Core Viewpoint - Chinese hard technology assets are becoming essential in global asset allocation, surpassing traditional investment categories [1] Group 1: Industry Insights - The development path of China's technology industry is characterized by a large domestic market that provides unique scale advantages, facilitating rapid growth across various sectors such as home appliances, mobile devices, and new energy vehicles [1] - Continuous support from national policies is a significant driving force behind the growth of China's technology sector [1] - The innovative capabilities and dedicated efforts of Chinese engineers are crucial for driving technological breakthroughs, exemplified by companies like DeepSeek, which achieved competitive model capabilities through algorithm innovation [1] Group 2: Investment Opportunities - In the hard technology sector, semiconductor equipment, specialty processes, and advanced packaging are particularly promising areas, with quality enterprises successfully converting policy benefits into technological advantages [2] - These companies have established significant positions in the global supply chain, gaining certification from top international clients through differentiated technological advantages and cost-effectiveness [2] - The dual development model of these enterprises, leveraging both domestic market stability and international client services, enhances their resilience against market fluctuations and fosters sustainable business models [2] Group 3: Future Outlook - The expectation is for China's technology industry to gradually shift towards a "innovation-driven profitability" model, where companies achieve excess returns through technological innovation [3] - Establishing a healthy and sustainable business model is key for the long-term stability of Chinese tech stocks, with a focus on converting innovation advantages into profitability [3] - Over the next 5 to 10 years, the hard technology sector in China is anticipated to produce a number of world-class companies, offering sustainable long-term returns for investors [3]