Morning News

# Source: Wall Street Insights

## Market Overview

Trump mentioned the "TACO" initiative, stating that a framework agreement on Greenland has been reached with NATO.

The S&P 500 rose 1.2%, recouping the previous day's losses and posting its largest daily gain since last November. Small-cap stocks once again led the rally; the Russell 2000 surged 2% to a new all-time high, outperforming the S&P 500 for 13 consecutive trading days. Among the Magnificent Seven tech giants, only Microsoft fell 2.3%, Oracle dropped over 3%, and Netflix slid more than 2% following its earnings report. Moderna skyrocketed 16%. Kraft Heinz declined 5.7% as Berkshire Hathaway plans a full-scale sell-off of its stake.

Japanese government bonds trended toward stability. The yield on the 10-year U.S. Treasury note dipped 4.7 basis points. The U.S. dollar rebounded 0.2%.

After Trump softened his stance, Bitcoin rebounded 3.5% from its intraday low last seen in December, while Ethereum surged over 5% from its daily low to break above the $3,000 mark.

Spot gold briefly neared $4,900, but its gains narrowed as safe-haven demand ebbed. Following Trump’s TACO announcement, silver futures once plunged nearly 5% before trimming losses. Crude oil climbed 2%, and U.S. natural gas prices soared another 28%.

During the Asian trading session, the Shanghai Composite Index fluctuated, with the SSE 50 ETF recording a historic trading volume. The AI computing power industry chain boomed, gold stocks triggered a limit-up wave, the 30-year Chinese government bond rallied sharply, and Shanghai gold futures briefly topped 1,100 yuan per gram.

## Top News

Shanghai tax authorities imposed a fine of 100,000 yuan on Pinduoduo in accordance with the law.

In his Davos speech, Trump stated that Greenland is a core U.S. security interest, but the U.S. will not seize it by force and seeks to launch immediate negotiations. Later, Trump announced that a framework agreement on Greenland has been reached with NATO and that it will temporarily refrain from imposing tariffs on Europe. U.S. stocks and digital currencies rallied, while silver prices plummeted.

Bessent pressed his point at Davos, arguing that Europe’s plan to send more troops to Greenland is "wishful thinking" and that Denmark’s investment in U.S. Treasury bonds is "irrelevant". At a closed-door Davos dinner, the U.S. Secretary of Commerce slammed Europe for "lacking competitiveness", prompting Christine Lagarde to storm out of the venue.

Canadian Prime Minister Mark Carney delivered a landmark speech, declaring that the rules-based order is dead and that middle powers should unite and take action to resist coercion from certain major countries.

Emmanuel Macron called on Europe to embrace respect over bullying and to attract Chinese investment in key sectors.

The European Parliament announced the indefinite suspension of the review process for the U.S.-EU trade agreement.

Will Trump face a legal setback? The U.S. Supreme Court adopted a cautious stance on the removal of Federal Reserve Governor Lisa Cook, with justices warning that such a move would "undermine" the central bank’s independence.

Trump stated that he may have selected a candidate for the Federal Reserve Chair position, hoping the person would be similar to Alan Greenspan, once again hinting that Kevin Hassett is out of the running.

U.S. aircraft carriers turned off their transponders, and fighter jets took off from the UK.

GPU rental prices have surged amid skyrocketing demand. Jensen Huang noted that AI requires trillions of dollars in infrastructure support. Reports indicate that Jensen Huang plans to visit China before the Spring Festival.

Google’s TPU is catching up rapidly, with inference costs plummeting 70%, matching NVIDIA’s cost-performance ratio.

Apple plans to transform Siri into its first chatbot in the second half of the year. Reports suggest that the company is developing an AI wearable device called PIN.

Meta’s super lab delivered the first batch of key AI models this month.

**Tianfu Communication** released its first performance forecast (a play on the name "Yi Zhongtian"): it expects its annual net profit to increase by 40%-60% year-on-year, driven by the steady growth in demand for high-speed optical devices.

**Moore Threads** projected that its 2025 revenue will surge by 230%-247% year-on-year, with the loss narrowing by 34.50%-41.30%.

The boom in AI storage demand has led **Demingli** to forecast that its Q4 net profit will skyrocket by 1051.59%-1262.41% year-on-year.

## Market Closing Quotes

### European and U.S. Stock Markets

- S&P 500: +1.16% to 6,875.62 points

- Dow Jones Industrial Average: +1.21% to 49,077.23 points

- Nasdaq Composite: +1.18% to 23,224.825 points

- STOXX Europe 600: -0.02% to 602.67 points

### A-Shares

- Shanghai Composite Index: +0.08% to 4,116.94 points

- Shenzhen Component Index: +0.70% to 14,255.12 points

- ChiNext Index: +0.54% to 3,295.52 points

### Bond Market

- U.S. 10-year Treasury yield: -3.98 basis points to 4.2528%

- U.S. 2-year Treasury yield: -0.64 basis points to 3.5908%

### Commodities

- WTI Crude Oil Futures (March contract): +0.43% to $60.62 per barrel

- Brent Crude Oil Futures (March contract): +0.49% to $65.24 per barrel

- COMEX Gold Futures: +1.60% to $4,841.90 per ounce

- COMEX Silver Futures: -1.57% to $93.150 per ounce

# Details of Key News

## Global Blockbusters

Shanghai tax authorities have imposed a fine of 100,000 yuan on Pinduoduo in accordance with the law. According to Xinhua News Agency, Pinduoduo failed to submit tax-related information on operators and employees on its platform for the third quarter of 2025 as required. The tax authorities issued a notice ordering Pinduoduo to make rectifications within a specified time limit in November 2025 in accordance with the law, but the company failed to do so within the prescribed period. In response, the Changning District Taxation Bureau of Shanghai imposed a fine of 100,000 yuan on Pinduoduo in accordance with laws and regulations.

Trump's Davos Speech: Greenland is a core U.S. security interest, but the U.S. will not seize it by force and seeks immediate negotiations. Trump stated that the United States has long been treated unfairly by NATO; Europe has strayed off course on green transition and immigration, with some regions becoming "unrecognizable"; the U.S. needs "strong rather than weakened allies"; he will nominate a new Federal Reserve Chair "in the near future", who may adopt different approaches after taking office but must do the right things; the U.S. has defeated inflation, with Q4 economic growth expected to reach 5.4%; the recent decline in U.S. stocks is "negligible", and the stock market is expected to double in the future; the U.S. is "vigorously developing" nuclear energy; the U.S. will not "become a tenant nation" and reaffirmed its commitment to lowering credit card interest rates; Hamas will be quickly destroyed if it does not agree to peace. After the speech, Trump addressed the Greenland issue again, ruling out the possibility of using force once more. Denmark refused to immediately negotiate on the U.S. annexation of Greenland.

Trump stated that a framework for a Greenland agreement has been reached with NATO and that tariffs on Europe will be temporarily suspended, leading to a rally in U.S. stocks and digital currencies and a sharp drop in silver prices. Trump said he had a "very productive meeting" with NATO Secretary-General Rutte, and the two sides have formulated a "framework for a future agreement" on Greenland and the entire Arctic region. As a result, the tariffs scheduled to take effect on February 1 will not be imposed for the time being. The framework will be announced soon, and the agreement will be valid "permanently". No information was disclosed regarding whether the U.S. will own Greenland. Media reports suggest the agreement may involve the cession of a small piece of land for U.S. military bases to be built. Silver futures once plunged nearly 5%, and gold briefly turned lower.

Bessent pressed his point at Davos: Europe's troop increase in Greenland is "wishful thinking", and Denmark's investment in U.S. Treasury bonds is "irrelevant". U.S. Treasury Secretary Bessent adopted a tough stance on the recent sensitive Greenland issue, warning European countries not to strengthen their military deployments there and criticizing France's proposals such as promoting NATO military exercises as "unrealistic". Addressing market concerns that Europe might sell U.S. Treasury bonds as a countermeasure, Bessent played down the issue, stating that the scale of U.S. Treasury bonds held by Denmark is "less than $100 million and irrelevant".

At a closed-door Davos dinner, the U.S. Secretary of Commerce lashed out at Europe for "lacking competitiveness", prompting Christine Lagarde to storm out in anger. Reports indicate that U.S. Commerce Secretary Lutnick spoke bluntly at the dinner, belittling European economies, comparing them with U.S. economic strength, and criticizing Europe for lacking competitiveness. Many European attendees felt uncomfortable, and Lagarde immediately got up and left the venue. Lagarde warned that a "new world order" has begun, calling on Europe to rethink its alliance relations and safeguard its own interests.

Canadian Prime Minister Carney delivered a landmark speech: the rules-based order is dead, and middle powers should unite to resist coercion from certain major countries. Carney declared that the so-called "rules-based international order is dead", suggesting that a certain major country is distorting economic integration into a "tool of coercion". Faced with U.S. tariff threats and geopolitical pressure, Carney called on middle powers around the world to abandon illusions and address "hegemony" by establishing diversified alliances and enhancing their own hard power. Canada will shift to a "values-based realism" strategy, including increasing defense spending and diversifying trade, to avoid becoming a "pawn" in major-power rivalry.

Macron called on Europe to embrace respect over bullying and attract Chinese investment in key sectors. Macron stated that this is not an era of new imperialism or neocolonialism, but an era of addressing global challenges through cooperation, and reaffirmed that "we prefer the rule of law over violence". Macron also took a veiled swipe at Trump, saying that although "some people say wars have been resolved", the reality is that 2025 is still plagued by dozens of wars. Macron further stated that "China is welcome, but what we need is more foreign direct investment from China in some key sectors of Europe to promote our growth".

The European Parliament announced the indefinite suspension of the review process for the U.S.-EU trade agreement. According to CCTV News, on the 21st local time, Lang, Chairman of the International Trade Committee of the European Parliament, announced that the review of the EU-U.S. trade agreement will be suspended indefinitely. Lang stated that the European Parliament's negotiation team decided on the same day to suspend the review work of the International Trade Committee on the agreement. He claimed that the EU's sovereignty and territorial integrity are currently under threat, making it impossible to carry out relevant work as usual.

Will Trump lose the case? The U.S. Supreme Court adopted a cautious attitude toward the removal of Federal Reserve Governor Cook, with justices warning that such a move would "undermine" the central bank's independence. During the nearly two-hour hearing, none of the justices expressed understanding for the argument of removing Cook. The justices were reluctant to rush to resolve the major constitutional issues involved in the case, warning that it would "shatter" the independence of the central bank.

### Company News

Tianfu Communication: Steady growth in demand for high-speed optical devices. Tianfu Communication expects a significant increase in net profit in 2025, driven by the sustained surge in demand for high-speed optical device products brought about by the global expansion of AI and data centers. The company has achieved cost reduction and efficiency improvement through intelligent manufacturing, effectively hedging against adverse factors such as exchange rate fluctuations. It is estimated that the net profit attributable to shareholders of the listed company will range from 1.881 billion yuan to 2.150 billion yuan in 2025.

Moore Threads: 2025 revenue is expected to surge by 230%-247%, and the loss narrowing range is 34.50%-41.30%. Driven by the explosive growth of the artificial intelligence industry, domestic GPU enterprise Moore Threads expects a leapfrog revenue growth of 230% to 247% in 2025. Although the company is still in a period of high R&D investment and has not yet achieved profitability, the net profit loss attributable to shareholders of the parent company has narrowed significantly by 34.5% to 41.3% year-on-year, indicating that the improvement in product competitiveness and market recognition is rapidly translating into financial recovery.

The boom in AI storage demand has led Demingli to forecast that its Q4 net profit will surge by 1051.59%-1262.41% year-on-year. Demingli released its 2025 performance forecast, expecting a year-on-year net profit growth of 85% to 128% and a revenue scale exceeding 10 billion yuan for the first time. The core driver of its performance explosion is the recovery of the storage industry driven by AI demand, especially the stunning performance in the fourth quarter, with a year-on-year surge of more than 10 times in single-quarter net profit, indicating that the company's profitability is being concentrated released during the upward cycle of storage prices.

The father of Node.js officially announced: The era of human handwritten code is really over! Ryan Dahl, the founder of Node.js, declared that "the era of human handwritten code is over". Meanwhile, Emad Mostaque, the founder of Stability AI, made several key judgments: The cost of "thinking tokens" for AI programming is about to collapse; in the future, code generation will shift from requiring a lot of reasoning to direct generation through "a small number of prompts"; the current top AI programming experience costing $200 per month will drop to less than $1 within two years. This means that AI programming is entering a "reflexive" era, and the threshold for software development will drop sharply.

## Selected Research Reports

Gold failed to break through the $5,000 mark, and the market has begun discussing $6,000, $7,000 and even $10,000! Gold prices are approaching the $5,000 mark in a "roaring" manner. Geopolitical frictions and renewed tariff clouds have driven gold to become the ultimate safe-haven asset. Institutional forecasts are becoming increasingly aggressive, with growing calls for a $7,000 price and even an "era of ten-thousand-dollar gold". As private capital takes over from central banks as the main buying force, analysts believe that this non-speculative long-term bull market feast seems to have just begun.

Is it time to bottom-fish Apple? Goldman Sachs: Super replacement cycle + Siri reshaping, iPhone remains the preferred hardware entry point in the AI era. Goldman Sachs is optimistic about Apple's upcoming F1Q26 financial report, expecting iPhone revenue to grow by 13%. Analysts emphasize that considering the continuation of Apple's iPhone replacement cycle, the expected launch of foldable phones, and the implementation of AI functions, the key now is to ignore short-term noise and focus on Apple's strong pricing power and the resilience of its service business. In the face of external concerns about the cost of storage chips, Goldman Sachs expects Apple to offset cost pressures through supply chain management, product redesign and price increases.

The "wealth gap" in memory chips is widening. How to choose between winners and losers? Morgan Stanley pointed out that artificial intelligence is driving a sharp differentiation in the semiconductor industry, forming a "K-shaped" recovery. The shortage of AI memory chips (such as HBM) has significantly benefited upstream manufacturers like Samsung and SK Hynix; however, downstream PC and mobile phone manufacturers are facing pressure to pass on costs. This trend is dominated by AI's "capacity crowding-out effect", which has even led to shortages in traditional memory (such as DDR4), becoming a key watershed distinguishing winners and losers in the industry.

Goldman Sachs: AI is detonating a global PCB super cycle. A Goldman Sachs report pointed out that AI infrastructure is driving the PCB/CCL industry into a super cycle. The strong demand for higher speeds (such as 800G/1.6T) and larger scales from AI servers will drive an explosion in market size: The AI server PCB and CCL markets are expected to grow by 113% and 142% respectively in 2026. Rapid technological iteration has built high barriers, enabling leading enterprises to maintain healthy competition and continuously secure orders.

Is the "DRAM storm" sweeping the automotive industry? UBS warns that generative AI is squeezing wafer capacity, DRAM supply is tilting toward HBM, automotive-grade memory is facing dual pressures of price increases and shortages, and the impact may emerge from the second quarter of 2026. Under the baseline scenario, component suppliers' EBIT will drop by 5%-6%, and in extreme scenarios, it may plummet by 24%. Automakers with centralized computing architectures and suppliers with a high proportion of electronics and ADAS are at the greatest risk, and a "technological gap" may occur between 2026 and 2027.

# Domestic Macroeconomy

In coordination with the central bank, the Ministry of Finance of China has rolled out five policies: focusing on **underpinning growth rather than implementing strong stimulus**, and deeply integrating interest subsidies with industrial policies. The five policies issued on January 20 do not indicate that macro policies have entered a phase of comprehensive intensification, but they clearly send a signal: the toolkit for stabilizing growth is still being continuously expanded, with greater emphasis on structure and coordination. According to Industrial Securities Macro Research, equipment investment remains an important focus of coordinated fiscal and financial efforts, reflecting the policy-makers' long-term orientation toward manufacturing upgrading and fostering new productive forces.

The Ministry of Industry and Information Technology (MIIT): The second phase of 6G technology trials has recently been launched, and AI has penetrated more than 70% of business scenarios in leading smart factories. MIIT stated that the first phase of 6G R&D trials has been completed, yielding over 300 key technology reserves, and the second phase of 6G technology trials has been initiated. It is estimated that the number of artificial intelligence enterprises in China exceeded 6,000 in 2025, with the core industry scale projected to surpass 1.2 trillion yuan. Currently, AI applications have covered key sectors such as steel, non-ferrous metals, electric power, and communications. Next, efforts will be accelerated to break through key technologies including training chips and heterogeneous computing power.

Ni Hong: Promote the construction of "high-quality housing" in an orderly manner and accelerate the establishment of a new model for real estate development. According to Xinhua News Agency, Ni Hong, Secretary of the Party Leadership Group and Minister of the Ministry of Housing and Urban-Rural Development, stated that the key to the high-quality development of the real estate sector lies in accelerating transformation and upgrading. Work will focus on two main areas: first, promoting the construction of "high-quality housing" in an orderly manner; second, accelerating the establishment of a new model for real estate development. We will firmly adhere to the fundamental goal of ensuring people's housing stability, combine policy support with reform and innovation, promote the establishment of a linkage mechanism for factors including "people, housing, land, and capital", and ensure a steady and orderly transition between the old and new models.

A slow bull market is hard to achieve—how much has the national team sold? Amid the recent market cooling, large-scale redemptions of broad-based ETFs were mainly driven by share reductions by Central Huijin Investment Ltd. Outflows reached approximately 294.8 billion yuan over the past four trading days, accounting for 8.6% of its holdings, with the most significant reduction seen in the STAR Market 50 ETF. Despite the substantial sell-offs, the market showed strong performance (e.g., the CSI 500 Index rose), indicating that trend momentum outweighs regulatory adjustments, and capital may spill over to small and micro-cap sectors. This reflects that achieving a "slow bull market" in A-shares remains challenging.

# Domestic Corporate News

Vanke narrowly averted a crisis as the rollover of 1.1 billion yuan worth of bonds was approved.

The "AI Gateway Battle": ByteDance has become a "forcing factor", and Alibaba and Tencent "cannot afford to lose". ByteDance is making aggressive moves in both AI cloud infrastructure and consumer-grade applications. Its share of China's AI cloud service revenue has reached nearly 13%, second only to Alibaba's 23%. Meanwhile, the daily active users (DAUs) of the Doubao App have exceeded 100 million, with the highest daily token consumption volume in China. Goldman Sachs believes that 2026 will not be a "model competition" but a life-or-death battle for the "default gateway". Whoever seizes the default gateway will rewrite traffic distribution, advertising budgets, transaction closed loops, and even the entire internet profit pool. Furthermore, ByteDance itself controls users' screen time, which is the fundamental reason why Tencent and Alibaba "cannot afford to lose".

"Space, Ground, Terminal, Rocket, Application": A five-layer deconstruction of the commercial aerospace industry chain. China's commercial aerospace is in a "dawn period" of transitioning from engineering-driven to industry-driven development. Debang Securities believes this represents a restructuring of the entire industry chain across five dimensions: "space" (satellites entering mass production cycle), "ground" (transforming into core network hubs), "terminal" (the key to revenue realization), "rocket" (breaking cost constraints through reusability), and "application" (the ultimate value outlet and largest growth driver). These five integrated elements are reshaping the investment landscape.

Bridgewater China achieved a 45% return in 2025, the best in five years, with 60 billion yuan in assets under management leading foreign private equity funds. Bridgewater China's onshore funds posted a 45% return in 2025, marking their strongest performance in five years. Bridgewater stated that supported by policies and boosted by AI sentiment, Chinese equities remain attractive; the firm maintains a "moderately optimistic" stance and has slightly increased holdings of risk assets. With its balanced All Weather Strategy, Bridgewater's assets under management in China have grown to 60 billion yuan, continuing to lead the foreign private equity fund market.

The first joint-stock commercial bank released its 2025 annual performance express: Industrial Bank reported growth in both revenue and profit, with tangible results in reducing liability costs.

# Overseas Macroeconomy

The Federal Reserve is expected to "stand pat" next week; economists predict rate cuts will have to wait until Powell's "exit". Strong economic growth and stubborn inflation are delaying Fed rate cuts. Surveys show that the market widely expects the Fed to keep interest rates unchanged next week, with an extremely low probability of a rate cut in the first quarter. The easing window may be postponed until after Powell's term ends in May. This shift is supported by stronger-than-expected economic growth, while political investigations targeting Powell have added uncertainty to future policies.

JPMorgan Chase's Dimon: Trump's credit card interest rate cap order will lead to "economic disaster" and may force banks to drastically cut lending. On January 21, Jamie Dimon, CEO of JPMorgan Chase, warned at Davos that Trump's proposed cap on credit card interest rates (at an annual rate of 10%) could trigger an "economic disaster". He pointed out that this move would force banks to significantly tighten credit, harming consumer financial accessibility—especially for those with weaker credit histories—and thereby impacting consumer spending. Dimon stated that banks will submit analytical reports to influence policy decisions. He also commented on U.S.-Europe relations, emphasizing that "Europe's future must be decided by Europe itself".

U.S. housing market leading indicator dims: December pending home sales saw the largest drop since the COVID-19 pandemic. The U.S. pending home sales index fell 1.3% year-on-year in December, following a 0.3% decline in the previous month; month-on-month, the index plummeted 9.3% to 71.8, far worse than the expected 0.3% drop and reversing the prior 3.3% increase. This decline stands out sharply after the housing market had seemed to be gradually regaining momentum.

Political calls for intervention and major banks preparing to increase holdings drive a broad rebound in Japanese government bonds (JGBs) on Wednesday! As Japan's major financial institutions signaled large-scale holdings increases and political circles called for market stabilization, the JGB market staged a significant rebound on Wednesday, with long-term bond yields falling sharply across the board.

After the JGB crash, Japan's second-largest bank signals readiness to bottom-fish, vowing to double holdings! Sumitomo Mitsui Banking Corporation announced plans to double its JGB holdings to over 20 trillion yen after yields stabilize, marking a strategic shift back from foreign bonds to domestic bonds. Despite recent fiscal concerns triggering a bond market crash, the bank is bullish on the fair value of 30-year JGBs, predicting the Nikkei 225 will break 60,000 points and the yen will weaken to 180 against the U.S. dollar by the end of the year.

South Korean President pushes back against chip tariff threats: A 100% tariff would only make Americans foot the bill! Yoon Suk Yeol stated that given that South Korean and Taiwanese chip manufacturers hold a dominant 80%-90% global market share, a 100% U.S. import tariff would likely lead to a sharp rise in chip prices in the U.S., with most of the costs probably passed on to American consumers.

The "canary" sings positive news! South Korea's January exports posted an initial 14.9% growth, with chip exports surging 70%. Known as the "canary of the global economy", South Korea's exports got off to a strong start in January, with exports in the first 20 days rising 14.9% year-on-year. Among them, semiconductor exports soared 70.2% driven by the AI boom, becoming the core growth engine and effectively offsetting weakness in traditional industries such as automobiles caused by U.S. tariffs and other factors.

Countries including Jordan and the United Arab Emirates issued a joint statement announcing their decision to join the so-called "Peace Committee". Each country will sign the accession documents in accordance with their respective domestic legal procedures and other necessary formalities. Notably, Egypt, Pakistan, and the UAE had previously announced their intention to join the mechanism.

# Overseas Corporate News

OpenAI CFO defends introducing ads to ChatGPT, calling it a "strong business model". Sarah Friar, CFO of OpenAI, stated at the World Economic Forum in Davos that the company needs to "build a strong business model" to achieve its goal of bringing AI technology to a wider audience. Friar said: "Our mission is to ensure that artificial general intelligence (AGI) benefits all of humanity, not just those who can afford it."

OpenAI commits to funding power upgrades for $500 billion AI infrastructure. OpenAI explicitly stated: "Across all our Stargate community programs, we commit to covering energy costs ourselves to ensure our operations do not increase your electricity prices." OpenAI's commitment follows a similar plan announced by Microsoft last week, amid recent pressure from Trump urging tech companies to bear the cost of building new power plants.

Capitalwatch launches another scathing attack: AppLovin is just the tip of the iceberg in a money laundering chain involving over a dozen companies; "nuclear-level" evidence has been handed over to regulators. Short-selling AppLovin is just an "appetizer". Capitalwatch dropped another bombshell, claiming that illegal funds originating from China's "Tuandai Net" have been injected into more than a dozen U.S. listed companies. The firm stated it has obtained "nuclear-level" evidence and submitted it to U.S. regulators, adding that "the best is yet to come"—hinting that more listed companies will face short-selling attacks.

Berkshire Hathaway plans a "full-scale" sell-off of Kraft Heinz shares, registering to sell 325 million shares, sending the company's stock plunging. Berkshire Hathaway intends to sell 325.4 million shares of Kraft Heinz, amounting to an almost full-scale divestment, marking the end of this iconic investment from the Buffett era. Kraft Heinz's stock plummeted 4.9% in after-hours trading. The move comes as the company faces earnings pressure and attempts to reverse its 2015 mega-merger by pursuing a spin-off plan, a strategy Berkshire's management has repeatedly opposed.

# Industry/Concepts

1.  **Power Sector** | According to Shanghai Securities News, the cold wave has put pressure on State Grid's load, driving sustained improvement in the industrial chain prosperity. Since this week, affected by widespread cold wave weather, electricity demand across the entire power grid has continued to climb. From January 19 to 21, the electricity load in the operating area of State Grid hit a new winter record for three consecutive days, with the maximum load reaching 1.168 billion kilowatts—an increase of 12.7 million kilowatts, or about 12.2%, compared to the previous peak of 1.041 billion kilowatts last year. It is expected that as temperatures gradually warm up over the weekend, electricity load will decline steadily.

   > **Commentary**: First Venture Securities believes that based on the key investment areas announced by State Grid for the "15th Five-Year Plan" period, this round of investment is anchored to the country's nationally determined contributions to emission reduction targets. It will focus on building a new power system to support the goal of adding approximately 200 million kilowatts of wind and solar new energy installed capacity annually. During the "15th Five-Year Plan" period, State Grid's R&D expenditure is expected to exceed 240 billion yuan, with digital and intelligent technologies set to be deeply integrated into all links of power grid planning, construction, operation, and services. The brokerage is optimistic about the sustained improvement in industry prosperity across almost the entire domestic power industry chain, including UHV, high-voltage backbone networks, distribution networks, power grid intelligent equipment, and energy storage.

2.  **Digital Renminbi (e-CNY)** | According to the People's Bank of China (PBOC), on January 15, 2026, the PBOC held the 2026 Payment and Settlement Work Conference. The meeting required that payment and settlement work in 2026 should closely focus on the "15th Five-Year Plan" and the goal of building a financial power, promoting the high-quality development of the modern payment system. Efforts will be accelerated to build the RMB cross-border payment system, advance cross-border payment interconnection, and promote the diversified and multi-level development of the cross-border payment system.

   > **Commentary**: Guotai Haitong Securities believes that previously, eight ministries including the PBOC issued the *Opinions on Financial Support for Accelerating the Construction of the Western Land-Sea New Corridor*, proposing to leverage the advantages of e-CNY such as instant settlement, low cost, and programmability. The document calls for exploring the use of e-CNY smart contracts to create innovative solutions and examining the feasibility of expanding e-CNY applications in corridor-related scenarios including payment and settlement, financing, and tax refunds. This will become an important driver for expanding the cross-border use of the RMB, ushering in new development opportunities for e-CNY. Attention should be paid to the industrial chain supporting infrastructure such as banking IT systems, payment ecosystems, hardware wallets, and financial equipment.

3.  **CPU** | According to IT Home, Intel's CFO stated that due to far stronger-than-expected demand for data center and client CPUs, the company's chip inventory is being depleted rapidly. It is expected to face the biggest supply challenge in the first quarter of 2026, when inventory may be exhausted. Additionally, data from KeyBanc shows that Intel and AMD plan to raise server CPU prices by 10%-15% to address supply-demand imbalances and ensure stable subsequent supply.

   > **Commentary**: Research institutions believe that increased demand for data center server CPUs has led to supply-demand imbalances, thereby driving up prices. The generative AI wave continues to evolve, with rising procurement volumes for AI servers partially crowding out budgets for general-purpose servers. Meanwhile, general-purpose servers procured by cloud vendors in the early stage have now largely entered the replacement cycle. Furthermore, cloud vendors are advancing architecture upgrades in their data centers, planning to phase out CPUs with outdated architectures and integrate new-generation server CPUs into existing rack systems. Therefore, compensatory investment has emerged in the data center sector, driving up server CPU prices.

4.  **Heterogeneous Computing Power** | On January 21, the State Council Information Office held a press conference. Zhang Yunming, Vice Minister of MIIT, stated that next, efforts will be focused on technological innovation to accelerate breakthroughs in key technologies such as training chips and heterogeneous computing power. Heterogeneous computing power refers to a computing architecture that integrates different types of computing units (such as CPU, GPU, FPGA, ASIC, NPU, etc.) to work collaboratively, achieving higher energy efficiency and computing density. Its essence is to dynamically allocate the most suitable hardware resources based on task characteristics (e.g., parallel computing, logic control, low-latency processing), thereby breaking through the performance bottlenecks of a single architecture.

   > **Commentary**: China Securities Journal pointed out that heterogeneous computing power is the underlying technological cornerstone of the "Eastern Data and Western Computing" project. With the rapid development of artificial intelligence, high-performance computing (HPC), and big data applications, computing tasks have become increasingly complex and diverse. Traditional CPUs see declining energy efficiency when handling tasks such as parallel computing, graphics rendering, or AI inference, while specialized accelerators such as GPUs, FPGAs, and ASICs have significant advantages in specific fields. By combining CPUs with GPUs, FPGAs, NPUs, etc., heterogeneous computing power achieves specialized division of labor at the hardware level, thereby greatly improving overall computing efficiency and energy efficiency.

5.  **Solid-State Batteries** | According to Jilin Provincial Government releases, recently, the first prototype vehicle equipped with FAW Hongqi's independently developed all-solid-state batteries successfully rolled off the production line, marking that FAW has officially entered the vehicle testing phase in the field of all-solid-state battery technology. The trial production project achieved a series of phased breakthroughs in key links such as sulfide electrolytes, 10Ah cell performance, and 60Ah cell processes after 470 days of intensive research. The 66Ah all-solid-state battery cells validated in this vehicle successfully passed the extreme thermal abuse test at 200℃, with the ionic conductivity of the sulfide electrolyte exceeding the industry's high threshold of 10mS/cm.

   > **Commentary**: China Securities Journal noted that as the core direction of next-generation power batteries, solid-state batteries are accelerating the replacement of traditional lithium-ion batteries due to their high energy density, intrinsic safety, and ultra-long cycle life (8,000-10,000 cycles). Supported by policies, technological reserves, and industrial chain advantages, China is expected to capture 40% of the global market share. Authoritative forecasts indicate that global solid-state battery shipments will reach 614.1GWh in 2030, with penetration rate exceeding 10% and market size surpassing 250 billion yuan. As the world's largest single market, China's annual market size is projected to reach 116.3 billion yuan by then, with a compound annual growth rate of 42%.

6.  **6G** | On January 21, Xie Cunzai, Director-General of the Department of Information and Communication Development of MIIT, stated at a press conference held by the State Council Information Office that currently, China's 5G standard-essential patent declarations account for 42% of the global total; the first phase of 6G R&D trials has been completed, yielding over 300 key technology reserves, and the second phase of 6G technology trials has recently been launched. The press conference noted that the first phase of China's 6G technology trials has formed more than 300 key technology reserves. 5G and gigabit optical networks have been integrated into 91 out of 97 major national economic categories, and the industrial internet has achieved full coverage of 41 major industrial categories, injecting more vitality into economic and social development.

7.  **Autonomous Driving** | On January 21, the General Office of the Guangdong Provincial Government officially issued the *Several Policies and Measures for Empowering the High-Quality Development of Transportation with Artificial Intelligence in Guangdong Province*. Focusing on core areas including intelligent connected vehicles, smart logistics, and vehicle-road-cloud integration, the policy takes the six cities in the Golden Inner Bay (Guangzhou, Shenzhen, Zhuhai, Foshan, Dongguan, Zhongshan) as pilot zones, taking the lead in breaking cross-regional policy barriers and accelerating the commercialization of autonomous driving.

   > **Commentary**: Securities Times pointed out that Guangdong Province explicitly encourages enterprises to increase independent innovation efforts in core AI areas such as end-to-end remote driving cockpits, intelligent decision-making, and precise prediction and control, promoting breakthroughs in key technologies. The policy orientation supports enterprises in continuous research in these areas, strengthens independent controllability, and strives to build a comprehensive core technology system for intelligent connected vehicles. The six cities in the Golden Inner Bay will take the lead in realizing cross-city mutual recognition of test licenses, test results, and test roads, eliminating the need for enterprises to conduct repetitive tests, significantly reducing innovation costs, and accelerating the commercialization of L3/L4 autonomous driving. The policy clearly promotes the implementation of autonomous driving large models, combining high-quality datasets and toolchains to enhance intelligent decision-making and predictive control capabilities, seizing technological high ground. With Guangzhou and Shenzhen included in national pilots, coupled with Guangdong's advantages in computing power, networks, and application scenarios, the province is expected to form a leading intelligent connected vehicle industry ecosystem in China.

# Today's Key News Preview

- China's RMB global payment share in December (SWIFT data)

- U.S. real GDP for the third quarter

- U.S. core PCE price index, personal income, and consumer spending for November

- U.S. weekly initial jobless claims

- European Central Bank releases December monetary policy meeting minutes

- Procter & Gamble and Intel release earnings reports

- U.S. weekly EIA crude oil inventory change

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