Financial Market Update – January 8, 2026

The Shenzhen Stock Exchange experienced a broad rally in the industrial automation and artificial‑intelligence (AI) sectors, driven largely by policy support and positive earnings prospects. The headline driver was the release of the “Artificial Intelligence + Manufacturing” action plan, issued on 7 January by the Ministry of Industry and Information Technology and seven other ministries. The plan focuses on accelerating the integration of AI into industrial equipment and encouraging the development of next‑generation AI‑enabled CNC systems.

Impact on Key Shares

  • Huazhong Numerical Control (HCNC)

  • The company’s shares rose more than 10 % early in the session, following the same trend as its peers in the industrial‑mother‑machine (IMM) segment.

  • HCNC, which specialises in CNC controllers, machines, and infrared products, is positioned to benefit from the policy’s emphasis on AI‑driven industrial equipment and the upcoming demand for intelligent machining systems.

  • The stock closed at 29.33 CNY on 5 January, well below its 52‑week low of 22.88 CNY and still trailing its 52‑week high of 37.8 CNY.

  • Other Notable Gains

  • Hongxin Technology and China First Heavy Industries both logged second consecutive daily gains.

  • Dongtu Technology, East China Numerical Control, and Guojichongzhuang joined the rally, each posting increases of more than 10 %.

  • Huazhong Numerical Control’s performance was in line with the broader trend of the Industrial Mother‑Machine sector, which benefited from the same policy announcement.

Market Sentiment and ETF Activity

  • The Robot ETF (562500), which tracks the Chinese robot industry, recorded a 1.44 % decline and a 12.53 billion CNY intraday volume, signalling heightened liquidity as investors re‑balanced positions.

  • Hongxin Technology outperformed the ETF, posting a 10.04 % increase.

  • Huazhong Numerical Control added to the upside, with gains exceeding 3 %.

  • International news added to the backdrop: Korean President Lee Jae‑myung’s visit to Shanghai and the handshake with Chinese robot representatives underscored cross‑border cooperation in robotics and AI, further buoying market sentiment.

Policy Context

The “Artificial Intelligence + Manufacturing” action plan outlines:

  1. Promotion of AI integration across industrial sectors.
  2. Accelerated development of AI‑enabled industrial mother‑machines and robots.
  3. Research into next‑generation AI CNC systems with enhanced decision‑making and analytical capabilities.

The plan is expected to generate significant demand for HCNC’s product lines, particularly its AI‑enabled CNC controllers and related servo drives.

Key Takeaways

  • HCNC’s share price is on a sharp uptrend following the policy release, aligning with the broader IMM sector rally.
  • The company’s business model—design, production, and service of CNC and infrared systems—positions it to capture the anticipated AI‑driven manufacturing boom.
  • Investors should monitor HCNC’s earnings releases and supply‑chain developments, as these will provide further insights into how the policy translates into revenue growth.