Core Viewpoint - The announcement of the successful operation of a 2 MW liquid fuel thorium molten salt experimental reactor in Gansu marks a significant breakthrough in China's fourth-generation nuclear energy sector, showcasing a strategic leap in technology [1][3]. Group 1: Technological Breakthrough - The experimental reactor is the only one globally that has achieved thorium fuel loading and is currently operational [1][6]. - This achievement is not merely a technical upgrade but represents a strategic advantage for China in the nuclear energy landscape [3][11]. Group 2: Resource Advantage - China has a significant resource advantage with over 1.4 million tons of proven thorium reserves, accounting for nearly three-quarters of the global total, which is often extracted alongside rare earth elements [9][11]. - In contrast, China relies heavily on imported uranium, with over 80% of its needs met through imports, highlighting the importance of developing thorium-based technology [5][9]. Group 3: Development Roadmap - The development plan includes building a 10 MW modular demonstration reactor by 2029 and advancing to a 100 MW power station by 2035, focusing on regions rich in thorium resources [11][13]. - The successful operation of the 2 MW reactor is a critical first step in this roadmap, aimed at gathering essential data for future developments [11][13]. Group 4: Economic Implications - The cost of nuclear power in China has halved over the past decade, contrasting with rising costs in the U.S., positioning low-cost electricity as a significant advantage for China's economic development [19][20]. - The increasing demand for electricity, particularly from industries like AI, underscores the importance of cost-effective energy solutions like thorium molten salt reactors [22][24]. Group 5: Global Energy Dynamics - The advancement in thorium molten salt technology could potentially reshape global energy dynamics, reducing the importance of oil and impacting the oil-dollar system [26][28]. - Historical precedents show that energy revolutions have been pivotal in shifting global power, suggesting that China's technological progress in this area may lead to a reconfiguration of international order [24][30].

Core Viewpoint - The A-share market opened lower on November 4, with the ChiNext New Energy ETF (Hua Xia, 159368) experiencing fluctuations and a maximum decline of 1.86%. However, it later showed a slight recovery, indicating resilience in the sector despite broader market challenges [1]. Group 1: Market Performance - The ChiNext New Energy ETF (Hua Xia, 159368) recorded a trading volume exceeding 21.97 million, making it the top performer among similar products [1]. - Key holdings such as Di'er Laser, Yonggui Electric, and Yingjie Electric saw gains of over 1% [1]. Group 2: Technological Breakthroughs - A significant milestone was achieved with the successful operation of a 2 MW liquid fuel thorium-based molten salt experimental reactor, marking the first instance of thorium fuel conversion in an international context. This reactor is currently the only one in the world to have achieved thorium fuel utilization, demonstrating the technical feasibility of using thorium resources in molten salt reactor systems [1]. - This breakthrough is expected to bolster China's nuclear technology and support the development of a low-carbon composite energy system, aiding in the acceleration of the "dual carbon" goals [1]. Group 3: Industry Outlook - Huafu Securities highlighted multiple favorable factors in the new energy sector, closely linked to core assets. The photovoltaic sector is benefiting from the "14th Five-Year Plan," which outlines a strategic framework for high-quality industry development, pushing for a transition from manufacturing to technological innovation [2]. - The breakthrough in thorium-based molten salt reactor technology adds long-term momentum, with its unique features allowing for waterless cooling and inland deployment, which can complement solar and wind energy to stabilize the grid [2]. - The ChiNext New Energy ETF (Hua Xia, 159368) is the largest ETF tracking the ChiNext New Energy Index, with a scale of 829 million as of October 31, 2025, and a daily average trading volume of 90.05 million over the past month. It has a storage capacity of 51% and solid-state battery content of 30%, aligning with current market trends [2].

Market Overview and Sector Characteristics - The Shanghai and Shenzhen markets saw a total of 66 stocks hitting the daily limit up, an increase of 9 from the previous day, while 7 stocks hit the limit down, a decrease of 5 [2] - The overall performance of the indices was strong, with the Shanghai Composite Index rising by 0.55% and the Shenzhen Component Index increasing by 0.19% [1] Industry Characteristics - The sectors with the most limit-up stocks today included specialized equipment, cultural media, and engineering construction [3] - In the specialized equipment sector, 6 stocks reached the limit up, driven by policy support and increasing orders [4] - The cultural media sector had 5 stocks hitting the limit up, supported by favorable policies and enhanced recovery expectations [4] - The engineering construction sector also saw 5 stocks limit up, driven by policy support and the commencement of infrastructure projects [4] Concept Characteristics - The most prominent concepts among limit-up stocks included thorium molten salt reactors, cloud computing data centers, and Hainan Free Trade Port, with 7, 5, and 5 stocks respectively [5] - The thorium molten salt reactor concept was driven by strong expectations of technological breakthroughs and high capital attention [5] Limit-Up Stock Rankings - Among the limit-up stocks, 3 reached historical highs, including Aerospace Intelligent Equipment, Yaxiang Integration, and Baiao Chemical [6] - A total of 19 stocks reached near one-year highs, including TBEA, Pingtan Development, and Guangdong Media [7] Main Capital Inflow - The stocks with the highest net capital inflow included TBEA, Taiji Industry, Aerospace Technology, Jishi Media, and 37 Interactive Entertainment [9] - The top 5 stocks by net inflow as a percentage of market value were Antai Group, Taiji Industry, Kangsheng Shares, Meirui New Materials, and Jishi Media [8] Continuous Limit-Up Stocks - There were 56 stocks that hit the limit up for the first time today, with 9 stocks achieving a second consecutive limit up, and 1 stock achieving three consecutive limit ups [10] - The stocks with the highest consecutive limit up counts included HeFu China, Pingtan Development, and Lito Electronics [10]

Core Insights - China has achieved a significant milestone by successfully converting thorium-uranium nuclear fuel based on molten salt reactors, marking the first time such data has been obtained internationally [3] - The 2 megawatt liquid fuel thorium-based molten salt experimental reactor, led by the Shanghai Institute of Applied Physics, is currently the only operational molten salt reactor that has achieved thorium fuel insertion [3] - This development reinforces China's leading position in the international molten salt reactor research field and provides core technological support for the large-scale development and utilization of thorium resources in the future [3] Summary by Categories - **Technological Achievement** - The successful conversion of thorium-uranium nuclear fuel represents a major technological breakthrough in the field of molten salt reactors [3] - The reactor has provided experimental data after the insertion of thorium fuel, which is a first in the international arena [3] - **Strategic Importance** - This milestone is crucial for the future large-scale development and utilization of thorium resources in China [3] - It supports the advancement of the fourth generation of nuclear energy systems, highlighting the potential for sustainable energy solutions [3] - **International Positioning** - The achievement solidifies China's leading role in molten salt reactor research globally, showcasing its capabilities in innovative nuclear technology [3]

Core Insights - China has achieved a significant milestone by successfully converting thorium-uranium nuclear fuel in a molten salt reactor, marking the first time such data has been obtained internationally [3] - This development reinforces China's leading position in the global molten salt reactor research field and demonstrates the technical feasibility of utilizing thorium resources in nuclear energy systems [3] Group 1 - The 2 megawatt liquid fuel thorium-based molten salt experimental reactor was constructed by the Shanghai Institute of Applied Physics, part of the Chinese Academy of Sciences [3] - The reactor is currently the only operational molten salt reactor that has successfully incorporated thorium fuel [3] - This achievement is a crucial step towards the large-scale development and utilization of thorium resources in China, providing core technological support for the advancement of fourth-generation nuclear energy systems [3]