CITIC Securities: Significant fluctuations will not alter the AI supercycle; emphasize the importance of domestic computing power as a "Plan B".
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CITIC Securities: Based on the inflection point of the intelligent driving industry, sub-sectors in the industrial chain such as robotaxi, intelligent driving chips, and LiDAR are all expected to benefit significantly.
According to Mars Finance, CITIC Securities points out that 2026 will be a crucial watershed moment for China's intelligent driving industry, marking a shift from a "functional competition" to "institutionalized commercialization." In 2024-2025, the intelligent driving industry primarily focused on the rapid penetration of L2+ advanced driver assistance systems, the decentralization of NOA capabilities, and level playing field competition among OEMs. By 2026, the industry landscape has clearly shifted to three parallel lines: L2 is entering a period of stringent regulation, with the industry shifting from "competing on user experience" to "competing on compliance, safety, and systems"; L3 is moving from pilot programs to limited commercialization, with responsibility boundaries, access mechanisms, and standards beginning to take shape; and L4/Robotaxi, driven by collaboration between China and the US, is entering a phase of large-scale verification, with commercialization criteria shifting from "whether it can run" to "whether it can be replicated at low cost and whether a viable single-vehicle economic model can be established." Based on this major turning point in the intelligent driving industry, specific segments of the value chain, such as robotaxi, intelligent driving chips, and LiDAR, are all expected to benefit significantly. (Cailian Press)
CITIC Securities: South Korea is expected to become a key player in the era of physical AI.
According to a research report by CITIC Securities, as reported by Mars Finance, physical AI continues to be a hot topic. Essentially, it's a different expression of the concepts of embodied intelligence and robotics. South Korea recently proposed a super project for physical AI, and our recent research on the South Korean robotics industry chain suggests that South Korea has the potential to become a significant player in the physical AI era. South Korea has a strong robotics industry chain, primarily focused on hardware, mainly driven by conglomerates like Hyundai Group. It has initially established a complete industry chain from upstream components to downstream manufacturing of various complete machines. However, it still lags behind China and the US in terms of embodied models and cost reduction capabilities in the supply chain.
CITIC Securities: The main theme of domestic computing power is clear; leading companies' performance is expected to accelerate.
According to a research report by CITIC Securities, as reported by Mars Finance, the capabilities of domestic computing power systems have evolved from inference to training. With the official release of DeepSeek V4 in mid-July, a "peak-valley pricing" mechanism will be introduced, doubling the price of API calls during peak periods, further intensifying the supply constraints of domestic computing power. We believe that the clarity of domestic computing power orders has significantly improved at this stage, and design companies with priority in customer order and capacity allocation are expected to benefit first. We remain optimistic about the domestic computing power industry chain, anticipating significant growth opportunities for everything from scarce advanced process capabilities to a thriving design sector and supernodes. Meanwhile, advanced processes, advanced packaging, advanced storage, and related supply chains are expected to experience strong growth momentum. (Cailian Press)
CITIC Securities: Supply and Demand, Coupled with Technological Advancement, Make Now the Time for Rare Earth Value Reassessment
According to a research report by CITIC Securities, citing Mars Finance, the average price of praseodymium oxide (PBO) in the first half of 2026 was 731,000 yuan/ton, a year-on-year increase of 73.6%. On the supply side, imports and recycling have decreased significantly, and the enforcement of domestic rare earth management policies has become stricter, leading to a continued tight supply in the rare earth industry. On the demand side, the production of new energy vehicles and robots has increased month-on-month, export orders have grown strongly, and Tesla's robots are about to enter mass production, suggesting that rare earth demand is likely to continue its growth trend. Considering the overall supply and demand situation, the global rare earth supply-demand gap is expected to continue to widen from 2026 onwards, providing long-term support for rare earth prices. We recommend a strategic allocation value strategy for the rare earth industry chain. (Cailian Press)
A-share midday review: The Beijing Stock Exchange 50 Index fell 1.36%, with significant intraday fluctuations in computing hardware stocks such as glass substrates, optical fibers, and PCBs.
Mars Finance reported on July 6th that the three major A-share indices opened mixed. At midday closing, the Shanghai Composite Index rose 0.08%, the Shenzhen Component Index fell 0.36%, and the ChiNext Index fell 0.51%; the Beijing 50 Index fell 1.36%. The combined turnover of the Shanghai and Shenzhen stock exchanges was approximately 2,206.256 billion yuan, an increase of approximately 146.55 billion yuan compared to the previous trading day. On the market, computing hardware stocks such as glass substrates, optical fibers, and PCBs experienced significant fluctuations during the session. Hangzhou Electric Co., Ltd. hit its daily limit down after releasing its earnings forecast, while Defu Technology and International Composite Materials fell by more than 10% intraday. Rainbow Co., Ltd., Lehman Optoelectronics, and Woge Optoelectronics also declined. The fluorochemical sector continued its correction, with Binhua Co., Ltd. hitting its daily limit down intraday, followed by declines in Zhongjuxin, Tianci Materials, and Yonghe Co., Ltd. In addition, sectors such as robotics, commercial aerospace, and rare earth permanent magnets also fell. On the other hand, pork stocks remained active, with Muyuan Co., Ltd., Wens Foodstuff Group Co., Ltd., and Tianbang Food Co., Ltd. all rising, following the return of pork prices to the "10 yuan era," a week-on-week increase of over 13%. Fueled by policy documents, the innovative drug sector continued its recent upward trend, with Gan & Lee Pharmaceuticals, Huahai Pharmaceutical, and Luoxin Pharmaceutical all hitting their daily limit. (Science & Technology Treasure Report)
Guangdong: By the end of 2027, the province's urban digital infrastructure support capabilities will be significantly enhanced.
According to Mars Finance, 11 departments, including the Guangdong Provincial Government Service and Data Management Bureau, recently issued the "Guangdong Provincial Action Plan for Promoting the Digital Transformation of Cities and Building Smart Cities." The plan emphasizes using cities as comprehensive carriers for the construction of Digital Guangdong, promoting infrastructure connectivity, data integration, platform interoperability, business integration, and a smooth ecosystem. It also aims to actively explore future-oriented smart city management models and achieve high-quality development of the Guangdong-Hong Kong-Macao Greater Bay Area smart city cluster. By the end of 2027, the province's urban digital infrastructure support capabilities will be significantly enhanced, the level of efficient digital governance will be greatly improved, digital public services will be more efficient and convenient, the momentum of digital economic development will be fully released, and the digital ecosystem will be comprehensively and collaboratively guaranteed. A number of effective and replicable typical application scenarios for digital transformation will be implemented, with Guangzhou, Shenzhen, Foshan, and Dongguan taking the lead in building efficient smart governance systems and implementing a number of advanced, usable, and independently controllable large-scale urban models. By 2030, no fewer than 10 cities will have achieved full-area digital transformation, achieving an overall leap in the digital transformation of cities throughout the province, forming a number of new smart city benchmarks and digital China city models with regional competitiveness and national influence. (Cailian Press)