China AI a Non-Event; More Pulled-in Demand for 17 means Challenge for 18

Research evidence excerpt

China AI a Non-Event; More Pulled-in Demand for 17 means Challenge for 18

mployees, the analyst(s) responsible for the coverage of the financial instruments discussed in this report receives

compensation based in part on the overall performance of the firm, including investment banking income. We seek to update our research as appropriate,

but various regulations may prevent us from doing so. Aside from certain industry reports published on a periodic basis, the large majority of reports are

published at irregular intervals as appropriate in the analyst's judgement.

Investment Recommendation Record

(Article 3(1)e and Article 7 of MAR)

Recommendation Published July 16, 2026 12:49 P.M.

Recommendation Distributed July 16, 2026 12:49 P.M.

Company Specific Disclosures

Jefferies Financial Group Inc., its affiliates or subsidiaries beneficially owned 1% or more of the common equity of ZTE Corporation as of last month's end

(or the prior month’s end if this report is dated later than 10 days after the most recent month end).

Explanation of Jefferies Ratings

Buy - Describes securities that we expect to provide a total return (price appreciation plus yield) of 15% or more within a 12-month period.

Hold - Describes securities that we expect to provide a total return (price appreciation plus yield) of plus 15% or minus 10% within a 12-month period.

Underperform - Describes securities that we expect to provide a total return (price appreciation plus yield) of minus 10% or less within a 12-month period.

The expected total return (price appreciation plus yield) for Buy rated securities with an average security price consistently below $10 is 20% or more within

a 12-month period as these companies are typically more volatile than the overall stock market.