Report Summary 1. Industry Investment Rating No industry investment rating is provided in the report. 2. Core View The report suggests that the lithium carbonate market will experience range - bound fluctuations and stabilize, with market sentiment cooling. However, it warns of risks of short - term sharp fluctuations [2][4]. 3. Summary by Relevant Catalogs Raw Materials - Supply: Last week, the raw material market generally rose. The SMM total weekly lithium carbonate operating rate was 49.5% (-1.49%), and the operating rate of all processes except for salt lakes decreased. The SMM total output was 21,569 tons (-648 tons), a month - on - month decrease of 2.92% [3]. - Demand: There was a significant structural differentiation in demand. Last week, the SMM lithium iron phosphate output increased by 1.0% month - on - month with increased inventory accumulation; the ternary output decreased by 1.1% month - on - month with gradual inventory reduction. The power cell output decreased slightly last week. As of January 18, the SMM new energy vehicle sales penetration rate rose to 55.6%. The energy - storage cells performed strongly with booming production and sales and low inventory [3]. - Inventory: Last week, the SMM four - location sample social inventory decreased by 5.6% (-2,450 tons) month - on - month, the sample weekly inventory decreased by 1.3% (-1,414 tons) month - on - month. The total inventory days increased to 28.5 days, and the downstream inventory days increased to 10.8 days, showing a significant differentiation in the inventory structure [3]. Market Conditions - Futures: Yesterday, the main contract of lithium carbonate futures hit the daily limit down to 132,440 yuan/ton. The net short position of the main funds continued, the position structure was differentiated, market divergence increased, the advantage of long positions concentrated towards the top, and overall gaming intensified. The registered warehouse receipts increased by 1,610 tons to 32,241 tons [2]. - Spot: The SMM average price of electric carbon was 155,500 yuan/ton. In terms of market transactions, upstream lithium salt factories had a low willingness to sell scattered orders, and the market was dull. Some downstream material factories actively inquired and had a strong purchasing willingness at relatively low prices, driving relatively active overall market transactions [2]. Macro - policy - Demand - side: Subsidies for car trade - ins and battery export tax - rebate policies stimulate terminal consumption and improve macro - liquidity [4]. - Supply - side: On January 15, the National Development and Reform Commission proposed to introduce management measures for the comprehensive utilization of new energy vehicle power batteries, which will improve the recycling threshold and eliminate backward production capacity, optimize the domestic supply structure in the long term, and raise the cost support center [4]. - Industrial planning: The Qinghai Salt Lake Industry Plan, the key points of the "15th Five - Year Plan" for energy storage, and a series of deployments at the Central Economic Work Conference form synergistic benefits to support long - term supply - demand balance [4]. - Macro - environment: The central bank's structural interest rate cut indirectly strengthens the long - term macro - positive atmosphere [4].

Group 1 - The National Development and Reform Commission has issued a notice to establish an independent new energy storage capacity pricing mechanism based on coal power capacity pricing standards, which is a significant strategic move [1] - The capacity pricing calculation will be based on local coal power capacity pricing standards (RMB 165-330 per kW per year), adjusted by peak capacity and other factors, with project lists to be determined by provincial energy authorities [1] - The introduction of this mechanism is expected to accelerate the construction progress of some previously paused energy storage projects [1] Group 2 - Multiple provinces are expected to introduce corresponding energy storage capacity pricing policies, leading to a surge in demand [2] - The subsidy standard for energy storage is projected to be RMB 193 per kW for a 4-hour storage duration, with an internal rate of return (IRR) of 8-9%, meeting the return requirements of funding parties [2] - The new energy storage capacity is expected to grow from 183 GWh in 2025 to 275 GWh in 2026, driven by a potential stabilization of lithium carbonate prices [2] Group 3 - As of January 30, 2026, the top ten weighted stocks in the Sci-Tech Innovation Board New Energy Index account for 46.03% of the index, including major companies like Trina Solar and JinkoSolar [3] - The Sci-Tech Innovation New Energy ETF closely tracks the performance of the Sci-Tech Innovation Board New Energy Index, which includes 50 large-cap stocks in solar, wind, and electric vehicle sectors [2][4]

Group 1: Core Insights - The visit of UK Prime Minister Keir Starmer to China marks a significant effort to enhance cooperation, particularly in the energy sector, with a large delegation of over 60 UK business leaders [1] - Greg Jackson, CEO of Octopus Energy, emphasizes the potential for collaboration in renewable energy, highlighting China's leadership in solar, battery, and wind technologies [3][4] - Jackson notes that the cost of batteries has decreased by 20 times over the past 15 years due to China's investment in R&D, which has transformed the global energy landscape [3][4] Group 2: Energy Cooperation - Octopus Energy is already collaborating with Chinese companies like BYD and Chery to introduce electric vehicles to Europe, showcasing a commitment to innovation [4][5] - The establishment of joint ventures in the electricity trading sector is a goal for Octopus Energy, leveraging experiences from other regions to help reduce electricity prices in China [5][6] - Jackson highlights the importance of a customer-centric approach and data-driven optimization software as unique advantages for Octopus Energy in the competitive energy market [6][7][9] Group 3: Policy and Market Dynamics - Jackson expresses hope for maintaining low tariffs on Chinese renewable energy products, which he believes is crucial for fostering business collaboration [12] - He discusses the need for mutual respect and understanding in the partnership between the EU and China, particularly in the electric vehicle sector [12][13] - The transition from fossil fuels to electric power is seen as a significant opportunity for both the UK and EU, with a focus on increasing local energy supply and reducing dependence on imports [13][16] Group 4: China's Green Energy Ecosystem - Jackson praises China's effective focus on electrifying energy consumption, particularly through the promotion of electric vehicles, contributing to a cleaner environment [15][16] - He notes that three-quarters of global clean energy construction is taking place in China, indicating a strong momentum in the renewable energy sector [16][17] - The enthusiasm for investment opportunities from both UK and Chinese businesses is highlighted as a key takeaway from the visit, reflecting a shared vision for a sustainable future [18]

Group 1 - The Shanghai government is focusing on strategic emerging industries such as new energy and high-end equipment, which have shown rapid growth, with the financial and software sectors increasing by 9.7% and 15.3% respectively [2] - The city aims to enhance 14 district-level leading industry clusters and implement five new city-specific industrial plans, including significant projects like the comprehensive technological upgrade of Shanghai Petrochemical [2] - The total retail sales of consumer goods in Shanghai grew by 4.6%, supported by initiatives like the "Le Shanghai" service consumption vouchers and various consumption promotion activities [2] Group 2 - Fixed asset investment across the city increased by 4.6%, with major project investments reaching 2510.1 billion yuan, a growth of 5.3% [2] - The city has completed significant infrastructure projects, including the second phase of Line 18 of the metro, bringing the total operational length of rail lines to 906 kilometers [2] - Trade diversification has shown positive results, with imports and exports to ASEAN and Belt and Road countries growing by 10.4% and 12.1% respectively [2] Group 3 - The government is implementing a series of policies to stabilize foreign trade, enhancing services in logistics and financial insurance, and supporting the development of cross-border e-commerce [2] - There is encouragement for foreign-invested enterprises to reinvest domestically, with major foreign projects in new energy vehicles and biomedicine accelerating [2] - Agricultural technology innovation projects are being promoted, with 89,000 acres of high-standard farmland established and 15 rural revitalization demonstration villages completed [2]

Group 1 - The report indicates that in January, the A-share market experienced a strong upward trend, with both cyclical and technology sectors performing well, leading to a significant increase in major indices [8][9] - The report highlights that 26 out of 31 sectors in the Shenwan index saw gains, with non-ferrous metals, oil and petrochemicals, and basic chemicals benefiting the most from rising commodity prices, showing increases between 12% and 23% [8][12] - The report notes that the semiconductor sector, particularly storage, is leading the price increase cycle, driven by sustained demand for AI hardware and software [3][12] Group 2 - The upstream cycle is characterized by significant price increases in non-ferrous metals, with many commodities reaching over 90% of their two-year high percentile range, while oil and chemical products are also seeing price increases, albeit remaining below historical averages [2][16] - The midstream manufacturing sector is experiencing price hikes in materials related to the new energy industry, with exports supporting the demand in certain sectors, although domestic demand remains weak [2][3] - The consumer sector shows signs of marginal improvement, with prices for live pigs and liquor stabilizing, while the real estate market continues to face challenges with negative sales area and price growth [3][4] Group 3 - The valuation comparison indicates that the non-ferrous and TMT sectors have seen significant valuation expansion, currently positioned at historically high percentiles, while valuations in banking and certain consumer sectors have contracted [5][6] - The report suggests that the spring market trend is likely to continue, with structural opportunities emerging, particularly in sectors with price increases and technology [5][6] - The report emphasizes the importance of monitoring the cyclical and semiconductor sectors for potential investment opportunities, as well as focusing on competitive midstream manufacturing companies [5][6]

Core Viewpoint - The article highlights the improvements in the capacity mechanism for power generation, which promotes the development of adjustable power sources and facilitates the consumption of renewable energy [1] Group 1: Capacity Mechanism and Pricing - The capacity pricing for coal power is being enhanced while the long-term price floor is being relaxed, which may lead to downward pressure on comprehensive sales prices in regions with excess capacity [1] - The significant changes in the pumped storage pricing mechanism will result in new pumped storage projects relying more on the actual demand in the local electricity market for revenue generation [1] Group 2: Impact on Energy Sources - The introduction of capacity pricing policies is expected to be a crucial support for the independent development of energy storage [1] - The potential further decline in long-term electricity prices for thermal power in certain provinces may impact the nuclear power market prices in those areas [1] - The development of adjustable power sources is beneficial for enhancing the consumption of renewable energy and alleviating downward pressure on electricity prices [1]

Core Viewpoint - The A-share market is experiencing a significant adjustment due to increased external uncertainties, particularly related to the nomination of the next Federal Reserve Chairman and the subsequent impact on market liquidity expectations [2]. Market Performance - The A-share market showed weak performance today, with the Shanghai Composite Index falling by 2.5%. Other major indices also declined, including the CSI 300 down 2.1%, the STAR 50 down 3.9%, and the ChiNext Index down 2.5%. The total trading volume was 2.6 trillion yuan, a decrease of approximately 0.26 trillion yuan from the previous trading day [1]. External Influences - The nomination of Kevin Warsh as the next Federal Reserve Chairman has altered expectations regarding U.S. monetary policy, leading to increased market volatility. Warsh's previous hawkish stance has raised concerns about a shift away from accommodative policies, impacting liquidity expectations [2]. - A significant drop in global commodity prices has also affected market sentiment, with gold prices experiencing a decline of over 20% from their recent peak. This shift in risk appetite has influenced investor behavior in the equity markets, particularly affecting the performance of previously strong sectors like metals [2]. Investment Strategy - The current market volatility presents a buying opportunity. Despite the fluctuations, positive factors such as ample liquidity, improving earnings, and industry trends remain intact. The market may have already priced in a significant amount of pessimism, suggesting potential for recovery [3]. - Recommended sectors for investment include: 1. **Growth Areas**: Focus on AI technology, cloud computing infrastructure, and innovative pharmaceuticals, which are entering a growth cycle [4]. 2. **Export Opportunities**: Emphasize sectors like home appliances, engineering machinery, and gaming that benefit from international demand [4]. 3. **Cyclical Recovery**: Target industries nearing improvement in supply-demand dynamics, such as chemicals and renewable energy [4]. 4. **High Dividend Stocks**: Consider companies with strong cash flow and dividend certainty for long-term investment [4].

Core Insights - Chengdu's Xinjing District has achieved a GDP growth of 6.5% year-on-year, with industrial output surpassing 60 billion yuan and a 9.5% increase in industrial added value, driven by its "3+2+N" modern industrial system [4][6] - The district is focusing on enhancing its industrial clusters and ecosystem, particularly in green food, new energy, and rail transportation, aiming for a significant upgrade in industrial capabilities by 2025 [5][6][7] Group 1: Industrial Growth and Strategy - The "3+2+N" model includes three leading industries: green food, new energy, and rail transportation, along with two emerging industries: new materials and equipment manufacturing, and various future industries [3][4] - Xinjing's health food industry has reached an output value of over 20 billion yuan, maintaining its position as the top sector in Chengdu [4][6] - The district aims to enhance its industrial ecosystem by attracting more enterprises and developing industrial chains, with a focus on high-quality development [5][6] Group 2: Infrastructure and Project Development - By December 2025, the opening of new rail lines will further integrate Xinjing's manufacturing capabilities into Chengdu's urban development [5] - Xinjing has established a collaborative mechanism for attracting investment, resulting in 78 industrial projects with a total investment of approximately 11.4 billion yuan, including 33 projects exceeding 100 million yuan [6][9] - The district is prioritizing the development of industrial parks, with a goal to create a billion-level economic development zone by 2030 [7][8] Group 3: Business Environment and Support - Xinjing is committed to creating a favorable business environment, with streamlined project approval processes reducing construction timelines significantly [10][11] - The district has implemented a credit rating system for enterprises, enhancing service efficiency and reducing regulatory burdens for businesses [10][11] - A series of initiatives have been launched to support small and medium-sized enterprises, including financial assistance and policy matching services, benefiting over 500 businesses [11]

Core Viewpoint - Taizhou, Jiangsu Province, is experiencing significant growth and development, characterized by a strong industrial base, a vibrant cultural spirit, and a high quality of life for its residents [1][4]. Group 1: City Spirit - The spirit of a city is its core of development, exemplified by the Taizhou football team's victory in the inaugural "Su Super" championship, showcasing resilience and unity [2]. - The team's journey reflects the city's enduring spirit, transforming challenges into opportunities, which is central to Taizhou's identity as a city with potential [2]. Group 2: Industrial Development - Taizhou's economy has shown remarkable resilience, with a projected GDP of 730 billion yuan by 2025, having crossed five 100 billion yuan milestones since becoming a prefecture-level city in 1996 [3]. - The manufacturing sector is a cornerstone of Taizhou's economy, with over 30,000 industrial enterprises and a focus on building a modern industrial system marked by the "Dahai New Morning" initiative [3]. - The city is enhancing its industrial chains, particularly in shipbuilding and emerging industries like new materials and renewable energy, aiming to establish itself as a significant manufacturing hub in the Yangtze River Delta [3]. Group 3: Quality of Life - Taizhou prioritizes the well-being of its citizens, with initiatives aimed at improving employment and public services, contributing to a high sense of happiness among residents [5][6]. - The city has achieved notable rankings in public safety, legal satisfaction, and basic public service quality, reflecting a strong community spirit and positive social environment [6]. - The establishment of convenient living and health service circles enhances the daily lives of Taizhou's residents, reinforcing the city's commitment to a high quality of life [6].

Group 1 - The core viewpoint emphasizes the acceleration of the construction of a new energy system in China, aiming for high-quality development of renewable energy to ensure reliable energy supply for modernization efforts [1] - During the 14th Five-Year Plan, a demonstration area for a 100% renewable energy power system was established in Guangshui, Suizhou, showcasing a grid model that balances supply and demand with over 70% of the time powered by renewable energy [1] - The new energy power system in northern Hubei has a capacity exceeding 10 million kilowatts, covering an area of nearly 30,000 square kilometers and serving a population of 10 million, creating a new collaborative path for energy resource utilization [1] Group 2 - The company is actively exploring the construction of a clean and low-carbon energy system in rural areas, utilizing organic waste to generate clean energy and promoting a replicable rural energy model [2] - An example from Tudianzi Village in Enshi shows that the village has achieved 24-hour clean energy supply, leading to increased agricultural productivity and tourism revenue of 1.37 million yuan annually [2] Group 3 - The 15th Five-Year Plan is expected to be a period of rapid development for renewable energy and the comprehensive construction of a new power system in China [3] - Hubei Electric Power Company is initiating projects to develop and consume renewable energy in densely populated areas and to facilitate the transmission of electricity from remote renewable energy bases to Hubei and beyond [3]