Key bullish and bearish factors influencing the stock market.

Macro News 1. The Ministry of Commerce announced a decision to strengthen export controls on dual-use items to Japan, effective immediately. A spokesperson stated this action responds to recent erroneous remarks by Japanese leaders regarding Taiwan, which hinted at possible military intervention, constituting a severe violation of the One-China principle and a gross interference in China's internal affairs. The decision prohibits all exports of dual-use items to Japanese military end-users, for military end-uses, or any other end-uses that could enhance Japan's military capabilities. 2. The People's Bank of China (PBOC) held its 2026 work conference from January 5-6. The meeting emphasized the continuation of a prudent and moderate monetary policy, leveraging the integrated effects of incremental and existing policies while enhancing counter-cyclical and cross-cyclical adjustments. Key considerations for monetary policy will include promoting high-quality economic development and a reasonable rebound in price levels, utilizing tools such as reserve requirement ratio (RRR) and interest rate cuts flexibly and efficiently. The PBOC also plans to establish a mechanism for providing liquidity to non-bank financial institutions under specific circumstances and to effectively utilize two monetary policy instruments designed to support the capital markets. 3. According to reliable sources, due to Japan's recent negative conduct, the Chinese government is considering tightening the review process for export licenses related to medium and heavy rare earth items, which were initially placed under control on April 4, 2025. 4. The 2026 National Foreign Exchange Management Work Conference was held in Beijing from January 5-6. The meeting outlined key tasks for the year, including optimizing foreign exchange management for trade, orderly expanding pilot programs for high-level openness in cross-border trade, increasing support for new trade formats like cross-border e-commerce, and improving the management of corporate trade credit reporting. 5. Recently, to facilitate the drafting of the "16th Five-Year Plan," regulators surveyed several bank wealth management subsidiaries last month. The survey covered topics such as current obstacles limiting the scale and proportion of bank wealth management investments in A-shares, the industry's expectations for relevant policies and systems over the next five years, and measures to boost enthusiasm for A-share investments by wealth management products. 6. On January 6 local time, a senior U.S. official stated that President Trump and his team are discussing various options for acquiring Greenland, with military means also being considered as one potential option.

Industry News 1. Galactic Energy is scheduled to conduct the launch mission of its "Ceres-1 Sea Launch Type (Flight Y7)" commercial carrier rocket in the near future, with the mission codenamed "Wang Hai Chao." 2. China Securities Index Co., Ltd. announced an adjustment to the constituent stocks of the CSI 1000, CSI 500, and CSI A500 indices, effective after market close on January 9, 2026, based on interim sampling rules. According to the list, Semyuan is being added to the CSI 500, Mingyue Optical Lens is being added to the CSI 1000, and MGI Tech is being added to the CSI A500. ST Humanwell is being removed from both the CSI 500 and CSI A500 indices, while Semyuan is being removed from the CSI 1000 index. 3. UBS SDIC Fund Management Co., Ltd. announced that due to significant price fluctuations in the secondary market, its UBS SDIC Silver LOF will be suspended from the market open until 10:30 AM on January 7, 2026, with trading resuming at 10:30 AM. 4. At CES 2026 on January 6, NVIDIA CEO Jensen Huang stated that he is quite certain a large portion of the world's cars will be self-driving or highly autonomous within the next decade. 5. The National Film Administration Directors' Conference was held in Beijing on January 6. The meeting emphasized that 2026 efforts will focus on stimulating innovation and creativity in film, producing more high-quality cinematic works, improving the film industry and market systems, cultivating the film economy, and promoting the "going global" of Chinese cinema. 6. According to the National Data Administration, in 2026, China will layout a batch of data standards for cutting-edge areas like AI agents and embodied intelligence. Simultaneously, it will accelerate the introduction of urgently needed standards for public data, high-quality datasets, and data infrastructure, while also speeding up the development of key standards for city-wide digital transformation and the national integrated computing power network. 7. In December 2025, 2.6 million new A-share accounts were opened, a 9% increase from November. The cumulative number of new accounts for the full year 2025 reached 27.44 million, a 10% year-on-year increase. According to Shanghai Stock Exchange statistics, by the end of 2025, the number of stock accounts in the Shanghai market had reached 399 million, with the number of investors reaching 264 million. 8. The National Cyberspace Administration Directors' Conference was held in Beijing from January 5-6. The meeting emphasized building a strong security barrier, strengthening cybersecurity protection, network data security management, and AI security governance, while comprehensively advancing the modernization of the national cybersecurity system and capabilities. Efforts will also focus on promoting technological innovation in cyberspace, building the cyberspace industry ecosystem, information infrastructure construction, and IT application.

Company News 1. Jiamei Packaging announced that its stock price increased cumulatively by 230% between December 17, 2025, and January 6, 2026, and will be suspended from trading starting today for verification. 2. Guosheng Technology announced that its stock price increased cumulatively by 370.2% between October 31, 2025, and January 6, 2026, and will be suspended from trading starting today for verification. 3. Brain-computer interface (BCI) "unicorn" BrainCo has completed a financing round of approximately 2 billion yuan. 4. VeriSilicon Microelectronics announced the completion of its acquisition of Pixelworks Semiconductor. 5. Pony Testing announced that it expects to report a net loss for the full year 2025. 6. WuXi AppTec announced that 18 shareholders, including its third, fourth, and sixth largest shareholders, have collectively reduced their holdings by 2% of the company's shares between November 20, 2025, and January 5, 2026, and this reduction plan has been completed. 7. Centec Communications announced that its shareholder, the National Integrated Circuit Industry Investment Fund, plans to reduce its holdings by no more than 3% of the company's shares. 8. Superflex Electronics announced that the investment amount for its AI computing high-end printed circuit board capacity expansion project has been adjusted from 1.468 billion yuan to 3.315 billion yuan. 9. Fenglong announced that if its stock price experiences further abnormal increases in the future, the company may apply for a trading suspension for verification. 10. Hetai Electromechanical announced that Haitian Jinghua reduced its holdings by a total of 1.98% of the company's shares between December 4, 2025, and January 5, 2026. 11. Western Metal Materials announced that its second-largest shareholder, Xi'an Aerospace, reduced its holdings by 4.7991 million shares on January 5. 12. Guanxiang Technology announced its intention to acquire 100% of the shares of Jinzhou Liaojing Electronic Technology Co., Ltd., with its stock resuming trading. 13. Times New Material announced the signing of a wind turbine blade sales contract worth approximately 3.32 billion yuan. 14. Baihua Pharmaceutical announced the termination of plans for a change in control, with its stock resuming trading. 15. Thinker Control announced the termination of plans for a change in control, with its stock resuming trading. 16. Baotailong announced that its controlling shareholder, Baotailong Group, has been ordered to make corrections by the Heilongjiang Securities Regulatory Bureau for failing to fulfill its share purchase commitment. 17. The Shanghai Stock Exchange issued an inquiry letter to YHLO, requiring supplementary disclosures regarding the details of its cooperation with Brain-Computer Star Chain.

Global Markets The three major U.S. stock indices closed higher collectively, with the Dow Jones up 0.99%, the Nasdaq up 0.65%, and the S&P 500 up 0.62%. Popular Chinese concept stocks were mixed, with the Nasdaq Golden Dragon China Index down 0.78%. Both the Dow and S&P 500 closed at record highs. The Philadelphia Semiconductor Index rose 2.75%, also hitting a record high. Major European indices mostly closed higher, with Germany's DAX 30 index up 0.19%. International crude oil futures settled lower. WTI crude for February delivery fell 2.04%, while Brent crude for March delivery fell 1.72%. COMEX gold futures rose 1.21% to $4,505.5 per ounce. COMEX silver futures surged 6% to $81.26 per ounce. On January 6 local time, U.S. President Trump stated that his Republican Party must win this year's congressional elections, otherwise he could face impeachment by Democrats.

Investment Opportunities Reference 1. Samsung and SK Hynix DRAM Prices Rise Another 70%; Institutions Suggest Domestic DRAM Industry Chain Poised for Accelerated Growth According to media reports, Samsung and SK Hynix have proposed price increases for DRAM used in servers, PCs, and smartphones to their customers, with Q1 2026 prices expected to be 60%-70% higher than Q4 2025. Sinolink Securities believes the global memory chip market will remain in short supply throughout 2026, supporting continued price increases. It forecasts DRAM bit supply growth of about 15%-20% in 2026, while demand growth is expected to reach 20%-25%. BOC International (China) suggests that with AI-driven demand boosting DRAM and the accelerated financing progress of domestic DRAM manufacturers, the entire domestic DRAM industry chain is expected to experience accelerated growth. 2. NVIDIA Plans Testing Next Year; Institutions Bullish on Tesla Leading Autonomous Driving Transformation in 2026 NVIDIA CEO Jensen Huang stated during his CES keynote that he is quite certain a large portion of the world's cars will be self-driving or highly autonomous within the next decade. Huang unveiled the Alpamayo series of VLA open-source AI models and tools for autonomous vehicle development. Additionally, NVIDIA plans to test a driverless taxi service in 2027. CSC Financial expressed optimism that Tesla will lead the global physical AI edge-side transformation (including smart driving and robotics) in 2026. It believes that conditional L3/L4 unmanned driving could achieve technological breakthroughs and accelerate adoption within 2-3 years, making the Robotaxi business model viable. The industrial value chain is expected to concentrate towards smart driving solution providers and mobility platform operators. The firm is bullish on OEMs and Tier 1 suppliers with integrated hardware-software solutions, mobility platforms and operators, domestically controllable chips, and incremental components like LiDAR and wire-controlled chassis, suggesting a potential re-rating of OEMs' tech attributes.

Trading Halts and Resumptions

[Halts] 603778 Guosheng Technology 002969 Jiamei Packaging

[Resumptions] 301213 Guanxiang Technology 600721 Baihua Pharmaceutical 603508 Thinker Control

Announcements Digest

[Hot Topics] Guosheng Technology: Due to significant short-term stock price increases, trading will be halted starting January 7 for verification. Jiamei Packaging: Due to significant short-term stock price increases, trading will be halted starting January 7 for verification. Aerospace Changfeng (2 consecutive limit-ups): The company does not actually engage in brain-computer interface related business or commercial aerospace activities. Xiangyu Medical (2 consecutive limit-ups): Brain-computer interface related products have not yet achieved large-scale sales and contribute a relatively small portion of revenue. Weisi Medical: The company primarily focuses on non-invasive technology routes, which differ significantly from the current leading invasive brain-computer interface technologies. Sanbo Brain Science (2 consecutive limit-ups): The company is not currently involved in the R&D, production, or sales of brain-computer interface products. Aipeng Medical (2 consecutive limit-ups): There are no undisclosed major matters. Mylander (2 consecutive limit-ups): Products in the brain-computer interface field are still in the R&D and market cultivation phase. Pony Testing (2 consecutive limit-ups): The company expects a net loss for the full year 2025; there are no undisclosed major matters. Unistrong (3 consecutive limit-ups): Commercial aerospace is merely one application scenario for the company's products and services. Aerospace HuanYu: It is estimated that commercial aerospace-related revenue will account for less than 15% of the company's 2025 revenue. China Satellite Communications: The stock's short-term surge reflects overheated market sentiment and irrational speculation. Haige Communications (2 consecutive limit-ups): Recent production and operations are normal; there are no undisclosed major matters. Fenglong (7 consecutive limit-ups): If the company's stock price experiences further abnormal increases, the company may apply for a trading halt for verification. AsiaCI (2 consecutive limit-ups): The company's stock price has risen significantly in the short term, deviating from its fundamentals. Aerospace Electronics: The stock exhibits a clear "hot potato" effect and carries risks of a sharp short-term decline.

[Earnings] Lier Chemical: Forecasts 2025 net profit to increase 113.62%—132.19% year-on-year. Zhongtai Gas Equipment: Expects 2025 net profit of 420 million—480 million yuan, turning a profit year-on-year.

[Shareholding Changes] Filiwang: The controlling shareholder plans to reduce its holdings by no more than 2.9977% of the company's shares. Zhenhua Fenghuang: Shareholder Shenzhen Zhenghexing plans to reduce its holdings by no more than 3% of the company's shares. Yinbang Shares: A shareholder plans to reduce its holdings by no more than 3% of the company's shares. Centec Communications: The National Integrated Circuit Industry Investment Fund plans to reduce its holdings by no more than 3% of the company's shares.

[Contracts & Bids] Robotec: A wholly-owned subsidiary recently signed a 7.7 million euro sales contract, representing the second full-automatic OCS (Optical Circuit Switch) packaging line order from this client. YHLO: Signed a strategic cooperation framework agreement with Brain-Computer Star Chain to jointly develop brain-computer interface related products under development and promote subsequent market expansion. Times New Material: Signed a wind turbine blade sales contract worth approximately 3.32 billion yuan. Li-Wang: Signed a technical cooperation development contract for high-power, long-endurance lithium-ion batteries for humanoid robots.

[Equity Changes] Baihua Pharmaceutical: Terminated plans for a change in control; stock resumes trading tomorrow. Thinker Control: Terminated plans for a change in control; stock resumes trading tomorrow. Chaoxun Communication: The controlling shareholder plans to transfer 5% of the company's shares via a block trade.

[Major Investments] Superflex Electronics: Increased the investment amount for its AI computing high-end printed circuit board capacity expansion project to 3.315 billion yuan.

[M&A & Restructuring] Guanxiang Technology: Plans to acquire 100% of Liaojing Electronics; stock resumes trading. Liaojing Electronics has deep experience in semiconductor discrete devices and integrated circuits. Xiamen Port: Plans to acquire a 70% equity stake in Container Terminal Group for 6.178 billion yuan.

[Other] Desay SV: Planning an H-share offering and listing on the Hong Kong Stock Exchange. Xingye Silver & Tin: Planning an H-share offering and listing on the Hong Kong Stock Exchange. Hisun Pharmaceutical: Its equity-accounted investee, Brii Biosciences, submitted a listing application to the Hong Kong Stock Exchange. Xinbang Pharmaceutical: The procuratorate has filed a public prosecution with the court against the company on suspicion of the crime of unit bribery.