Industry Trends from the World Artificial Intelligence Conference

Weekly Thoughts

On July 9, the 2021 World Artificial Intelligence Conference was held at the Shanghai World Expo Exhibition and Convention Center. A group of leading technology companies participated in the exhibition with their latest technologies and products. From the conference and exhibition, we can get a glimpse of the development trend of the technology industry.

Underlying technology: AI underlying technology includes three levels: computing power, platform, and algorithm. This forum focused on photonic chips, privacy computing, graph computing, etc.
Autonomous driving: Electric vehicles + autonomous driving have become a consensus. Under the background of “double carbon”, it attracts more attention. However, consumer-grade autonomous driving faces constraints in safety, acceptance, and supervision, and the commercialization time may be much slower than expected. After obtaining 2-3 rounds of financing, if autonomous driving companies want to obtain the next round of financing, they need to have revenue, so they have turned to autonomous trucks. Westwell, Inceptio, and Pony.ai have cooperated with heavy truck companies to launch autonomous trucks. From a technical and regulatory perspective, the road to L5 autonomous driving is still very long, but for truck drivers who are prone to fatigue in long-distance transportation, low-level autonomous trucks are still attractive. In an industry with unclear commercialization, once an industry company successfully commercializes first, investors will rush to invest in the successful commercialization company and abandon companies that have not yet found commercialization. For autonomous trucks, autonomous driving technology is important, but manufacturing companies are more important. So, whoever can find a brand truck company to cooperate with has a greater probability of winning.
Chips: As a “chokehold” product, chips have attracted the attention of enterprises and the government. After the “Great Chip Making” last year, the surviving companies basically have several core products. PPT chip makers have been eliminated. Currently, there are roughly three types of chip making companies: traditional electronic companies: China Electronics Corporation, Inspur, Lenovo, etc.; Internet giants: BAT and Huawei all have their own chips; new forces in chip making: Cambricon, SenseTime, Canaan, etc. As an industry with high R&D investment, high risk, and fierce competition, playing a ticket may produce several products, but to form sustainable development, it also depends on market share to win. As the lowest-level core component of the electronic information industry, chips are either combined with operating systems as general core components for use by ecological enterprises, such as Intel+Win, Qualcomm+Android, or self-built ecology, such as Huawei smart hardware+HarmonyOS+HiSilicon chips, Apple family bucket+Mac+M series chips. If these two laws are universal, BAT will withdraw from the chip industry. How other companies develop depends on their technical strength and ability to maneuver.
Industrial Internet: After the consumer Internet represented by the digitalization of food, clothing, housing, and transportation, the industrial Internet characterized by lights-out factories, C2M, and unmanned operation is an important scene of the Internet. Among them, the digital upgrade of government affairs, electric power, banking, and manufacturing enterprises has the most market potential. Therefore, Internet giants
AGV: Under the influence of aging, rising labor costs, and improved labor protection standards, labor “shortage” has become the biggest challenge for manufacturing companies and public service industries. AGV solves repetitive labor such as handling and inspection very well. Need does not equal market. For AGV industry companies, whoever can provide overall solutions can survive. The biggest application of AGV is logistics warehouses, that is, whoever can win more express delivery companies can survive.
AI + Medical: The medical scenarios that current artificial intelligence companies are motivated to do include: medical image interpretation, surgical robots, and handling robots. The most mature is medical image interpretation because companies can profit from equipment + data processing services.
AI + Education: Including two categories: homework tutoring centered on taking pictures and searching for questions, and artificial intelligence interest education centered on children’s programming + hardware building blocks. As a public resource, education is strictly regulated. Under hot topics such as “chicken baby”, “involution”, and “off-campus training”, there is great uncertainty in AI + education. Relevant companies should consider how to transform.

Weekly Market

Period: 2021-06-05——2021-07-11

4-week review: The three major indices were stable this week. The top three wind industry gainers were beverages, fine chemicals, and trade; the top three losers were catering, power generation equipment, and shipping. The top three wind concept gainers were lithium battery electrolyte, lithium battery anode, and mobile phone battery; the top three losers were cement, gold, and Tibet revitalization.

3-week review: The three major indices were stable this week. The top three wind industry gainers were shipping, automobiles, and software; the top three losers were construction machinery, liquor, and forestry. The top three wind concept gainers were HarmonyOS Index, HMS Index, and Kunpeng Index; the top three losers were yellow rice wine, liquor, and OLE materials.

2-week review: The three major indices were stable this week. The top three wind industry gainers were beverages, leisure, and automobiles; the top three losers were precious metals, oil, and chemical fiber. The top three wind concept gainers were third-generation semiconductors, IGBT, and semiconductor silicon wafers; the top three losers were PTA, animal health, and gold index.

1-week review: The three major indices were stable this week. The top three wind industry gainers were shipping, power grid, and agriculture; the top three losers were coal, aerospace, and military trade. The top three wind concept gainers were Cambricon Index, semiconductor, and lithium battery electrolyte; the top three losers were coal, aero engine, and large aircraft.

This week’s review: The three major indices were stable this week. The top three wind industry gainers were basic metals, fine chemicals, and chemical raw materials; the top three losers were office, daily chemical, and pharmaceuticals. The top three wind concept gainers were rare earth, rare metals, and lithium battery cathode; the top three losers were medical services, CRO, and traditional Chinese medicine index.

Market (%)	Index	This Week	1 Week Ago	2 Weeks Ago	3 Weeks Ago
Shanghai Composite Index	3524.09	0.15	-1.95	2.34	-2.38
Shenzhen Component Index	14844.36	1.18	-2.45	2.88	-2.08
ChiNext Index	3409.31	2.26	-3.52	3.35	-1.41
Hang Seng Index	27344.54	-3.41	-1.8	1.69	0.22
HSCEI	1069.43	-2.25	-2.32	2.08	-1.92
Hang Seng HK Chinese Companies	3830.82	-3.19	-0.88	0.94	-2.51
Dow Jones Index	34870.16	0.68	0.44	3.44	-3.45
Nasdaq	14701.93	1.24	0.81	2.35	-0.28
S&P 500 Index	4369.55	1.15	0.758	2.74	-1.91

Market (CNY, Billion)	This Week	Previous Week	2 Weeks Ago	3 Weeks Ago
Shanghai Stock Connect	29.88	-109.42	209.77	-50.05
Shenzhen Stock Connect	53.32	-48.55	119.52	-89.79
Hong Kong Stock Connect	32.97	-80.95	50.53	-24.16

Positions

Code	Name	Dynamics of this Period
LKCO	Luokung Technology	Flat
F002083	Xinhua Xin Dongli Flexible Allocation	Flat
F011608	E Fund STAR Market 50 ETF Feeder A	Flat
F003834	Huaxia Energy Innovation Stock	Flat
F004616	China Europe Electronic Information Industry Shanghai-Hong Kong-Shenzhen Stock A	Flat
F001475	E Fund National Defense Industry Hybrid	Flat
F110005	E Fund Active Growth Hybrid	Flat
F009863	Fullgoal Innovation Trend Stock	Flat
F163406	Xingquan Herun Hybrid (LOF)	Flat
F001605	Franklin Templeton Sealand Shanghai-Hong Kong-Shenzhen Growth Selection Stock	Flat