Core Insights - The top three companies by Hong Kong Stock Connect holding ratios are China Telecom (00728) at 70.93%, COSCO Shipping Energy (01138) at 69.85%, and GCL-Poly Energy (01330) at 69.62% [1] Hong Kong Stock Connect Latest Holding Ratios (Top 20) - China Telecom (00728): 9.844 billion shares, 70.93% holding ratio [1] - COSCO Shipping Energy (01138): 905 million shares, 69.85% holding ratio [1] - GCL-Poly Energy (01330): 282 million shares, 69.62% holding ratio [1] - China Shenhua Energy (01088): 2.286 billion shares, 67.66% holding ratio [1] - Kaisa Group Holdings (01108): 169 million shares, 67.41% holding ratio [1] - Other notable companies include: - China Southern Power Grid (03033): 6.028 billion shares, 60.28% holding ratio [1] - GAC Group (02238): 1.629 billion shares, 57.89% holding ratio [1] Recent 5-Day Increase in Holdings (Top 10) - Xiaomi Group-W (01810): +2.213 billion CNY, +46.943 million shares [1] - InnoCare Pharma-B (09606): +1.901 billion CNY, +5.590 million shares [1] - Meituan-W (03690): +1.430 billion CNY, +14.791 million shares [1] - Other companies with significant increases include: - Pop Mart International (09992): +1.386 billion CNY [1] - China Mobile (00941): +1.383 billion CNY [1] Recent 5-Day Decrease in Holdings (Top 10) - Tracker Fund of Hong Kong (02800): -5.916 billion CNY, -22.309 million shares [1] - SMIC (00981): -1.859 billion CNY, -2.588 million shares [1] - Hang Seng China Enterprises Index (02828): -1.745 billion CNY, -1.855 million shares [1] - Other companies with notable decreases include: - Innovent Biologics (01801): -1.124 billion CNY [1] - Jiangxi Copper (00358): -0.708 billion CNY [1]

Core Insights - Apple CEO Tim Cook announced the launch of the iPhone Air in China on October 22, which is the first smartphone in the country to use eSIM technology, eliminating the physical SIM card slot [1] - The launch follows the approval of eSIM services by major Chinese telecom operators, marking the official entry of eSIM technology into the mobile phone market in China [1][2] - The global eSIM market is projected to grow significantly, with an estimated 1 billion eSIM smartphone connections by the end of 2025 and 6.9 billion by 2030, representing 76% of total smartphone connections [2] Industry Developments - The eSIM ecosystem involves a complex supply chain including chip design, platform management, operator services, device integration, and end-user applications, with expectations for collaborative development and maturation of the industry [3] - Several companies in the A-share market have been actively developing eSIM capabilities, including Unisoc, which has launched multiple eSIM products compliant with GSMA standards [4] - Eastcompeace has successfully developed an embedded operating system and eSIM IoT management platform that received GSMA security certification [5] - Megmeet has established mature eSIM solutions with large-scale production on 4G/5G chip platforms [6] - Chutianlong's eSIM products have been approved by China Unicom, and Wanma Technology has been a long-term provider of eSIM solutions across various standards [7] Market Performance - eSIM concept stocks have seen an average increase of 42.42% year-to-date, significantly outperforming the Shanghai Composite Index, with six stocks rising over 50% [8] - Some eSIM concept stocks have experienced significant pullbacks from their year-to-date highs, with declines exceeding 30% for several companies [9] - A total of 14 eSIM concept stocks have received "positive" ratings from brokerage firms, with eight stocks rated by more than ten institutions, including ZTE, Guanghetong, China Telecom, China Mobile, and Megmeet [9]

Core Viewpoint - The approval of eSIM commercial trials by China's three major telecom operators marks a significant step towards the widespread adoption of eSIM technology in smartphones, with the iPhone Air leading the charge in the domestic market [1][2]. Group 1: eSIM Commercialization - China Mobile, China Unicom, and China Telecom have received approval to conduct eSIM commercial trials across all 31 provinces in China, allowing users to register for networks without a physical SIM card [1]. - The iPhone Air, set to launch on October 22, is the first smartphone in China to support only eSIM, achieving over 100 million yuan in sales within one second during pre-sales [1]. - Domestic manufacturers like Huawei and OPPO are expected to follow suit by launching their own eSIM-enabled smartphones [1]. Group 2: Supply Chain and Technology - The supply of domestic eSIM chips is still in the early stages, with companies like Unisoc and Tongfu Microelectronics being key players in the supply chain [1][3]. - Unisoc has developed eSIM chip technology that is compatible with over 400 global operators, but the final selection of domestic operators and partners remains unclear [1][6]. - The eSIM chip supply process is hindered by the need for clear operational protocols and collaboration models between telecom operators and smartphone manufacturers [6]. Group 3: Industry Development and Future Prospects - The eSIM market in China has experienced various phases, including exploration, trial, suspension, and re-initiation, with significant advancements made since 2015 [2][3]. - Companies like Huada Semiconductor and Changdian Technology are actively developing new technologies and expanding their market presence in the eSIM sector [4][5]. - The future of the eSIM market is contingent on the successful establishment of a collaborative ecosystem among industry players, as emphasized by the three major telecom operators [7].

Core Insights - The three major telecom operators in China have officially launched eSIM mobile services, marking a significant advancement in the eSIM technology for smartphones and creating new growth opportunities for the eSIM industry chain [1] Industry Overview - The global eSIM chip shipment reached 446 million in 2023, covering various products including smartphones and automotive devices. By the end of 2025, the number of global eSIM smartphone connections is expected to reach 1 billion, increasing to 6.9 billion by 2030, which will account for three-quarters of total smartphone connections [1][6] - The eSIM technology is centered around the embedded Universal Integrated Circuit Card (eUICC) chip, which allows for remote SIM configuration and management, enhancing user experience and security [2] Market Dynamics - The demand for eUICC chips is anticipated to grow significantly due to the commercial launch of eSIM services by the three major telecom operators, with the number of domestic eSIM users reaching 3.62 million in 2023, 90% of which are smartwatch users [3] - Domestic companies like Unisoc and Huada Semiconductor are emerging in the eSIM chip design sector, with products widely used in global consumer electronics and IoT devices [2] Supply Chain Opportunities - The etching lead frame, a key material for eSIM chip packaging, has substantial potential for domestic substitution, with the demand for this material expected to rise as eSIM applications accelerate [4] - The WLCSP (Wafer-Level Chip Scale Package) technology is crucial for miniaturizing eSIM chips and is already adopted by major international manufacturers like Apple and Samsung [5] Strategic Positioning - Companies that proactively invest in technology development and establish strong ties with terminal manufacturers and telecom operators are likely to gain competitive advantages in the evolving eSIM industry [6]

Core Insights - eSIM technology is entering a new commercial phase in China, with major telecom operators officially launching eSIM services for mobile phones, marking a significant shift in the industry [2][3] - The adoption of eSIM is expected to expand beyond mobile phones into various sectors, including consumer electronics and the Internet of Things (IoT), driven by technological advancements and policy support [3][4] Industry Developments - Apple has announced the launch of the iPhone Air, the first eSIM-only phone in China, set to be released on October 22 [2] - Domestic brands like OPPO and vivo are quickly following suit, with OPPO already launching an eSIM-compatible model and others expected to release their versions soon [2][3] - eSIM technology is anticipated to enhance device capabilities, such as waterproofing and shock resistance, while also allowing for multiple SIM profiles [3] Market Performance - eSIM concept stocks have shown strong performance, with an average increase of 42.42% year-to-date, significantly outperforming the Shanghai Composite Index [5] - Six stocks in the eSIM sector have seen gains exceeding 50%, including Hengbao Co., Dongxin Peace, and Meige Intelligent [5] - Despite the overall positive trend, some stocks have experienced significant pullbacks, with several dropping over 30% from their year-to-date highs [8] Company Strategies - Several A-share companies are actively investing in eSIM technology, including Unisoc, which has launched multiple eSIM products, and Eastcompeace, which has developed an embedded operating system for eSIM management [4] - Megmeet has established a mature eSIM solution and is producing large volumes of 4G/5G chips, while Chutianlong has received product approval from China Unicom for its eSIM offerings [4] Future Projections - GSMA Intelligence forecasts that by the end of 2025, global eSIM smartphone connections will reach 1 billion, and by 2030, this number is expected to rise to 6.9 billion, representing 76% of total smartphone connections [3]

除手机外，蜂窝物联网也是eSIM应用的另一个主战场，而且是发展更为迅速的一个领域。目前，eSIM已广泛应用于 智能穿戴、智能表计、车联网、工业互联网等领域，为物联网各类场景网络接入提供便捷手段。从用户视角看，物联 网eSIM需求更强烈，对场景的支持更加明显。本次在对手机eSIM启动全面商用，支持eSIM整个产业链加速完善，客 观上也推动物联网eSIM进一步发展。 物联网eSIM对用户的价值明显 近期，针对eSIM的宣传较多，对于eSIM基本概念已有大量普及。eSIM作为蜂窝通信设备用户身份识别模块新的形 态，相对于实体Sim卡有多重显著优势，一个看得见的优势是支持取消卡槽，为各类终端节省出一定空间，为设备的 小型化设计、散热等带来实实在在的好处；另外，传统Sim卡依赖金属触点，在频繁震动、高温高湿、盐雾等恶劣场 景下，容易造成Sim卡接触不良或氧化，从而导致通信中断，而eSIM作为嵌入式的模组，在这方面可靠性大大提升。 除了这些显而易见的好处外，eSIM还有诸多隐形优势，节约供应链物流成本较为典型，因为无需实体Sim卡，可以大 大简化卡片的制作、包装、物流、库存等环节，节约相关厂商成本。用户也可以获得"无感" ...

Group 1 - The report indicates that recent events suggest short-term volatility in the Hong Kong stock market may not have ended, but the long-term upward trend remains unchanged [1] - Economic data, US-China tariff news, US tech earnings, and the Fourth Plenary Session are expected to influence trading patterns and styles in the Hong Kong market [1][2] - The technology sector is facing increased volatility risks, with US tech earnings impacting the trading rhythm of Chinese tech stocks [1][2] Group 2 - The report highlights that the US stock market showed resilience despite concerns over US-China tensions and credit worries, with the Nasdaq leading gains at 2.1% [1][4] - Federal Reserve Chairman Powell's dovish stance suggests a likelihood of maintaining the current policy path, with a potential rate cut in October being the optimal solution [1][5] - The report notes that the average win rate for October over the past decade is low, while the advantages of November and December are relatively prominent [1][23] Group 3 - The report discusses the ongoing US government shutdown, which has entered its third week, potentially exacerbating negative impacts on the economy [3] - Concerns over credit quality in regional banks have emerged, but these are viewed as isolated incidents rather than indicative of a broader liquidity crisis [2][3] - The report emphasizes the importance of monitoring US-China trade relations, as further escalation could negatively impact the US economy and inflation risks [3][4] Group 4 - The report notes that developed markets saw an increase of 1.4% while emerging markets declined by 0.3% during the week [4][12] - The Hang Seng Tech Index fell by 8.0%, and the Hang Seng Index dropped by 4.0%, with public utilities leading sector gains [4][12] - The report highlights significant inflows into financials and non-essential consumer sectors, while the information technology sector experienced outflows [4][12] Group 5 - The report indicates that global stock ETFs saw a net inflow of $446.43 billion, with the US stock ETFs leading at $231.7 billion [7][49] - The technology sector was the top recipient of inflows among global stock ETFs, while the communication sector experienced the most significant outflows [7][51] - The report also notes that institutional investors marginally increased their holdings in gold, with significant inflows into major gold ETFs [6][54]

Core Viewpoint - China Telecom is actively implementing its "Warm-hearted Service Ten Initiatives" in Huizhou, focusing on enhancing communication services with both technological advancements and a human touch [1][12]. Group 1: Service Innovations - Huizhou Telecom is a pioneer in the "10 Gigabit Era," accelerating the construction of "10 Gigabit communities, factories, and parks," providing citizens with a glimpse of future living through smart home experiences and 5G technology [3][4]. - The company has integrated "cloud-network-AI" technologies to offer innovative services such as edge computing and cloud storage, benefiting both enterprises and households with applications like remote healthcare and cloud-based work [4][12]. Group 2: Online and Offline Service Integration - China Telecom has upgraded its online service capabilities, allowing users to manage various telecom services through the app and customer service hotline, enhancing convenience and efficiency [6][12]. - For those less familiar with online services, Huizhou Telecom provides structured offline service options, ensuring transparency in pricing and service agreements [6][12]. Group 3: Customer Protection and Security - The company has introduced services to reduce nuisance calls and enhance user privacy, utilizing advanced cloud-based interception technologies [7][12]. - Huizhou Telecom promotes a "one-click unbind" service for users facing issues with reactivated phone numbers, ensuring a smoother transition and enhanced security for users [7][24]. Group 4: Community Support Initiatives - The "Love Wing Station" at the Jiangbei service center offers essential services for outdoor workers and vulnerable groups, including rest areas, charging stations, and safety guidance [8][9]. - The company is committed to providing care for the elderly through dedicated service areas and educational programs on digital technology, helping them navigate modern communication tools [10][22]. Group 5: Network Quality and Accessibility - Huizhou Telecom is focused on improving network coverage and quality, particularly in high-traffic areas and essential public spaces, ensuring a seamless communication experience for users [12][13]. - The company has launched tailored data packages and services for cross-border customers, enhancing connectivity within the Greater Bay Area [12][13].

Core Points - Two mobile phone numbers with the ending "8888888" were successfully auctioned on October 19, with one from China Mobile in Guangzhou sold for 1.277 million yuan and the other from China Telecom in Lijiang sold for 953,000 yuan [1][7] - The auction attracted significant interest, with 27 bidders for the China Mobile number and 33 bidders for the China Telecom number, resulting in a competitive bidding process [6][7] Auction Details - The starting bid for both numbers was set at 1,000 yuan, leading to substantial price increases during the auction [6] - The monthly rental for the China Mobile number is 38 yuan, while the China Telecom number has a monthly rental of 58 yuan, both with no minimum consumption period after transfer [3][4] Additional Costs - Buyers are required to pay additional fees, including a software service fee (0.5%-1% of the transaction price) and a transaction service fee (3% of the transaction price) [7]

Core Insights - The top three companies by Hong Kong Stock Connect holding ratios are China Telecom (70.56%), COSCO Shipping Energy (69.91%), and GCL-Poly Energy (69.65%) [1][2] - Xiaomi Group-W, Meituan-W, and Pop Mart have seen the largest increases in holding amounts over the last five trading days, with increases of +1.967 billion, +1.692 billion, and +1.514 billion respectively [1][2] - The companies with the largest decreases in holding amounts over the same period include Innovent Biologics (-2.053 billion), SMIC (-1.978 billion), and Alibaba-W (-1.651 billion) [1][2] Hong Kong Stock Connect Latest Holding Ratios - China Telecom (00728): 9.793 billion shares, 70.56% holding ratio [1] - COSCO Shipping Energy (01138): 906 million shares, 69.91% holding ratio [1] - GCL-Poly Energy (01330): 282 million shares, 69.65% holding ratio [1] - China Shenhua (01088): 2.284 billion shares, 67.62% holding ratio [1] - Kaisa Group (01108): 168 million shares, 67.37% holding ratio [1] Recent Increases in Holdings (Last 5 Trading Days) - Xiaomi Group-W (01810): +1.967 billion, +42.788 million shares [1] - Meituan-W (03690): +1.692 billion, +17.904 million shares [1] - Pop Mart (09992): +1.514 billion, +5.498 million shares [1] - China Mobile (00941): +1.438 billion, +16.863 million shares [1] - Huahong Semiconductor (01347): +1.434 billion, +18.918 million shares [1] Recent Decreases in Holdings (Last 5 Trading Days) - Innovent Biologics (01801): -2.053 billion, -23.641 million shares [2] - SMIC (00981): -1.978 billion, -28.625 million shares [2] - Alibaba-W (09988): -1.651 billion, -10.691 million shares [2] - Tencent Holdings (00700): -1.475 billion, -2.426 million shares [2] - Yingfu Fund (02800): -1.259 billion, -48.701 million shares [2]