Core Viewpoint - The dividend sector continues its recent upward trend, with major operators, petrochemicals, and banking sectors all performing well, particularly Agricultural Bank, which has seen its market value exceed 3 trillion yuan, reaching a historical high [1] Group 1: Market Performance - The dividend low volatility 50 ETF (515450) has risen by 0.88%, accumulating an increase of 8.34% since September 23 [1] - Major operators have a dividend yield of 4%-5%, indicating a stable investment direction for insurance funds [1] Group 2: Investment Trends - There is a shift in investment focus from the previously high-performing technology sector to defensive, high-dividend sectors with lower valuations [1] - Insurance funds may be starting to allocate towards year-end OCI accounts [1] Group 3: ETF Details - The dividend low volatility 50 ETF (515450) tracks the S&P China A-shares large-cap low volatility index, emphasizing dividend and low volatility factors, with a sector distribution of 27.8% in banking, 13.1% in food and beverage, and 11.5% in transportation [1] - The fund has surpassed 13 billion yuan in size, reaching 13.406 billion yuan, with a share count of 9.054 billion, marking a 149% increase [2]

Group 1 - Ping An Asset Management Co., Ltd. increased its stake in China Telecom (601728) by acquiring 17.136 million shares at an average price of HKD 5.7651 per share, totaling approximately HKD 98.79 million [1] - Following the acquisition, Ping An's total shareholding in China Telecom is approximately 849 million shares, representing a stake of 6.11% [1]

Core Insights - The overall shareholding ratio of southbound funds in Hong Kong Stock Connect stocks is 19.22%, with 239 stocks having a shareholding ratio exceeding 20% [1] - Southbound funds hold a total of 4,856.80 million shares, accounting for 19.22% of the total share capital of the stocks, with a market value of 63,652.24 billion HKD, representing 14.58% of the total market value [1] - The highest shareholding ratio by southbound funds is in China Telecom (601728) at 71.95%, followed by Green Power Environmental and COSCO Shipping Energy (600026) at 69.48% and 69.03% respectively [1] Group 1: Southbound Fund Holdings - 239 stocks have a shareholding ratio of over 20%, while 132 stocks are in the 10%-20% range, 95 stocks in the 5%-10% range, 83 stocks in the 1%-5% range, and 17 stocks below 1% [1] - Among the stocks with over 20% shareholding by southbound funds, 128 are AH concept stocks, making up 53.56% of that group [1] Group 2: Industry Concentration - Southbound fund holdings exceeding 20% are primarily concentrated in the healthcare, industrial, and financial sectors, with 56, 35, and 34 stocks respectively [2] - The table lists several stocks with high southbound fund holdings, including China Telecom (71.95%), Green Power Environmental (69.48%), and COSCO Shipping Energy (69.03%), among others [2][3]

Group 1 - The core point of the news is that China Telecom's stock experienced a slight decline of 0.15% on November 11, with a trading volume of 454 million yuan, indicating a mixed sentiment in the market [1] - On the same day, China Telecom had a financing buy-in amount of 34.17 million yuan and a financing repayment of 45.15 million yuan, resulting in a net financing outflow of 10.98 million yuan [1] - As of November 11, the total financing and securities lending balance for China Telecom was 882 million yuan, with the financing balance at 880 million yuan, accounting for 0.16% 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, providing a range of services including fixed-line and mobile telecommunications, internet access, and value-added 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, which is a 5.03% increase compared to the previous year [2] - The company's revenue composition includes mobile communication services (39.56%), industrial digital services (27.78%), fixed-line and smart home services (23.80%), sales of goods and other income (7.54%), and other services (1.32%) [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, the number of shareholders for China Telecom reached 273,700, an increase of 22.83% from the previous period [3] - Notably, Hong Kong Central Clearing Limited has exited the list of the top ten circulating shareholders of China Telecom [3]

Core Insights - Southbound funds have significantly increased their investment in Hong Kong stocks, with a cumulative net purchase amount exceeding 50 billion HKD since the launch of the Hong Kong Stock Connect program [1][2] Group 1: Investment Trends - As of November 11, southbound funds recorded a net inflow of 44.67 billion HKD, marking the 15th consecutive trading day of net buying [1] - Year-to-date, the net purchase amount by southbound funds has surpassed 1.3 trillion HKD, reaching 1,309.82 billion HKD, setting a new annual record since the program's inception in 2014 [1][2] Group 2: Market Performance - The strong performance of the Hong Kong stock market, with the Hang Seng Index and Hang Seng Tech Index both rising over 30% this year, has positively influenced the continuous net buying by southbound funds [2] - The IPO market in Hong Kong has attracted high-quality new listings, including secondary listings from U.S. and A-share companies, which have expanded the pool of attractive investment targets for southbound funds [2] Group 3: Stock Holdings - Major holdings by southbound funds include Tencent Holdings with a market value of 651.23 billion HKD, Alibaba-W at 344.21 billion HKD, and China Construction Bank at 273.32 billion HKD [2] - In the past month, the top ten net purchases by southbound funds included Xiaomi Group-W, China National Offshore Oil Corporation, and Meituan-W, with net purchase amounts ranging from 8.89 billion HKD to 1.68 billion HKD [3] Group 4: Valuation Insights - Industry experts believe that the current valuation levels of Hong Kong stocks remain attractive, suggesting that the trend of increased investment from southbound funds is likely to continue [4] - The market is seen as having many undervalued stocks with resilient earnings, indicating significant long-term investment value [4]

Core Viewpoint - Ping An Asset Management Co., Ltd. has increased its stake in China Telecom (00728) by acquiring 17.136 million shares at an average price of HKD 5.7651 per share, totaling approximately HKD 98.79 million, resulting in a new holding of about 849 million shares, representing a 6.11% ownership stake [1] Group 1 - Ping An Asset Management Co., Ltd. purchased 17.136 million shares of China Telecom [1] - The average purchase price was HKD 5.7651 per share [1] - The total investment amounted to approximately HKD 98.79 million [1] Group 2 - After the acquisition, Ping An's total holdings in China Telecom reached approximately 849 million shares [1] - The new ownership percentage is 6.11% [1]

Core Insights - Ping An Asset Management Co., Ltd. increased its stake in China Telecom (00728.HK) by acquiring 17.136 million shares at an average price of HKD 5.7651 per share, totaling approximately HKD 98.791 million [1] - Following this transaction, Ping An's total shareholding in China Telecom rose to 848,568,000 shares, increasing its ownership percentage from 5.99% to 6.11% [1] Group 1 - Ping An Asset Management Co., Ltd. purchased 17.136 million shares of China Telecom at an average price of HKD 5.7651 [1] - The total investment made by Ping An Asset Management in this transaction was about HKD 98.791 million [1] - After the acquisition, Ping An's ownership in China Telecom increased to 848,568,000 shares, representing 6.11% of the company [1]

Core Insights - The quantum technology sector is experiencing significant advancements, with both policy support and technological breakthroughs driving growth [2][3][4] - The global quantum computing industry is projected to grow from $4.7 billion in 2023 to over $800 billion by 2035, indicating substantial market potential [4] - A total of over 60 A-share companies are involved in quantum technology, with significant R&D investments, particularly in quantum security chips and modules [4][5] Policy Developments - Anhui Province is focusing on scaling quantum technology applications, aiming to implement nearly 300 application scenarios by the end of this year and 1,000 by 2027 [2] Technological Breakthroughs - Domestic advancements include a new architecture for atomic quantum computing that addresses challenges in high parallelism, speed, and stability [3] - Internationally, a team from the University of Chicago has theoretically extended the connection distance between quantum computers to 2,000 kilometers [3] Industry Growth and Investment - In the first three quarters of this year, A-share companies involved in quantum technology reported a total R&D expenditure of 69.47 billion yuan, accounting for 3.86% of total revenue [4] - Notable companies with high R&D expenditure include China Mobile, ZTE, and China Telecom, with 国芯科技 leading at 89.03% of revenue spent on R&D [4][5] Market Opportunities - Quantum communication, particularly quantum key distribution (QKD), is identified as the most mature and commercially viable area within quantum technology [3] - Quantum measurement is also highlighted as an early revenue-generating sector, akin to "hidden champions" in niche markets [3]

Core Viewpoint - Ping An Asset Management Co., Ltd. has increased its stake in China Telecom (00728) by acquiring 17.136 million shares at an average price of approximately HKD 5.77 per share, totaling around HKD 98.79 million [1] Group 1 - The acquisition occurred on November 6, as per the latest data from the Hong Kong Stock Exchange [1] - Following the purchase, Ping An's total shareholding in China Telecom is approximately 849 million shares, representing a stake of 6.11% [1]

Investment Rating - The report maintains a "Positive" investment rating for the communication industry [10]. Core Insights - The communication sector has seen a 1.00% increase in the 45th week of 2025, ranking 15th among major industries in the Yangtze River region. Year-to-date, the sector has risen by 63.27%, placing it 2nd among the same industries [2][5]. - Lumentum's quarterly performance is strong, with revenue of $530 million for FY26Q1, a year-on-year increase of 58.4%. Over 60% of this revenue comes from cloud and AI infrastructure [6]. - The demand for indium phosphide (InP) laser chips is robust, with a supply-demand gap expected to widen to 25-30% in the coming quarters. Lumentum's production capacity is fully booked for the next six quarters, with an anticipated capacity increase of approximately 40% [6][8]. - The "AI x Space" initiative is accelerating, with companies like Starcloud, SpaceX, and Google launching projects to establish in-orbit computing capabilities, marking the beginning of a new era for space data centers [7][8]. Summary by Sections Market Performance - The communication sector's stock performance has been notable, with significant gains in individual stocks such as Keda (+24.6%), Yuanjie Technology (+16.2%), and Yihua Co. (+12.2%) [5]. Company Analysis - Lumentum's revenue growth is driven by strong shipments of InP laser chips, with component revenue reaching $380 million, a year-on-year increase of 64% [6]. - The company is transitioning from 3-inch to 4-inch wafer processes, focusing on cost and yield improvements [6]. Investment Recommendations - The report recommends several companies across different segments: - Telecom Operators: China Mobile, China Telecom, China Unicom - Optical Modules: Zhongji Xuchuang, Xinyi Technology, Tianfu Communication - Liquid Cooling: Yingweike - Hollow Core Fiber: Fenghuo Communication, Hengtong Optic-Electric - Domestic Computing: Runze Technology, Guanghuan New Network - AI Applications: Boshi Jie, Heertai - Satellite Applications: Huace Navigation, Haige Communication [8].