Policy Tailwinds Boost Market Confidence
Today, the People's Bank of China (PBOC) sent a series of positive signals at a press conference. Spokesperson Zou Lan stated that there is still room for RRR and interest rate cuts this year and announced a 0.25 percentage point cut in relending and rediscount rates effective January 19. Concurrently, the central bank introduced multiple structural tools, including increased quotas for relending supporting agriculture, small businesses, and tech innovation, as well as establishing a relending facility for private enterprises, totaling over one trillion yuan in new quotas. This "policy package" aims to reduce financing costs for the real economy and stabilize market expectations, providing dual benefits of liquidity and sentiment to the stock market. Reflecting this, Vanke bonds surged broadly in the exchange bond market, indicating eased concerns over credit risk for quality enterprises.
Clear Growth Themes: AI and Pharma in Focus
Regarding investment themes, the view of Chen Yu, founder of Shennong Investment, is noteworthy. He proposed that "AI applications in 2026 are like real estate in 2006," predicting 2026 as the first year of an AI application explosion. He also believes innovative drugs are just the beginning of a two-decade bull market, with more to come in 2026. This perspective resonates with the PBOC's policy direction of increasing financial support for technological innovation. With technological implementation and funding support, the AI industry chain (from computing power to applications) and the innovative drug sector are poised to become the core growth themes for the next market phase.
Stable Exchange Rate Provides Room for Domestic Policy
The PBOC reiterated that China has no need or intention to gain trade advantages through currency depreciation, adhering to keeping the RMB exchange rate basically stable at a reasonable equilibrium level. In 2025, the RMB remained stable against a basket of currencies, and foreign exchange market trading volume hit a record high. A stable exchange rate environment provides conditions for a domestically-focused monetary policy, allowing the central bank more flexibility to support economic growth and price recovery.
Related Sectors and Stocks to Watch
Based on the above analysis, investors may focus on:
- AI Computing Power & Applications: Companies related to chips, servers, algorithms, and vertical applications.
- Innovative Drugs & CXO: Biotech firms with rich pipelines and global potential.
- Brokerages & Fintech benefiting from loose liquidity.
Related Stocks for Reference:
- AI Computing: Dawning Information Industry (603019.SH), Inspur Information (000977.SZ)
- AI Application: iFLYTEK (002230.SZ)
- Innovative Drugs: Jiangsu Hengrui Medicine (600276.SH), BeiGene (688235.SH)
- Brokerage: CITIC Securities (600030.SH)
This article does not constitute any investment advice. The stock market involves risks, and investment requires caution!