Zhongke Chuangda (300496) has reached a strategic cooperation with the Beijing Humanoid Robot Innovation Center through its subsidiary Xiaowu Intelligent [6] - Ningbo Bank (002142) is continuously accumulating differentiated competitive advantages, with a steady expansion of profit scale expected by 2025 [6] Market Review and Outlook - On January 21, the market experienced a pullback after a rise, with the Shanghai Composite Index closing at 4116.94, up 0.08%, and the Shenzhen Component Index at 14255.13, up 0.70% [7] - The total trading volume in the Shanghai and Shenzhen markets was 2.6 trillion, a decrease of 177.1 billion from the previous trading day [7] - The market is expected to shift from a "fund-driven" rapid growth model to a "performance-driven" slow bull market, with macroeconomic improvements and corporate profit recoveries as key drivers for mid-term upward trends [7] - It is advised to maintain balanced allocations across sectors, focusing on non-ferrous metals, technology growth, new energy, and dividend stocks [7]

Market Performance - The A-share market experienced a collective decline, with the Shanghai Composite Index down 0.01%, the Shenzhen Component Index down 0.97%, the ChiNext Index down 1.79%, and the Beijing Stock Exchange 50 Index down 2% [1] - The total trading volume across the three markets reached 28,041 billion yuan, an increase of 720 billion yuan compared to the previous day, with over 3,100 stocks in the three markets showing losses [1] Sector Performance - The top-performing sectors included epoxy propylene, precious metals, glyphosate, cultivated diamonds, real estate, construction materials, banking, and airport shipping [1] - Conversely, the sectors that saw the largest declines were commercial aerospace, military equipment, CPO, copper cable high-speed connections, and photovoltaic equipment [1] ETF Performance - Domestic demand sectors saw a broad increase, with the real estate industry chain leading the gains; notable ETFs included: - Fuguo Fund Construction Materials ETF up 3.96% - Guotai Fund Construction Materials ETF up 3.88% - E Fund Construction Materials ETF up 3.39% - Huabao Fund Real Estate ETF up 3.22% - Yinhua Fund Real Estate ETF up 2.87% [1] - Gold prices reached a new historical high, with Ping An Fund Gold Stock ETF rising by 3.24% [1] - Hong Kong consumer stocks also rose, with the Huitianfu Fund Hong Kong Stock Connect Consumer 50 ETF increasing by 2.8% [1] Declining ETFs - The commercial aerospace sector led the declines, with satellite ETFs such as Satellite ETF, Satellite ETF Penghua, and Satellite ETF Guangfa falling by 4.69%, 4.63%, and 4.58% respectively [1] - The photovoltaic sector experienced a pullback, with the Kexin New Energy ETF down 3.94% [1] - The CPO sector also declined, with the communication equipment ETF down 3.76% [1]

Group 1: Core Insights - The development of computing power is expected to have high certainty by 2026, with continuous upgrades in supernode technology and sustained high capital expenditure (Capex) from major cloud service providers (CSPs), indicating investment opportunities in computing chips and system-level manufacturers [1][2] - The AI application sector is reaching a turning point, with significant improvements in model capabilities and new opportunities for overseas expansion, leading to accelerated order and revenue growth for AI application companies [1][3] Group 2: Computing Power Trends - The transition to supernode technology is enhancing cluster performance, with leading overseas server companies validating excess market share and profits through supernode system capabilities [2] - Domestic computing power is rapidly improving its competitiveness, supporting local models, and shifting competition from single-card performance to system-level capabilities by 2026 [2] Group 3: AI Applications - Next-generation large models (e.g., Gemini 3.0/GPT-5) are expected to benefit complex reasoning and multimodal scenarios, facilitating the large-scale implementation of AI [3] - The domestic AI application landscape is evolving, with independent model providers emerging due to strong R&D capabilities, and applications are expanding beyond traditional areas like chatbots and customer service to include multimodal and embodied intelligence scenarios [3] Group 4: Domestic Demand Support - Continuous policy support for technology in sectors like satellites, healthcare, and consumption is anticipated to strengthen in 2026, driving demand for satellite technology and medical AI [4] - Structural recovery in domestic demand is expected to be a key focus for the computing sector in 2026, with policies promoting consumption and regulating fiscal systems [4]

Core Viewpoint - China's recent submission of 203,000 satellites to the International Telecommunication Union represents the largest international frequency and orbital resource application to date, showcasing China's ambitions in space exploration and commitment to sustainable development [1] Group 1: Satellite Submission - China has officially submitted an application for 203,000 satellites, marking the largest scale of frequency and orbital resource application in its history [1] - This action is seen as a necessary outcome of China's advancements in space technology and aligns with international regulations [1] Group 2: Global Context and Competition - The low Earth orbit and frequency bands are becoming scarce resources, with SpaceX's Starlink already deploying over 9,000 satellites, accounting for nearly 60% of global low Earth satellites [1] - The submission highlights the competitive landscape in space, emphasizing the need for sustainable development as low Earth orbit resources approach saturation [1] Group 3: Sustainable Development and Governance - China emphasizes the importance of addressing space debris and opposes the militarization of space, proposing a new governance approach based on the concept of a "community of shared future for mankind in space" [1] - The focus is on efficient utilization of space resources and promoting sustainable development for all humanity rather than selfish competition [1]