Market Insights: Stock ETFs See Net Inflows as IC Substrate Leader Plans Expansion and “Hualong One” Nuclear Technology Advances

Shanghai Stock Exchange Morning Report – Stock ETFs Experience Net Inflow; Global Leader in IC Substrate Plans Capacity Expansion; Batch Production of “Hualong One”

Key Announcements

• The Ministry of Commerce will hold a press conference on February 5 to introduce key developments in the business sector.
• The Global Energy Interconnection Development and Cooperation Organization, in collaboration with the National Climate Center, will release the research report Global Wind, Solar, and Hydropower Capacity Forecast 2026 on February 5.
• On February 5, 354 billion yuan worth of 7-day reverse repos will mature.
• The Guotou Silver LOF will be suspended from trading from 10:30 AM on February 5, 2026, until that same day.

Highlights from Shanghai Stock Exchange

• During the recent 2026 Credit Market Work Conference, there was an emphasis on supporting the expansion of domestic demand, technological innovation, and small and micro enterprises, while also addressing debt risk resolution for financing platforms.
• The State Administration for Market Regulation has released 32 national measurement technical specifications, including the Pulsed Waveform Parameter Measuring Instrument Calibration System Table, which cover various fields such as intelligent connected vehicles, health, and smart meters.
• The Ministry of Culture and Tourism announced the resumption of travel for Shanghai residents to Kinmen and Matsu.
• A security issue working group consisting of representatives from Ukraine, the United States, and Russia began a new round of talks in Abu Dhabi, UAE.
• The Central Meteorological Administration issued blue alerts for strong winds and cold waves, predicting temperature drops of 6°C to 10°C across most of the central and eastern regions from the night of February 4 to February 7.
• The National Medical Insurance Administration’s office issued a notice regarding collective interviews with designated medical institutions for mental disorders, emphasizing self-inspection and rectification of illegal use of medical insurance funds.

Industry Focus

The demand for IC substrates continues to grow, prompting a major Japanese manufacturer, Ibiden, to announce an investment plan of approximately 500 billion yen (about 22.2 billion yuan) to enhance the production capacity of high-performance IC substrates. This expansion will cover the fiscal years 2026 to 2028 and will cater to applications in AI servers and high-performance servers. Ibiden is a global leader in the AI chip substrate market, serving major clients such as Nvidia, Intel, and AMD. IC substrates are crucial for advanced chip packaging technologies and are experiencing increased demand driven by advancements in packaging technologies like Chiplet packaging.

Chongda Technology recently stated that its subsidiary, Punowei, plans to invest 1 billion yuan in constructing an “end-side functional IC packaging substrate project” in Qideng Town, Kunshan City, Jiangsu Province. Oat Technology, a leader in FPC testing equipment, made significant technological advancements in IC substrate equipment in the second quarter of last year.

Industrial Updates

On February 4, the dome of the No. 3 unit at Zhangzhou Nuclear Power was successfully installed, signifying a major milestone for China Nuclear Power’s Hualong One project, which is now transitioning from construction to equipment installation. This achievement contributes to the ongoing batch production of Hualong One reactors, with 41 units either under construction or operational, making it the most prevalent nuclear technology globally.

As of now, approximately 440 nuclear power units are in operation worldwide, with a total installed capacity of nearly 397 GWe. The World Nuclear Association’s latest report suggests that if governments meet their nuclear power development goals, global capacity could reach 1,446 GWe by 2050, surpassing the 1,200 GWe target set in the Triple Nuclear Energy Declaration.

Corporate News

• Recently, Hengtong Optic-Electric’s advanced optical fiber material R&D center has completed the construction of its first phase expansion project and has now entered the equipment installation stage.
• Rui Xin Technology is planning to acquire control of Wuhu Deheng Automotive Equipment Co., Ltd. via a share issuance and cash payment, which is expected to constitute a major asset restructuring.
• Changan Automobile plans to repurchase shares worth 1 to 2 billion yuan, with specific amounts allocated for A-shares and B-shares.
• Guangdong Construction Engineering’s wholly-owned subsidiary won a bid for the “2GWh 3D Solid State Lithium Battery Intelligent Manufacturing (Jiangxi Yugan) Production Base Project” for 1.524 billion yuan.
• China Shipbuilding Defense’s subsidiary signed a contract with Evergreen Marine for the construction of 16 feeder container ships, with a total contract value between 736 million and 896 million USD.
• Shengxin Lithium Energy plans to acquire a 13.93% stake in Huirong Mining for 1.26 billion yuan, aiming for full control of the company.
• Slake Holdings’ subsidiary received a project designation letter from a South Korean battery client to supply cylindrical battery shell products from 2027 to 2031, with an estimated total procurement of 360 million units.
• Huibo Group signed a contract with NK Oil Company and its Iraqi subsidiary for a 225 million USD project in Iraq.

Market Trends

On February 3, stock ETFs (excluding cross-border ETFs) saw a net inflow of 6.965 billion yuan, marking the first net inflow since January 14. During the period from January 14 to February 3, stock ETFs experienced continuous net outflows totaling over 82 billion yuan. Notably, the Southern CSI 500 ETF recorded a net inflow of 3.566 billion yuan, while several other ETFs also attracted inflows exceeding 500 million yuan each. This influx, combined with market gains, has helped the scale of the Harvest CSI 300 ETF return to over 100 billion yuan, reaching 100.824 billion yuan.

Institutional investors have also shown interest, with JinkoSolar receiving a net buy of 104 million yuan from institutional seats on February 4, representing 2.52% of total trading volume. According to a report, JinkoSolar has signed a strategic cooperation agreement with Jingtai Technology to develop AI-powered high-throughput perovskite solar cells.

On the same day, Honghe Technology saw a net institutional buy of 95.766 million yuan, reflecting a 5.26% share of total trading volume, driven by strong demand for high-performance electronic fabrics. Other companies also experienced net buys from institutional seats.

Institutional Research

Shengda Resources disclosed that its subsidiary, Deyun Mining, is currently processing pre-construction permits for the Bayanbulag silver polymetallic mine, while other mining projects are also in various stages of development. The firm is focusing on enhancing production management and exploring mergers and acquisitions to increase its mineral resource reserves.

New Wind Power and Huawei agree that string-type and high-pressure cascade energy storage technologies will become mainstream in the future, highlighting their operational advantages. They plan to collaborate on technical exchanges and project cooperation to promote the development of new energy systems.