Last week, the average daily turnover of hot themes was RMB 675 million, with an average daily turnover rate of 3.07%, both showing significant declines. Domestic consumption and technology themes exhibited rotational characteristics, with dairy/retail/food processing/aviation sectors surging, while some non-ferrous metals saw net capital inflows. The commercial space theme experienced heightened volatility, while AI-related themes such as computing power/optical communication/copper-clad laminates turned downward, and the Hainan sector weakened.
Recent external disturbances, including the Fed's rate cuts and the Bank of Japan's rate hikes, have gradually settled, potentially stabilizing and reviving market risk appetite. Domestically, expectations for policies to expand domestic demand continue to strengthen, making it a key rotational direction following technology themes. Year-end market funds are shifting from rebalancing to reallocation, with optimism toward AI applications, commercial space, Hainan free trade, and domestic consumption.
**Theme 1: AI Applications** Domestic computing power architecture capabilities are advancing rapidly, with accelerated product iterations on the application side, reinforcing the AI investment narrative. Moore Threads released its new-generation full-feature GPU architecture "Huagang," improving computing density by 50% and energy efficiency by 10x. ByteDance’s Volcano Engine unveiled Doubao 1.8 and Seedance 1.5 Pro video generation models. Ant Group’s AI health app "Ant Afu" reached 15 million monthly active users, leading the health management AI sector. Policy guidance and technological breakthroughs are driving China’s AI industry into large-scale demonstration applications.
Recommendations: 1. Vertical applications in Hong Kong-listed internet, healthcare/finance/office/gaming/government sectors. 2. Data center power equipment/domestic computing power/AIDC amid global computing power investment growth.
**Theme 2: Commercial Space** The medium-sized reusable Long March 12A rocket is set for launch, while the Tianlong-3 heavy reusable liquid rocket completed a 36-satellite ground test. China SatNet has deployed 127 low-orbit satellites across 16 constellations, with network progress accelerating significantly by 2025. The National Space Administration issued a plan to support commercial space development (2025–2027), focusing on new technologies, products, and application scenarios. China’s annual satellite launch demand is projected to grow over 10x by 2030 compared to 2024.
Recommendations: 1. New infrastructure like rocket manufacturing/launch sites. 2. New scenarios such as satellite communications/remote sensing. 3. Emerging technologies like reusable/liquid rockets.
**Theme 3: Hainan Free Trade** The island-wide customs closure officially began, with Siemens Energy launching the first landmark foreign manufacturing project post-closure. On the first day, Hainan Free Trade Port recorded RMB 360 million in "zero-tariff" imports (e.g., crude oil, aviation equipment) and RMB 14.689 million in duty-exempt domestic sales (e.g., medical devices, pharmaceuticals, food). Siemens Energy also broke ground on a gas turbine assembly base in Yangpu Economic Development Zone.
Recommendations: 1. Aerospace/energy equipment/offshore duty-free/advanced healthcare benefiting from Hainan’s specialty industries. 2. Tourism/exhibition/transport/finance sectors poised for growth in the new phase of Hainan’s free trade development.
**Theme 4: Domestic Consumption** The central government proposed measures to boost consumption and increase urban-rural incomes. New demand is driving new supply, with emerging scenarios like sports events/ice-snow tourism/cultural performances. The "Jiangsu Super League" spurred over RMB 38 billion in multi-scenario consumption, while Liaoning aims to build a nationally influential football brand. The 2024–2025 ice-snow season saw consumption exceed RMB 187.5 billion, up 25% YoY.
Recommendations: 1. Event economy/ice-snow tourism amid new demand scenarios. 2. Tourism/duty-free/hotels benefiting from consumption stimulus. 3. Emotional-value consumption like gaming/trendy toys.
**Risk Warning:** Macroeconomic demand and key technology commercialization may underperform expectations.
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