Intensive fermentation stirs up investment sentiment, is the "fusion year" Hong Kong stock investment pattern emerging?

In the secondary market, the sustainability of popular new themes often depends on whether there are continuous new developments at the policy, funding, or industrial levels in the track they are in. Take controlled nuclear fusion for example, this ultimate energy solution once seen as a distant future, is now gaining momentum with the frequent mention of policies, attracting diverse capital, and pushing the industrial development on the "fast track". With the combined support of multiple positive factors, concept stocks related to the topic have been frequently volatile in the capital market. Taking the Hong Kong stock market as an example, stocks such as CGN MINING (01164), Shanghai Electric Group (02727), Dongfang Electric Corporation (01072), among others, have benefited from the concentrated catalyst effect in the field of nuclear fusion, and their stock prices have been active since 2025. Behind the sector's excitement, the underlying logic is that the market anticipates that controlled nuclear fusion is about to enter a crucial development phase. On the policy front, this month, the "Law of the People's Republic of China on Nuclear Energy" officially implemented clearly "encourages and supports controlled thermonuclear fusion", setting boundaries for fusion energy innovation and providing institutional guarantees. In terms of funding, news from the primary market not long ago reported that Shanghai Starry Fusion Energy Technology Co., Ltd. completed a 1 billion yuan Series A financing, setting a new record for single financing among similar enterprises in the country. Almost at the same time, Energy Quotient Energy Technology (Shanghai) Co., Ltd. announced that the magnetic field intensity generated by its high-temperature superconducting magnet after excitation (i.e., current passing through the magnet coil) exceeded 20.8 Tesla (Tesla is the unit of magnetic induction strength, magnetic field strength directly determines fusion power density, and is a core indicator for achieving device miniaturization). One of the latest industrial dynamics was the holding of the 2026 Fusion Energy Technology and Industry Conference last week, where multiple major procurement projects and fusion joint laboratory projects were signed, and key listed companies in the controlled nuclear fusion sector such as Shanghai Electric Group also had exhibitions. With the rapid development of the industry, will the controlled nuclear fusion sector become the next "treasure trove" in the Hong Kong stock market? Intensifying positive news fuels investment sentiment From a scientific perspective, nuclear fusion is the process of two light atomic nuclei (such as deuterium and tritium) overcoming the Coulomb repulsion to combine into a heavier atom (such as helium) and releasing a large amount of energy under high temperature and pressure conditions. Today, driven by the dual forces of increasing energy demand and low-carbon transition, controlled nuclear fusion is widely regarded as the ultimate solution to humanity's energy problem due to its nearly limitless fuel supply, extremely high energy density, and inherent safety traits. In recent years, due to the joint push of technological iteration and industry capital, controlled nuclear fusion is accelerating its transition from the laboratory to engineering verification. According to incomplete statistics from relevant institutions, the investment in major nuclear fusion projects in China is expected to reach 146.5 billion yuan, and from 2025 to 2028, the industry will gradually enter a capital expenditure expansion cycle, potentially driving a surge in industry-related orders. With the entry of capital worth over a trillion, the industrialization of nuclear fusion is expected to accelerate. The year 2025 has been seen in a sense as the "year of fusion". In that year, a virtuous resonance was formed among policy, industry, and capital, with fusion first included in the law and incorporated into the future industries of the "15th Five-Year Plan". On the industrial side, EAST, HL-3 continuously set records, BEST entered final assembly and conducted large tenders, and CRAFT's key facilities were put into operation, all of which signify that the industry is transitioning from scientific research to the early stages of engineering and industrialization. On the capital side, the entry of central enterprises is of great significance, with the formation of state-backed platforms almost complete, and at the same time, diverse capital is accelerating its entry into the industry. After the industry's "preparation", 2026 signals that controlled nuclear fusion will enter an intensive phase of capital expenditure. In terms of demand, AI computing power has triggered global electricity demand to increase exponentially. According to data from the International Energy Agency, the electricity consumption of data centers globally is increasing by 12% per year, reaching an estimated 945 terawatt-hours by 2030, with large AI data centers consuming up to 2 gigawatt-hours of electricity annually, equivalent to the total electricity consumption of tens of thousands of households. Against this backdrop, controlled nuclear fusion, as the "ultimate energy source", is of increasing importance. The soaring demand undoubtedly acts as the best catalyst for changes on the supply side. In order to address the exponential growth in electricity demand, a series of experimental reactor projects in the controlled nuclear fusion industry are entering an intensive phase of equipment procurement, tendering, and construction. From a global perspective, both China and the United States are at the forefront of overall progress. In China, the BEST experiment, under the leadership of the Chinese Academy of Sciences, has set a goal of achieving ignition by 2027, while the Spark 1 project led by Jiangxi Lianchuang Superconductor and China National Nuclear Corporation has set a goal of achieving a Q value (energy output/energy input) greater than 30 in the 2030s. In the United States, commercial fusion companies like Helion and CFS have signed power purchase agreements with Microsoft and Google, respectively, with plans to connect the world's first commercial nuclear fusion power generator to the grid before 2028, delivering power by the 2030s. Investment value of industry awaits verification As the industry transitions from its "year of fusion" to substantial capital expenditure, the investment value of the industry chain is becoming clearer, with a "long steady climb" racecourse taking shape from upstream raw materials, midstream equipment, to downstream nuclear power applications. Considering the development trajectory of emerging industries such as photovoltaics and electric vehicles, a typical investment theme in the secondary market often follows the path of "expectation driving valuation appreciation - order and performance verification - valuation differentiation and digestion". Without a doubt, controlled nuclear fusion is currently in the first stage of expectation driving, where the optimistic market sentiment towards technological breakthroughs and future prospects is the primary driver of sector activity. Looking back at the history, the new energy sector shows the most outstanding stock price performance during periods of strong policy expectations and technological aspirations, while valuations tend to retract after entering the period of mass production and performance realization. Therefore, investors currently need to grasp the rhythm of investments in the controlled nuclear fusion field. Specifically, there are already several options emerging in the Hong Kong stock market. Looking upstream, TIANGONG INT'L (00826) subsidiary recently officially joined the "Fusion Advanced Metal Materials Research Consortium". This consortium focuses on the major material needs of magnetic confinement nuclear fusion devices, systematically conducting basic research, critical technology breakthroughs, and engineering verification of advanced metal materials for fusion, aiming to provide high reliability materials and systems solutions for national energy security and future clean energy development. In the midstream of the industry chain, Shanghai Electric Group's positioning is very clear. As a leading domestic equipment manufacturer, Shanghai Electric Group is deeply involved in the national fusion engineering chain, successfully developing core equipment such as the world's largest TF coil box, achieving several breakthroughs "from 0 to 1". At the same time, the company has made leading progress in the field of fourth-generation advanced fusion reactors, aiming to systematically innovate technologies to build a comprehensive future nuclear energy equipment system covering "nuclear fusion - advanced fission - traditional nuclear power". It is expected that Shanghai Electric Group's comprehensive technological capabilities will continue to benefit from the country's strategic investment in the nuclear energy sector. In addition, companies like Dongfang Electric Corporation, relying on their technological accumulation in the energy equipment sector, are also expected to find opportunities in the fusion energy conversion process. CGN MINING is also one of the targets worth noting, as the global nuclear power revival and structural tension in uranium supply and demand will directly drive its performance. According to CFX Financial Securities, for every $10 increase in uranium prices per pound, CGN MINING's annual net profit will increase by 380 million yuan. In conclusion, the controlled nuclear fusion industry indeed has the characteristics of a "long steady climb", and the wave of technological progress and capital expenditure will bring long-term and huge imaginative space to various segments of the industry chain. For investors, this is undoubtedly a strategic racecourse worth long-term attention and tracking. However, it must also be recognized that crossing numerous scientific and engineering challenges from engineering verification to commercialized power generation, the industrialization process is bound to be long and fraught with uncertainties. At this stage, it is advisable to focus on companies deeply embedded in national projects, with solid technological capabilities and able to provide performance safety cushions through existing businesses. While embracing long-term trends, investors also need to be vigilant against purely speculative themes detached from fundamentals, as well as the risk of excessive short-term gains in some companies.