Group 1 - The core viewpoint of the article highlights the performance of the China Securities Hong Kong Stock Connect TMT Index, which has shown significant growth over various time frames, including a 3.32% increase in the past month, 17.53% in the past three months, and 27.89% year-to-date [1] - The index comprises 50 listed companies in the TMT sector selected from the Hong Kong Stock Connect, reflecting the overall performance of related industry companies [1] - The top ten weighted companies in the index include Xiaomi Group-W (15.3%), China Mobile (14.32%), Tencent Holdings (13.96%), and others, indicating a concentration in major players within the TMT sector [1] Group 2 - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December each year [2] - In special circumstances, the index may undergo temporary adjustments, such as removing companies that are delisted or adding new TMT companies that rank in the top ten by market capitalization in the Hong Kong market [2] - The index's holdings are entirely composed of companies listed on the Hong Kong Stock Exchange, with a sector breakdown showing 55.48% in communication services and 44.52% in information technology [1]

Group 1 - The Invesco Great Wall CSI National New Hong Kong Stock Connect Central Enterprise Dividend ETF (520990) closed up 1.05% on July 10, with a trading volume of 163 million yuan [1] - The fund was established on June 26, 2024, with an annual management fee of 0.50% and a custody fee of 0.10% [1] - As of July 9, 2024, the fund's latest share count was 4.955 billion, with a total size of 4.699 billion yuan, reflecting a year-to-date share increase of 32.27% and a size increase of 34.20% [1] Group 2 - The current fund managers are Zhang Xiaonan and Gong Lili, with Zhang managing since June 26, 2024, yielding a return of -1.91%, while Gong has managed since July 25, 2024, with a return of 10.03% [2] - The fund's top holdings include China Mobile, China Petroleum, COSCO Shipping, CNOOC, China Shenhua, Sinopec, China Telecom, China Unicom, China Coal Energy, and China Merchants Bank, with respective holding percentages [2] Group 3 - The top holdings and their respective percentages are as follows: - China Mobile: 11.04% - China Petroleum: 10.43% - COSCO Shipping: 10.25% - CNOOC: 10.01% - China Shenhua: 8.89% - Sinopec: 8.21% - China Telecom: 5.39% - China Unicom: 3.65% - China Coal Energy: 2.38% - China Merchants Bank: 2.33% [3]

Core Viewpoint - The "Shanghai Summer" International Consumption Season and Shanghai Tourism Festival are actively promoting tourism in Pudong, aiming to enhance the experience for both domestic and international visitors through various initiatives and events [1]. Group 1: Tourism Promotion Initiatives - Pudong has launched a multi-language promotional video to attract inbound tourists, which will be aired on over 210 international flight routes starting mid-July [2]. - A comprehensive travel guide in Chinese, English, Japanese, and Korean has been created, detailing ten major attractions, hotels, and shopping options for inbound tourists [2]. - Over 150 events will be organized, including Chinajoy, Disney Summer Celebration, and various themed festivals, to provide a one-stop service for visitors [2][4]. Group 2: Enhanced Visitor Experience - Pudong aims to improve the inbound travel experience by optimizing customs clearance services and providing a friendly international consumption environment [4]. - Communication services have been enhanced with a one-stop service hub at Pudong International Airport, offering short-term SIM cards for foreign travelers [4]. - Payment convenience has been improved with the introduction of the "EasyGo" platform and a dedicated payment service center for international visitors at the airport [4]. Group 3: Tax Refund and Collaboration - Pudong has over 300 stores registered for departure tax refunds, with centralized service points in popular shopping areas [5]. - Collaborative products between attractions and hotels have been introduced, such as complimentary tickets to local attractions with hotel stays [5]. - Special multi-day tour packages focusing on family, technology, and cultural experiences will be launched during the tourism season [5].

Group 1 - The overall shareholding ratio of southbound funds in Hong Kong Stock Connect stocks is 17.83%, with 213 stocks having a shareholding ratio exceeding 20% [1] - As of July 9, southbound funds held a total of 4,482.29 million shares, accounting for 17.83% of the total share capital of the stocks, with a total market value of 51,131.42 million HKD, representing 13.50% of the total market value [1] - The highest shareholding ratio by southbound funds is in China Telecom, with 103.31 million shares held, accounting for 74.43% of the issued shares [1] Group 2 - Southbound funds with a shareholding ratio exceeding 20% are mainly concentrated in the healthcare, industrial, and financial sectors, with 43, 32, and 31 stocks respectively [2] - The top stocks with high shareholding ratios include China Telecom (74.43%), Green Power Environmental (69.92%), and China Shenhua (67.37%) [2][3] - A significant portion of the stocks with high southbound fund holdings are AH concept stocks, with 119 out of 213 stocks (55.87%) having a shareholding ratio over 20% being AH stocks [1]

Core Viewpoint - China Telecom officially launched the "Xing Xiaocheng Terminal Intelligent Agent" at the Mai Mang 40 product launch event, integrating AI capabilities to enhance user experience in communication, daily life, and office scenarios [1][2]. Group 1: Product Features - The Xing Xiaocheng Intelligent Agent leverages China Telecom's self-developed large model and intelligent platform, offering features such as AI call assistance, fraud prevention, and intelligent task management [1]. - The AI call assistant includes functionalities like call fraud prevention, AI answering, call summary management, and smart subtitles, providing comprehensive support for users during calls [1]. - The "AI Call Fraud Prevention" feature utilizes China Telecom's proprietary voice and semantic models to detect potential fraud risks during calls and alert users in real-time [1]. Group 2: Office and Document Management - In office scenarios, the Xing Xiaocheng Intelligent Agent supports features like instant meeting summaries, offline audio transcription, meeting mind maps, and overviews, helping users quickly grasp key points from meetings [2]. - The reading assistant feature allows users to upload documents and receive clear and concise summaries, addressing the needs of office workers dealing with complex files [2].

Group 1: Policy and Development - The State Council issued an opinion to enhance the "efficient handling of key matters" mechanism, emphasizing efficient resource allocation and the prevention of waste in government services [1] - The opinion aims to promote the application of new technologies like AI in government services while ensuring safety and improving user experience [1][2] - China's digital government development index (EGDI) improved from 0.8119 in 2022 to 0.8718 in 2024, ranking 35th globally, an increase of 8 places from 2022 [2] Group 2: Market Growth and Trends - The overall market size for government cloud services in 2024 is projected to be 93.94 billion RMB, with a year-on-year growth of 18.4% [2] - The dedicated government cloud market is expected to reach 66.33 billion RMB, growing by 19.0% year-on-year, while the public government cloud market is projected at 17.24 billion RMB, with a growth of 12.2% [2] - The cloud operation service market is anticipated to grow by 26.1%, reaching 10.36 billion RMB [2] Group 3: Industry Insights - The government cloud market is experiencing stable growth, with infrastructure holding a significant market share, driven by increased demand for computing power due to AI model development [3] - The integration of AI in government services is expected to enhance efficiency and reduce costs, with a broad market potential across various sectors like procurement, finance, and taxation [3] - The push for AI in government services is largely driven by top-down initiatives, indicating a rapid implementation of AI+government services [3] Group 4: Key Companies and Innovations - China Telecom is focusing on "AI + digital government" initiatives, leveraging data value and enhancing security in public services [4] - SenseTime, a leading AI algorithm provider, is applying its technology in smart city and public management projects, improving service efficiency through AI solutions [4] - China Software International is providing comprehensive AI + government services, helping governments transition to intelligent operations through AI, big data, and cloud computing [4] - Tencent is utilizing its social media platforms and cloud capabilities to create digital solutions for public services, integrating various government services into its ecosystem [5]

Group 1 - The 27th China Association for Science and Technology Annual Conference featured a forum on "6G Technology Innovation and Future Industry Development" held in Beijing, focusing on the future direction, opportunities, challenges, and research achievements of 6G technology [1] - Keynote speeches included topics such as "Exploring 6G Innovation with AI as the Engine" by Professor Wu Hequan and "Continuous Innovation in 5G/6G Requires International Cooperation" by Zhao Houlin, emphasizing the importance of collaboration in advancing 6G technology [1] - Discussions on critical technologies and cutting-edge science related to 6G and AI were led by experts from various institutions, highlighting the integration of AI in enhancing 6G network security and architecture [1] Group 2 - A roundtable discussion on "Diverse Scenarios Driven 6G Networks" was hosted by Lu Lu, featuring experts from multiple universities and research institutes, indicating a collaborative effort to address the diverse applications of 6G networks [2] - A special session focused on "Youth Talent Supporting 6G Innovation Ecosystem" was moderated by Liu Guanghua, showcasing the involvement of young experts in building a sustainable innovation ecosystem for 6G [2]

Investment Rating - The industry investment rating is "Positive" (maintained) [4] Core Views - The global AI sector remains highly prosperous, with continuous application development. Domestic telecom operators are experiencing a recovery in growth rates, and satellite internet is beginning to contribute to performance elasticity [4] - Telecom operators benefit from the ongoing promotion of the Digital China strategy, leading to stable overall business growth. Innovative businesses are growing faster and increasing their share, while new growth drivers continue to strengthen. Additionally, the reduction in capital expenditure as a percentage of revenue is favorable for profit release [4] Summary by Relevant Sections Telecom Operators - China Mobile's Q2 revenue is projected to be between 285.85 billion and 288.70 billion yuan, with a year-on-year growth of 1%-2%. The net profit attributable to shareholders is expected to be between 52.20 billion and 52.55 billion yuan, growing by 3.2%-3.9% [2] - China Telecom's Q2 revenue is expected to be between 132.80 billion and 134.10 billion yuan, with a year-on-year growth of 1%-2%. The net profit attributable to shareholders is projected to be between 13.57 billion and 13.66 billion yuan, growing by 2.7%-3.4% [2] - China Unicom's Q2 revenue is expected to be between 101.30 billion and 102.00 billion yuan, with a year-on-year growth of 3.5%-4.2%. The net profit attributable to shareholders is projected to be between 3.795 billion and 3.855 billion yuan, growing by 5.6%-7.3% [2] - China Tower's Q2 revenue is projected to be between 24.88 billion and 25.03 billion yuan, with a year-on-year growth of 2.5%-3.1%. The net profit attributable to shareholders is expected to be between 2.72 billion and 2.76 billion yuan, growing by 6.8%-8.4% [3] AI and Network Connection - The AI optical module sector is experiencing significant growth, with 800G optical modules continuing to ramp up production and 1.6T products entering mass production. Domestic companies are leading the industry and deeply participating in the global supply chain [3] - Zhongji Xuchuang's Q2 revenue is expected to be between 7 billion and 8 billion yuan, with a year-on-year growth of 18%-34%. The net profit attributable to shareholders is projected to be between 1.75 billion and 2 billion yuan, growing by 30%-48% [3] AI Liquid Cooling - The trend towards liquid cooling in data centers is becoming more pronounced due to the increasing power consumption of AI servers. Yingwei's Q2 revenue is expected to be between 12 billion and 14 billion yuan, with a year-on-year growth of 24%-45% [6] - Oulu Tong's Q2 revenue is projected to be between 11 billion and 12 billion yuan, with a year-on-year growth of 22%-33% [7] AI Applications - The demand for AI servers is expected to grow steadily, benefiting from the development of the digital economy and AI computing power. Huqin Technology's Q2 revenue is projected to be between 350 billion and 365 billion yuan, with a year-on-year growth of 51%-58% [8] Military Communication & Satellite Internet - Increased regional tensions are likely to lead to sustained investment in national defense construction, with communication and information technology being key investment areas. The domestic low-orbit satellite network is expected to continue advancing [11] - Changjiang Communication's Q2 revenue is expected to be between 2.3 billion and 3.4 billion yuan, with a year-on-year growth of 10%-63% [12]

Investment Rating - Industry rating: Recommended [6] Core Insights - The GB300 is expected to start volume production in the second half of the year, with significant advancements in AI performance and capabilities [1][8] - The central government emphasizes high-quality development of the marine economy, with wind power generation rapidly increasing, accounting for over 12% of total power generation [2][10] - There is a strong growth in overseas AI demand, particularly from new enterprises, driving high capital expenditure in AI [3][14] Summary by Sections GB300 Launch - CoreWeave announced the first market delivery of the NVIDIA GB300 NVL72, featuring advanced AI performance with over exaflop capabilities and significant improvements in user response speed and throughput [1][8] Marine Economy Development - The central government is focusing on enhancing the marine economy through policy support and encouraging social capital participation, with wind power generation capacity rapidly increasing [2][10] Investment Recommendations - The report recommends focusing on the AI capital expenditure and related sectors, highlighting the growth potential in the optical module industry and PCB supply chain [3][14] - Specific beneficiary stocks include NewEase, Zhongji Xuchuang, and Tianfu Communication in the optical module sector, and China Telecom, China Mobile, and China Unicom in the telecommunications sector [3][16][17] - The marine economy sector is also highlighted, with companies like Zhongtian Technology and Hengtong Optic-Electric being potential beneficiaries [4][15]

Core Viewpoint - In the digital economy era, data is transforming from an intangible resource into a measurable, tradable, and manageable asset, becoming a new member of corporate balance sheets [1] Group 1: Data Asset Integration - Over 90 listed companies have integrated data assets into their 2024 annual reports, with a total scale of 2.495 billion yuan, compared to only 0.079 billion yuan from 17 companies in the first quarter of 2024 [1] - The integration of data assets into financial statements is reshaping the balance sheets of listed companies, with significant representation from the industrial and information technology sectors [2] - The first companies to integrate data assets include major telecom operators like China Mobile, China Telecom, and China Unicom, along with industrial firms such as Xiaoshangpin City, YTO Express, and Yunda Holdings [3] Group 2: Steps for Data Asset Integration - The process for a company to integrate data assets into its financial statements typically involves four steps: inventory of data assets, governance of data for integration, confirmation of data ownership, and measurement for accounting [4][5] - Companies must meet specific conditions for data asset integration, including legal control, predictable economic benefits exceeding 50%, and measurable costs [5][6] Group 3: Challenges and Considerations - Not all companies can smoothly integrate data assets due to policy restrictions, corporate concerns, and the current lack of a valuation system [1][10] - Common challenges include legal risks in data ownership, unclear data management processes, and discrepancies between expected and actual valuations [10][11] - The integration of data assets is not the end point but a starting point for value reconstruction, requiring clear data ownership and valuation systems to gain recognition from financial institutions [14] Group 4: Financial Implications - Integrating data assets can enhance a company's financial statements by capitalizing expenses, which may lead to increased short-term profits but could result in profit fluctuations in the long term due to amortization [12][13] - The potential for data asset depreciation and the subjective nature of data valuation can introduce uncertainties in financial reporting [17][18]