Brokerage Morning Meeting Highlights | The overall performance of the AI industry chain may balance from the foundational layer to the model layer and application layer.

Yesterday, the market rose sharply before falling back, with all three major indices closing in the red. The trading volume significantly increased, with the total turnover in the Shanghai and Shenzhen stock markets reaching 2.55 trillion yuan, an increase of 398.5 billion compared to the previous trading day. On the surface, the market hotspots were quite chaotic, with over 4,300 stocks in decline. In terms of sectors, the pharmaceutical industry showed active performance, the computing power leasing concept continued its strength, and the food and beverage sector became active again, while the supernode concept fluctuated and strengthened. By the end of the trading session, the Shanghai Composite Index declined by 0.5%, the Shenzhen Component Index fell by 0.87%, and the ChiNext Index decreased by 0.45%. In todays morning meeting at the brokerage, CICC stated that the overall performance of the AI industry chain may balance from the foundational level to the model and application levels. Huatai believes that the 800VDC transformation in white zones is a certain trend, and power suppliers capable of providing HVDC/HV IBC are expected to benefit. CITIC SEC anticipates that the viscose filament industry is likely to enter a phase of tight supply and demand with rising price centrality. CICC: The overall performance of the AI industry chain may balance from the foundational level to the model and application levels. Regarding Chinese stocks, CICC believes that the foundation for a gradual bull market has not changed. After an adjustment, the indices are expected to return to a trend of oscillation and upward movement. However, market drivers will no longer simply rely on narratives but will need to gradually fulfill and verify earlier optimistic assumptions, leading to a probable slowing of the slope of index rises compared to the past. From a structural perspective, the room for valuation expansion in industries needs to be approached with more caution than before, placing increased emphasis on bottom-up industry logic and achieving greater balance in style compared to the past. Concerning the AI industry chain, CICC predicts further internal differentiation, moving away from hardware dominance. According to industry trends, initial beneficiaries will be those involved in selling shovels due to infrastructure development; however, as business models mature and clarify, the profitability of large models is gradually improving, and the penetration rate of AI in downstream applications is also increasing. CICC anticipates that the overall performance of the AI industry chain may balance from the foundational level to the model and application levels. CITIC SEC: The viscose filament industry is likely to enter a phase of tight supply and demand with rising price centrality. With continuous growth in export demand and existing supply operating close to full capacity, the viscose filament industry is expected to enter a phase of tight supply and demand with rising price centrality. Growth in traditional garment consumption in India has driven increased exports of Chinese viscose filaments, with industry export volume expected to grow by 18.2% year-on-year to 114,000 tons in 2025, and further increase by 30.9% year-on-year in the first half of 2026. At the same time, the domestic industrys operating rate is expected to rise to 89.8% in 2025, while semi-continuous spinning capacity may face policy elimination, environmental renovation, and relocation pressures. CITIC SEC predicts a supply-demand gap in the industry from 2026 to 2028, with product prices having upward elasticity. Key recommendations focus on leading enterprises. Huatai: The 800VDC transformation in white zones is a certain trend, and power suppliers capable of providing HVDC/HV IBC are expected to benefit. Huatai believes that the 800VDC transformation in white zones is a certain trend, and power suppliers capable of providing HVDC/HV IBC are expected to benefit. The trend toward gray zone integration is on the rise, and companies with the ability to provide modular electromechanical solutions and accumulate SST technology are likely to benefit. Increases in power density will bring about multi-scale smoothing of demand fluctuations. The interoperability between automotive regulation 400V/800V and AIDC is strong, thus relevant automotive semiconductors and power semiconductor companies will also benefit. Power semiconductors are the technological foundation for improving power density in power supplies. This article is reprinted from "Financial Associated Press," GMTEight editor: Xu Wenqiang.