Fusai Technology (301529) Rallies to 20% Limit-Up and Hits All-Time High: New Energy Vehicle Sector Drives the Rally of This Recently Listed Stock

Fusai Technology (301529) surged to a 20% limit-up on January 16, 2026, closing at RMB 150.43 to hit an all-time high [1][2]. As a recently listed stock in the auto parts sector, the company focuses on the R&D and production of dry friction plates and wet paper-based friction plates. It benefits from better-than-expected data in the new energy vehicle industry and the market style shift of capital rotating from high-valued sectors such as AI to auto parts. Technically, as a recently listed stock, it has a small free float and active stock liquidity; after entering the all-time high zone, there is no obvious resistance level above. Fundamentally, it benefits from huge room for domestic substitution and the continuous upward trend of industry prosperity. The short-term strength is expected to continue, but potential risk factors such as high volatility of recently listed stocks and valuation risks need to be watched out for.

The strong limit-up of Fusai Technology on January 16 is not an isolated incident, but the result of resonance of multiple factors. From the industry perspective, data from the China Association of Automobile Manufacturers shows that in 2025, China’s auto production and sales both exceeded 34 million units, ranking first in the world for 17 consecutive years; new energy vehicle production and sales both exceeded 16 million units, ranking first in the world for 11 consecutive years [2][3]. This better-than-expected data has greatly strengthened the market’s confidence in the auto industry, especially the new energy vehicle sector, providing solid industry beta support for Fusai Technology.

From the perspective of sector effects, auto stocks performed strongly throughout the day on January 16. Nearly 10 stocks including Fusai Technology, Demaishi, Siling Intelligent Drive, Power New Technology, Ningbo Huaxiang, Haian Group, and Xinzhi Group hit limit-up or rose by more than 10% [2][4]. On the same day, the semiconductor industry chain expanded its gains in the afternoon, led by the memory sector, and the overall market risk appetite improved, with an obvious trend of capital concentrating on growth sectors. This market style shift has made the auto parts sector favored by incremental capital, and Fusai Technology, as a leader in the niche sector, naturally benefits.

From the perspective of its status as a recently listed stock, Fusai Technology, as a recently listed stock on the ChiNext Board, features low subscription success rate for new shares, strong expectation of share capital expansion due to its small share capital, and high stock price elasticity due to its relatively small free float [5]. These characteristics make it an ideal target for short-term capital speculation. In addition, Fusai Technology has joined the ranks of RMB 100+ stocks listed on the Shanghai, Shenzhen, and Beijing Stock Exchanges (stock price exceeding RMB 100), and high-priced stocks are usually favored by institutional investors and conservative capital [4].

From a technical analysis perspective, Fusai Technology shows a typical strong breakout pattern. The closing price of RMB 150.43 hit an all-time high, and the 20% limit-up board shows strong bullish momentum [1][2]. As a recently listed stock, there is no historical trapped capital pressure level above it; after breaking through the all-time high, it has entered a “resistance-free zone”, which theoretically leaves room for further upward movement.

However, technical risk signals that need attention include: 67 stocks hit limit-up on the day, but 81 stocks hit limit-down, showing obvious market differentiation [2]. This extreme differentiation indicates that market sentiment is unstable, and capital rotates rapidly between different sectors. In addition, AI application sectors pulled back across the board, showing an obvious feature of capital rotating from high-valued theme stocks to underperforming sectors. The rise of Fusai Technology is partly due to this sector rotation rather than a fundamental change in the company.

From the perspective of trading volume, the total turnover of the two markets (Shanghai and Shenzhen) has continued to exceed RMB 3 trillion, with incremental capital pouring in, and A-shares maintaining an active trend [3]. Fusai Technology is both a recent all-time high stock and a recent strong stock. On the day, the total net inflow of main capital into all-time high stocks reached RMB 9.73 billion [1], and the auto sector as a whole saw a net capital inflow [4]. The matching trading volume provides liquidity support for its short-term strength.

Fusai Technology’s main business is the R&D, production, and sales of dry friction plates and wet paper-based friction plates, whose products are mainly used in automotive clutch systems [5][6]. Specifically, dry friction plates are used in manual transmissions (MT), automated manual transmissions (AMT), and torque dampers, suitable for traditional fuel vehicles and new energy hybrid vehicles; wet paper-based friction plates are used in wet clutches and brakes of automatic transmissions. Compared with dry friction plates, they have a 5-6 times longer service life and more stable performance, and are core components of AT, DCT, and hybrid transmissions [5][6].

From the perspective of market space, according to industry data, the domestic dry friction plate market size was approximately RMB 1.61 billion in 2024, and is expected to grow to RMB 1.75 billion by 2027; the global dry friction plate market size was approximately RMB 11.9 billion in 2024, and is expected to grow to RMB 13.2 billion by 2027 [6]. More importantly, with the rapid development of new energy hybrid vehicles, the proportion of vehicles equipped with dry friction plates is on the rise, which provides incremental market space for the company.

In terms of competitive position, Fusai Technology is one of the domestic dry friction plate manufacturers with relatively complete specifications and varieties. It has established long-term and stable cooperative relationships with major domestic clutch manufacturers, presided over or participated in the formulation of a number of national and industry standards, and its product performance is comparable to that of internationally renowned dry friction plate brands [6]. In addition, the localization rate of wet paper-based friction plates is low, with great room for improvement. The state has included automatic transmission friction materials in the key development plan, and policy support provides a guarantee for the company’s long-term development.

The strong performance of Fusai Technology reveals the deep logic of market capital rotation. The current market shows an obvious feature of “high-low rotation”: AI application sectors pulled back across the board, with capital rotating from high-valued theme stocks to traditional growth sectors such as auto parts [2]. This rotation is not driven by fundamental changes, but by the switch of valuation cost-effectiveness. After previous adjustments, the auto parts sector has relatively reasonable valuations, and the better-than-expected data of the new energy vehicle industry provides a catalyst.

The superposition of the dual attributes of a recently listed stock and a RMB 100+ stock creates a “capital siphon effect”. High-priced stocks are usually regarded as market benchmarks; after joining the ranks of RMB 100+ stocks, market attention increases significantly, and institutional investors’ willingness to allocate capital strengthens [4]. The attribute of a recently listed stock gives it stronger stock price elasticity, making it easier to obtain excess returns when market sentiment is high.

As a leader in the niche sector of the auto parts industry, Fusai Technology’s strong performance has industry demonstration significance. As core auto components, friction plates have huge room for domestic substitution. The low localization rate of wet paper-based friction plates means that the company has significant growth potential. With the continuous improvement of the localization rate of the new energy vehicle industry chain, Fusai Technology is expected to obtain long-term valuation support from the “domestic substitution” narrative.

From a more macro perspective, the limit-up of Fusai Technology is a microcosm of the intensified structural differentiation in the A-share market. 105 stocks hit all-time highs in closing prices on the day, while 81 stocks hit limit-down [1][2]. This extreme differentiation indicates that market capital is accelerating its concentration on high-quality targets, while stocks without fundamental support are marginalized. This trend may herald a shift in the investment logic of the A-share market — evolving from theme speculation to fundamental investment.

Fusai Technology’s entry into the strong stock pool reflects not only short-term capital behavior, but also the market’s confidence in the new energy vehicle industry chain. In 2025, new energy vehicle production and sales both exceeded 16 million units, ranking first in the world for 11 consecutive years [2][3]. This data far exceeded market expectations, completely dispelling the market’s concerns about the penetration rate ceiling of new energy vehicles. As a core supporting link of new energy vehicles, auto parts directly benefit from the growth of vehicle sales.

In addition, the technical pattern of Fusai Technology reveals the cyclical law of speculation on recently listed stocks. As a recently listed stock on the ChiNext Board, its limit-up performance is highly correlated with the overall market risk appetite. When market sentiment is high and incremental capital enters the market, recently listed stocks usually benefit first; when market sentiment cools down, recently listed stocks are also more vulnerable to sell-offs. This high volatility feature requires investors to pay close attention to changes in market sentiment, and do a good job in position management and stop-loss/profit-taking.

Fusai Technology’s current stock price has hit an all-time high. As a recently listed stock, it has limited public financial data and insufficient valuation references [1]. There is insufficient historical data to support the valuation level corresponding to the closing price of RMB 150.43, and there may be a risk of valuation bubble. Investors should pay attention to the company’s subsequent financial data disclosures to verify whether the current stock price has overdrawn future growth expectations.

Small free float leads to poor chip stability, and high volatility is an inherent feature of recently listed stocks [5]. Once market sentiment reverses or profit-taking occurs, the stock price may pull back rapidly. In addition, recently listed stocks have relatively weak liquidity, and large transactions may have a greater impact on the stock price, so investors need to pay attention to liquidity risks.

The stock price has risen sharply in the short term, and may pull back rapidly if market sentiment cools down. The 81 stocks hitting limit-down on the day shows obvious market differentiation [2], which may indicate that short-term adjustment risks are accumulating. Investors should set a reasonable stop-loss level to protect existing profits.

The auto industry is cyclical, and a decline in vehicle sales will be transmitted to the parts segment. Although the penetration rate of new energy vehicles continues to increase, the shrinking traditional fuel vehicle market may affect the demand for dry friction plates. In addition, fluctuations in the prices of raw materials such as steel may affect the company’s gross profit margin.

As a ChiNext stock with a 20% limit-up, investors need to closely watch whether it opens the limit-up board on the next day and the strength of capital acceptance. If there is volume expansion with stagnant growth or a high opening followed by a sharp drop on the next day, it may indicate that short-term bullish momentum has weakened.

The industry fundamentals continue to improve. The better-than-expected production and sales of new energy vehicles in 2025 provide a solid foundation for the company’s performance growth [2][3]. As the penetration rate of new energy vehicles continues to increase, hybrid models are growing rapidly, and the proportion of vehicles equipped with dry friction plates is on the rise. The company is expected to directly benefit from this structural change.

The localization rate of wet paper-based friction plates is low, and the company, as an industry leader, is expected to benefit from the domestic substitution process [6]. The state has included automatic transmission friction materials in the key development plan, and policy support provides a guarantee for the company’s long-term development. As domestic vehicle manufacturers’ recognition of domestic parts increases, the company is expected to obtain more orders.

After entering the strong stock pool and the list of all-time high stocks, market attention has increased significantly [1]. On the day, the total net inflow of main capital into all-time high stocks reached RMB 9.73 billion [1], and the continuous inflow of incremental capital is expected to provide short-term support for the stock price. If the trend of capital rotating from high-valued sectors such as AI to auto parts continues, the company is expected to continue to benefit.

After the stock price hits an all-time high, there is no obvious trapped capital pressure level above, and there is theoretically room for further upward movement [1]. For existing investors, this technical pattern provides an opportunity to follow the trend; for off-market investors, if the stock price pulls back to the 5-day or 10-day moving average and stabilizes, it may provide a good entry opportunity.

Strength is expected to continue, but investors need to closely watch matching trading volume and sector sentiment. If it continues to hit limit-up with expanded volume on the next day, the short-term strong pattern is confirmed; if there is volume expansion with stagnant growth or the limit-up board opens, short-term pullback risks need to be watched out for. Risk priority: High; Time sensitivity: High.

It depends on whether the new energy vehicle industry data can continue to exceed expectations and the company’s performance verification. If the company releases better-than-expected performance forecasts or obtains important orders, the stock price is expected to receive further support; if market style shift leads to capital outflow from the auto sector, it may face adjustment pressure. Risk priority: Medium; Time sensitivity: Medium.

Benefiting from the development of new energy vehicles and domestic substitution, but it is necessary to continuously track changes in the company’s fundamentals. The low localization rate of wet paper-based friction plates means that the company has significant long-term growth space, but whether the current valuation level is reasonable needs to be verified by subsequent financial data. Risk priority: Low; Time sensitivity: Low.

Fusai Technology (301529) surged to limit-up and hit an all-time high of RMB 150.43 on January 16, 2026, mainly benefiting from the superposition of multiple factors such as better-than-expected data in the new energy vehicle industry, the overall strength of the auto parts sector, and capital rotation from high-valued sectors such as AI to growth sectors. The company’s main business is dry friction plates and wet paper-based friction plates, which are core components of automotive clutch systems, benefiting from the rapid development of new energy vehicles and the domestic substitution process.

Technically, as a recently listed stock, it has a small free float and active stock liquidity. After hitting an all-time high, there is no obvious resistance level above, but investors need to watch out for profit-taking pressure brought by the sharp short-term rise. Fundamentally, as a domestic dry friction plate manufacturer with relatively complete specifications and varieties, the company has certain competitive advantages. The low localization rate of wet paper-based friction plates provides long-term growth space for the company.

Comprehensive Judgment: Short-term strength is expected to continue, but as a recently listed stock, it has high volatility. Investors are advised to participate cautiously according to their own risk preferences, focusing on changes in trading volume, sector rotation, and the company’s subsequent fundamental data disclosures. Investment decisions should be based on a complete risk assessment and personal investment goals, rather than simply chasing short-term gains.

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[1] Securities Times Network - 105 Stocks Hit All-Time Highs in Closing Price
[2] The Paper - A-Shares Open High and Close Low, Three Major Indices Close Down
[3] CNFOL.com - Strongest Market Hot Spots on January 16
[4] Securities Times Network - Number of RMB 100+ Stocks on Shanghai, Shenzhen and Beijing Stock Exchanges Reaches 214
[5] Kongming’s Market View - Analysis of the Rise of Recently Listed Stocks
[6] Eastmoney.com - Dry Friction Plates Are Comparable to International Advanced Levels