Guosen: The road of Niu is still there. The main line of technology is shifting from computing power to applications.

Guotai Haitong released a research report stating that the bull market that started in the 24th year of "924" has not ended yet, and it has now entered the second phase. Emotions in the market are shifting towards fundamentals. Looking ahead to 2026, technology is the main theme, with the evolution path shifting from computing power to applications. Focus areas include AI glasses, Siasun Robot&Automation, smart driving, AI programming, AI + life sciences, etc. In the mid-term of the bull market, there will be style rotation. It is recommended to pay attention to real estate, securities firms, and Baijiu consumption which have lagged in the earlier stages. Furthermore, for dividend assets that have underperformed in the past 25 years, they can still maintain a certain level of portfolio allocation amidst the financial asset shortage. Guosen's main points are as follows: Bull market is still ongoing, shifting towards fundamentals The complete bull market consists of three stages: incubation, outbreak, and frenzy. The current bull market is similar to the 519 market and is currently in the outbreak phase. The market structure is evident, with "new economy assets" surpassing "old economy" assets. In 2026, the bull market will shift from emotions to fundamentals, with the return on equity of listed companies steadily rising, the debt-to-equity ratio improving year on year, and profit expectations continuously increasing. Micro-liquidity is still supportive: 1) In terms of domestic factors, the trend of "spending deposits" continues, and the process of shifting deposits upon the maturity of medium to long-term fixed deposits is further accelerating the movement of deposits; 2) On the overseas front, the midterm elections in the United States still hold uncertainty, with redistricting signaling increased political turbulence. The Fed's preemptive rate cuts driving capital flows towards emerging market risk assets in the second half. Technology is the main theme, embracing the era of "new economy" Historically, bull markets have had themes, from the "coal frenzy" and "mobile internet" to "energy revolution" and "AI wave". The theme of this bull market is technology, with 15 hundred-billion technology stocks contributing to a 10% increase in the A-share index. Companies such as Semiconductor Manufacturing International Corporation, Hygon Information Technology, and Cambricon Technologies have contributed to a 50% increase in the innovation index. Both China and the United States are leading the AI industry, with China focusing on breadth and the US on depth. Over one-third of domestic hard technology companies are still in the growth stage, with ample room for profit margin improvement compared to US stocks. The "Scaling Law" continues to be confirmed, with increased capital expenditure by large factories, clear industry trends, and the five-year plan promoting emerging and future industries benefiting from policy support throughout the year. Guosen believes that in the past 25 years, the overseas computing chain represented by optical modules has accumulated considerable gains, and in 2026, the focus will shift to applications such as AI glasses, Siasun Robot&Automation, smart driving, AI programming, and AI + biotechnology. In addition to the main theme, what other dishes are there? In the mid-term of the bull market, there is often style rotation. It is recommended to focus on liquor (undervalued, high dividend), securities firms (high trading volume, high profit growth), and real estate (stock price leading fundamentals). For dividend assets that have significantly underperformed in the past 25 years, considering their ability to withstand market fluctuations, as well as the demand from risk-averse investors for dividend yields that outperform existing mortgage rates, maintaining a certain level of portfolio exposure is advisable. Risk warnings Uncertainty about the pace and extent of foreign currency policies; the indices and individual product mentioned in the article are only used for historical reference and do not constitute a basis for investment recommendations.