Market Overview - The Shanghai Composite Index fell by 0.08% and the ChiNext Index decreased by 0.39% [1] - Sectors such as AI applications, lithium batteries, fintech, photovoltaic, gold, and innovative pharmaceuticals showed weakness, while real estate and insurance industries experienced significant declines [1] Sector Performance - The storage chip sector continued to rise, with the South Korea-China semiconductor ETF increasing by 4.82% [1] - The AI hardware sector strengthened, with the 5G ETF from Bosera rising by 3.28%, and the communication ETFs from Huaxia and others increasing by 2.79% and 2.49% respectively [1] - The electric grid sector performed well, with both the electric grid ETF and electric grid equipment ETF rising by 3% [1] - The machinery sector also saw gains, with the Jiashan technology machinery ETF and industrial mother machine ETF increasing by 2.94% and 2.48% respectively [1] Declining Sectors - Oil and gas stocks declined, with the S&P oil and gas ETF from Jiashan dropping by 2.8% [1] - The real estate sector faced a pullback, with the real estate ETF and the real estate ETF from Yinhua falling by 2.74% and 2.71% respectively [1] - Automotive stocks were also down, with the Hong Kong automotive ETF and the Hong Kong Stock Connect automotive ETF from Fuguo decreasing by 2.38% and 2.09% respectively [1]

Core Viewpoint - The industrial mother machine ETF (159667) has seen a rise of over 2.4%, with expectations for the manufacturing industry's recovery in the future due to ongoing domestic policy support and measures to reduce competition pressure [1] Group 1: Manufacturing Industry Outlook - Continuous domestic policy efforts and measures to alleviate competition are expected to enhance the profitability of the manufacturing sector, leading to a gradual recovery in industry sentiment [1] - The robot sector is anticipated to experience rapid growth in product shipments, driven by the performance showcased by leading humanoid robot companies during the 2026 Spring Festival Gala and the expected mass production of Tesla's Optimus V3 [1] - The demand for core components such as reducers and screws is projected to significantly increase due to the explosive growth in humanoid robot production and sales both domestically and globally [1] Group 2: Semiconductor Equipment Sector - The global surge in artificial intelligence and data center construction is driving rapid price increases in storage chips, prompting semiconductor companies to accelerate expansion [1] - The anticipated listing of domestic storage leaders and the ongoing localization process are expected to sustain growth in the demand for semiconductor equipment in China [1] Group 3: ETF and Index Information - The industrial mother machine ETF (159667) tracks the China Securities Machine Tool Index (931866), which selects listed companies involved in the manufacturing and servicing of machine tools and key components from the Shanghai and Shenzhen markets [1] - The index is concentrated in the machinery equipment sector, featuring a small to mid-cap style, and covers sub-sectors such as CNC and laser processing, primarily allocated in industries like industrial, information technology, and raw materials [1]

Core Viewpoint - The industrial mother machine ETF (159667) has seen a rise of over 2% with a net inflow of over 10 million units, indicating a potential gradual recovery in manufacturing industry sentiment [1][2]. Group 1: Market Performance - The industrial mother machine ETF (159667) recorded a net inflow of 11 million units during trading, reflecting strong capital interest [2]. - The ETF tracks the China Securities Machine Tool Index (931866), which includes listed companies involved in the manufacturing and servicing of machine tools and key components [2]. Group 2: Industry Outlook - Domestic policies and measures aimed at reducing competition are expected to enhance the profitability of the manufacturing sector, leading to a gradual recovery in manufacturing sentiment [2]. - The global trends in artificial intelligence and data center construction are driving rapid price increases in storage and chips, which is likely to accelerate production expansion in the semiconductor industry [2]. - The upcoming 2026 CCTV Spring Festival Gala is anticipated to showcase humanoid robots from leading companies, potentially boosting product shipment volumes significantly [2]. - The development of Tesla's Optimus V3 is expected to enter mass production, which could lead to explosive growth in the production and sales of humanoid robots globally, thereby increasing demand for upstream core components [2].

Group 1 - The first central document of the "14th Five-Year Plan" focuses on modernizing farmland construction, which will significantly drive demand for excavation, roadbed repair, material unloading, and site leveling, particularly boosting the market for excavators, especially small excavators [1] - In January 2026, both domestic and export sales of earthmoving machinery saw substantial growth, with domestic excavator sales increasing by 61.4% year-on-year and export sales rising by 40.5%. Loader domestic sales grew by 42.8% and export sales by 53.4% [1] - Major projects across the country are gradually commencing, with increased investments in transportation infrastructure, urban renewal, and private investment projects, further expanding the application scenarios for earthmoving machinery and continuously releasing construction demand [1] Group 2 - The Industrial Mother Machine ETF (159667) tracks the China Securities Machine Tool Index (931866), which selects listed companies involved in machine tool manufacturing, CNC systems, bearings, and other key components from the Shanghai and Shenzhen markets [1] - This index primarily covers industries such as machinery, electronics, new energy, and robotics, reflecting the overall performance of listed companies in the machine tool industry chain [1] - The index emphasizes small and mid-cap stocks, combining profitability and growth potential while focusing on research and innovation capabilities [1]

Group 1 - The Industrial Mother Machine ETF (159667) increased by over 1.4% on January 27 [1] - Looking ahead to 2026, domestic policies and measures to reduce competition are expected to enhance the profitability of the manufacturing sector, leading to a gradual recovery in manufacturing sentiment and improved demand for upstream machinery and equipment [1] - The space photovoltaic sector is anticipated to create new growth opportunities for photovoltaic processing equipment, with estimated equipment values of 64.4 billion yuan for battery production and 10.8 billion yuan for component production needed for 200GW of space solar manufacturing capacity [1] Group 2 - The humanoid robot industry is expected to enter a mass production phase in 2025, resulting in significant growth in both external sales and internal usage by industry leaders, alongside rapid increases in investment and financing within the sector [1] - The core technologies and supply chains for humanoid robots are projected to accelerate, driving a swift increase in demand for upstream core components [1] - The Industrial Mother Machine ETF tracks the China Securities Machine Tool Index (931866), which reflects the overall performance of listed companies involved in the manufacturing and servicing of machine tools and their key components [1]

Report Summary 1) Report Industry Investment Rating - No information provided in the content 2) Core Viewpoints of the Report - The Financial Street Securities Research Institute constructed a strategy portfolio based on industry and thematic ETFs, referring to two strategy reports published in 2024 [2]. - From January 19 to January 23, 2026, the strategy's cumulative net return was about 2.01%, and the excess return relative to the CSI 300 ETF was about 2.68%. From October 14, 2024, to the present, the out - of - sample cumulative return of the strategy was about 44.34%, and the cumulative excess return relative to the CSI 300 ETF was about 19.78% [3]. - For the week of January 26, 2026, the model recommended allocating to sectors such as precious metals, industrial metals, and communication equipment. The strategy will newly hold products like Gold Stocks ETF, Mining ETF, Communication ETF, Game ETF, and Industrial Mother Machine ETF, and continue to hold products like Power Grid Equipment ETF [3][12]. 3) Summary by Relevant Catalogs Strategy Construction - The Financial Street Securities Research Institute constructed a strategy portfolio based on industry and thematic ETFs, referring to "Strategy Portfolio Report under Industry Rotation: Quantitative Analysis from the Perspective of Industry Style Continuity and Switching" (20241007) and "Research on the Overview and Allocation Methods of the Stock - type ETF Market: Taking the ETF Portfolio Based on the Industry Rotation Strategy as an Example" (20241013) [2]. Portfolio Adjustment - In the week of January 26 - January 30, 2026, Gold Stocks ETF (market value: 178.55 billion yuan), Mining ETF (market value: 26.44 billion yuan), Communication ETF (market value: 142.74 billion yuan), Game ETF (market value: 145.64 billion yuan), Industrial Mother Machine ETF (market value: 13.70 billion yuan), Chemical ETF (market value: 298.64 billion yuan), VR ETF (market value: 1.82 billion yuan), Consumer Electronics ETF (market value: 30.12 billion yuan), and Petrochemical ETF (market value: 9.10 billion yuan) were to be newly added to the portfolio. Power Grid Equipment ETF (market value: 167.78 billion yuan) was to be held continuously [3]. - In the week of January 19 - January 23, 2026, Defense ETF, Securities and Insurance ETF E Fund, Tourism ETF, Agriculture, Forestry, Animal Husbandry and Fishery ETF, Communication Equipment ETF, Energy Storage Battery ETF E Fund, Financial ETF, and Oil and Gas ETF Huatai - PineBridge were removed from the portfolio. Power Grid Equipment ETF was held continuously, and Grain ETF was newly added [12]. Performance Tracking - From January 19 to January 23, 2026, the strategy's cumulative net return was about 2.01%, and the excess return relative to the CSI 300 ETF was about 2.68%. From October 14, 2024, to the present, the out - of - sample cumulative return of the strategy was about 44.34%, and the cumulative excess return relative to the CSI 300 ETF was about 19.78% [3]. Risk Signal - As of the end of last week, some ETFs and the trading timing signals of the underlying indexes gave daily or weekly risk warnings [12].

Group 1 - The Industrial Mother Machine ETF (159667) has seen a net inflow of over 100 million yuan for three consecutive days, indicating a new opportunity for industrial development [1] - Guojin Securities highlights the urgent domestic demand for satellites, which will drive the domestic rocket production, with a positive outlook on the SpaceX chain and 3D printing technology for rockets [1] - 3D printing technology can achieve functional integration, significantly reduce the number of components, and optimize structures, leading to substantial weight reduction and lower engine manufacturing costs [1] Group 2 - The engineering machinery industry is experiencing a significant upward cycle, with both domestic and international sales of non-earthmoving machinery exceeding expectations in December [1] - Global demand for engineering machinery is entering a multi-faceted upward phase, with expectations that both earthmoving and non-earthmoving sectors will continue to resonate upwards [1] - In the automation equipment sector, there is optimism regarding the growth potential of AI upgrades in numerical control systems, which could enhance processing performance through data-driven models [1] Group 3 - The Industrial Mother Machine ETF (159667) tracks the China Securities Machine Tool Index (931866), which selects listed companies involved in the manufacturing and service of machine tools and key components from the Shanghai and Shenzhen markets [1] - The index reflects the overall performance of listed companies related to the machine tool industry, with constituent stocks concentrated in the machinery equipment sector, particularly covering the manufacturing industry [1]

Core Viewpoint - The industrial mother machine ETF (159667) has seen a rise of over 2.5% due to ongoing policy support aimed at promoting innovation in the "AI + manufacturing" sector [1] Policy Developments - The Ministry of Industry and Information Technology, along with seven other departments, issued the "Implementation Opinions on the Special Action for 'AI + Manufacturing'," which aims to promote innovation in embodied intelligent products and establish humanoid robot pilot bases and training grounds [1] - The action plan for the integration of industrial internet and artificial intelligence encourages enterprises to jointly advance the intelligent upgrade of industrial communication chips and sensors, gradually deepening the application of humanoid robots [1] - Local governments, such as Guangzhou, plan to cultivate a number of backbone enterprises in intelligent equipment and robotics by 2035, targeting an industry scale of 300 billion [1] - Sichuan Province's plan emphasizes the need to break through key core technologies in embodied intelligence [1] Industry Developments - Domestic manufacturers are increasing production certainty, with accelerated product technology iterations [1] - Xpeng Motors announced plans to start mass production of humanoid robots in 2026 [1] - Leju Robotics has formed a full-stack AI partnership with Alibaba Cloud, while companies like OpenAI are launching new types of household robots [1] - Investment and financing activities in the sector remain active [1] ETF and Index Information - The industrial mother machine ETF (159667) tracks the CSI Machine Tool Index (931866), which selects listed companies involved in the manufacturing and service of machine tools and key components from the Shanghai and Shenzhen markets [1] - The index reflects the overall performance of the machine tool industry, with constituent stocks primarily concentrated in the industrial sector, indicating a high degree of industry concentration and a focus on manufacturing allocation [1]

Core Viewpoint - The machine tool industry in China is characterized by a long-term "large but not strong" pattern, with high-end sectors still relying on imports and significant substitution potential available [1] Industry Overview - The domestic core component competitiveness is gradually increasing due to policy support and the trend of supply chain autonomy [1] - The CNC (Computer Numerical Control) rate of metal cutting machine tools in China has rebounded to approximately 40% in 2023, indicating substantial growth potential compared to over 70% in developed countries [1] ETF and Index Information - The Industrial Mother Machine ETF (159667) tracks the China Securities Machine Tool Index (931866), which selects 50 listed companies involved in machine tool manufacturing and key component services from the Shanghai and Shenzhen markets [1] - The index reflects the overall performance of listed companies related to the machine tool industry, with a high concentration in the machinery equipment sector and a tendency towards small and mid-cap stocks [1]

Group 1: Report Industry Investment Rating - No relevant content found Group 2: Core Viewpoints of the Report - The strategy based on industry and theme ETFs was constructed by the Financial Street Securities Research Institute, and the portfolio was updated weekly. From January 5 - 9, 2026, the strategy's cumulative net return was about 8.72%, and the excess return relative to the CSI 300 ETF was about 5.94%. From October 14, 2024, to January 9, 2026, the strategy's out - of - sample cumulative return was about 41.66%, and the cumulative excess relative to the CSI 300 ETF was about 15.74% [3] - In the week of January 12, 2026, the model recommended allocating sectors such as aviation equipment, aerospace equipment, and aviation airports. The strategy would add holdings of products like Aerospace ETF, Grain ETF, and Power Grid Equipment ETF, and continue to hold products like Satellite Industry ETF, Tourism ETF, and Communication Equipment ETF [13] Group 3: Summary According to the Catalog Strategy Construction - The Financial Street Securities Research Institute constructed a strategy portfolio based on industry and theme ETFs, referring to the strategy reports "Strategy Portfolio Report under Industry Rotation: Quantitative Analysis from the Perspective of Industry Style Continuity and Switching" (20241007) and "Research on the Overview and Allocation Methods of the Stock - type ETF Market: Taking the ETF Portfolio Based on the Industry Rotation Strategy as an Example" (20241013) [2] Strategy Update - The strategy updated the holdings of ETFs. Newly added holdings included Aerospace ETF, Grain ETF, and Power Grid Equipment ETF. Continued holdings included Satellite Industry ETF, Tourism ETF, etc. [3][13] Performance Tracking - From January 5 - 9, 2026, the strategy's cumulative net return was about 8.72%, and the excess return relative to the CSI 300 ETF was about 5.94%. From October 14, 2024, to January 9, 2026, the strategy's out - of - sample cumulative return was about 41.66%, and the cumulative excess relative to the CSI 300 ETF was about 15.74% [3] Future Recommendations - In the week of January 12 - 16, 2026, the model recommended allocating sectors such as aviation equipment, aerospace equipment, and aviation airports, and recommended products for investment [13]