Investment Rating - The industry investment rating is "Overweight" (maintained) [1] Core Insights - The report emphasizes the positive outlook for the AI industry, particularly in the context of the "AI + Manufacturing" initiative launched by the Ministry of Industry and Information Technology, which aims to promote deep integration of AI technology in manufacturing by 2027 [4] - The report highlights a potential recovery in domestic AIDC (Artificial Intelligence Data Center) bidding, indicating an increase in demand for domestic AI computing power [5] - Century Internet's financial performance shows significant growth, with a 21.7% year-on-year revenue increase in Q3 2025, suggesting a continued recovery in the AIDC sector [6] Summary by Sections AI Industry Development - The report notes that the government is actively promoting AI applications, which is expected to drive demand for domestic AI computing power [4] - The focus is on three core areas: AIDC, network endpoints, and computing endpoints, with specific recommended stocks for each segment [7] Financial Performance Indicators - Alibaba's capital expenditure for FY2026 Q2 reached 31.501 billion yuan, a year-on-year increase of 80.1%, indicating strong investment in AI cloud computing infrastructure [5] - Century Internet reported a total revenue of 2.58 billion yuan in Q3 2025, with adjusted EBITDA growing by 27.5% year-on-year, reflecting robust operational performance [6] Recommended Stocks - For AIDC data centers, recommended stocks include: Guanghuan New Network, Aofei Data, and others [7] - For AIDC liquid cooling and power supply, recommended stocks include: Yingweike and others [7] - For network endpoints, recommended stocks include: Zhongji Xuchuang, and others [7] - For computing endpoints, recommended stocks include: Oulutong, and others [7]

Core Insights - The article discusses the recent launch of the "6G City" action plan in Nanjing, Jiangsu, aimed at integrating technological and industrial innovation from 2026 to 2027 [1] - The establishment of the 6G Industry Alliance, initiated by eight entities including Zijinshan Laboratory and ZTE Corporation, is intended to tackle core technologies and build an industrial ecosystem [1] Development Goals - By 2027, the plan aims to achieve the release of no less than six major research outcomes in the 6G field [1] - The initiative targets the establishment of over 100 new enterprises for the transformation of scientific and technological achievements [1] - The plan includes the creation of at least 50 vertical scenarios across various industries and aims for comprehensive coverage of 6G non-cellular networks [1]

Group 1 - DJI's agricultural drones have significantly reduced pest issues in Malaysian oil palm plantations over the past five years, leading to increased yield and lower management costs [1] - Huawei aims to enhance Malaysia's 5G coverage to 98% by 2025 with its advanced Net5.5G technology, securing a major contract for the Sarawak suburban network upgrade [1] - ZTE's "ultra-compact base station" technology will enable indigenous communities in the deep rainforests of Malaysia to access video consultations by 2025 [1] Group 2 - The chairman of the Malaysia-China Guangdong-Hong Kong-Macau Greater Bay Area Science and Technology Innovation Alliance highlighted three advantages of China's scientific innovation: rapid industrialization, strong engineering and scalability, and close collaboration among research, industry, and capital [2] - Malaysia is expected to deepen cooperation with the Greater Bay Area in fields such as artificial intelligence, industrial internet, new energy materials, carbon technology, biotechnology, and smart manufacturing [2] - Plans for this year include establishing a Malaysia-China Innovation Center to strengthen talent exchange mechanisms in the technology sector and creating a Malaysia-China Innovation Fund focused on mutual investments in advanced manufacturing, green technology, and life sciences [2]

Market Overview - The Shanghai Composite Index closed at 4082.98 points, down 0.07%, with a trading volume of 11,832 billion yuan. The Shenzhen Component Index closed at 13,959.48 points, down 0.51%, with a trading volume of 16,171.96 billion yuan. The ChiNext Index closed at 3,302.31 points, down 0.82%, with a trading volume of 7,556.51 billion yuan. The STAR Market 50 Index closed at 1,455.17 points, up 0.82%, with a trading volume of 992 billion yuan. The total trading volume of both markets was 28,003.96 billion yuan, a decrease of 538.01 billion yuan compared to the previous trading day [1]. Sector Performance - Various industry sectors showed mixed performance, with notable gains in defense, media, construction decoration, real estate, building materials, computer, education, and light manufacturing sectors. Active concepts included satellite internet, commercial aerospace, aircraft carriers, helium, space stations, nuclear pollution prevention, brain engineering, controllable nuclear fusion, and interactive short dramas. Conversely, sectors such as securities, insurance, non-ferrous metals, banking, and telecommunications experienced declines [3]. Stock Performance - A total of 3,533 stocks rose, while 1,514 stocks fell, with 126 stocks remaining flat and 10 stocks suspended. Excluding newly listed stocks, there were 112 stocks that hit the daily limit up, and 7 stocks that hit the limit down [3]. Fund Flow - The net outflow of main funds in the Shanghai and Shenzhen markets was 374.35 billion yuan, with the ChiNext experiencing a net outflow of 144.73 billion yuan. The CSI 300 index saw a net outflow of 191.54 billion yuan, and the STAR Market had a net outflow of 10.45 billion yuan. Among 31 primary industries, 12 sectors saw net inflows, with the defense industry leading at 12.58 billion yuan. Other sectors with significant inflows included computer, banking, and building materials [5]. Individual Stock Highlights - A total of 2,227 stocks experienced net inflows, with 126 stocks receiving over 1 billion yuan in net inflows. Aerospace Science and Technology had the highest net inflow at 910 million yuan, followed by Hailanxin, Hand Information, Qianzhao Optoelectronics, and Shunhao Shares [10][11]. - Conversely, 2,946 stocks faced net outflows, with 171 stocks seeing over 1 billion yuan in net outflows. The stock with the highest net outflow was Zhongji Xuchuang, with a net outflow of 3.227 billion yuan, followed by Lixun Precision, Aerospace Development, and Dongfang Fortune [14][15]. Institutional Activity - Institutional trading data indicated a net sell of approximately 327 million yuan, with 13 stocks seeing net purchases and 13 stocks experiencing net sales. The stock with the highest net purchase was Aerospace Electric, with a net inflow of about 276 million yuan, while the stock with the highest net sell was Goldwind Technology, with a net outflow of about 669 million yuan [18][19].

Group 1 - Citigroup's long position in ZTE Corporation's H-shares decreased from 7.9% to 7.5% as of January 2, 2026 [1]

Core Viewpoint - The THz concept sector has shown a significant increase of 4.14%, ranking third among concept sectors, with notable stocks like Hitec High-tech and Aerospace Electronics hitting the daily limit up [1] Group 1: Sector Performance - The THz concept sector had 18 stocks rising, with Hitec High-tech, Aerospace Electronics, and Shuo Beid's stock prices increasing by 10.72%, 10.19%, and 8.68% respectively [1] - The leading decliners in the sector included Changfei Fiber, Saiwei Electronics, and Hengtong Optic, which fell by 5.21%, 3.78%, and 1.36% respectively [1] Group 2: Capital Flow - The THz concept sector attracted a net inflow of 2.069 billion yuan, with 11 stocks receiving net inflows, and 8 stocks exceeding 100 million yuan in net inflow [2] - Aerospace Electronics led the net inflow with 1.850 billion yuan, followed by ZTE Communications, Shuo Beid, and Tianyin Machinery with net inflows of 561 million yuan, 332 million yuan, and 289 million yuan respectively [2] Group 3: Capital Inflow Ratios - The stocks with the highest net inflow ratios included Aerospace Electronics, Hitec High-tech, and Yaguang Technology, with net inflow ratios of 18.69%, 16.87%, and 13.27% respectively [3] - The detailed capital inflow data for the THz concept stocks shows significant trading activity, with Aerospace Electronics having a trading volume of 185 million yuan and a turnover rate of 11.91% [3][4]

Market Overview - The Shanghai Composite Index fell by 0.07% on January 8, with 20 industries experiencing gains, led by defense and military industry with a rise of 4.18% and media with a rise of 2.00% [1] - The non-bank financial and non-ferrous metals industries saw the largest declines, with drops of 2.81% and 1.56% respectively [1] Capital Flow Analysis - The net outflow of capital from the two markets reached 45.304 billion yuan, with 9 industries experiencing net inflows [1] - The defense and military industry had the highest net inflow of capital at 6.773 billion yuan, followed by the computer industry with a net inflow of 3.917 billion yuan and a daily increase of 1.27% [1] Communication Industry Performance - The communication industry declined by 0.95%, with a total net outflow of 6.820 billion yuan [2] - Out of 124 stocks in the communication sector, 95 stocks rose, including 2 that hit the daily limit, while 28 stocks fell [2] - The top three stocks with the highest net inflow in the communication sector were ZTE Corporation with 561 million yuan, China Unicom with 362 million yuan, and FiberHome Technologies with 303 million yuan [2] Communication Industry Capital Outflow - The communication industry saw significant capital outflows, with the top three stocks being Zhongji Xuchuang with a net outflow of 3.156 billion yuan, Newray Technology with 1.205 billion yuan, and Tianfu Communication with 1.090 billion yuan [4] - Other notable stocks with capital outflows included Nanjing Panda Electronics and China Mobile, with outflows of 434 million yuan and 326 million yuan respectively [4]

Group 1 - The main point of the article highlights that major funds experienced a net outflow from the electronics sector, amounting to over 7.4 billion yuan, while sectors like machinery, defense, and construction saw net inflows [1] - Among individual stocks, Aerospace Electronics saw a significant increase, with major funds net buying over 1.269 billion yuan, leading the gains [1] - Luxshare Precision faced a substantial net sell-off exceeding 1.4 billion yuan, indicating a negative sentiment towards the stock [1]

Core Viewpoint - ZTE Corporation (00763) has seen a stock price increase of 4.06%, reaching HKD 29.22, with a trading volume of HKD 430 million, indicating positive market sentiment towards the company [1][4]. Group 1: Company Developments - ZTE has stated that there is a trend of integration between communication technologies in the commercial aerospace sector and terrestrial communication networks, positioning itself as a global leader in this field [1][4]. - The company is focused on building a space-ground integrated communication network aimed at 6G, having conducted multiple NTN technology trials in collaboration with domestic operators and satellite companies, achieving significant breakthroughs [1][4]. - ZTE plans to leverage its advantages in industry standardization, core technologies, and product specifications to provide comprehensive satellite payload products, thereby enhancing the core competitiveness of its partners [1][4]. Group 2: Industry Insights - Huaxi Securities has released a report stating that satellite networks are foundational for the construction of 6G networks, aligning with current standards and timelines for development [1][4]. - Since August, relevant authorities have indicated plans to issue satellite internet licenses, marking a critical first step towards commercial operations in China's satellite internet sector, which is expected to accelerate the entire industry's move towards scaling [1][4].

Core Viewpoint - ZTE Corporation (00763) has seen a stock price increase of over 4%, currently trading at 29.2 HKD with a transaction volume of 370 million HKD, indicating positive market sentiment towards the company [1] Group 1: Company Developments - ZTE has stated on its interactive platform that there is a trend of integration between communication technology in the commercial aerospace sector and terrestrial communication networks, positioning itself as a global leader in communication technology [1] - The company is committed to building a space-ground integrated communication network aimed at 6G, having conducted multiple NTN technology trials in collaboration with domestic operators and satellite companies, achieving significant breakthroughs [1] - ZTE plans to leverage its leading advantages in standardization, core technology, and product specifications in the communication field to provide comprehensive satellite payload products, helping partners build core competitiveness [1] Group 2: Industry Insights - Huaxi Securities has released a report indicating that satellite networks are foundational for the construction of 6G networks, aligning with current standards and timelines for 6G development [1] - Since August, relevant authorities have announced plans to issue satellite internet licenses, marking a critical first step towards commercial operations of satellite internet in China, which is expected to accelerate the entire industry chain towards large-scale development [1]