China Market Weekly Update

This week's investment market showed a trend of technology-driven industrial upgrading, with particular focus on hard technologies, green energy, and artificial intelligence. Several landmark events and major investment projects were implemented, reflecting the high importance China's capital market places on high technology and sustainable development.

In the semiconductor and display industry, Hefei Guoxian Technology Co., Ltd.'s 8.6-generation AMOLED production line project with ¥55 billion investment stands out as Anhui Province's largest single investment in the display industry. The project's main factory building was topped out in just 168 days, setting a new global speed record. Shenzhen Wanliyuan Technology Co., Ltd. launched a 90GHz ultra-high-speed real-time oscilloscope ranking second globally, marking China's first breakthrough in breaking Western blockade of high-end oscilloscopes. ChipON's acquisition of Pixelworks (Zudian Semiconductor) for ¥930 million is particularly strategic, as Pixelworks holds over 80% market share in global 3LCD projector main control chips, filling a critical gap in domestic processor capabilities.

In the autonomous driving and mobility sector, Pony.ai successfully passed the Hong Kong Stock Exchange hearing, becoming a candidate for dual listing on both US and Hong Kong markets. The company's Robotaxi business demonstrated strong momentum with 178.8% year-over-year growth in the first half of 2025, further expanding its financing channels and global influence. This milestone reflects growing investor confidence in China's autonomous driving technology commercialization.

Notable market trends emerging from this week's policy developments include opportunities in consumer goods trade-in and equipment updates under the economic stimulus package; continued policy benefits for high-tech manufacturing, especially robotics, drones, new energy vehicles and their charging infrastructure; increased demand for legal services in network data, personal information protection, virtual property, and unfair competition as internet court jurisdiction expands; and potential supply chain impacts in key resource and technology areas like rare earths and semiconductors due to ongoing international trade frictions.

The technology market this week shows China's continued progress in artificial intelligence and intelligent vehicles. According to China Internet Network Information Center, China's generative AI user base has reached 515 million as of June 2025, representing a six-month growth rate of 106.6%, with users under 40 accounting for 74.6% of the total. Volcano Engine's Doubao large model achieved a milestone with daily token invocations exceeding 30 trillion, demonstrating the massive scale of AI infrastructure deployment.

In the intelligent driving and autonomous vehicle sector, BYD's Thunder Eye assisted driving system represents a significant advancement, with daily data generation breaking through 100 million kilometers. The company's smart driving vehicle cumulative sales have exceeded 1.7 million units, indicating strong market adoption of advanced driver-assistance technologies. These developments underscore China's rapid progress in autonomous driving data accumulation and commercial deployment.

In the semiconductor and computing sectors, significant breakthroughs were achieved. Shenzhen Wanliyuan Technology Co., Ltd.'s 90GHz "ultra-high-speed real-time oscilloscope" ranks second globally, breaking the Western blockade of high-end oscilloscopes. Alibaba Cloud's "Aegaeon" compute pooling solution demonstrated remarkable efficiency by reducing NVIDIA H20 GPU requirements by 82% during a three-month beta test, cutting the needed units from 1,192 to just 213. Cambricon Technologies' financial report showed exceptional growth with Q3 revenue increasing 1,332.52% year-over-year to ¥1.727 billion, turning profitable with a net profit of ¥567 million.