Core Viewpoint - The A-share market experienced a rebound after a period of decline, driven by mysterious funds that alleviated market concerns, particularly in the AI hardware sector, which is seen as a key driver of the current bull market [1][2]. Market Performance - The market showed a "strong at both ends, weak in the middle" trend, with the micro-cap index and the Shanghai 50 index performing the best, while the ChiNext and Sci-Tech 50 indices saw declines exceeding 2% [1]. - The mysterious funds' intervention on Wednesday reversed market sentiment, leading to a three-day rebound [1][4]. Influencing Factors - The market's recent weakness is attributed to several factors, including a policy and earnings vacuum at year-end, the realization of major macroeconomic events, and negative sentiment from certain U.S. tech stocks [2]. - The Bank of Japan's recent interest rate hike of 25 basis points and the rebound of U.S. AI stocks, particularly Oracle and Broadcom, contributed positively to the A-share market's recovery [2]. Future Market Outlook - Two key points to watch for the upcoming week: potential support at the half-point level since the December 16 low of 3815, and resistance at the December 8 high of 3936 [4]. - The market is expected to remain volatile, with a focus on the AI hardware and commercial aerospace sectors for potential investment opportunities [5][9]. Sector Focus - The AI hardware sector remains a primary focus, with strong performances from leading companies like "Yizhongtian," which are seen as indicators for the sector's direction [6]. - The commercial aerospace sector is also highlighted as a consistent theme, with ongoing developments and potential for growth despite recent fluctuations [6]. - The autonomous driving sector has shown strength, particularly with recent regulatory approvals for companies like Changan Automobile and Xiaomi [6][7]. Investment Strategy - The recommendation is to focus on mid-term potential directions, employing a strategy of buying on dips while continuously lowering costs [5][9].

Group 1 - The first batch of L3 level autonomous driving vehicle access permits has been approved in China, marking a significant step towards commercial application in the industry. Two models will be tested in designated areas in Beijing and Chongqing, with specific speed capabilities of 50 km/h and 80 km/h respectively [11][12][18]. - There are 31 automotive-related companies listed on the North Exchange, with a total market value of 81.626 billion yuan as of December 19, 2025. Key companies include Aodiwei, Huanxin Technology, and others [18][20]. - Aodiwei has developed a new generation of AKII vehicle-mounted ultrasonic sensors, which have been delivered in bulk to both joint venture and domestic brands. The company reported a revenue of 502 million yuan for the first three quarters of 2025, with a year-on-year growth of 12.31% [25][27]. Group 2 - The five major industries on the North Exchange, including high-end equipment, information technology, chemical new materials, consumer services, and pharmaceutical biology, all experienced average gains in the week of December 15 to December 19, 2025, with consumer services leading at +4.75% [2][33]. - The average price-to-earnings (PE) ratio for the high-end equipment industry rose to 36.9X, while the information technology sector reached 68.6X, indicating a positive trend in investor sentiment [2][35]. - The technology sector, comprising 154 companies, saw a median price increase of 1.61% during the same period, with notable performers including Tianli Composite and Huanxin Technology, which rose by 41.42% and 40.59% respectively [3][46]. Group 3 - The median PE ratio for the electronic industry increased to 48.6X, while the automotive sector's median PE ratio rose to 34.2X, reflecting a growing valuation in these sectors [3][63][66]. - Huanxin Technology, a provider of integrated solutions for smart cities, has signed a cooperation agreement with Huawei for comprehensive collaboration in smart connected vehicles and V2X infrastructure [28][30]. - The total market value of companies in the smart city and smart transportation sectors reached 21.592 billion yuan, with eight companies listed in this category [24].

Core Viewpoint - The approval of L3 autonomous driving vehicles in China marks a significant step towards the commercialization of intelligent connected vehicles, with Longan Automobile leading the way in this new era [4][8]. Group 1: L3 Autonomous Driving Milestones - The first L3 autonomous driving dedicated license plate "渝AD0001Z" was issued to Longan Automobile in Chongqing, indicating the start of L3 autonomous driving in China [4][3]. - The Ministry of Industry and Information Technology (MIIT) announced the first batch of L3 autonomous vehicle approvals, allowing Longan Deep Blue SL03 and Arcfox Alpha S6 to conduct pilot tests in designated areas [5][8]. - Longan Automobile has conducted over 5 million kilometers of testing on its L3 autonomous driving system in complex environments [4][6]. Group 2: Market Reactions and Stock Performance - On December 19, stocks related to autonomous driving surged, with over ten companies, including Zhejiang Shibao and Luochang Technology, experiencing significant gains [2]. - Analysts suggest that the approval of L3 vehicles will accelerate the restructuring of the intelligent driving industry and create investment opportunities in key areas such as intelligent vehicles and control systems [8][9]. Group 3: Future Outlook and Industry Implications - Longan Automobile plans to begin pilot applications with its L3 vehicles in early 2026, targeting both B-end and C-end users as regulations evolve [6][9]. - The approval process for L3 vehicles involves strict safety requirements, which may lead to a gradual expansion of L3 autonomous driving across more cities and vehicle models [9]. - The development of L3 autonomous driving is expected to drive demand for new components and technologies, benefiting various segments of the automotive supply chain [9].

L3级自动驾驶车型获得准入，南向资金涌入自动驾驶板块，均胜电子、赛力斯、曹操出行、佑驾创新 等获大幅加仓。 本周（12月15日至12月19日），港股市场主要股指集体下跌，恒生指数累计下跌1.1%，恒生科技指数 下跌2.82%，恒生中国企业指数下跌1.96%。证券时报·数据宝统计，本周南向资金合计成交净流入 162.74亿港元，净流入金额由负转正。 明显加仓大型科技股 从上榜成交活跃股名单来看，本周共有21只个股上榜，阿里巴巴-W本周港股通成交总额最高，达到 348.82亿港元。腾讯控股、小米集团-W、中芯国际、长飞光纤光缆港股通买卖总额均超过100亿港元。 从成交净买入金额来看，南向资金对大型科技股明显加仓。小米集团-W本周获南向资金净买入金额最 高，达到41.01亿港元，已连续三周获南向资金净买入最高。美团-W本周获南向资金净买入金额18.9亿 港元，阿里巴巴-W净买入金额11.1亿港元，腾讯控股净买入金额11.06亿港元。 小米集团南向资金持股量已连续14个交易日上升，最新持股量达到45.84亿股，持股市值1858.46亿港 元。消息面上，《北京市自动驾驶汽车年度评估报告（2024-2025）》显示，小米 ...

Group 1 - The core viewpoint of the article highlights a significant net inflow of southbound funds amounting to HKD 16.274 billion during the week of December 15 to December 19, marking a shift from negative to positive net inflow [1] - A total of 11 stocks experienced a more than 20% increase in holdings by southbound funds, with FWD Group leading at a remarkable 377.84% increase [1] - Notable stocks with substantial increases in holdings include Chery Automobile, Sany Heavy Industry, and Joyson Electronics, with increases of 182.27%, 95.91%, and 60.69% respectively [1] Group 2 - The article emphasizes that several of the stocks with the highest increases in holdings are related to the autonomous driving sector, including Joyson Electronics, Seres, Cao Cao Mobility, and Youjia Innovation [1] - On December 15, the Ministry of Industry and Information Technology officially announced the first batch of L3-level conditional autonomous driving vehicle permits, indicating a critical step towards the commercialization of L3 autonomous driving in China [1]

Industry News - The National Development and Reform Commission, the State Administration for Market Regulation, and the National Internet Information Office jointly released the "Internet Platform Pricing Behavior Rules" to promote innovation and healthy development in the platform economy. The rules consist of 7 chapters and 29 articles, aiming to establish a balanced ecosystem with clear responsibilities and orderly competition. In the short term, platforms and merchants will need to adapt, while in the long term, the focus will shift from "subsidies for traffic" to "innovation and quality improvement" for sustainable high-quality development [1][2][3] - The People's Bank of China, along with other local authorities, has introduced a work plan for the "Five Major Financial Articles" in Fujian Province, outlining 18 specific measures to enhance support for technology finance, green finance, inclusive finance, pension finance, and digital finance [2][3] - The first L3-level autonomous driving license plate "渝AD0001Z" was issued in Chongqing to Changan Automobile, marking the start of the L3 autonomous driving era in China. Changan's L3 autonomous driving system has completed over 5 million kilometers of real-road testing in Chongqing [3][4] Company News - Zhiyuan Robotics announced a press conference for its "Qingtian Rental Platform" on December 22, aiming to transform robot leasing into an ecosystem. The company plans to collaborate with various partners to create a new leasing mechanism, allowing users to rent robots on demand [3][4] - ByteDance is reported to have achieved approximately $40 billion in net profit in the first three quarters of 2025, with an expected annual profit of around $50 billion. However, insiders have disputed these figures, indicating significant discrepancies [3][4] - Moore Threads held its first MUSA Developer Conference, focusing on full-function GPUs. The company plans to release a new GPU architecture called "Huagang" in 2026, which will enhance computing power density by 50% and energy efficiency by ten times [3][4] - Beijing Tongrentang Group expressed deep concern over recent media reports regarding "Antarctic Krill Oil" and has initiated an investigation into its subsidiary, Beijing Tongrentang (Sichuan) Health Pharmaceutical Co., Ltd. The company has apologized to consumers and is cooperating with regulatory authorities [4] Research Highlights - CITIC Securities reported that liquid cooling solutions are becoming the mainstream technology for energy saving in data centers, driven by increased power consumption in AI servers and chips. Domestic manufacturers are expected to benefit significantly from the rising demand for liquid cooling in AI data centers [5]

Group 1 - The Asia-Pacific stock markets experienced a synchronized rally following the Bank of Japan's decision to raise its policy interest rate from 0.5% to 0.75%, marking the highest level in 30 years [1][3] - The A-share market saw significant trading activity, with over 4,400 stocks rising and a total transaction volume of 1.75 trillion yuan, an increase of 719 billion yuan from the previous day [3] - The controlled nuclear fusion sector emerged as a major winner, with stocks like Wangzi New Materials and Macro Micro Technology hitting their daily limits, driven by a merger announcement between Trump Media & Technology Group and TAE Technologies valued at over $6 billion [3][5] Group 2 - The autonomous driving sector also showed strong performance, with companies like Zhejiang Shibao and Huati Technology achieving consecutive daily limits, supported by the recent approval of L3-level autonomous driving models by the Ministry of Industry and Information Technology [6][10] - The commercial aerospace concept continued to thrive, with companies like Huati Technology and Western Materials achieving consecutive daily limits [8] - The nuclear fusion industry is expected to see significant growth, with the International Energy Agency predicting a market size approaching $500 billion by 2030 [5][10] Group 3 - The recent interest rate hike in Japan was aimed at alleviating yen depreciation pressure and controlling inflation, with the market having anticipated this move, resulting in limited short-term impact on various assets [8][10] - The silver market showed a divergence from gold, with silver prices nearing $66 per ounce, reflecting a year-to-date increase of nearly 130% [10][14] - The approval of L3-level autonomous driving vehicles is expected to pave the way for commercial applications, with specific models approved for use in designated congested and highway areas [6][10]

Core Insights - The article discusses the evolution of the autonomous driving industry, highlighting the achievements of the company WeRide under the leadership of Han Xu, who emphasizes the importance of talent acquisition and technological advancements in the field of Robotaxi [1][2][5]. Group 1: Company Achievements - WeRide has become the first publicly listed Robotaxi company in both the US and Hong Kong, marking a significant milestone in its eight-year journey [2][8]. - The company has successfully transitioned from a phase of skepticism about autonomous driving to achieving operational milestones, including the removal of safety drivers from vehicles [17][18]. - WeRide has deployed its Robotaxi services in 11 countries, demonstrating its global reach and operational capabilities [15][18]. Group 2: Industry Insights - Han Xu asserts that only three companies in China can truly operate Level 4 (L4) autonomous vehicles, emphasizing the technical barriers that still exist between Level 2 (L2) and L4 technologies [6][19][22]. - The article highlights the distinction between companies claiming to have L4 capabilities and those that have demonstrated actual operational success with a fleet of autonomous vehicles [21][24]. - Han Xu predicts that if Tesla continues to rely solely on production vehicles without integrating advanced sensor technologies, it will struggle to achieve the same level of autonomy as competitors like Waymo [45]. Group 3: Talent Acquisition and AI Impact - The company is actively recruiting top talent with salaries ranging from 3 to 5 million, reflecting the increasing demand for skilled professionals in the AI and autonomous driving sectors [46][49]. - Han Xu describes AI as a significant amplifier of talent value, suggesting that exceptional individuals can command much higher salaries in the current market [46][48]. - The company aims to attract talent by offering competitive compensation packages, indicating its financial strength and commitment to innovation [50][51]. Group 4: Future Predictions - Han Xu forecasts that within three years, if Tesla does not adopt multi-modal sensor technology for its Robotaxi, it will not reach the operational standards set by Waymo [53]. - He also predicts the emergence of a "Superdriver" within eight years, a level of autonomous driving that surpasses the capabilities of the best human drivers [53].

Group 1 - The core viewpoint of the article highlights the successful testing of the world's highest autonomous driving system at the Huoshaoyun lead-zinc mine in Xinjiang, which operates at an altitude of 5,700 meters, demonstrating the feasibility of unmanned transportation in extreme high-altitude environments [1] - The mine's harsh conditions, including only 50% oxygen levels compared to plains, strong winds, low temperatures, and high dust levels, make traditional manual driving labor-intensive and hazardous [1] - The introduction of the BeiDou navigation system and 5G communication technology has established a smart control platform that supports the operation of the autonomous driving system [1] Group 2 - The newly launched autonomous driving system integrates several core technologies suitable for plateau environments, enabling precise obstacle recognition, path planning, and driving control to navigate the mine's complex terrain [1] - The rapid development and application of autonomous driving technology have intensified industry competition, with a growing focus on corporate backgrounds and compliance [1] - According to Tianyancha's professional version of business information, there are currently over 8,200 autonomous driving-related companies in China, with Guangdong, Hebei, Jiangsu, Shandong, and Beijing leading in the number of such enterprises [1]

Core Insights - The company, Xiaoma Zhixing, has achieved single-vehicle profitability in Guangzhou, with daily revenue per vehicle reaching 299 yuan, and aims to expand its fleet to 1,000 vehicles by the end of 2025 and 3,000 by 2026 [2][3] - The company is leveraging a light-asset cooperation model to accelerate the commercialization of autonomous driving, moving from "technology validation" to "scale profitability" [2][4] - The seventh-generation Robotaxi has seen a 70% reduction in autonomous driving kit costs compared to the previous generation, supporting the company's profitability goals [3][6] Financial Performance - Daily average revenue per vehicle in Guangzhou is 299 yuan, with an average order volume of 23 orders per vehicle [3] - The company plans to achieve a fleet size of 10,000 vehicles by 2030, targeting a market share of 5%-10% in the domestic ride-hailing market [7][8] Technological Advancements - The seventh-generation Robotaxi features significant technological breakthroughs and cost optimizations, including a unified autonomous driving kit shared across multiple models [3][4] - The company employs a reinforcement learning framework to enhance the safety of its AI drivers, distinguishing itself from competitors relying on imitation learning [6][7] Market Strategy - Xiaoma Zhixing has become the first company in China to obtain autonomous demonstration operation licenses in major cities like Beijing, Shanghai, Guangzhou, and Shenzhen [4] - The light-asset cooperation model allows the company to share capital expenditures with partners, accelerating fleet expansion without bearing the full cost [5] Future Outlook - The company aims for a dual strategy of scale expansion and continuous cost optimization, with a projected 20% further reduction in autonomous driving kit costs by 2026 [7] - The focus will be on deepening market presence in first-tier cities while gradually penetrating second and third-tier cities through the light-asset model [7][8]