Brokerage Morning Meeting Highlights | AI is expected to reshape film and television production costs and IP development models.

Yesterday, the market fluctuated and pulled back, with the ChiNext Index and the STAR 50 Index both falling more than 2%. Trading volume shrank noticeably, with combined turnover in the Shanghai and Shenzhen markets at 1.54 trillion yuan, down 362.7 billion yuan from the previous trading day. More than 4,300 stocks across the market declined. On the board, bank stocks strengthened against the trend, with Bank Of China, CITIC BANK, and Industrial and Commercial Bank of China continuing to hit record highs; the film and television and media sectors rose rapidly during the session. As of the close, the Shanghai Composite Index fell 0.43%, the Shenzhen Component Index fell 2.03%, and the ChiNext Index fell 2.61%. Huatai believes that AI is expected to reshape film and television production costs and IP development models; CICC believes that demand for dental restorations is growing steadily, with low penetration and structural upgrading jointly opening up long-term space; China Securities Co.,Ltd. believes that it is advisable to increase the allocation proportion of high-quality central state-owned enterprises in sectors such as coal, power, real estate, and banking. Huatai: AI is expected to reshape film and television production costs and IP development models In the short term, AI is expected to reduce production costs and improve project efficiency through scene generation, visual effects production, and post-production processing; in the medium to long term, large-scale production and cross-language content development are expected to broaden the boundaries of IP commercialization and give rise to new models such as AI-native content and production technology services. Huatai believes that film and television companies with high-quality IP reserves, mature production systems, and distribution channels are expected to be the first to translate technological progress into content capacity and improved operating efficiency. CICC: Demand for dental restorations is growing steadily, with low penetration and structural upgrading jointly opening up long-term space The global oral healthcare market continues to expand, and implant systems and CAD/CAM restoration materials have become major segments in the upstream dental market. The population with missing teeth in China is large, but the restoration rate and implant placement density remain lower than in mature markets; centralized procurement and price governance have lowered the payment threshold for patients. CICC estimates that future industry growth will come more from the release of existing demand and the upgrading of restoration solutions toward high-value directions such as implants and all-ceramics. China Securities Co.,Ltd.: It is advisable to increase the allocation proportion of high-quality central state-owned enterprises in sectors such as coal, power, real estate, and banking A China Securities Co.,Ltd. research report pointed out that the CPC Central Committee and the State Council issued the "Opinions on Developing New Quality Productive Forces," completing the top-level institutional design for developing new quality productive forces. SASAC is actively implementing the arrangements of the CPC Central Committee, and central and state-owned enterprises are intensively adjusting their business layouts. SASAC has made it clear that central state-owned enterprises should plan ahead around the construction of the "six networks" the water network, new-type power grid, computing power network, next-generation communications network, urban underground pipeline network, and logistics network with an annual planned investment of about 2 trillion yuan. In the fourth quarter of 2026, we recommend that investors adopt a balanced investment strategy to build portfolios. In the first half of 2026, the technology sector rose sharply while traditional sectors fell sharply, creating a huge valuation gap. The upgrading and transformation of traditional industries, the specialized integration of traditional industries, and the correction of involutionary competition will bring opportunities for a turnaround in low-valuation sectors. China Securities Co.,Ltd. recommends increasing the allocation proportion of high-quality central state-owned enterprises in sectors such as coal, power, real estate, and banking. This article is reprinted from "Cailian Press," edited by GMTEight: Liu Jiayin.