China Automation How will AI change the market paradigm?

Research evidence excerpt

China Automation How will AI change the market paradigm?

1 July 2026

Equity Research Report

China Automation EquitiesAutomation

How will AI change the market paradigm? China

◆ We see fast adoption of AI in the industrial automation space Corey Chan* (Reg. No. S1700518100001)

given its decent value add in industrial automation solutions Head, A-share Industrials & Renewables Research HSBC Qianhai Securities Limited

corey.chan@hsbcqh.com.cn

◆ We see first mover advantage for industrial AI developers +86 21 5066 2001

given the high switching cost for customers Echo Zhang* (Reg. No. S1700525050001)

Analyst, A-share Industrials & Renewables Research

HSBC Qianhai Securities Limited

◆ Prefer Inovance (Buy) and Zhaowei-H (initiate at Buy) echo.x.zhang@hsbcqh.com.cn

+86 10 5795 2314

Amy Hu* (Reg. No. S1700520090001)

We see fast adoption of AI in the industrial automation space, given decent Analyst, A-share Industrials & Renewables Research

value add for its customers. Initially, AI adoption could be faster in process industries HSBC Qianhai Securities Limited

ruo.lin.hu@hsbcqh.com.cn

than in discrete industries given more quality data available for the former, in our +86 755 8898 3408

view. But the development of large AI models could eventually translate into demand Dun Wang*, CFA, CPA (Reg. No. S1700519060002)

for more robots in discrete industries, as AI-empowered robots could improve work Analyst, A-share Industrials & Renewables Research

efficiencies in areas like assembly, anomaly detection, and logistics. We see first dun.wang@hsbcqh.com.cn

mover advantage for industrial AI developers as industrial AI solutions involve deep +86 21 5066 2027

coupling of technology, data, and business operations at the customer end, leading Gary Yao* (Reg. No. S1700525080001)