China Market Weekly Update

AI and embodied intelligence have become the most watched sectors this week. Moore Threads' listing as the "first domestic general-purpose GPU stock" is not only a milestone in the capital market but also an important manifestation of China's independent R&D capabilities in AI chips. The fact that its AI computing products account for 77.63% of revenue further proves the core position of AI technology in industrial applications. Zhipu AI, as a strong competitor for listing among Chinese AI startups in the post-ChatGPT era, has shown strong market demand and willingness to pay for high-quality AI services in China with its annual revenue exceeding 100 million yuan.

The continuous financing and technological breakthroughs of UniX AI and Daimeng Robotics in the field of embodied intelligence, especially Daimeng Robotics breaking the financing record in the tactile sensing field and the launch of the world's first multi-dimensional high-resolution visual-tactile sensor, indicate that embodied intelligence technology has moved from theoretical research to practical application, showing enormous potential in intelligent manufacturing, smart logistics and other scenarios. TsingMicro's non-GPU architecture AI chip received over 2 billion yuan in Series C funding with state-owned background and initiated IPO preparation, highlighting China's exploration and support of diversified technical routes in the AI chip field.

New materials and biotechnology sectors continue to attract capital. Jiuzhou Interstellar's nearly 1 billion yuan strategic financing in the field of ultra-high molecular weight polyethylene fibers, and Four Stars Glass's hundreds of millions of yuan Pre-IPO round financing in the field of pharmaceutical borosilicate glass, both emphasize the strategic support for domestic substitution of key basic materials. Four Stars Glass uses all-electric melting technology to produce neutral borosilicate glass tubes, with technology leading the international level by 20 years, being the only company in the world using this technology, which not only demonstrates its technological strength but also provides security for the supply chain of China's pharmaceutical industry.

China's macroeconomic outlook remains cautiously optimistic despite global and domestic challenges. According to the China Macroeconomic Forum report, the economy is expected to achieve medium to high-speed growth of around 5% in 2025, with the launch of the "15th Five-Year Plan" injecting new opportunities. This projection is supported by the stabilizing contribution rate of the secondary industry, particularly high-end manufacturing, which continues to be a key economic pillar. The continued implementation of the consumer goods "trade-in" subsidy policy, with proposed increases from 300 billion yuan to 500 billion yuan, aims to further stimulate domestic demand.

The unprecedented scale of local government bond issuance, reaching 10 trillion yuan, represents both a response to immediate financial pressures and a strategic investment in future growth. With 60% directed toward debt servicing and 40% toward project construction, this balanced approach reflects China's dual focus on financial stability and infrastructure development. Meanwhile, the Tax Administration's revision of the "Tax Arrears Announcement Measures," effective March 1, 2026, aims to enhance tax compliance and strengthen the deterrent effect of tax arrears announcements, indicating a more rigorous approach to fiscal management.

The meeting between Chinese and French leaders highlighted deepening cooperation in aviation, aerospace, nuclear energy, green economy, and digital economy, demonstrating China's commitment to international collaboration in both traditional and emerging sectors. This diplomatic engagement, resulting in multiple cooperation agreements, showcases China's active participation in multilateralism and global governance, potentially opening new avenues for economic and technological cooperation in the coming years.

In AI technology, China's major tech companies have made significant strides this week with the release of their latest AI models and applications. Tencent officially launched its self-developed AI large model Hunyuan 2.0, featuring a mixed expert architecture with 406B total parameters and 32B activated parameters, supporting a 256K context window. This model demonstrates outstanding performance in complex reasoning scenarios such as mathematics, science, code, and instruction following. Meanwhile, SenseTime and Nanyang Technological University jointly developed NEO, the world's first large-scale deployable open-source native multimodal architecture, achieving deep integration of vision and language while using only one-tenth the data volume to surpass existing top competitors.

The embodied intelligence and robotics field has also seen explosive growth. Unitree's G1 robot became a star at the Japan International Robot Exhibition, equipped with 43 joint motors and a 360-degree environmental recognition system, with its large language model control system supporting customer secondary development. The establishment of the Chinese Academy of Sciences Dongguan Institute of Materials Science and Technology aims to build a globally influential new materials research center, providing material support for frontier technologies like embodied intelligence. Tsinghua University's establishment of the Institute for Embodied Intelligence and Robotics further promotes research and talent cultivation in this field.