Bank of China International: Innovation in China's AI ecosystem accelerates, with the first recommendation being XIAOMI-W (01810), KINGSOFT (03888), and ASMPT (00522).

Bank of China International released a research report stating that the Chinese technology industry will continue to significantly benefit from the rise of Chinese artificial intelligence technology, especially considering that Chinese companies still have attractive valuations compared to most American benchmark companies. The main industries that will benefit are artificial intelligence applications, including KINGDEE INT'L (00268), KINGSOFT (03888); edge AI hardware, including XIAOMI-W (01810), SUNNY OPTICAL (02382), AAC TECH (02018); semiconductors, including Semiconductor Manufacturing International Corporation (00981), HUA HONG SEMI (01347), ASMPT (00522). The bank's top picks are XIAOMI-W, KINGSOFT, and ASMPT. Following DeepSeek, the pace of innovation in the Chinese AI ecosystem continues to accelerate. Recently, BABA-W (09988) QwQ-32B and Manus.ai have made remarkable progress in the market, representing breakthroughs in open source LLM and general AI agent frameworks. The report states that the performance of QwQ-32B released on March 5 is comparable to or even better than DeepSeek-R1, and with a unique reinforcement learning framework, it is more cost-effective than DeepSeek. On the same day, China's first general AI agent Manue.ai was released, and with its demonstration of over 40 rich application cases, it caused a buzz in the community and sparked a new wave of exploration in the market hot topic of practical application of AI. Although the bank believes that the capabilities of artificial intelligence have not undergone a large-scale paradigm shift due to these few models, continuous engineering advancements such as cost reduction, ecosystem expansion, and iterative interaction methods lead the bank to believe that artificial intelligence will continue to be the primary focus of investment in the industry and capital markets.