Core Viewpoint - The Chinese Ministry of Foreign Affairs criticizes the forced removal of Chinese telecom companies' equipment by certain countries, arguing that it harms both the countries involved and their own technological progress [1] Summary by Relevant Sections Economic Impact - The removal of high-quality and secure equipment from Chinese telecom companies has led to significant economic losses for the countries enforcing these measures [1] - The Ministry emphasizes that such actions hinder technological advancement and economic development [1] Market Principles - The Ministry asserts that the forced removal of Chinese companies from the market violates market principles and fair competition rules, as there is no legal basis or factual evidence for these actions [1] - It calls for the European Union to provide a fair, transparent, and non-discriminatory business environment for Chinese enterprises [1] Contribution to Local Economies - Chinese companies have been operating in Europe in compliance with local laws, providing quality products and services, and contributing positively to local economic and social development [1]

Core Insights - Quantum technology is viewed as the "key" to the next generation of information technology revolution, with significant breakthroughs in both policy and technology [1][3]. Policy Developments - The Anhui Provincial Development and Reform Commission announced that quantum technology is transitioning from technological breakthroughs to large-scale industrial applications, aiming to implement nearly 300 application scenarios by the end of this year and 1,000 by 2027 [1]. - The United Nations Educational, Scientific and Cultural Organization (UNESCO) has declared 2025 as the "International Year of Quantum Science and Technology" to commemorate the 100th anniversary of quantum mechanics [3]. Technological Advancements - A team from the Chinese Academy of Sciences has made significant progress in neutral atom quantum computing, proposing a new architecture based on fiber arrays that addresses challenges in achieving high parallelism, speed, and stability [1]. - Researchers at the University of Chicago have theoretically extended the connection distance between quantum computers to 2,000 kilometers, making the construction of a global quantum internet more feasible [2]. Industry Growth Potential - Quantum technology, encompassing quantum computing, quantum communication, and quantum precision measurement, is identified as a future industry with substantial growth potential, as highlighted in the 14th Five-Year Plan [3]. - The global quantum computing industry is projected to grow from $4.7 billion in 2023 to over $800 billion by 2035 [3]. R&D Investment - Over 60 companies in the A-share market are involved in quantum technology, with a total R&D expenditure of 69.47 billion yuan, accounting for 3.86% of total revenue [4]. - Among these, 35 companies reported R&D expenses exceeding 100 million yuan in the first three quarters, with seven companies surpassing 1 billion yuan [5]. Key Players and Financial Metrics - Notable companies include Guoxin Technology, which has the highest R&D expense-to-revenue ratio at 89.03%, and has successfully commercialized quantum security chips [5][6]. - Other companies with significant R&D investments include Suzhou Keda, Tianrongxin, and Digital Certification, with varying R&D expense ratios [5][6]. Institutional Interest - Institutional interest is high for companies like ZTE Corporation and China Mobile, with ZTE receiving ratings from 23 institutions [7]. - Forecasts indicate that nine companies are expected to achieve net profit growth rates exceeding 15% from 2025 to 2027 [7]. Market Predictions - Several stocks, including China Haifang and Keda Technology, are projected to have significant upside potential based on institutional target prices [8].

Core Viewpoint - The Sichuan Provincial Government and China Telecom Group signed a strategic cooperation agreement to enhance collaboration in various sectors, focusing on the integration of the real economy and digital economy [1] Group 1: Strategic Cooperation Agreement - The agreement aims to promote deep integration between the real economy and digital economy [1] - Key areas of collaboration include the development of computing power clusters, information security, smart city construction, intelligent transformation of manufacturing, low-altitude economy development, and talent exchange and training [1] - The signing ceremony was attended by high-ranking officials from both the Sichuan Provincial Government and China Telecom, indicating strong governmental support for the initiative [1] Group 2: Development Focus - China Telecom will support the development of artificial intelligence and quantum technology industries in Sichuan [1] - The partnership is expected to contribute to the modernization of Sichuan, facilitating mutual benefits and win-win development [1]

Core Viewpoint - The article discusses the temporary suspension of mobile phone cards due to anti-fraud measures and provides recovery guidelines from the four major telecom operators in China. Group 1: China Telecom - Online channels: Users can process recovery through public accounts, mini-programs, and online service halls (specific methods can be found in the verification notification SMS) [1][17] - Offline channels: Users can bring their ID and phone card to any China Telecom service hall nationwide (specific locations can be queried via local 10000 service) [1][17] Group 2: China Mobile - Online channels: Users can click the link in the notification SMS or call the 10086 customer service hotline for self-service recovery (specific methods can be found in the verification notification SMS) [2][18] - Offline channels: Users can bring their ID and phone card to any China Mobile service hall nationwide (specific locations can be queried via local 10086 service) [2][18] Group 3: China Unicom - Online channels: Users can apply for recovery by searching for the "self-service recovery" interface on the China Unicom app homepage or through public accounts and mini-programs (specific methods can be found in the verification notification SMS) [3][19] - Offline channels: Users can bring their ID and phone card to any China Unicom service hall nationwide to complete real-person authentication [4][19] Group 4: China Broadcasting Network - Online channels: Users can download the China Broadcasting Network app via the link in the notification SMS and complete recovery after passing the identity verification. The app usage does not incur data charges [5][20] - Offline channels: Users can visit any China Broadcasting Network service hall, providing their ID and the phone card for real-person authentication to complete recovery [5][20]

Investment Rating - The report maintains an "Overweight" rating for the communication sector and communication equipment manufacturing [6]. Core Insights - The communication industry showed a steady growth in 3Q25, with total revenue and net profit attributable to shareholders increasing by 5.2% and 12.3% year-on-year, respectively [9]. - The growth is driven by the AI computing demand, particularly benefiting the optical communication and copper connection sectors, while telecom operators are expected to maintain stable growth [9][20]. - The report highlights the potential for high growth in net profit for the optical communication sector due to increased investments in AI computing capabilities [9][20]. Summary by Sections Telecom Operators - The three major telecom operators reported a revenue and net profit growth of 1.1% and 2.1% year-on-year, respectively, with net profit growth outpacing revenue growth [2][20]. - Traditional business revenue growth has slowed, but emerging AI applications are expected to drive growth in cloud computing and data center services [2][20]. - The operators' return on equity (ROE) continues to improve due to reduced capital expenditures and enhanced operational efficiency [2][25]. Optical Communication - The optical module and optical device sectors experienced significant growth, with total revenue and net profit increasing by 51% and 123% year-on-year, respectively [3][33]. - Key players like Zhongji Xuchuang benefited from sustained demand for 800G optical modules and the ramp-up of 1.6T products [3][33]. - Future demand for optical devices is expected to recover as the market for 800G and 1.6T optical modules expands [3][33]. Copper Connection - The copper connection sector saw a revenue and net profit increase of 26% and 72% year-on-year, respectively [4][63]. - Companies like Huafeng Technology are expected to benefit from the release of domestic super node projects, despite some short-term fluctuations in profit due to client pricing adjustments [4][63]. - The sector's growth is supported by the introduction of new AI-related products and the anticipated demand from super node deployments [4][63]. IDC (Internet Data Center) - The IDC sector reported a revenue decline of 1.6% but a net profit increase of 236% year-on-year, driven by successful public REITs projects [37]. - AI demand is expected to enhance the industry's growth prospects, although short-term challenges remain due to AI chip supply constraints [37][42]. - The report anticipates that as domestic AI chip production increases, the supply issues will gradually resolve, leading to improved performance in the IDC sector [37][42]. General Trends - The overall communication industry is benefiting from AI computing investments, with various segments such as optical modules, copper connections, and IDC showing promising growth trajectories [9][20][37]. - The report emphasizes the importance of adapting to the evolving landscape driven by AI and cloud computing, which is reshaping demand across the communication sector [9][20].

Core Insights - The 2025 World Internet Conference has recognized Baidu's "script-driven multi-modal collaborative high-fidelity digital human technology," highlighting advancements in digital human capabilities [1][3] - Digital human technology is rapidly penetrating various fields, showcasing significant potential in commercial value transformation and cultural innovation [4][10] - China Telecom is leveraging its AI technology to drive innovation and development in the digital human industry, establishing a comprehensive support system for its growth [5][6] Technology Advancements - Baidu's technology has achieved breakthroughs in real-time multi-modal collaboration and complex dynamic interactions, enhancing the quality and interactivity of digital human content [3] - China Telecom has developed a high-performance digital human technology foundation, optimizing domestic computing power and launching the DeepSeek integrated computing machine for low-latency, reliable support [6] - The self-developed trillion-parameter Star Model by China Telecom enables multi-modal capabilities, improving semantic understanding and reducing "hallucination rates" by 40% [6] Industry Applications - Digital humans are being integrated into various sectors, including cultural dissemination, commercial live streaming, and service scenarios, enhancing user experience and engagement [4][8] - China Telecom's digital human "Sulin," based on a real panda, won recognition for its high-quality performance in tourism services, showcasing the potential for personalized and interactive experiences [8] - The digital human "Gulitu" served as a host in a library event, demonstrating the innovative use of digital humans in public service and cultural activities [9] Ecosystem Development - China Telecom is expanding its ecosystem through open collaboration, establishing the Star AaaS and TaaS systems to standardize digital human technology interfaces and services [7] - The company is fostering innovation through partnerships and competitions, such as the "Tianyi Cloud Xirang Cup" AI competition, to cultivate talent and facilitate technology exchange [7] - A comprehensive ecosystem is being built to support the entire process from technology research and development to application in the industry [7]

Investment Rating - The communication industry is rated as "Overweight" [10] - The communication equipment manufacturing sector is also rated as "Overweight" [10] Core Insights - The communication sector saw a significant increase in holdings, with the top ten funds holding 7.26% of the communication sector, up 3.58 percentage points from the previous quarter, marking the highest quarterly holding ratio since 2019 [2][3] - The sector's overweight ratio increased to 3.36%, up 2.90 percentage points from the previous quarter [3][14] - Key areas of investment include optical modules, liquid cooling, optical chips, and optical fiber cables, while operators, data centers, and Beidou systems saw reduced holdings [3][14] - The TTM price-to-earnings ratio for the communication sector as of November 7, 2025, is 43.62x, which is at the 69.3% historical percentile since early 2011 [3][14] Summary by Sections Market Performance - The communication index rose by 0.92% last week, while the Shanghai Composite Index increased by 1.08% and the Shenzhen Component Index by 0.19% [2][13] Fund Holdings - In Q3 2025, public funds increased their holdings in the communication sector, with significant increases in companies like Zhongji Xuchuang, Xinyi Sheng, Tianfu Communication, Yingweike, and Yuanjie Technology, with total market value increases of 82.43 billion, 78.93 billion, 9.29 billion, 4.06 billion, and 3.79 billion respectively [3][25] - The top five companies by increase in holdings during Q3 2025 saw stock price increases of 176.8%, 188.0%, 110.8%, 169.2%, and 120.3% respectively [25][26] Key Companies and Recommendations - Recommended companies include Xinyi Sheng, Zhongxing Communication, Ruijie Network, China Mobile, China Telecom, China Unicom, and Hengtong Optoelectronics, all rated as "Buy" [10][58] - The report highlights the potential for AI computing chain investments, particularly in optical modules and related technologies [2][3] Valuation and Future Outlook - The report anticipates continued growth in the AI computing sector, with companies like Xinyi Sheng expected to benefit significantly from the demand for high-speed products [59][62] - Adjustments to profit forecasts for companies like Zhongxing Communication and Ruijie Network reflect a cautious outlook due to market conditions, but long-term growth potential remains [59][62]

Core Insights - The Hitch Open World AI Championships aims to establish China as a global center for electric AI racing, with the first event successfully held in Zhangjiajie, Hunan [2][5] - The event featured a challenging 10.77 km course with 99 bends, known as the "King of Extreme Roads," which posed significant challenges for AI racing teams [3][5] - The competition highlighted the importance of real-world testing for AI systems, emphasizing that breakthroughs in AI driving safety must occur outside laboratory settings [6][7] Event Overview - The Hitch Open event was organized in less than a year, showcasing the capabilities of AI algorithms from participating universities, with Tsinghua University winning the championship [2][5] - The event took place under extreme weather conditions, demonstrating the robustness of AI systems in unpredictable environments [5][7] Technological Significance - The event's unique focus on natural environments and open data sets distinguishes it from traditional racing competitions, positioning it as a critical infrastructure for the future of intelligent industries [7][9] - The competition generated vast amounts of data, with each race producing approximately 3TB of physical data, necessitating advanced 5G networks for real-time data processing [9][10] Industry Collaboration - The event attracted significant interest from various sectors, including telecommunications and automotive industries, highlighting the potential for collaboration between academia and industry [9][11] - Companies like PIX Moving provided standardized platforms for the competition, ensuring a focus on algorithmic performance rather than hardware competition [10][11] Educational Impact - The Hitch Open serves as a platform for cultivating AI talent, fostering international collaboration among universities, and providing students with practical experience in real-world applications [13][15] - The event's data-sharing policy aims to create a valuable resource for academic research, enhancing the development of AI models [11][15] Future Directions - Future editions of the Hitch Open will introduce more complex racing formats, including multi-car competitions, to further challenge AI systems [12][19] - The event is envisioned as a catalyst for innovation in AI and autonomous driving, contributing to a comprehensive ecosystem that integrates education, research, and industry [19]

Core Insights - The Guoqi Gongying ETF (159719) has shown a 0.61% increase as of November 10, 2025, marking its third consecutive rise, with a latest price of 1.65 yuan [1] - Over the past week, the ETF has accumulated a 2.57% increase, and its net value has risen by 61.24% over the last three years, ranking 227 out of 1906 in the index equity fund category, placing it in the top 11.91% [1] Performance Metrics - The ETF has achieved a maximum monthly return of 14.61% since its inception, with the longest streak of consecutive monthly gains being 7 months and a maximum cumulative increase of 24.70% [1] - The average return for the months in which the ETF increased is 4.12%, with a total annual profit percentage of 100.00% and a historical three-year holding profit probability of 100.00% [1] - Over the past six months, the ETF has outperformed its benchmark with an annualized excess return of 7.69% [1] Risk and Fee Structure - The Sharpe ratio for the ETF over the past three years is 1.10, indicating a favorable risk-adjusted return [2] - The maximum drawdown over the past six months is 5.61%, which is the lowest among comparable funds, with a recovery time of 37 days [2] - The management fee is 0.25% and the custody fee is 0.05%, both of which are the lowest in its category [2] Tracking Precision - The tracking error for the ETF over the past month is 0.035%, the highest tracking precision among comparable funds [3] - The ETF closely tracks the FTSE China State-Owned Enterprises Open Win Index, which reflects the performance of Chinese state-owned enterprises listed in mainland China and Hong Kong, focusing on globalization and sustainable development [3] Top Holdings - The top holdings in the ETF include China Petroleum (14.08% weight, +1.44%), China Construction (9.84% weight, +0.18%), and China Mobile (8.10% weight, -0.01%) [5]

Group 1 - China Telecom's project "Key Technologies and Large-Scale Applications of Direct Connection of Popular Smartphones to Tiantong Satellite System" won the Leading Technology Award at the 2025 World Internet Conference [1] - This marks the sixth time China Telecom has received this honor [1] - The project addresses communication failures caused by natural disasters, utilizing the Tiantong-1 high-orbit satellite system to achieve direct smartphone connections to satellites 36,000 kilometers away [1] Group 2 - The project has received 101 patent authorizations and 40 software copyrights, and was included in the 2023 Top Ten Super Projects of State-Owned Enterprises [1] - China Telecom launched the world's first satellite voice and SMS service for smartphones, allowing users to connect to the Tiantong satellite without changing their SIM card or phone number [1] - The service is currently available nationwide and is expanding into Southeast Asia, with applications in emergency support, maritime transport, scientific exploration, and outdoor adventures [1] Group 3 - The technology supports over 40 smartphone models, totaling more than 25 million devices, including brands like Huawei, Xiaomi, and Samsung [1] - The project is also expanding into the automotive sector for direct satellite connections, indicating a growing industrial ecosystem [1] Group 4 - The Leading Technology Award at the World Internet Conference aims to showcase and recognize valuable technological achievements in the global internet sector [2] - This year, 424 technological achievements were submitted, with 17 selected after two rounds of evaluation by over 70 experts in the field [2]