Yang Delon: Key Technology Innovation Directions Supported by the 15th Five-Year Plan Deserve Close Attention

Special Topic: Two Sessions Special Report | Fund Institutions Decode the 2026 Government Work Report

This year marks the beginning of the 14th Five-Year Plan, with the outline already approved at the Two Sessions. Key areas highlighted include technological innovation industries and future industries worth paying attention to. Last year, tech stocks performed exceptionally well, reflecting high investor interest in technological innovation. This year, technology is still expected to be one of the main investment themes. Investors can focus on sectors such as humanoid robots, chips and semiconductors, computing power algorithms, power grid equipment, controlled nuclear fusion, quantum technology, commercial aerospace, and biomedicine, as outlined in the “14th Five-Year Plan.”

Chairman Wu Qing of the China Securities Regulatory Commission stated at the press conference on March 6 during the Fourth Session of the 14th National People’s Congress that currently, the total market capitalization of A-shares exceeds 110 trillion yuan, with over 5,400 listed companies, and annual revenue surpassing half of GDP. Among the CSI 300 components, the weight of strategic emerging industries has reached 45%, with continuous accumulation of new and improved development momentum. Public funds, social security, insurance, and pension funds hold more than 50% growth in circulating A-share market value.

Wu Qing further emphasized that efforts will be made to deepen reforms of the ChiNext Board, support more tech innovation companies to list, relax listing conditions, and create a green channel for tech startups. These measures strongly support the development of new productive forces, meet current economic transformation needs, and enhance the support of capital markets for the real economy. Currently, China’s economy is in a transition period; many traditional industries face difficulties, slowing or even declining growth, while emerging industries are thriving and attracting substantial capital inflows.

We are in the midst of the fourth technological revolution characterized by artificial intelligence, with the “AI+” initiative fully underway. Industries related to AI are developing rapidly. China has leading advantages in large models, AI applications, humanoid robots, and other fields. With the world’s largest population and consumer market, China can leverage its market scale to actively promote the implementation of the “AI+” initiative, creating more value from AI applications and supporting economic growth.

In recent years, U.S. AI tech stocks have surged significantly, reaching new market caps, but this year, valuation bubbles have appeared, with increased divergence between bullish and bearish views. U.S. AI stocks have shown volatile fluctuations. China’s tech sector still offers considerable investment opportunities this year, but with differentiation: companies capable of technological breakthroughs and strong R&D may continue to perform well, while those merely riding on hype or concepts may see significant declines. Therefore, investment in tech stocks this year should focus on fundamentals. Long-term, technological innovation remains a key development direction.

Beyond the tech sector, resource stocks also have significant growth potential this year, including non-ferrous metals, oil, coal chemicals, and power companies—resources and energy sectors less likely to be replaced by AI.

The government work report lists “building a strong domestic market” as the top task for this year, with a focus on implementing special actions to boost consumption. This is the second consecutive year that expanding domestic demand has been prioritized. Consumption is the main engine driving economic growth. How to expand domestic demand, boost consumption, and address the current “weak supply, strong demand” situation—allowing people to consume, dare to consume, and want to consume—has become a hot topic among NPC and CPPCC delegates.

Since the beginning of the year, a new round of national subsidy funds has been allocated, with a series of concrete measures to promote consumption. Recently, the State Council Information Office held a press conference stating that macro policies in 2026 will focus on strengthening the domestic big cycle and comprehensively expanding domestic demand. Relevant departments will study and issue the “Implementation Plan for Expanding Domestic Demand from 2026 to 2030,” aiming to promote mutual reinforcement of supply and demand and upgrade the cycle. This year, 250 billion yuan in special national bonds will be issued to support old-for-new consumer goods and further stimulate consumption growth.

An important aspect of boosting consumption is vigorously developing the capital market. A sustained “slow bull” market can effectively increase residents’ property income, enhancing their willingness and capacity to consume, thus positively impacting consumption. Currently, China’s capital market has entered this long-term slow bull phase, with a good start. All sectors should actively nurture this hard-won market trend, improve investor confidence, and enable investors to gain property income through stocks or funds—an important way to drive consumption.

Efforts to boost investment will also continue this year. Fiscal policies are expected to become more proactive and effective, with large projects like the Yajiang Hydropower Project and the China-Tibet Railway driving investment growth. The combined efforts of investment and consumption will effectively stimulate domestic demand and are crucial for stabilizing the economy.

The “14th Five-Year Plan” approved at the Two Sessions highlights key support for technological innovation industries and future sectors, which are expected to perform well through 2026. However, it’s important to note that investing in tech stocks this year will be more challenging, as many stocks experienced significant gains last year, with profit-taking pressures. Any turbulence could lead to adjustments. Recently, due to escalating tensions in the Middle East, crude oil prices have fluctuated sharply, attracting large capital inflows into oil and natural gas sectors, which saw rapid price increases followed by significant corrections—highlighting the volatility driven by events. Investors should be cautious, avoid chasing highs, and be prepared for risks. This has caused a substantial decline in tech stocks previously. If tensions in the Middle East ease and U.S. President Trump is expected to seek to withdraw from Middle Eastern conflicts under domestic pressure, the tech sector may rebound and continue leading the market.

Humanoid robots are China’s fourth major industry after home appliances, smartphones, and new energy vehicles. Since early last year, I have been optimistic about the prospects of humanoid robots, which also saw substantial gains last year. After the Spring Festival, the sector experienced a deep correction, but based on recent timing and scope, it appears to be gradually bottoming out and showing signs of activity. As Middle East tensions potentially ease, the market will gradually move away from event-driven shocks and develop along its own rhythm. The tech and resource stocks that truly represent the direction of economic transformation still have investment value, and market performance is expected to improve gradually.

This year, the government work report states that more proactive fiscal policies will continue, with a deficit rate planned around 4%, and a deficit scale of 5.89 trillion yuan, an increase of 230 billion yuan from last year. It also plans to issue 1.3 trillion yuan in ultra-long-term special bonds to support “dual” and “new” projects, and 300 billion yuan in special bonds to support large state-owned commercial banks’ capital replenishment. These measures will help stabilize the economy and boost growth.

Currently, China’s residents hold over 165 trillion yuan in savings, with fixed deposits maturing totaling 50 trillion yuan this year. Facing declining deposit interest rates, these maturing deposits may seek higher-yield products. Some low-risk investors will continue to prefer bank deposits, bank wealth management, and bonds, while higher-risk investors, amid a strengthening capital market, will gradually enter the market. Channels for residents to invest include direct account opening and fund purchases. This year, the sales of funds, especially equity funds, are expected to rebound, providing continuous incremental funds for this long-term slow bull market.

(Author: Chief Economist and Fund Manager at Qianhai Kaiyuan Fund)