On January 7th, A-shares experienced volatile gains, with the Shanghai Composite Index climbing 0.29% to 4095.54 points by the midday close. The Shenzhen Component Index rose 0.35%, the ChiNext Index advanced 0.41%, the Beijing Stock Exchange 50 Index increased by 0.91%, the STAR Market 50 Index jumped 1.13%, and the CSI A500 Index gained 0.34%. The half-day turnover for A-shares reached 1.85 trillion yuan.
On the liquidity front, the central bank announced it conducted a 28.6 billion yuan 7-day reverse repo operation on January 7th at a fixed interest rate of 1.40% through a quantity tender. The bid amount was 28.6 billion yuan, matching the awarded quantity. Wind data indicated that 528.8 billion yuan in reverse repos matured on the same day, resulting in a net withdrawal of 500.2 billion yuan for the day.
Regarding market news, Yang Yuanqing, Chairman and CEO of Lenovo Group, stated that AI is driving demand for computing power, with AI inference becoming the core driver of this growth. As AI technology continues to advance, its applications across various industries are becoming more widespread, fueling an increased need for computational resources. Yang believes the explosion in AI inference will lead a new wave of computing power demand, creating more possibilities and opportunities for all sectors.
According to the China Federation of Logistics & Purchasing, the global manufacturing Purchasing Managers' Index (PMI) for December 2025 stood at 49.5%, a slight decrease of 0.1 percentage points from November, marking the tenth consecutive month it has remained within the 49%-50% range. For the full year 2025, the average global manufacturing PMI was 49.6%, up 0.3 percentage points from 2024.
In terms of sector performance, the semiconductor industry chain surged significantly, led by the memory segment. Yingxin Development and Kingsemi hit the daily limit up, while companies like ACM Research, AMEC, and NAURA reached new all-time highs during the session. Rare earth permanent magnet concept stocks also strengthened, with China Rare Earth & Metals and GEM Co., Ltd. hitting the upper limit, while China Rare Earth Resources, JL MAG, and China Northern Rare Earth led the gains.
Front-end semiconductor equipment revenue continued its strong growth trajectory in 2025, although profit growth saw a structural slowdown. Back-end equipment experienced explosive growth, with net profit margins improving significantly, indicating a highly prosperous industry climate. Lithography machines remain the segment with the lowest localization rate for domestic semiconductor equipment, with mass production expected to achieve a breakthrough from zero to one in 2026, driving performance and valuation increases for subsystem and component companies.
By consolidating the latest research reports from over 10 brokerages including TF Securities, Essence Securities, and Guosen Securities, brief introductions to four companies are provided for reference.
Hengkun New Material is deeply rooted in the 12-inch integrated circuit wafer manufacturing field and is one of the few domestic companies to achieve mass production and supply of photolithography materials and precursor materials, positioning it to benefit from the accelerated push for localization in this sector.—Huajin Securities
Anda Intelligent adheres to a major client strategy and enriches its product matrix, evolving from single fluid control equipment to comprehensive fluid control solutions and entire production line solutions. The company is also continuously exploring new areas, consolidating its position in consumer electronics while advancing into automotive electronics, new energy (particularly hydrogen energy), AI computing power, and semiconductors, opening new growth avenues.—Founder Securities
Anji Technology continues to refine and deepen its "3+1" technology platforms and application fields. Its core CMP slurry business aims to build a comprehensive product portfolio, continuously enhancing its independently controllable particle milling capabilities and increasing its global market share. The company is also broadening its range of functional wet chemicals and electroplating solutions, with its second growth curve gradually entering a harvest period.—Shenwan Hongyuan
As a leading semiconductor materials supplier, Dinglong Shares possesses long-standing technical expertise, a rich product portfolio, and some scarce products are nearing the pre-volume production stage. Furthermore, the company has a degree of self-supply capability for upstream materials, which is expected to bolster its profit cushion.—Guoyuan Securities
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