China Securities Co., Ltd.: Technological breakthroughs and capital empowerment help accelerate the industrialization of nuclear fusion, focusing on investment opportunities in the middle and upper reaches.

China Securities Co., Ltd. released a research report stating that controlled nuclear fusion, with advantages such as abundant fuel, environmental friendliness, high energy density, and relative safety, is considered the ultimate solution for the energy revolution. It has become the new focus for strategic competition in the energy sector among major countries such as China, the United States, and Europe. With breakthroughs in high-temperature superconductors and AI technology empowering the industry, policy dividends and capital investment continue to be released. The construction of large scientific facilities has become a key focus for countries, and commercial fusion projects are also attracting attention from the capital market. The current focus of the controlled nuclear fusion industry is on technological engineering and breakthroughs in commercial feasibility, with the construction of large scientific facilities and experimental reactors generating large orders, and high-value investment opportunities concentrated in the upstream and midstream sectors. China Securities Co., Ltd.'s main points are as follows: Achieving controlled nuclear fusion In the context of global energy transition and increasing geopolitical uncertainties, controlled nuclear fusion, with advantages such as nearly limitless fuel, zero carbon emissions, and high safety, is seen as the ultimate solution to energy shortages. It has become a new direction for strategic competition in the energy sector among major countries such as China, the United States, and Europe, following the artificial intelligence revolution. In recent years, new technologies, especially high-temperature superconductors and artificial intelligence, have injected new momentum into the nuclear fusion projects, enabling rapid iteration in the industry. High-temperature superconducting technology can effectively enhance the magnetic field strength of fusion devices, reduce the volume of fusion devices under the same fusion power, greatly reduce the construction and operation costs of devices, and accelerate the commercialization process of nuclear fusion. With the ability to efficiently handle massive experimental data and accurately simulate complex nuclear fusion reaction processes, artificial intelligence technology makes it possible to precisely control the movement of high-temperature plasma, significantly reducing the research and development cycle of fusion projects and lowering iteration costs. Current status of controlled nuclear fusion Human research on controlled nuclear fusion started in the 1950s and has been ongoing for over seventy years. Currently, the nuclear fusion industry is generally in the phase of engineering breakthroughs and accelerated commercialization. Policy support and capital investment have accelerated the iteration and commercialization process of controlled nuclear fusion devices. At the policy level, top-level designs have been clarified, and institutional standards are gradually being established. On the capital level, with the dual driving forces of technological breakthroughs and favorable policies, a large amount of capital attracted by controlled nuclear fusion is pushing fusion technology from the laboratory to engineering verification. China has formed a complementary pattern of "state-owned enterprises + private enterprises," with state-owned enterprises such as CNNC and CAS leading core system sectors and investing over a hundred billion in the construction of large scientific facilities to overcome cutting-edge technical challenges. Private enterprises and commercial companies are exploring new pathways for commercializing fusion. This complementary pattern not only ensures strategic security but also accelerates technological iteration through market mechanisms.