China Securities Co., Ltd.: The main theme of the market is still AI+. Continued focus on the divergence between policy expectations and resonant industry trends.

China Securities Co., Ltd. released a research report stating that in mid-January, they published a report "Actively Positioning for the Next Bull Market" and clearly put forward that AI+ is the main theme. Afterwards, the technology sector continued to lead the market higher. For global funds, the recognition of Chinese technology stocks continues to rise, while also worrying that the marginal trend of the US economy may weaken, with asset trends showing a strong China and weak US. Although the recent gains in the technology sector have been significant, looking at the overall picture, the spring offensive is not over yet, with the AI+ theme clearly defined. The current external market environment is stable, with macroeconomic logic temporarily giving way to industry trends. The momentum in the technology sector is not over yet. If short-term trading overheating leads to a pullback, it is expected not to be the end of the market, but rather there will be further opportunities for positioning and attacking, with a continued focus on policy expectations and industry trend resonances. Industries to focus on include: Internet, communications, electronics, computers, media, minerals, etc. Key points from China Securities Co., Ltd. are as follows: The stabilization of the renminbi and the emergence of a strong China and weak US trend in asset markets. Recently, Chinese institutions have shown a greater interest in stocks than in bonds, with a significant decline in interest in dividend styles within stocks. For global funds, the recognition of Chinese technology stocks continues to rise, while also worrying that the marginal trend of the US economy may weaken, with asset trends showing a strong China and weak US. The stabilization of the renminbi is an important signal, with the strong rebound of the renminbi exchange rate resonating with the repair of Sino-US economic and trade expectations. As of January 21st, the offshore renminbi exchange rate against the US dollar briefly exceeded the 7.23 mark, reaching a new high since July 2023. This appreciation momentum stems from a combination of multiple favorable factors: stable domestic economic conditions; the Fed considering slowing down QT; Trump considering the possibility of reaching a new trade agreement with China, easing trade confrontation tensions; warming expectations for a ceasefire between Russia and Ukraine. The confidence of private enterprises and the shift in focus towards the AI+ industry theme have become important supports for the current market's strength and sustainability: On one hand, on the policy front, there is strategic support around "new productive forces," driving at multiple levels from top-level designs to specific policies; On the other hand, tech giants such as Alibaba are gradually being recognized by the capital markets for their historic capital expenditures, with private enterprises shifting from demand response to a technology supply model. With policy transmission and industry upgrading resonating, the structural technology market is poised for a breakthrough. In addition, in the context of a strong China and weak US narrative, the continuous supply of funds becomes a support for the market. The main theme in the market continues to be AI+, and if trading overheating leads to a pullback, it is expected to be an opportunity for a further positioning and attack. The sharp growth in the A-share market this week was mainly due to Alibaba's capital expenditure plan. The unexpectedly high capital expenditure strengthened market confidence in the technology sector. The market may not have sustained strong catalysts in the short term, but the medium-term evolution of the industrial environment is a trend, and even if there is a temporary technical pullback in the technology sector later on, the strong willingness of funding participation may still provide support for the market. Continue to focus on policy expectations and industry trend resonances. Industries to focus on include: Internet, communications, electronics, computers, media, minerals, etc. Themes and directions: AI domestic computing power chain, domestic substitutes (semiconductor equipment/materials), Siasun Robot&Automation, low-altitude economy.