Core Points - Jiangsu Province signed a strategic cooperation agreement with China Telecom on November 17, emphasizing the importance of digital economy development and collaboration in new infrastructure and emerging industries [1] Group 1: Strategic Cooperation - The agreement aims to deepen cooperation in new infrastructure construction, emerging industries, and social governance [1] - Jiangsu's leadership expressed gratitude for China Telecom's support in the province's development [1] Group 2: Digital Economy Development - Jiangsu is focusing on digitalization, networking, and intelligence to enhance its economic growth [1] - China Telecom plans to leverage its strengths to implement the "Smart Cloud Jiangsu" initiative, collaborating closely with research institutions and industry partners [1]

Core Viewpoint - China Telecom has successfully completed a transmission experiment of over 100 kilometers using hollow-core optical fibers, setting a new record in the field [1] Group 1: Technological Breakthrough - The joint transmission of quantum and classical signals is a key bottleneck for the large-scale deployment of quantum communication [1] - The research team proposed an innovative spectrum collaborative allocation mechanism, achieving efficient and stable joint transmission of quantum and classical signals, addressing the interference issue in traditional solid-core fibers [1] Group 2: Industrial Implications - The industrialization prospects of this technological breakthrough are widely regarded as promising, injecting innovative momentum into multiple fields [1] - In network construction, this technology can significantly reduce the integration deployment costs of quantum communication with existing classical communication networks, accelerating the large-scale implementation of quantum communication and promoting the rapid development of related industries [1] Group 3: Recent Achievements - China Telecom has been continuously focusing on quantum-related innovative technologies, recently achieving new results in quantum computing [1] - The superconducting quantum computer "Tianyan-287," equipped with the same chip as "Zuchongzhi No. 3," has officially started operation, demonstrating "quantum superiority" by processing specific problems 450 million times faster than the fastest supercomputer currently available [1]

Group 1 - The report highlights the sustained demand for computing power, with significant growth expected in the AI infrastructure sector driven by domestic advancements in computing chips and increased capital expenditure from cloud service providers [2][3]. - The domestic AI infrastructure is anticipated to experience rapid growth by 2026, following a slight dip in expectations due to external factors such as the ban on NVIDIA chips [2]. - The report emphasizes the structural alpha opportunities within the industry, particularly in segments like optical modules, liquid cooling, switches, and power supplies, as the demand for AI computing continues to rise [2]. Group 2 - The report indicates that the terminal AI market is on the verge of significant expansion, with policy support and ecosystem development expected to drive growth in 2026 [3]. - Innovations in products, such as Meta's AI glasses, are likely to accelerate the market penetration of terminal AI applications [3]. - The report suggests that the industry is transitioning from a phase of thematic catalysts to one of performance realization, with the emergence of "hit products" expected to further boost the sector [3]. Group 3 - The telecommunications sector is currently experiencing a phase of capital expenditure reduction, business restructuring, and increasing dividend payouts, which positions it favorably for investors [4]. - The report notes that the telecommunications sector has shown resilience, with profit growth outpacing revenue growth, and a stable or increasing dividend yield in a low-interest-rate environment [4]. - Emerging business areas, particularly in AI and satellite communications, are expected to contribute to a second growth curve for telecommunications companies [4]. Group 4 - The North American AI sector has seen a remarkable increase in capital expenditure, with projections indicating that spending could exceed $600 billion by 2026, driven by robust demand for AI services [12][13]. - The report outlines that the AI computing market is characterized by a dual demand for training and inference, with inference demand expected to surpass training demand in the near future [35][36]. - The report highlights the importance of energy management solutions, such as 800 VDC systems, in addressing the rising power consumption associated with AI data centers [69][70].

Core Insights - The top three companies by Hong Kong Stock Connect holding ratios are China Telecom (00728) at 72.14%, COSCO Shipping Energy (01138) at 69.18%, and GCL-Poly Energy (01330) at 69.09% [1][2] - Xiaomi Group-W (01810), Pop Mart (09992), and Industrial and Commercial Bank of China (01398) saw the largest increases in holding amounts over the last five trading days, with increases of +34.20 billion, +12.67 billion, and +11.24 billion respectively [1][2] - The largest decreases in holding amounts were observed in the Tracker Fund of Hong Kong (02800) at -58.33 billion, Alibaba Group-W (09988) at -40.89 billion, and Hang Seng China Enterprises Index (02828) at -18.98 billion [1][3] Group 1: Top Holding Ratios - China Telecom (00728) has a holding ratio of 72.14% with 10.013 billion shares [2] - COSCO Shipping Energy (01138) has a holding ratio of 69.18% with 0.897 billion shares [2] - GCL-Poly Energy (01330) has a holding ratio of 69.09% with 0.279 billion shares [2] Group 2: Recent Increases in Holdings - Xiaomi Group-W (01810) increased by +34.20 billion with a change of +81.51 million shares [2] - Pop Mart (09992) increased by +12.67 billion with a change of +5.83 million shares [2] - Industrial and Commercial Bank of China (01398) increased by +11.24 billion with a change of +172.61 million shares [2] Group 3: Recent Decreases in Holdings - Tracker Fund of Hong Kong (02800) decreased by -58.33 billion with a change of -219.93 million shares [3] - Alibaba Group-W (09988) decreased by -40.89 billion with a change of -26.39 million shares [3] - Hang Seng China Enterprises Index (02828) decreased by -18.98 billion with a change of -19.89 million shares [3]

Core Insights - China Telecom has successfully completed the world's first transmission experiment using hollow-core optical fibers over a distance exceeding 100 kilometers, marking a significant breakthrough in quantum-classical co-fiber transmission technology [1] Group 1: Technological Breakthrough - The experiment represents a milestone in the field of quantum-classical co-fiber transmission, addressing a critical bottleneck for the large-scale deployment of quantum communication [1] - The research team introduced innovative mechanisms such as spectrum collaborative allocation and multi-source crosstalk suppression strategies, enabling efficient and stable co-fiber transmission of quantum and classical signals [1] Group 2: Industry Implications - The successful transmission resolves the industry challenge of interference between quantum and classical signals in traditional solid-core fibers, which complicates the balance between security and capacity [1] - The new system offers comprehensive advantages including low noise, high security, large capacity, and low complexity, paving the way for the practical application of this technology [1]

Core Viewpoint - The incident highlights the effectiveness of the upgraded security system in a residential community, showcasing the capabilities of the AI Vision Network platform developed by China Telecom in enhancing safety and security measures [1][3]. Group 1: Incident Overview - A theft occurred in the underground parking garage of a residential community in Meishan, Sichuan Province, where an intruder broke into a vehicle and stole cash and valuables [1]. - The incident was recorded by the AI Vision Network, which played a crucial role in identifying and apprehending the suspect [1]. Group 2: Security System Upgrade - The residential community recently upgraded its security system, integrating it with the AI Vision Network platform, which allowed for clear capture of the suspect's features and movements [3]. - The AI Vision Network platform includes advanced features such as area intrusion detection and facial behavior analysis, enabling intelligent monitoring of designated areas [3]. Group 3: Broader Application of AI Vision Network - The AI Vision Network platform is not limited to smart communities; it has expanded its application across various industries, integrating functions like AI protection, intelligent broadcasting, behavior analysis, vehicle recognition, and fire warning systems [3]. - This platform aims to meet diverse needs in production, living, and governance, demonstrating its versatility and adaptability [3].

Group 1 - The overall shareholding ratio of southbound funds in Hong Kong Stock Connect stocks is 19.31%, with 241 stocks having a shareholding ratio exceeding 20% [1] - As of November 14, southbound funds hold a total of 4,878.54 million shares, accounting for 19.31% of the total share capital of the stocks, with a total market value of 63,648.87 billion HKD, representing 14.62% of the total market value [1] - The highest shareholding ratio by southbound funds is in China Telecom, with 100.04 million shares held, accounting for 72.08% 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 56, 36, and 34 stocks respectively [2] - The top stocks with high southbound fund holdings include China Telecom (72.08%), Green Power Environmental (69.17%), and COSCO Shipping Energy (68.32%) [2][3] - A significant portion of the stocks with high southbound fund holdings are AH concept stocks, with 53.53% of stocks having a shareholding ratio over 20% being AH shares [1]

Group 1 - The core viewpoint of the news highlights the trading performance and financial metrics of China Telecom, indicating a slight decline in stock price and notable trading activity on November 14 [1] - On November 14, China Telecom's stock price fell by 0.29%, with a trading volume of 453 million yuan, and a net financing buy of -6.43 million yuan [1] - As of November 14, the total margin balance for China Telecom was 881 million yuan, with a financing balance of 879 million yuan, representing 0.17% of the circulating market value, which is above the 80th percentile of the past year [1] Group 2 - China Telecom, established on September 10, 2002, primarily engages in telecommunications and related services, with a revenue composition of 39.56% from mobile communication services, 27.78% from industrial digital services, and 23.80% from fixed-line and smart home services [2] - For the period from January to September 2025, China Telecom reported a revenue of 394.27 billion yuan, reflecting a year-on-year growth of 0.59%, and a net profit attributable to shareholders of 30.77 billion yuan, up 5.03% year-on-year [2] - As of September 30, 2025, the number of shareholders for China Telecom increased to 273,700, marking a 22.83% rise compared to the previous period [2] Group 3 - Since its A-share listing, China Telecom has distributed a total of 95.19 billion yuan in dividends, with 68.65 billion yuan distributed over the past three years [3] - As of September 30, 2025, Hong Kong Central Clearing Limited has exited the list of the top ten circulating shareholders of China Telecom [3]

Core Insights - The top three companies by Hong Kong Stock Connect holding ratios are China Telecom (00728) at 72.08%, Green Power Environmental (01330) at 69.17%, and COSCO Shipping Energy (01138) at 68.32% [1][2] - Xiaomi Group-W (01810), CNOOC (00883), and Pop Mart (09992) saw the largest increases in holding amounts over the last five trading days, with increases of +2.869 billion, +2.096 billion, and +1.690 billion respectively [1][2] - Alibaba-W (09988), Hua Hong Semiconductor (01347), and Xpeng Motors-W (09868) experienced the largest decreases in holding amounts, with decreases of -5.993 billion, -1.618 billion, and -1.248 billion respectively [1][3] Hong Kong Stock Connect Holding Ratios - The latest holding ratios for the top 20 companies show that China Telecom leads with 100.04 million shares and a holding ratio of 72.08% [2] - Other notable companies include China Shenhua (01088) with 23.05 billion shares at 68.23% and Da Zhong Gong Yong (01635) with 3.64 billion shares at 68.19% [2] Recent Increases in Holdings - The top three companies with the largest increases in holdings over the last five trading days are: - Xiaomi Group-W (01810): +2.869 billion with an increase of 67.73 million shares - CNOOC (00883): +2.096 billion with an increase of 93.55 million shares - Pop Mart (09992): +1.690 billion with an increase of 7.81 million shares [2] Recent Decreases in Holdings - The top three companies with the largest decreases in holdings over the last five trading days are: - Alibaba-W (09988): -5.993 billion with a decrease of 38.68 million shares - Hua Hong Semiconductor (01347): -1.618 billion with a decrease of 20.94 million shares - Xpeng Motors-W (09868): -1.248 billion with a decrease of 12.64 million shares [3]

Investment Rating - The report maintains a "Recommended" investment rating for the industry [5]. Core Insights - The gap between domestic and overseas large models in AI is rapidly narrowing, with domestic AI ecosystems represented by Tencent and Alibaba showing significant development. This suggests a potential turning point for accelerated growth in domestic AI [3][22]. - The report emphasizes the importance of focusing on core targets in domestic computing power and AI agents, highlighting key companies in cloud computing, chip design, and AI applications [3][22]. Summary by Sections Market Review - During the week of November 10-14, the CSI 300 index fell by 1.08%, the SME index decreased by 1.71%, and the ChiNext index dropped by 3.01%. The computer sector (CITIC) saw a decline of 3.72% [30]. Industry News - AMD's CEO predicts that the AI data center market will exceed $1 trillion by 2030, growing from approximately $200 billion currently, with a compound annual growth rate (CAGR) of over 40% [23]. - The Ministry of Industry and Information Technology has issued a notice to accelerate the construction of pilot platforms in the manufacturing sector, aiming to enhance innovation and technology transfer [24]. Company News - Lingzhi Software plans to acquire 100% of Kaimiride (Suzhou) Information Technology Co., Ltd. through a share issuance and cash payment, with a share price set at 15.31 yuan [27]. - Zhengyuan Wisdom's board approved a share repurchase plan, intending to reduce up to 2,842,000 shares within six months [29]. Weekly Insights - Domestic large models like MiniMax and DeepSeek are now among the top global models, with MiniMax M2 achieving a daily token usage surpassing 50 billion, indicating strong market acceptance [9][12]. - The report highlights the competitive landscape in AI, with Tencent and Alibaba intensifying their efforts in AI applications, suggesting an imminent phase of heightened competition in the domestic AI market [20][22].