Despite unexpected events, the A-share market performed remarkably well, with the three major indices kicking off 2026 with gains, and the Shanghai Composite Index reclaiming the 4000-point level. The Hong Kong market also held up under pressure, trading in a narrow range throughout the day and closing with a slight increase of 0.03%.
According to reports, in the early hours of January 3 local time, the United States launched a large-scale military operation against Venezuela, resulting in the capture and removal from the country of Venezuelan President Maduro and his wife. Former US President Trump subsequently confirmed the action at Mar-a-Lago. During a press conference, Trump also named Cuba, Colombia, and Mexico, hinting at potential future actions against these countries. Trump reiterated his warning to the Venezuelan government, suggesting a second military strike if they fail to cooperate. He further declared that Venezuela might not be the last country the US intervenes in, stating, "We absolutely need Greenland." Geopolitical factors are once again unsettling the markets.
This event serves as an "achievement" for Trump: securing access to oil resources, with the potential for the seizure of Venezuela's substantial national wealth. Simultaneously, it sends a warning to other "uncooperative" nations in South America and beyond. The timing is also strategic, coinciding with the South Korean President's visit to China and ahead of the US midterm elections, for which Trump requires leverage. However, this action directly threatens stability in South America and sets a concerning global precedent by violating a sovereign nation's integrity.
Our business operations in Venezuela may face some impact. Over the past decade, we have invested over $60 billion in Venezuela, which still owes China between $17 and $19 billion in loans, primarily collateralized by oil under the "oil-for-loans" arrangement. Reports suggest banks and lenders have been asked to disclose their exposure to Venezuelan loans. Consequently, companies with investments in Venezuela, such as PetroChina (00857), SINOPEC CORP (00386), and CNOOC (00883), all experienced declines today.
Benefiting from the situation is oil exploration equipment provider SHANDONG MOLONG (00568), which just received a 20 million yuan government cash subsidy, equivalent to 45.77% of its absolute net profit attributable to parents last year, directly boosting its 2025 profits; its stock rose nearly 12% today.
However, based on comprehensive information, our commercial dealings with Venezuela are expected to continue without interruption, and our interests appear secure for now, primarily because the existing government structure has not been completely overthrown. Nonetheless, future policy changes under a potential new government remain uncertain.
The insurance sector reported strong preliminary data for the new year: leading insurers saw a 40%-60% growth in new premium income for January. Following the liberalization of bancassurance channels, volumes are still expanding, driven by the maturity of over 50 trillion yuan in three-year and five-year deposits in recent months. As insurance products offer a 2% yield, higher than some deposit rates, a portion of these funds is flowing into insurance. This shift of savings benefits insurers, with New China Insurance (01336), China Pacific Insurance (02601), and China Life Insurance (02628) all rising over 4%. Conversely, bank stocks faced pressure from deposit outflows and adjusted downwards today.
Elon Musk recently stated on social media that his brain-computer interface company, Neuralink, will commence "mass production" of its devices in 2026. Competition in the global brain-computer interface field is intense. Clinically and regarding approvals, invasive technologies are undergoing trials in both China and the US, semi-invasive technologies are progressing faster in the US, while non-invasive technologies are flourishing domestically. The global brain-computer interface market is projected to grow to approximately $12.4 billion by 2034. Musk-related concepts indeed act as a barometer for global capital, directly igniting the sector. Nanjing Panda Electronics (00553) surged nearly 40%, while MicroPort NeuroTech (02172) and BrainAura-B (06681) both gained over 17%.
The 44th J.P. Morgan Healthcare Conference (JPM) is scheduled for January 12-15, 2026, in San Francisco, expecting to attract over 8,000 global participants. This year's conference will gather more than 500 listed companies and thousands of startups. On the evening of January 3, the National Medical Products Administration announced via its official WeChat account that China approved 76 innovative drugs for market in 2025, significantly surpassing the 48 approved in all of 2024 and hitting a record high. Additionally, the total value of out-licensing deals for Chinese innovative drugs exceeded $130 billion in 2025, with over 150 transactions, also setting a new record.
Joinn Laboratories (06127), buoyed by rising prices for experimental monkeys, surged over 13%. Kelun-Botech Biopharma (06990), Rongchang Biotechnology (09995), Innovent Biologics (01801), and 3SBio (01530) all rose over 6%. Meanwhile, "shovel seller" Morimatsu International (02155), a global leader in high-end pressure equipment, benefited from the recovery in pharmaceutical industry CAPEX and overseas MNC expansion demand. It reported rapid growth in new order intake, accelerated project cycles due to Phase II capacity release in Malaysia, and enhanced biopharmaceutical capabilities through acquisitions of Pharmadule and BVS. Its "MVP" digital-intelligent solutions are driving robust earnings growth, leading to a rise of over 7% today.
News on the evening of January 4 addressed media reports about Yushu Technology's A-share IPO "green channel" being suspended. Yushu Technology clarified that the related media reports were inaccurate and that the matter had been reported to the relevant authorities. Today's focus was on home robotics company Woan Robotics (06600), whose primary markets include Japan, Europe, and North America. The company has successively launched sports robots and companion robots. Furthermore, it announced the planned launch of its first humanoid home robot in January 2026. Key application scenarios are expected to include clothing sorting and organization, post-meal utensil washing and storage, and meal preparation assistance. Compared to its peers already listed in Hong Kong, Woan Robotics has achieved a revenue CAGR of 49% over the past three years, significantly higher than the industry average, and its stock surged over 19% today.
According to exchange data, the National Integrated Circuit Industry Investment Fund increased its stake in SMIC's (00981) H-shares from 4.79% to 9.25%. The path towards self-sufficiency and controllable supply chains must be steadfastly pursued. Stocks like SMIC (00981), Hua Hong Semiconductor (01347), and Shanghai Fudan Microelectronics (01385) all saw gains.
Kuaishou-W's (01024) Kling underwent a series of year-end upgrades: unified multimodal O1+2.6 with simultaneous audio-visual output and Digital Human 2.0. Post-upgrade fee increases are expected to boost Q4 revenue sequentially for the new version, contributing to a rise of over 11% today. Other performers included 4Paradigm (06682) and Bilibili-W (09626), both up nearly 5%.
In the autonomous driving sector, a Tesla owner achieved the first "full self-driving cross-country trip across the United States"—another Musk-related concept. Black Sesame Technologies' (02533) high-performance, full-scenario autonomous driving chip, the Huashan A2000, successfully passed relevant reviews by the US Department of Commerce and Department of Defense, obtaining approval for global sales and application. This makes it the sole domestic company to pass such reviews, marking the formal entry of the A2000 chip into the mass application phase, with its stock rising over 11% today.
Tomaki Kobayakawa, President of Tokyo Electric Power Company (TEPCO), announced plans to restart the No. 6 reactor at the Kashiwazaki-Kariwa Nuclear Power Plant, Japan's largest, on January 20, 2026. On the supply side, primary uranium supply saw a short-term rebound driven by mine restarts, but medium-to-long-term primary supply capacity faces continued decline. Secondary supply is unlikely to contribute significant increments in the short-to-medium term. The global supply-demand gap for natural uranium is expected to persist. Amid expectations of tight supply, long-term contract prices for uranium continue to rise. As mentioned previously, CGN Mining (01164) rose over 7% again.
Positive stimuli also emerged in the property sector; details are in the sector focus. Besides property stocks, related industry chains were boosted, such as cement producer West China Cement (02233), up over 4%, and construction machinery maker Zoomlion (01157), which rose over 5%.
The article "Improving and Stabilizing Market Expectations for Real Estate" published in the Qiushi journal explicitly affirmed the pivotal role of real estate in national economic development. It called for a correct understanding of the current situation, proactive measures to shorten the adjustment period and smooth market fluctuations, and emphasized maintaining policy intensity that aligns with market expectations. Policies should be substantial from the outset, avoiding a piecemeal approach that could lead to market-policy博弈 (gaming). Additionally, a new value-added tax policy for personal home sales effective January 1 reduced the VAT rate on homes held for less than two years from 5% to 3%, and exempted homes held for over two years. This directly lowers transaction costs for secondary homes, revitalizes existing inventory circulation, and benefits demand transmission for new home replacements. Related stocks include KE Holdings (02423), China Resources Land (01109), Greentown China (03900), Longfor Group (00960), Yuexiu Property (00123), and Shimao Group (00813).
Zoomlion (01157): Strong Domestic and International Sales; Forging a Third Growth Curve with Embodied AI. According to data from the China Construction Machinery Association, industry sales of loaders and excavators increased by 32% and 14% year-on-year in November. The company is estimated to have achieved 20-30% year-on-year growth in domestic machinery sales for October-November, accelerating from the 13% growth in Q3 2025. Overseas sales growth for October-November also remained robust. Zoomlion announced its 2025 interim A-share dividend distribution plan, proposing a cash dividend of 2.00 yuan per 10 shares (pre-tax). Analysis: The company maintains strong sales both domestically and internationally, with a standout Q3 performance indicating a gradual inflection point in earnings. It continues to expand its mining machinery business layout. In H1 2025, its domestic mining machinery business grew against the trend, successfully entering the market of central state-owned energy clients; its overseas business comprehensively entered the global high-end mining market. The premium issuance of H-share convertible bonds aids in advancing its global strategy. Recently raised funds will be entirely used for R&D innovation and overseas system construction, potentially enhancing its global competitiveness. The company's performance in overseas markets is also outstanding, with overseas revenue reaching 21.313 billion yuan in the first three quarters, accounting for 57.36% of total revenue and growing 20.80% year-on-year. Its overseas manufacturing bases achieve full product category coverage and continue to expand network points in Europe, Africa, Latin America, and Southeast Asia, with accelerated construction of Phase II in Germany and the Hungary factory. Core product competitiveness continues to strengthen, and its layout in embodied AI opens new growth space. As of H1 2025, the company has newly developed 3 types of humanoid robots, including 1 wheeled humanoid and 2 bipedal humanoids, with dozens already deployed in factory operations. Future plans include gradually commencing batch production and market sales starting from 2026. The company holds the leading market share in crawler cranes, and high-value-added products like ultra-large-tonnage all-terrain cranes are in short supply. Zoomlion's continuous布局 in emerging fields like humanoid robots and industrial internet opens new growth avenues for its future development. With the arrival of the traditional peak sales season, Q4 domestic excavator sales are expected to remain稳健 overall. The company has launched three categories of humanoid robots and is progressing with mass production as planned. It is顺势 advancing the application of embodied AI in engineering machinery, agricultural machinery, and special equipment, forging a third growth curve.