Eastmoney Financial Breakfast Thursday, February 12

Daily Highlights

Expanding Computing Power for Effective Investment:

Recently, the State-owned Assets Supervision and Administration Commission of the State Council proposed that central enterprises should strengthen investment guidance, actively expand effective investments in computing power, promote the coordinated development of “computing power + electricity,” and enhance the entire chain data governance capabilities, continuously solidifying the foundation of the artificial intelligence industry. The State-owned Assets Supervision and Administration Commission held a special deployment meeting for the “AI+” initiative to deepen the implementation. At this meeting, it was emphasized that central enterprises should strengthen independent innovation, focus on breaking through key core technologies, continue tackling “large model” technology, and turn more autonomous innovations from prototypes into products and industries. They should also focus on cultivating scenarios, strengthen the precise connection between artificial intelligence and core responsibilities, main industries, and industry demands, and put greater effort into high adaptability, high value, and high reliability to promote large-scale application of artificial intelligence.

U.S. Non-Farm Payrolls for January:

U.S. non-farm employment increased by 130,000 in January, compared to an estimated increase of 65,000, with the previous figure at 50,000. The unemployment rate in January was 4.3%, the lowest since August 2025; the forecast was 4.4%, and the previous was 4.4%. The U.S. Department of Labor reported that last month’s job gains exceeded expectations, leading traders to reduce bets on Federal Reserve rate cuts. Traders are now fully pricing in a rate cut by the Fed in July rather than June.

AI+:

On February 11, the State Council held its 18th special study session themed on deepening and expanding “AI+” and empowering various industries comprehensively. Premier Li Qiang pointed out that it is necessary to have a profound understanding of the development trend of artificial intelligence, promote breakthroughs across the entire AI chain, implement full-scenario applications, and unleash greater development potential. Efforts should be made to solidify the technological foundation, promote algorithm innovation, increase high-quality data supply, improve large model performance, and proactively explore new technologies and pathways. Large-scale commercialization should be vigorously promoted, encouraging AI terminal and service consumption, establishing pilot bases for AI applications, developing and expanding intelligent agent industries, and exploring more high-value application scenarios. Accelerate the cultivation of industrial ecosystems, optimize intelligent computing resource deployment, enhance coordination among data, computing, electricity, and network resources, promote hardware-software compatibility, and form a development pattern of integrated upstream and downstream industry chains.

Improving the National Unified Electricity Market System:

Recently, the General Office of the State Council issued the “Implementation Opinions on Improving the National Unified Electricity Market System,” which systematically plans the goals and tasks for the next 5–10 years. The document proposes that by 2030, a basic national unified electricity market system will be established, with all types of power sources and non-subsidized users directly participating in the market, and market-based transactions accounting for about 70% of total electricity consumption. Cross-province and cross-region joint trading will be realized, spot markets will fully transition to formal operation, and market-based electricity prices will be fundamentally sound. By 2035, the system will be fully established, with further mature market functions and an increasing proportion of market-based transactions.

Public Utility Sector Anti-Monopoly:

The Anti-Monopoly and Unfair Competition Committee of the State Council released the “Guidelines on Anti-Monopoly in the Public Utility Sector,” aiming to prevent and curb monopolistic behaviors in water supply, power supply, gas, heating, and other fields, safeguarding market fairness and consumer interests. The guidelines clarify the definition of public utilities, emphasize principles of fair competition, lawful and scientific regulation, and improving people’s livelihood and high-quality service. They also encourage operators and industry associations to strengthen anti-monopoly compliance, specify reporting mechanisms, define new types of monopolistic behaviors, and establish rules for market and monopoly agreement identification.

Rumor Clarification by Zhongji Xuchuang:

On February 11, a widely circulated screenshot on social media claimed that the order path for optical modules had changed, with CSP bypassing companies like Zhongji Xuchuang by placing orders directly with upstream laser equipment manufacturers like Lumentum, which then designated module/assembly factories, thus bypassing middle layers and squeezing profit margins of Chinese module manufacturers. Investors asked Zhongji Xuchuang for clarification via interactive platforms. The company responded that there is no such scenario where CSP clients place orders directly with upstream optical chip manufacturers and bypass the company to order designated module/assembly factories.

Major Company Announcements:

Tianji Co., Ltd. announced that due to suspected information disclosure violations, the China Securities Regulatory Commission has filed a case against the company. Currently, the company’s operations are normal, and the investigation is not expected to significantly impact normal business activities. JuLi SuiJu also announced that it has noticed false online rumors claiming the company is a “new leader in commercial aerospace” and “leader in rocket recovery.” The company clarifies that it has never been interviewed by any media or individuals regarding these claims, nor has it issued any related statements. All such information is false. The company’s main products are general lifting slings, which are widely applicable; it has not signed any 458 million yuan project in Hainan, nor does it have orders exceeding 200 million yuan in total.

DeepSeek Version Update:

Multiple users reported that DeepSeek has been updated on both web and app platforms, supporting a maximum context length of 1 million tokens. Last August, DeepSeek V3.1 expanded context length to 128K. Tests show that DeepSeek claims to support 1 million tokens of context, capable of processing very long texts in a single query. For example, a user submitted a 240,000+ token “Jane Eyre” document, and DeepSeek was able to recognize and process the content.

Hot Topics

Fiberglass:

Recently, leading fiberglass companies such as Guangyuan New Materials and International Composite Materials announced further price increases for electronic fabrics. According to Zhuochuang Information, by October/December 2025 and January/February 2026, ordinary electronic fabrics have experienced four rounds of price hikes, with 7628 thick fabrics increasing by 0.2–0.3, 0.2–0.3, 0.2, and 0.5–0.6 yuan per meter respectively, totaling a rise of 1–1.2 yuan per meter. Thin fabrics saw even larger increases, maintaining high prosperity in electronic fabric markets.

Lithium Mining:

UBS recently released a report indicating that the market has entered its third supercycle of lithium prices, with persistent supply-demand gaps supporting prices well above market consensus. UBS raised its 2026 spodumene (lithium ore) price forecast by 74% to $3,131 per ton, and lithium carbonate and hydroxide prices by 58% to $26,000 per ton. The 2027 spodumene price forecast is $3,469 per ton, 22% higher than previous estimates. These forecasts are significantly above market consensus, reflecting UBS’s view of tight supply-demand conditions.

AI Large Models:

Sources reveal that late on February 11, 2026, Zhipu released its new flagship model GLM-5. In coding and agent capabilities, GLM-5 achieved state-of-the-art open-source performance, approaching the experience of Claude Opus 4.5 in real programming scenarios, excelling in complex system engineering and long-term agent tasks. Previously, The Information reported that the open-source model Pony Alpha, released on the OpenRouter marketplace, is actually Zhipu’s new model GLM-5.

Space Solar Power:

On February 10, Wuxi Development and Reform Commission organized a space solar power supply and demand matchmaking conference, inviting Jiangsu Guoyu Starry Sky Technology Co., Ltd. and Hongyuan Green Energy Co., Ltd. to participate. Attendees learned about Jiangsu Guoyu Starry Sky’s development plans and goals, and engaged in in-depth exchanges on technical R&D, materials application, manufacturing processes, and testing in the space solar power field. The next step is for the Development and Reform Commission to leverage its coordination role, continue building cooperation platforms, and accelerate the creation of space solar power innovation applications.

Green Electricity:

The General Office of the State Council issued the “Implementation Opinions on Improving the National Unified Electricity Market System,” which plans the goals and tasks for the next 5–10 years. The document emphasizes a series of innovative measures, including improving cross-province and cross-region electricity trading systems, promoting normalized inter-grid market transactions between State Grid and Southern Grid, increasing cross-province and cross-region transmission capacity, and expanding clean energy transmission.

Tungsten:

In recent two weeks, prices for black tungsten concentrate increased by 25.19% to 671,000 yuan/ton, and ammonium paratungstate rose by 24.68% to 985,000 yuan/ton. On the supply side, mine safety and environmental controls have become stricter, leading to reduced operations and shipments at some mines, causing temporary tightness in tungsten supply. On the demand side, domestic demand remains stable, mainly driven by rigid procurement, with strong demand for PCB tooling. Recently, conservative mine production and weak incremental market expectations have led some companies to further raise prices in January.

Cloud Computing:

Latest data from Omdia shows that in Q3 2025, China’s cloud infrastructure service market reached $13.4 billion, a year-on-year increase of 24%. The market has achieved over 20% YoY growth for two consecutive quarters. The accelerating demand for AI is not only promoting cloud service deployment but also significantly boosting core cloud infrastructure, speeding up the shift of cloud resources toward production workloads.

Company News

Suiyuan Technology: According to the Shanghai Stock Exchange, Suiyuan Technology’s IPO review status has changed to “Questioned.” The application materials show that the company was founded in 2018, focusing on cloud AI chip design.

Wentai Technology: Wentai (600745.SH) announced that the Dutch court issued a ruling on February 11, 2026, maintaining the temporary measures against Anshi since October 2025. The company’s control over Anshi remains restricted. The company will exhaust all legal means to restore full control and protect investors’ rights.

NetEase: Q4 revenue was 27.5 billion yuan, with annual revenue reaching 112.6 billion yuan. Operating profit for the year was 35.8 billion yuan, up 21%; Q4 operating profit was 8.3 billion yuan, up 6%. R&D investment reached 17.7 billion yuan, exceeding 10 billion yuan for six consecutive years. Net revenue from games and related value-added services was 92.1 billion yuan, with online gaming revenue at 89.6 billion yuan, up 11%.

Kaiying Network: The company’s wholly owned subsidiary, Shanghai Kaiying, signed a settlement agreement with Legend IP. This helps lift asset freezes, improve liquidity, and resolve long-term litigation uncertainties, expected to positively impact profits by about 200 million yuan this period.

Lanshi Heavy Equipment: The company recently received notices from Jingning County Supervision Committee regarding case filing and detention measures, as the vice general manager Wang Bingzheng is under investigation for suspected disciplinary violations and illegal employment.

Top Group: Estimated 2025 revenue between 28.75 billion and 30.35 billion yuan, an increase of 8.08% to 14.10%. Net profit attributable to shareholders is expected between 2.6 billion and 2.9 billion yuan, a decrease of 3.35% to 13.35%.

Dongfang Guoxin: As of now, the Inner Mongolia Smart Computing Center project has been partially completed and delivered to clients, with remaining parts under construction. The current revenue from this business is small and does not significantly impact current performance.

Pingzhi Information: The company plans to issue shares to specific targets, raising no more than 1 billion yuan, to fund the construction of domestic intelligent computing centers and supplement working capital. The controlling shareholder, Guo Qing, intends to subscribe no less than 50 million and no more than 400 million yuan.

Unisoc: The company has drafted a plan to issue A-shares to specific targets, raising up to 5.57 billion yuan to acquire 6.98% of New H3C, purchase R&D equipment, and repay bank loans. The company also decided to terminate plans for H-share issuance and listing on the Hong Kong Stock Exchange.

China National Pharmaceutical Modern: Recently, the company and some subsidiaries participated in the continuation procurement of national centralized drug procurement, after the expiration of the first to eighth batches of agreements. According to the results announced on February 10, 2026, the company and subsidiaries are expected to be awarded a total of 51 drugs in this continuation procurement.

Worley: The company’s final H-share offering price is set at HKD 20.09 per share. The shares will be listed on the Hong Kong Stock Exchange main board on February 13.

Jiangwu Equipment: The company plans to raise up to 1.882 billion yuan through targeted share issuance to acquire 100% of Jiangying Company, Huamao Company, and Jiuyie Company. The investors include the company’s controlling shareholder, Jiangwu Holdings, among others.

See more major announcements from listed companies>>

Global Markets

Russia-U.S.-Ukraine Negotiations: Ukrainian President Zelensky said that if Russia agrees, a new round of peace talks could be held next Tuesday or Wednesday (February 17 or 18) in the United States.

Fed Rate Cut Predictions: After the strong U.S. employment data was released on Wednesday, TD Securities economists delayed their forecast for the Fed’s next rate cut from March to June. They still expect a total cut of 75 basis points this year, ending at 3%. Citibank expects the Fed to start cutting from May, earlier than the previous forecast of March.

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Bond Market Overview

Shibor: On February 11, the overnight Shibor was 1.3660%, up 0.40 basis points; the 7-day Shibor was 1.5230%, down 0.80 basis points; the 14-day was 1.6000%, down 0.40 basis points; the January average was 1.5511%, up 0.01 basis points; the March average was 1.5800%, unchanged from the previous trading day.

Euro Bonds: At the close in Europe, the UK 10-year government bond yield fell 3.0 basis points to 4.476%, then surged to 4.519% after the U.S. non-farm payroll report release at 21:30 Beijing time. The 2-year UK bond yield fell 1.9 basis points to 3.624%. The 30-year yield fell 4.1 basis points, and the 50-year yield fell 3.8 basis points. The 2/10-year yield spread narrowed by 1.171 basis points to +85.067 basis points. German 10-year government bond yield fell 1.6 basis points to 2.792%. The 2-year German bond yield dropped 0.3 basis points to 2.066%, trading within 2.061%-2.093%. The 30-year German bond yield fell 3.4 basis points to a new daily low of 3.456%, then rose to 3.501% at 21:30. The 2/10-year spread narrowed by 1.345 basis points to +72.393 basis points. French 10-year yields fell 2.7 basis points to a daily low of 3.380%, then rebounded to 3.419% after the U.S. report. The 2-year French yield briefly rose from 2.185% to 2.208%. The 30-year French yield fell 3.7 basis points to a new daily low of 4.343%. Italian and Spanish 10-year yields declined by 1.4 basis points, Greek 10-year yields fell by 1.2 basis points.

U.S. Bonds: In New York, the 10-year Treasury yield rose 2.77 basis points to 4.1704%, trading between 4.1170% and 4.2041% before the report release, then sharply jumped to new highs. The 2-year Treasury yield increased 5.79 basis points to 3.5099%, within 3.4415%-3.5472%. After the report, it also surged from around 3.45%. The 20-year yield rose 2.60 basis points, and the 30-year yield rose 2.53 basis points. The 3-year yield increased 5.30 basis points, the 5-year by 3.99, and the 7-year by 3.61. The 2/10-year spread narrowed by 2.809 basis points to +65.847 basis points. The 3-month/10-year spread increased by 1.520 basis points; the 2/30-year spread decreased by 3.054 basis points; the 5/30-year spread decreased by 1.460 basis points. The 10-year TIPS yield rose 1.64 basis points to 1.8369%; the 2-year TIPS yield increased 4.05 basis points to 0.7244%, hitting a low of 0.6405% at 15:11 before rising. The 30-year TIPS yield increased 1.68 basis points to 2.5413%.

Commodity Futures

Domestic Futures: On February 11, most commodities closed higher. Lithium carbonate surged over 9%, nickel rose over 4%, tin over 3%, red dates and LU fuel oil over 2%, soybeans and pure benzene over 1%, plastics and short fibers slightly up; container shipping on Europe route down over 1%, glass and palm oil slightly down.

International Metals: LME copper rose $58 to $13,166/ton. Aluminum up $10 to $3,103/ton. Zinc up $12 to $3,406/ton. Lead up $18 to $1,993/ton. Nickel up $390 to $17,880/ton. Tin up $352 to $49,635/ton. Cobalt unchanged at $56,290/ton.

International Agricultural Products: In New York, Bloomberg grain index up 0.42% to 29.7698 points. CBOT corn futures down 0.23%, wheat futures up 1.66%. Soybeans up 0.09% to $11.2350 per bushel, soybean meal up 0.59%, soybean oil down 0.43%. ICE raw sugar futures down 1.84%. NY cocoa futures down 0.75% to $3,862/ton, briefly falling to $3,842; May 2025 hit a record high of $8,906 before retreating. London cocoa futures down 0.54%.

Forex Market

Chinese Yuan: On February 11, onshore RMB closed at 6.91150 at 16:30 Beijing time, down 16.1 points. Offshore RMB at 18:00 was 6.90849, down 31.1 points. The onshore/offshore spread at 18:00 was 15.1 points.

RMB FX Swaps: As of 16:30 Beijing time, USD/CNY 6-month swap was -670 points; 1-year swap was -1243 points.

US Dollar: The dollar index rose on the 11th. It increased 0.04% to close at 96.834. Before the report release, EUR/USD was 1.1882 (below previous 1.1894), GBP/USD was 1.3637 (below 1.3666). USD/JPY was 152.83 (below 154.49). USD/CHF was 0.7703 (above 0.7682). USD/CAD was 1.3561 (above 1.3551). USD/SEK was 8.8813 (below 8.9021).