Morning News

# Source: Wall Street Insights

## Market Overview

The threat of a tariff war dealt a heavy blow to European stocks. The pan-European stock index closed down more than 1%, marking its biggest drop in two months. Technology and luxury stocks led the decline, with the tech sector falling over 3%. ASML, the chip sector leader, dropped 4%, while luxury giants LVMH and Kering slid more than 4%. The automotive sector fell over 2%. U.S. stocks were closed, and U.S. stock index futures declined.

The U.S. dollar halted a two-day winning streak, pulling back from a more-than-six-week high. The offshore renminbi rose over 100 pips intraday, breaking above 6.96 for the first time in 20 months. Cryptocurrencies plunged intraday: Bitcoin once dropped more than 3% from its daily high, approaching $92,000, while Ethereum tumbled over 5% at one point.

Metals staged a broad rebound: both gold and silver hit intraday all-time highs, with spot gold rising over 2% and silver futures surging nearly 7% intraday. LME copper closed up more than 1% and LME nickel advanced over 3%, both recouping more than half of last Friday’s losses. Crude oil fell over 1% intraday; although Brent crude closed lower, it turned higher in after-hours trading.

During the Asian trading session, A-shares fluctuated in a consolidation range, with the combined turnover of the two markets shrinking by over 300 billion yuan. Power grid equipment stocks rallied sharply. The Hang Seng Index fell 1%, pharmaceutical and biotech stocks declined across the board, and Shanghai tin dropped nearly 6%.

## Top News

**China's 2025 Economic Report Card**: High-tech manufacturing took the lead, and the 5% GDP growth target was achieved as scheduled. In December, the year-on-year growth rate of total retail sales of consumer goods slowed to 0.9%, while the value-added of industrial enterprises above designated size rose 5.2% year-on-year. For the full year, fixed asset investment fell 3.8% year-on-year, and real estate development investment dropped 17.2%. December 70-city housing prices: new home prices in first-, second- and third-tier cities generally declined month-on-month, with the year-on-year decline widening. The National Bureau of Statistics stated that since the start of the year, positive changes have emerged in producers’ price expectations, and the economy has maintained a momentum of steady progress.

The European Union will hold an emergency summit on Thursday the 22nd to respond to Trump’s tariff threats over "seizing islands". German Vice Chancellor said Europe will give a clear response to U.S. threats, while German Chancellor Scholz noted that the EU will respond cautiously to avoid tariff escalation.

Trump allegedly sent "private messages" to European parties, threatening that he would no longer only consider "peace" and that the U.S. must take control of Greenland. In a public speech, he refused to clarify whether he would seize the island by force, stating that if no agreement is reached on the island issue, tariffs on the EU will be implemented "100%".

China’s Foreign Ministry responded to the U.S. plan to impose additional tariffs on eight European countries, emphasizing that it is imperative to uphold international law based on the purposes and principles of the UN Charter.

**Trump's New Target?** Following defense contractors and real estate developers, Wall Street giants may face a share buyback ban.

Powell made a rare appearance at a U.S. Supreme Court hearing on Wednesday to endorse Federal Reserve Governor Cook.

Sanae Takaichi announced that Japan’s House of Representatives election will be held on February 8, vowing to end the excessively tight fiscal policy.

OpenAI’s CFO disclosed that the company’s computing power reached 1.9GW in 2025, with annual revenue exceeding $20 billion for the first time. Revenue has increased tenfold and computing power has risen 9.5 times within three years. Reports indicate that OpenAI plans to launch its first hardware device in 2026.

**Will Apple Disrupt the Communication Landscape?** Reports suggest that the iPhone 18 Pro may debut with 5G satellite communication technology.

Micron warned that the AI-driven shortage of memory chips is "unprecedented" and will persist beyond 2026.

## Market Closing Quotes

**European and U.S. Stock Markets**: U.S. stocks were closed. The pan-European STOXX 600 Index fell 1.19% to close at 607.06 points.

**A-shares**: The Shanghai Composite Index rose 0.29% to close at 4,114.00 points. The Shenzhen Component Index gained 0.09% to end at 14,294.05 points. The ChiNext Index dropped 0.70% to close at 3,337.61 points.

**Bond Market**: U.S. Treasuries were closed.

**Commodities**: March Brent crude oil futures closed down about 0.3% at $63.94 per barrel. LME copper futures closed up nearly 1.3% at $12,966 per ton. LME nickel futures closed up nearly 3.2% at $18,133 per ton. Due to the U.S. holiday on Monday, there were no closing prices for WTI crude oil and New York gold and silver futures.

# Detailed Top News

## Global Headlines

**China's 2025 Economic Report Card**: High-tech manufacturing leads the way, the 5% GDP growth target is achieved as scheduled, and a "strong start" is expected for 2026. China's GDP exceeded 140 trillion yuan in 2025, with high-tech manufacturing and robust exports serving as key growth engines. Fiscal funds have been "held in reserve" to pave the way for a strong start in 2026. The supply-side "anti-involution" measures have taken effect, capacity expansion has become more rational, and market focus is shifting to the implementation of structural policies and the recovery of endogenous growth drivers.

China's GDP grew by 5% year-on-year in 2025, surpassing the 140 trillion yuan mark, with Q4 GDP growing by 4.5%. The full-year gross domestic product (GDP) reached 1,401,87.9 billion yuan in 2025, representing a 5.0% year-on-year increase at constant prices. By quarter, GDP rose by 5.4% year-on-year in Q1, 5.2% in Q2, and 4.8% in Q3. In Q4, GDP grew by 1.2% quarter-on-quarter.

China's total retail sales of consumer goods (SRTS) grew by a slower 0.9% year-on-year in December, with retail sales of home appliances and building decoration under pressure. For the full year, SRTS rose by 3.7% year-on-year, while service retail sales increased by 5.5% over the previous year. Among them, retail sales of cultural, sports and leisure services, communication and information services, travel consulting and leasing services, and transportation services maintained relatively rapid growth.

In December, the value-added of industrial enterprises above designated size in China increased by 5.2% year-on-year, with high-tech manufacturing maintaining a strong growth momentum. Output of 3D printing equipment surged by 52.5% for the full year. In December, 33 out of 41 major industrial sectors recorded year-on-year growth in value-added. The value-added of equipment manufacturing rose by 9.2%, and that of high-tech manufacturing climbed by 9.4%. For the full year, output of 3D printing equipment, industrial robots, and new energy vehicles increased by 52.5%, 28.0%, and 25.1% respectively.

China's fixed asset investment (FAI) fell by 3.8% year-on-year in 2025, while investment in mining grew by 2.5% and that in manufacturing edged up by 0.6%. By industry, investment in the primary industry reached 957 billion yuan, up 2.3% year-on-year; investment in the secondary industry stood at 17,736.8 billion yuan, a 2.5% increase; and investment in the tertiary industry totaled 29,824.8 billion yuan, a 7.4% decline. Specifically, investment in mining rose by 2.5%, manufacturing investment increased by 0.6%, and investment in the production and supply of electricity, heat, gas and water grew by 9.1%.

China's real estate development investment amounted to 8,278.8 billion yuan in 2025, a 17.2% year-on-year decrease, with the real estate development climate index continuing to decline. The real estate development investment dropped by 17.2% year-on-year, compared with a 15.9% fall in the previous period. The sales area of newly-built commercial housing reached 881.01 million square meters, a 8.7% year-on-year decrease. Funds raised by real estate developers totaled 9,311.7 billion yuan, down 13.4% from the previous year. In December 2025, the Real Estate Development Climate Index (REDI) stood at 91.45.

**December 70-city Housing Prices**: New home prices in first-, second- and third-tier cities generally declined month-on-month, with year-on-year declines widening. Data showed that the sales price of second-hand residential properties in first-tier cities fell by 0.9% month-on-month, with the decline narrowing by 0.2 percentage points from the previous month; the year-on-year decline widened by 1.2 percentage points to 7.0%. In second- and third-tier cities, the sales price of second-hand residential properties both dropped by 0.7% month-on-month, with the declines expanding by 0.1 percentage points each; the year-on-year declines both reached 6.0%, widening by 0.4 and 0.2 percentage points respectively.

**National Bureau of Statistics (NBS)**: Since the start of the year, positive changes have emerged in producers’ price expectations, and the economy has maintained a momentum of steady progress. The current low level of CPI is related to the complex changes in the domestic and international macroeconomic situation, as well as China's development stage. The slowdown in some traditional sectors has also affected prices in related industries, and changes in the external environment have increased pressure on domestic price adjustments. However, it is important to note that the effects of domestic demand expansion and related policies are emerging: core CPI is recovering moderately, the policy of replacing old consumer goods with new ones is driving consumption, the results of capacity regulation in some industries are showing, supply-demand relations in certain fields have improved, and prices of related products are picking up.

**Shenwan Hongyuan Securities** pointed out that beneath the overall weak performance of December's economic data, there are three positive changes: improvement in service consumption, marginal easing of the crowding-out effect of debt resolution, and accelerated production in new growth drivers. Although the readings of SRTS and FAI weakened, service retail sales rose steadily, infrastructure investment improved, and production in new growth driver sectors such as high-tech manufacturing expanded at an accelerated pace, indicating that the economic structure is optimizing and transforming in the direction guided by policies.

The European Union is reportedly planning to impose tariffs on 93 billion euros worth of U.S. goods in retaliation for Trump's threat to levy additional tariffs on eight European countries that oppose the U.S. acquisition of Greenland, unless an agreement is reached on the "complete and total purchase of Greenland". The EU's retaliatory tariffs will target U.S. industrial products, including Boeing aircraft, American-made automobiles, and bourbon whiskey. The EU may activate its most powerful trade retaliation tool—the Anti-Coercion Instrument (ACI)—which includes tariffs, new taxes on tech companies, targeted restrictions on EU investments, and may also involve limiting access to certain parts of the EU market or restricting enterprises from bidding for European public contracts.

To counter Trump's "tariff war", Europe is brewing a "capital war". **Deutsche Bank** warned that 8 trillion U.S. dollars of American assets may become a "trump card". Trump has transformed tariffs into a "ransom for island purchase", and Deutsche Bank cautioned that the situation may escalate into the "weaponization of capital". As the largest creditor of the United States, Europe holds 8 trillion U.S. dollars in assets as bargaining chips. If the EU activates the ACI to cut off capital flows, it will directly hit the U.S. weakness of relying on external deficits. Currently, Europe is re-evaluating institutional countermeasures internally, and the game may extend from the tariff level to investment, rules and capital fields.

**Trump's "private message" shocked Europe**: "Because I didn't get the Nobel Peace Prize, I will no longer only consider 'peace'—the United States must fully control Greenland". In a text message sent to the Norwegian Prime Minister, Trump directly linked his failure to win the Nobel Peace Prize to his territorial claim on Greenland. He questioned the legitimacy of Denmark's sovereignty over the island and demanded that NATO "do something for the United States". The text message was later forwarded to "multiple" European embassies in Washington. The Norwegian side explained that the Nobel Prize selection is independent of the government.

The EU will hold an emergency summit on Thursday, January 22 to respond to Trump's tariff threats over the "island seizure". European Commission spokesperson Orloff Gill stated that contacts and communications between the EU and the United States are ongoing at "all levels" in response to Trump's tariff threats. The EU's top priority is "engagement rather than escalation". However, he said that if the U.S. imposes the aforementioned tariffs, "the EU has tools at its disposal and is prepared to respond". The EU will make "every necessary effort" to safeguard its own interests.

**Chinese Foreign Ministry** responded to the U.S. plan to impose additional tariffs on eight European countries. According to Xinhua News Agency, China has repeatedly clarified its position on the Greenland issue. International law based on the purposes and principles of the UN Charter is the foundation of the current international order and must be upheld.

**Trump refused to clarify** whether he would seize Greenland by force. In an interview, Trump also accused some European leaders of opposing the U.S. acquisition of Greenland, stating that Europe should focus on the Russia-Ukraine conflict rather than the Greenland issue. He also clearly stated that if no agreement is reached on the Greenland issue, the tariff measures against European countries will be implemented "100%".

**German Vice Chancellor and Finance Minister** said that Europe will give a clear response to U.S. tariff threats. In response to U.S. tariff threats, Germany is preparing countermeasures with European partners. German Chancellor Scholz stated that the EU will respond cautiously to the latest U.S. tariff threats and will strive to persuade French President Macron to moderate the response to U.S. tariff threats. Germany and its EU allies are determined to avoid tariff escalation. The EU and Germany will defend their own interests when necessary. Europe does not want a trade war, but is ready to take action if needed.

**Why is Trump eager to seize Greenland? Bessent: Because Europe is "weak"**. Last Sunday, U.S. Treasury Secretary Bessent publicly supported Trump's decision to impose additional tariffs on eight European countries, claiming that Europe is too "weak" and that the United States must take over Greenland to ensure Arctic security. According to CCTV News, the U.S. decision to impose additional tariffs on eight European countries over the Greenland issue has been responded to by many countries as completely "unacceptable".

**Hedge funds shorted the euro in advance** on the eve of Trump's threat to impose tariffs on Europe. Ahead of the escalation of geopolitical risks, hedge funds have reversed their euro positions from long to short in advance, demonstrating their acute anticipation of potential policy risks. This move not only resonated with the deteriorating technical outlook but also highlighted the market's deep concerns about the European economy and the euro's trend under Trump's tariff threats. However, if it evolves into a broader issue of trust in the U.S. dollar, it may also trigger capital flows back to Europe, thereby providing unexpected support for the euro.

**Trump's new target?** Following defense contractors and real estate developers, Wall Street giants may face a share buyback ban. The Trump administration is shifting its regulatory focus to major Wall Street banks and may restrict their stock buybacks through pressure or regulatory intervention. Since the core return mechanism of bank stocks is highly dependent on buybacks, this policy trend has triggered widespread market concerns about the industry's capital return capacity and forced investors to re-evaluate related risks.

**A watershed for Fed independence! The U.S. Supreme Court hears "Trump v. Cook" case**. UBS stated bluntly that this trial is a matter of life and death for the independence of the Federal Reserve. If the court rules that the White House can dismiss Fed Governor Cook "for cause", it will completely open the legal door for the dismissal of Fed Chairman Powell. The data-based monetary policy logic may collapse in an instant, and investors must prepare for the comprehensive takeover of monetary policy by executive power. The direction of the market reaction has been very clear—the U.S. dollar fell, U.S. stocks declined, and U.S. bonds dropped.

**Powell made a rare appearance at the U.S. Supreme Court hearing** and will "stand up for" Fed Governor Cook on Wednesday. Multiple media reported that Powell plans to attend the oral argument of this case at the Supreme Court on Wednesday, January 21. It is considered extremely rare for a Fed Chairman to personally attend the oral argument of such a case.

**Sanae Takaichi announced that Japan's House of Representatives election will be held on February 8**, vowing to end the excessively tight fiscal policy. Sanae Takaichi announced that the House of Representatives will be dissolved on January 23 and a general election will be held on February 8. She clearly stated that this election is a referendum on her governing legitimacy, and her position as Prime Minister depends on whether the ruling coalition can maintain a majority of seats. She also proposed to shift fiscal policy, end excessive austerity, increase strategic spending, and consider abolishing the consumption tax on food. At present, the market reaction is cautious, with limited fluctuations in the yen exchange rate, and investors are closely watching the election results and the direction of subsequent policies.

**OpenAI's money-making machine is running at full speed**: Annual revenue exceeded 20 billion U.S. dollars for the first time, and advertising is the endgame of AGI. OpenAI's CFO announced that the company's computing power reached 1.9GW in 2025, achieving ultra-high-speed development with a tenfold increase in revenue and a 9.5-fold increase in computing power within three years. Its growth is driven by the flywheel of "computing power investment—model capability—product adoption—commercial revenue", and its business model has extended from subscriptions to a closed loop of advertising and transactions. Faced with huge computing power investment, OpenAI has officially launched advertising monetization, targeting 1 billion U.S. dollars in advertising revenue in 2026, and building a new advertising ecosystem based on high-intent query scenarios.

**Report: OpenAI plans to launch its first hardware device in 2026**. Chris Lehane, OpenAI's Director of Policy, stated at Davos that the company plans to launch its first hardware device in 2026. The product is likely to be a screenless wearable device designed by former Apple design chief Jony Ive. He did not disclose specific product details, only saying that the launch time is "most likely" in the second half of 2026, and the actual progress will be adjusted according to R&D conditions.

**Will Apple disrupt the communication landscape? Report: iPhone 18 Pro may debut with 5G satellite communication**. Apple plans to introduce 5G satellite communication functions in the iPhone 18 Pro series, achieving a leap from emergency rescue to real-time voice and data connection. This technology will break through bandwidth limitations and may be commercialized through a new carrier cooperation model, marking the official entry of the smartphone competition into the era of "space-ground integrated" connectivity.

**Micron warned**: The AI-driven shortage of memory chips is "unprecedented" and will persist beyond 2026. Micron Technology warned that the AI-driven shortage of high-end memory chips is "unprecedented". HBM production capacity has been largely occupied by AI accelerators, which has impacted the shipments of traditional consumer electronics such as mobile phones and PCs, and many manufacturers have lowered their targets for next year. To ensure supply to strategic customers such as NVIDIA, Micron has discontinued its consumer-grade memory brand and accelerated capacity expansion.

## Selected Research Reports

**Goldman Sachs' View on China's Internet in 2026**: The battle for AI super entrances has fully begun, and three major themes lock in alpha opportunities. Goldman Sachs believes that ByteDance's comprehensive breakthroughs in AI, e-commerce and local services are forcing giants such as Alibaba and Tencent to increase investment in To-C AI, launching direct competition around "AI super entrances" while defending their core markets. The industry logic has shifted from general growth to differentiation, with profit delivery, AI applications and overseas expansion, and shareholder returns becoming new main lines. Valuations still have advantages, but alpha opportunities are concentrated in companies that can convert AI into EPS.

**Sequoia Capital**: This is AGI! Sequoia Capital believes that 2026 is the first year of AGI, with the core symbol being the maturity of "long-horizon intelligent agents". AI has evolved from a simple conversational partner to an executor with autonomous reasoning and iterative capabilities, capable of solving complex problems in ambiguous environments like humans. The business paradigm will shift from "selling software" to "selling work results", and intelligent agents are becoming "digital employees" that can work around the clock. Driven by reinforcement learning and agent architecture, their capabilities double every 7 months, completely reshaping the boundaries of productivity.

**Why is Microsoft the best target for bottom-fishing in AI now? Goldman Sachs**: AI profit margins will repeat the expansion miracle of the cloud era. After research, Goldman Sachs strongly recommends Microsoft, believing that the correction in its stock price is a good opportunity to lay out the leader of the AI era. The report emphasized that Microsoft, relying on its unique advantages of cooperation with OpenAI, strict infrastructure control and accelerated expansion of enterprise AI demand, is replicating the high-profit conversion path of the cloud era and is expected to achieve long-term steady profit growth.

# Domestic Macroeconomy

Li Qiang chaired a forum attended by representatives from experts, entrepreneurs, and the fields of education, science, culture, health, and sports, soliciting opinions and suggestions on the Government Work Report and the outline of the 15th Five-Year Plan. According to Xinhua News Agency, Li Qiang emphasized the need to implement a more proactive fiscal policy and a moderately accommodative monetary policy, focus on the combined effects of various policies, and strengthen the coordination between reform measures and macro policies. Efforts should be made to enhance innovation-driven development, deepen reform and opening-up, place the strategic underpinning of development on expanding domestic demand, and continuously boost the endogenous drivers of development. We must adhere to the close integration of improving people's livelihood with promoting consumption, and investment in tangible assets with investment in human capital, cultivate new economic growth drivers, and steadily improve people's well-being.

Is the EU brewing mandatory "de-risking" measures against China? Experts: Practical implementation will face many realistic challenges. According to the Global Times, sources familiar with the matter said that the specific timetable for equipment phase-out will depend on the "level of risks" posed by suppliers to the EU and their respective industries, while also taking into account relevant costs and the availability of alternative suppliers. Some opinions hold that a complete ban will be difficult to enforce. Telecom operators have warned that a direct ban may push up consumer spending.

China successfully searched for the return capsule of a Shenzhou spaceship using an unmanned mode for the first time. The return capsule of Shenzhou-20 landed successfully at the Dongfeng Landing Site. China adopted an unmanned search and recovery model consisting of "unmanned aerial vehicles + unmanned vehicles + ground teams" to complete the spacecraft recovery mission for the first time. This new system performed excellently in harsh cold environments, achieving rapid detection, tracking, and arrival at the return capsule, marking a crucial step forward in the intelligence and unmanned transformation of China's manned space search and recovery technology.

# Domestic Companies

The AI network super-cycle arrives in 2026: Has the biggest winner changed from "YZT" to "ZTT&CG"? Nomura stated that the global AI infrastructure is entering a new round of super-cycle, with optical modules, optical fibers and cables, and high-speed copper cables emerging as the most resilient sectors. Shipments of 800G and 1.6T optical modules are set to double significantly in 2026, and the penetration rate of silicon photonics will rise to 50%-70%. Global AI giants are advancing multiple network technology routes, including SiPh, CPO, and OCS, driving the upward cycle to extend into 2026-2027. Leading companies such as Transceivers Inc., Tianshun Communication, Taichenguang Electronics, and Yangtze Optical Fibre and Cable have increasingly prominent advantages in core connectivity segments.

Yunbao Intelligence officially launched its A-share IPO process, sprinting to become the "first domestic DPU stock"! Yunbao Intelligence officially initiated A-share IPO counseling, aiming to be listed as the "first domestic DPU stock". Founded in 2020 by Dr. Xiao Qiyang, a former senior executive of Broadcom, the company focuses on the R&D of data center DPU chips. Since its establishment, it has secured multiple rounds of investment from Tencent, Sequoia China, Shenzhen Capital Group, IDG Capital, etc., with a latest valuation exceeding 14 billion yuan.

The "Warren Buffett of Hong Kong" has invested a quarter of his wealth in gold—buy only, never sell! Xie Qinghai manages approximately $1.4 billion in family office assets, of which precious metals account for about 25%. He started investing small amounts in precious metals in 2008, and a decade later began purchasing large quantities of physical gold ETFs. These investments have accumulated a total return of $251.1 million, representing a 167% increase. He stated that he regards precious metals as part of his life savings, does not trade them, nor uses derivatives or structured products, and never invests with borrowed money.

Benefiting from improved investment and tax policy dividends, China Taiping's net profit is expected to surge by over 215% in 2025.

# Overseas Macroeconomy

Powell's "historical indictment"! The Federal Reserve released the minutes of its September 2020 meeting, revealing Powell's push for "the Fed to tolerate higher inflation". The minutes of the September 2020 meeting showed that Powell advocated for formulating strong and specific interest rate guidance, clarifying that the Fed would keep interest rates near zero until the labor market reached full employment, inflation rose to 2%, and was expected to moderately exceed this level for a period of time. Despite objections from several colleagues, Powell won the debate. However, inflation actually began to surge the following year and peaked at 7.2% in mid-2022.

The U.S. economy is experiencing a "dangerous boom" heavily reliant on AI! UBS stated that the foundation of U.S. economic expansion is rapidly narrowing: marginal improvements in investment, consumption, and employment are almost entirely tied to the single theme of artificial intelligence. This means it is an expansion with an extremely low margin of error. If the AI investment boom cools down, the U.S. economy will quickly lose its core support, with a recession probability of approximately 50% in the next 12 months.

A $350 billion U.S.-South Korea investment deal is at stake: South Korea fears "large-scale capital outflows" while the U.S. threatens 100% tariffs. According to the Global Times, the U.S. has warned South Korean semiconductor companies that they may face tariffs of up to 100% if they fail to invest in building factories in the U.S. However, amid unstable tariff expectations and the current sharp depreciation of the Korean won, South Korea's finance ministry stated that large-scale investments in the U.S. "are unlikely to start in the first half of this year".

# Overseas Companies

Weathering the pressure of chip price hikes, Apple iPhone shipments surged 28% in Q4, regaining the top spot in China's smartphone market. Data from Counterpoint Research shows that in the quarter ending December, Apple smartphones accounted for one-fifth of total shipments in the Chinese market. For the full year of 2025, Apple's shipments in China grew by 7.5%, holding a market share of approximately 17%, closely following Huawei, which ranked first with an extremely narrow gap between the two.

Sequoia to inject huge capital: Anthropic secures over $25 billion in funding, valuing the company at a staggering $350 billion. According to reports, Anthropic's fundraising target for this round is as high as $25 billion or more, with GIC and Coatue each leading the investment with $1.5 billion. Microsoft and NVIDIA have committed a combined investment of $15 billion, and the remaining funding gap of over $10 billion will be filled by venture capital firms including Sequoia Capital and other investors. Sequoia Capital's large-scale investment in this OpenAI competitor for the first time marks its strategic shift to "full coverage" in the AI track.

U.S. software stocks crashed because Claude Code is too popular. The viral success of Claude Code has amplified market fears of disruption in the software industry. A basket of SaaS stocks tracked by Morgan Stanley has plummeted 15% since the start of the year, marking the worst start since 2022. Many buy-side institutions believe there is "no reason to hold" software stocks currently, and no catalyst for valuation re-rating is in sight in the short term.

# Industries/Concepts

1.  **Satellite Internet** | At 15:48 on January 19, China successfully launched 19 low-orbit satellite internet satellites using the Long March 12 carrier rocket from the Hainan Commercial Space Launch Site. The satellites entered the predetermined orbit smoothly, and the launch mission was a complete success. Developed by the Eighth Academy of China Aerospace Science and Technology Corporation, the Long March 12 rocket supports single-satellite and multi-satellite launches, featuring a short launch cycle and strong contract execution capabilities. Its low-Earth orbit carrying capacity is no less than 12 tons, and its 700-kilometer sun-synchronous orbit carrying capacity is no less than 6 tons. It can be adapted to satellite fairings with diameters of 5.2 meters or 4.2 meters according to mission requirements.

2.  **Copper Clad Laminate (CCL)** | According to MoneyDJ, due to tight supply and skyrocketing prices of raw materials such as fiberglass cloth, Japanese semiconductor material manufacturer Resonac announced that it will raise the prices of printed circuit board (PCB) materials including copper clad laminates (CCL) and prepregs by more than 30% starting from March 1. At the end of last year, Kingboard Holdings issued a price increase notice to customers, stating that raw material costs have become unsustainable and that CCL prices for new orders will be raised across the board by 10%.

3.  **Robotics** | According to China Securities Journal, Brett Adcock, CEO of U.S. humanoid robot startup Figure AI, announced that its flagship humanoid robot will adopt an innovative charging method: standing on an inductive wireless charging pad with both feet. Charging coils built into the robot's feet enable it to achieve 2-kilowatt power charging simply by stepping onto the wireless charging base. In household scenarios, this means the robot can automatically return for charging at any time of the day when needed.

4.  **Hydrogen Energy** | According to IT Home, researchers from Yale University and the University of Missouri in the U.S. have developed a low-cost manganese-based catalyst that can efficiently convert carbon dioxide into formate (a hydrogen storage medium and potential fuel for hydrogen fuel cells). The achievement not only exhibits excellent stability and catalytic lifespan but also outperforms most precious metal-dependent catalytic systems in overall performance. The research team believes that this result provides a new technical path for low-cost, low-toxicity, and sustainable resource utilization of carbon dioxide, and also lays a foundation for the further development of hydrogen energy storage and fuel cell-related technologies.

5.  **Carbon Neutrality** | On January 19, the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Ecology and Environment, the State-owned Assets Supervision and Administration Commission of the State Council, and the National Energy Administration jointly issued the *Guiding Opinions on Carrying out Zero-Carbon Factory Construction Work*, aiming to tap into the energy conservation and carbon reduction potential in the fields of industry and information technology, and drive carbon reduction, efficiency improvement, and green and low-carbon transformation in key industries. The *Guiding Opinions* propose that starting from 2026, a number of benchmark zero-carbon factories will be selected; by 2027, a number of zero-carbon factories will be cultivated in industries such as automobiles, lithium batteries, photovoltaics, and electronic appliances; by 2030, the initiative will gradually expand to traditional high-energy-consuming industries such as steel, non-ferrous metals, and petrochemicals, exploring new paths for decarbonization.

6.  **Tourism** | With less than a month to go before the "longest Spring Festival holiday in history", the travel market is heating up. According to Fliggy's *2026 Spring Festival Holiday Travel Trends Report*, as domestic universities have successively started their winter vacations, students have ushered in a peak period for return trips and travels. Since January, college students' air ticket bookings have increased by over 20% year-on-year; cross-border travel demand has exploded, with outbound travel service bookings surging nearly 40% year-on-year in the past two weeks, and inbound travel air ticket bookings soaring more than fourfold. The longer holiday has also led to a sharp increase in travel demand during the festival. To date, service bookings for mid-festival travel have risen by over 30% year-on-year, with the third day of the Lunar New Year being the peak period for mid-festival travel, and bookings increasing by more than 40% compared with last year. In addition, demand for high-quality travel and composite experiences continues to rise, with bookings for high-star hotels during the Spring Festival holiday surging nearly 70% year-on-year so far.

7.  **Tungsten** | According to China Tungsten Online, on January 19, tungsten prices showed a steady upward trend, with the raw material side remaining firm. The price of 65% black tungsten concentrate rose by 2,000 yuan to 512,000 yuan per standard ton, an increase of 11.3% since the beginning of the year. The price of 65% white tungsten concentrate increased by 2,000 yuan to 511,000 yuan per standard ton, also up 11.3% year-to-date. The price of ammonium paratungstate (APT) climbed 5,000 yuan to 755,000 yuan per ton, a 12.7% rise since the start of the year. Prices of other tungsten products have increased to varying degrees.

Securities Times pointed out that recently, a number of bipartisan members of the U.S. Congress have officially introduced the *Securing Critical American Resources and Elemental Minerals Act of 2026*. The bill plans to launch a $2.5 billion "Strategic Resilience Reserve" aimed at establishing a national reserve of critical minerals. Tungsten, due to its crucial position in the military industry and other fields, has been included in the list of 38 core reserve minerals and designated as a priority procurement item. At present, the tight supply situation of tungsten raw materials has not been alleviated. In the short term, the domestic tungsten ore market is facing multiple supply disruptions, including a reduction in available mining quotas, a decline in tungsten mine shipments at the end of the year, and unstable imports. Coupled with factors such as reduced output from overseas mines in Vietnam, no new mine increments in the short term, and the inclusion of tungsten in the list of strategic metals by the EU and the U.S., leading to increased demand, the global tungsten market faces prominent supply-demand contradictions that are difficult to resolve in the short term. Analysts believe that the tungsten industry is entering an upward boom cycle that may last for several years, and the performance of related listed companies is expected to be continuously released.

# Today's News Preview

- China's 1-year and 5-year Loan Prime Rate (LPR) for January

- Germany's December Producer Price Index (PPI)

- Walmart to be included in the Nasdaq 100 Index

- The U.S. Supreme Court has set Tuesday as the next opinion release date, potentially announcing the ruling on the Trump tariff case

- Trump calls for capping credit card interest rates at 10% starting January 20, 2026, for a one-year period

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