On January 29, local time, billionaire Elon Musk (Elon Musk), founder of the American neurotechnology company Neuralink, said on social networking platform X that Neuralink had completed the first human brain device implantation surgery and that the users had “recovered well.”

Musk also said, “Preliminary results show that neuronal spike testing is very promising.” According to it, Neuralink's first product was named “Telepathy (Telepathy).”

Currently, the brain-computer interface has passed the technical demonstration period and is about to enter the stage of industrialization introduction. Judging from the technical route, invasive brain-computer interface technology solutions are highly feasible; through a series of technical iterations, the current level of perfection of invasive brain-computer interface technology has been greatly improved, and core pain points such as high thresholds for craniotomy surgery and short product life have basically been solved.

In the brain-computer interface industry chain, Neuralink's technical solutions have the best prospects for commercialization. At the end of January 2024, Musk confirmed that Neuralink had completed its first human implantation and is currently in good condition. With the verification of Neuralink's technology path and business model, intrusive brain-computer interfaces are expected to first be implemented on a large scale in medical scenarios.

The US Food and Drug Administration (FDA) approved Neuralink for its first human implantation test in May last year. In September of the same year, Neuralink said it had obtained permission to recruit paralyzed patients for human experiments. According to CNBC, human clinical trials are a step on Neuralink's commercialization path, and medical device companies must go through multiple rounds of intensive data security collection and testing before they can obtain final approval from the FDA.

The A-share market “listens to the wind and rain.” Amid the general decline, the brain-computer interface sector generally rebounded and surged against the market, further highlighting that the A-share capital brain needed to supplement its IQ. US technology stocks have generally soared over the years. This is because of hard technology strength+performance. The core is performance growth. Whether it's Tesla or Nvidia, which has recently become popular, there is strong performance support behind it. On the other hand, we A often treat scientific experiments as being foolish in logic. In fact, this is also one of the main reasons why A-shares have declined for a long time: there is a lack of real money to deliver results.

CITIC Construction Investment believes that communication methods between humans and artificial intelligence are constantly being upgraded, and brain-computer interface technology is breaking through human physiological boundaries, not only providing unprecedented possibilities for people with disabilities, but is also expected to become the next generation of human-computer interaction. Research institutes estimate that the brain-computer interface-related market will reach 70 billion US dollars to 200 billion US dollars between 2030 and 2040.

According to the Minsheng Securities Research Report, as an emerging industry, brain-computer interface technology is mainly divided into hardware layer and software layer. The hardware layer includes an EEG acquisition device and an external control device. EEG acquisition equipment includes core components and devices, electrodes, BIC chips, power supplies and materials; external control external devices include robotic arms, bionic hands, drones, etc. The software layer includes biosignal analysis, core algorithms, communication computing, and security privacy.

The focus is good, but most corporate research is still in the laboratory stage, and the stock market is simply in the storytelling stage. Instead, the Hong Kong market seems much more rational. Nanjing Panda H Shares are no longer willing to follow a fool, while Xinwei Medical-B's full-day turnover is only HK$110,000. In fact, to a greater or lesser extent, they are actually related to the brain-computer concept.

Xinwei Medical-B (06609): On June 25 of last year, the first domestic interventional brain-computer interface independently developed by China successfully completed animal testing in Beijing. The interventional brain-computer interface was jointly developed by Duan Feng's research team, a professor at the School of Artificial Intelligence at Nankai University, and Xinwei Medical.

Nanjing Panda Electronics Co., Ltd. (00553): In June of last year, the company stated on the investor interactive platform in response to the development progress of the two projects “Research and development of key technologies for multi-modal human-computer interaction system integration based on brain-computer interface technology” and “digital twin emergency warning system key technology research and development for accurate monitoring of optical cables” that the brain-computer interface R&D project was jointly declared by the company, relevant universities, and the Suzhou Brain-based Research Institute. Currently, the project is still in the initial research stage.

The recent focus of the Hong Kong stock market is still the return of valuations of central and state-owned enterprises, and close attention is being paid to macro-fundamental improvements brought about by changes in real estate policies. Although the A-share GEM index has repeatedly reached new lows, the latest results announced by the Ningde Era have already entered the category of 15 times PE, and they may also be a bit excited about the large off-market capital.

The AH index accelerates the bottoming phase; on the contrary, it is better than cutting meat slowly. No, yesterday's most noteworthy news for investors is that yesterday IFM released the latest forecast. The policy interest rates of the Federal Reserve, the European Central Bank, and the Bank of England will remain at the current level until the second half of this year. Thereafter, as inflation approaches the target level, policy interest rates will gradually decline. The IMF expects the Bank of Japan to maintain an overall easing stance. In other words, interest rate cuts in Europe and the US after 2024 are almost a no-brainer.

Li Daokui, dean of the Institute of Chinese Economic Thought and Practice at Tsinghua University recently stated at the “Digital Heritage Forum” and “Zhongwen Silk Road” digital cultural relics exchange event, “Because the stock market reacted early, if some policies are put in place in the first half of the year, our stock market may respond early. This year (2024) can turn into a bull market. We hope to be a long bull market.”

Disclaimer: This article only provides shareholder discussion and does not constitute investment advice. The author does not hold any of the Hong Kong stocks mentioned above. The stock market is risky, so you need to be careful when investing!