Three price hikes are happening that affect everyone.

First, Samsung Electronics increased the supply price of NAND flash memory by over 100% in the first quarter of this year, a surge far exceeding previous market expectations.

Second, on the evening of January 27, China Micro Semicon issued a price adjustment notice on its official WeChat account, deciding to adjust the prices of MCUs, Nor flash, and other products effective immediately, with increases ranging from 15% to 50%.

Third, NationalChip announced that starting in January, it would raise the price of KGD (Known Good Die) products with a combined 512Mb by 40%, KGD with 1Gb by 60%, KGD with 2Gb by 80%, and will notify separately regarding the price of products with external DDR.

As part of the high-end manufacturing sector, companies operate with significant operating leverage; once they cross the breakeven point, price increases can lead to substantial profit gains. It can be inferred that the fundamental outlook for hard tech themes centered on chips is still improving rapidly throughout 2026.

Since the start of the year, market fluctuations have intensified for some investors, but sectors like chips and artificial intelligence have remained very resilient precisely because their fundamentals are solid and enduring, positioning them as mainstream directions for the next three to five years, where capital is always willing to take a bet.

There are many related investment targets. I have previously discussed indices like the STAR Market and ChiNext Semiconductor Index and the China Securities Chip Index. For Hong Kong stocks, one could consider the Hong Kong Information Technology ETF (159131), which focuses on the Hong Kong stock chip industry chain and offers T+0 trading, making it a relatively scarce product.

For the A-share market, a new, more concentrated product with greater elasticity has just been launched: the Huabao STAR Market Chip ETF (589190). Those trading over-the-counter can pay attention to 021225.

It tracks the SSE STAR Market Chip Index, which selects listed companies from the STAR Market sample involved in semiconductor materials and equipment, chip design, chip manufacturing, chip packaging, and testing, reflecting the overall performance of the representative chip industry on the STAR Market.

Because the constituent stocks are all STAR Market stocks, they inherently carry high elasticity (with 20% daily price limits), making them very exciting when they catch a market trend.

However, I must caution everyone: chip-related stocks are not cheap at all right now, and it's unclear whether the short-term growth rate of fundamental performance can match the current valuations.

Therefore: 1. I do not currently recommend heavily investing in chip-related index funds or stocks. 2. From an allocation perspective, chip-related sectors look relatively favorable at the moment. 3. One can initiate a position, buying a few thousand or ten to twenty thousand worth, then add to the position on dips, gradually increasing holdings for the long term.

1. China Vanke has secured funding again, with its largest shareholder, Shenzhen Metro, gritting its teeth and providing support once more.

The company once again obtained a loan of up to 2.36 billion yuan provided by its largest shareholder, Shenzhen Metro Group. On the same day, the extension plans for the 22 Vanke MTN004 and 22 Vanke MTN005 bonds were approved. Vanke is required to immediately repay 40% of the principal and interest for these two bonds, amounting to approximately 2.461 billion yuan, which is close to the amount of this loan.

By the end of the third quarter of last year, Vanke had repaid 28.89 billion yuan in public debt, with loans from Shenzhen Metro Group playing a crucial role. Throughout the year, Shenzhen Metro Group provided Vanke with cumulative loans exceeding 30 billion yuan.

In other words, Vanke is borrowing money from Shenzhen Metro to repay its debts. This raises the question: how will the money borrowed from Shenzhen Metro be repaid? If Vanke's main business operations cannot emerge from losses, even if Shenzhen Metro Group had a mountain of gold, it would eventually be depleted. The business world has no unlimited caretakers.

2. After Western Region Gold projected a pre-tax loss exceeding 450 million yuan for 2025, many realized that, oh, "Baiyin" refers to Baiyin District, Baiyin City. But yesterday, Western Region Gold's stock hit the limit-up again, leaving seasoned investors astonished by the seemingly boundless power of retail traders.

Western Region Gold has no silver, and China Gold has no gold. The company expects its 2025 net profit to be between 286 million yuan and 368 million yuan, a decrease of 450 million yuan to 532 million yuan year-on-year, representing a decline of 55.00% to 65.00%. The company's main business remains unchanged, primarily engaged in the R&D, processing, retail, wholesale, and buyback of gold jewelry, and it does not hold any exploration or mining rights.

The company has already disclosed this information and is now, so to speak, sitting back with its hands open, quietly observing the market's performance.

3. There has been a decision regarding the issue of Chinese patent medicines.

Starting from the full three-year implementation period beginning July 1, 2023, any application for the re-registration of a Chinese patent medicine whose instructions still list "Not yet clear" for any of the items [Contraindications], [Adverse Reactions], or [Precautions] will not be approved according to the law. This means that among the approximately 57,000 valid approval numbers for Chinese patent medicines currently in China, over 70% of the approvals with safety information labeling issues will face elimination. A regulatory-driven, deep consolidation within the traditional Chinese medicine industry has officially entered a critical stage.

Of course, Chinese patent medicines are not equivalent to traditional Chinese medicine as a whole, but this situation highlights a fundamental question about TCM: do you trust science or experience, probability or luck?

That's all for the other topics.

The MACD golden cross signal has formed, and these stocks are performing well!