Industry Overview - The Ministry of Industry and Information Technology has issued the "Computing Power Interconnection Action Plan," aiming to explore the construction of a computing power internet system [1] - The plan emphasizes the establishment of a computing power interconnection platform to promote the interconnection of computing power facilities, resources, services, and applications, accelerating the networking of public computing resources [1] - By 2028, the goal is to achieve standardized interconnection of public computing power across the country, forming a computing power internet characterized by intelligent perception, real-time discovery, and on-demand access [1] Company Developments - Nanxing Co., Ltd. has established and is operating data center nodes that cover 18 provinces and 36 cities in China, as well as some overseas regions, while continuously planning and improving the layout of data center nodes [2] - Guankang Technology is enhancing its AI accelerator center capabilities through the existing intelligent computing platform, creating a self-controlled "cloud-edge-end" collaborative architecture [2] - The company is integrating distributed heterogeneous computing resources into a dynamic "computing power pool" for efficient utilization of massive discrete data and complex computing tasks [2]

Group 1: Stablecoins - The Hong Kong government officially enacted the "Stablecoin Regulation" on May 30, enhancing the digital asset regulatory framework [1] - Compliant stablecoins in Hong Kong are expected to be launched by the end of this year, with the global stablecoin market exceeding $250 billion as of May 31, 2023, an increase of over $40 billion since the end of 2024 [1] - Stablecoins are increasingly used in traditional financial activities such as cross-border payments and foreign exchange savings, becoming ideal choices for international payments and asset reserves [1] Group 2: Hydropower Projects - A hydropower station project in Tibet has been approved, with a total investment expected to exceed 1 trillion yuan, generating a demand for 18 million cubic meters of concrete and 54 million tons of cement [2] - The project is set to start construction in June 2025 and aims to be operational by 2030, with a capacity of 6 million kilowatts, more than double that of the Three Gorges Dam [2] Group 3: Quantum Communication - A Chinese research team has proposed a scalable quantum direct communication network, achieving a 300-kilometer communication distance among four nodes [3] - The advancements include overcoming traditional network architecture limitations, optimizing entangled light source preparation, and establishing an error correction mechanism for stable multi-node communication [3] Group 4: Computing Power - The Ministry of Industry and Information Technology has issued an "Action Plan for Computing Power Interconnectivity," aiming to create a computing power internet system by 2028 [4] - The plan focuses on enhancing the interconnectivity of computing resources and services, promoting a unified computing power standard [4]

Group 1: Computing Power Interconnection Action Plan - The Ministry of Industry and Information Technology issued the "Computing Power Interconnection Action Plan," aiming to establish a comprehensive standard and rule system for computing power interconnection by 2026 and achieve nationwide public computing power standardization by 2028 [1] - The plan emphasizes the need for leading server companies to drive the development and application of new high-speed interconnection protocols, enhancing compatibility across various transmission protocols [1] - The initiative aims to optimize the allocation of computing resources, particularly facilitating the "East Data West Computing" strategy, which involves sending data from energy-scarce eastern cities to the resource-rich western regions for processing [1] Group 2: Digital Tax in Germany - Germany is considering a 10% digital services tax on major online platforms like Google and Meta, citing concerns over tax avoidance and monopolistic structures that threaten competition and free speech [3] - This move is seen as a pressure tactic in ongoing US-EU trade negotiations, with several European countries already implementing similar taxes [3][4] - The proposal highlights the need for a fair discussion on tax laws rather than using them as negotiation tools, which could harm the business environment [4] Group 3: Shanghai Foreign Trade Performance - Shanghai's foreign trade in the first four months of the year reached 1.4 trillion yuan, a 1% year-on-year increase, with exports growing by 13.8% [5] - The city has shown resilience in foreign trade despite tariff challenges, with significant growth in exports to non-US regions, particularly Africa, which saw a 96.5% increase [5][6] - The strong performance is attributed to Shanghai's robust high-end manufacturing and electronics sectors, as well as the flexibility and innovation of private enterprises [5] Group 4: Hotel Investment Market - The hotel investment market in China is experiencing increased activity, with 313 new hotels opening in April, a 41.6% month-on-month increase [7] - Major transactions are concentrated in first-tier and new first-tier cities, with the East China region accounting for 55% of hotel investment deals [8] - Despite a competitive environment, the demand for hotel assets is rising, driven by increased travel during holidays, although overall hotel performance remains mixed [8] Group 5: Li Auto's Financial Performance - Li Auto reported a 1.1% year-on-year revenue increase to 25.9 billion yuan in Q1 2025, with a net profit of 647 million yuan, marking a 9.4% increase [9] - The company expects Q2 deliveries to reach between 123,000 and 128,000 units, reflecting a year-on-year growth of 13.3% to 17.9% [9] - Li Auto's performance is stable, but it faces increasing competition from other new energy vehicle manufacturers [10] Group 6: Luckin Coffee's Pricing Strategy - Luckin Coffee has introduced promotional pricing, with some drinks priced as low as 6.9 yuan, amid intense competition in the coffee market [11] - The company emphasizes that these discounts are temporary promotional activities rather than a shift to a lower pricing strategy [11][12] - Despite rising coffee bean prices globally, domestic price competition remains fierce, with competitors offering significantly lower prices [11] Group 7: ETF Market Growth - The ETF market in China has surpassed 4 trillion yuan, with significant inflows of new capital and an increase in the number of ETF products [13] - The growth is partly driven by state-owned entities entering the market, focusing on index ETFs rather than individual stocks [13] - The rise in ETF trading activity reflects a shift in investor preference towards diversified investment strategies [13] Group 8: Stock Market Overview - The stock market experienced fluctuations, with the Shanghai Composite Index closing down 0.47% on May 30, amid a total trading volume of 1.14 trillion yuan [14] - Defensive sectors like pharmaceuticals showed strength, while high-flying stocks faced declines [14] - Market sentiment remains cautious, with expectations of policy support in June potentially stabilizing the market [15]

Group 1: Core Insights - The "Four Mountains and Two Rivers" cultural tourism ecological conference was held in Foshan, announcing a three-year action plan to develop a high-quality cultural tourism demonstration area [1] - The plan aims to integrate agriculture, culture, commerce, and tourism, with specific targets for each year from 2025 to 2027, including the establishment of a resource library and attracting over 30 investment projects exceeding 100 million yuan [1][2] - Foshan's tourism goals for 2025 include receiving over 6.5 million tourists and generating over 7 billion yuan in tourism revenue [2] Group 2: Economic Context - Foshan's economy is heavily reliant on the secondary industry, with over 50% of GDP coming from this sector, but it has faced challenges due to a downturn in the real estate market [2] - The city's GDP growth is projected to be only 1.3% in 2024, ranking last among 27 trillion-yuan cities, highlighting the need for economic diversification [2][3] - The local government is focusing on cultural tourism as a means to stimulate growth and expand domestic demand, with the tourism sector being positioned as a pillar industry [2][3] Group 3: Comparative Analysis - Compared to similar cities, Foshan's tourism performance lags behind; for instance, Quanzhou received over 100 million tourists in 2024, generating 121.14 billion yuan in tourism revenue [3] - The city has rich cultural resources but faces challenges in attracting deep tourism due to the dispersion of attractions [3] - There is a call for innovative approaches to integrate manufacturing with cultural tourism, similar to transformations seen in other industrial regions [3]

Core Insights - The Ministry of Industry and Information Technology has issued the "Computing Power Interconnection Action Plan" aiming to establish a comprehensive system of standards, identifiers, and rules for computing power interconnection by 2026 [1] Group 1: Infrastructure Interconnection - The plan promotes new high-performance transmission protocols to enhance the interconnection level among computing power nodes [1] - It aims to build national, regional, and industry computing power interconnection platforms to unify and aggregate public computing power identifiers, facilitating interconnection of resources among leading computing power enterprises nationwide [1] Group 2: Resource Utilization - The initiative focuses on achieving interconnection of computing power resources, enabling cross-entity, cross-architecture, and cross-regional scheduling of computing power supply and demand [1] Group 3: Application Scenarios - The plan includes the establishment of pilot projects for computing power internet experimental networks to empower industries with accessible computing power [1] - By 2028, the goal is to achieve standardized interconnection of public computing power across the country, gradually forming a computing power internet capable of intelligent perception, real-time discovery, and on-demand access [1]

Investment Rating - The industry rating is "Recommended" [5] Core Insights & Investment Recommendations - Trade uncertainties have resurfaced, with President Trump threatening a 50% tariff on EU imports, which may disrupt market risk appetite temporarily. However, China's core assets still hold low-positioning value due to domestic demand resilience, industrial chain upgrades, and policy support [2][24] - OpenAI's acquisition of the AI hardware startup io for $6.5 billion marks its entry into the hardware sector, indicating a strategic shift from a "pure software ecosystem" to an "end-side closed-loop" strategy. This move is expected to lower the technical usage threshold and accelerate the commercialization of AI applications in consumer scenarios [2][43] - Investment opportunities include: 1) Hong Kong internet leaders benefiting from consumption promotion and employment stability; 2) The gaming industry, which is expected to see growth due to policy incentives and technological empowerment; 3) The film and cultural tourism industry, which will benefit from consumption policies promoting cinema recovery [3][25] Industry Data - The top three films at the box office are "Dumpling Queen" with a revenue of 31.83 million yuan (21.10% market share), "Hunting Gold: Game" with 29.16 million yuan (19.40%), and "Life Opens the Door" with 25.13 million yuan (16.70%) [4][58]

Group 1 - The three major indices in China experienced a narrowing of declines, with the Shanghai Composite Index briefly turning positive, while the computer sector maintained a volatile trend [1] - The Computer ETF (159998) saw its decline narrow to 0.46%, with a premium trading occurrence, and notable stocks like Langxin Group rising over 5% [1] - The latest news indicates that China has officially launched the construction of a computing power internet experimental network, with major telecom operators collaborating on this initiative [1] Group 2 - Recent reports indicate a significant decline in capital expenditures among China's three major telecom operators over the past three years, although there is an optimization in structure [2] - Despite the reduction in capital expenditures, the operators are maintaining or increasing investments in computing power, reflecting their commitment to AI development [2] - The cloud computing sector is expected to experience a profitable cycle due to increased demand and investment in AI infrastructure, with a focus on leading companies in the public cloud space [2]

Core Viewpoint - The construction of the computing power internet in China aims to integrate dispersed computing resources, promote accessibility, and enhance efficiency in computing usage, thereby facilitating the application of AI across various industries and driving digital transformation [2][4]. Group 1: Development of Computing Power Internet - On May 17, major telecom operators in China, including China Telecom, China Mobile, and China Unicom, launched the construction of a computing power internet experimental network [2]. - The network will facilitate the interconnection of computing resources from the three telecom operators and nationwide distributed social computing resources, allowing users to flexibly purchase computing power as needed [2]. - As of now, 131 enterprises have identified 499 computing resource pools, aggregating 111.3 billion billion floating-point operations per second of intelligent computing resources [2][3]. Group 2: Industry Growth and Infrastructure - China's computing power infrastructure is rapidly developing, with the total scale ranking second globally, only behind the United States [3]. - The first domestic public service platform for computing interconnection was launched in July 2024, aimed at promoting interconnectivity and supporting the construction of a unified computing system [3]. - Key technologies related to computing scheduling, data flow, and computing identification have established industry, national, and international standards [3]. Group 3: Market Performance and Financials - The computing power sector has seen a significant turnaround in performance, with nearly 60 computing power concept stocks in the A-share market expected to achieve a revenue growth of 9.85% and a net profit growth of 9.46% in 2024 [5]. - Major telecom operators have experienced continuous revenue and net profit growth over the past five years, with China Mobile, China Telecom, and China Unicom's intelligent computing scales reaching 29.2 EFLOPS, 35 EFLOPS, and 17 EFLOPS respectively in 2024 [7]. - Companies like Tongfang Co. and Zhongji Xuchuang have reported net profit increases exceeding 100% in 2024, indicating strong operational results from their computing power services [7]. Group 4: Potential Growth Stocks - A list of 15 promising computing power concept stocks has been identified, with expected net profit growth exceeding 20% for 2025 and 2026 [8][9]. - Tianyuan Dike is projected to achieve a net profit increase of over 200% in 2025, while Yingweike is expected to see a 35% increase [8][9]. - Among these stocks, 13 have consistently paid dividends over the past three years, indicating a stable return for investors [9].

Key Points - The US and China have significantly reduced bilateral tariff levels, with the US canceling 91% of additional tariffs and China reciprocating with the same percentage of counter-tariffs [1][4][10] - The Chinese government emphasizes strengthening domestic circulation as a strategic move for stable economic growth [2][4] - New regulations for major asset restructuring of listed companies have been implemented, introducing a phased payment mechanism and private equity fund arrangements [1][4] - The People's Bank of China reported a broad money (M2) balance of 325.17 trillion yuan, reflecting an 8% year-on-year growth [1][3] - The US has lost its Aaa credit rating from major international credit rating agencies, indicating a decline in sovereign creditworthiness [1][10][11] - China's holdings of US Treasury bonds decreased by $18.9 billion, making it the third-largest holder, while the UK has become the second-largest [1][11]

Group 1 - The event on May 17 marked the launch of the computing power internet experimental network by China Telecom, China Mobile, and China Unicom in collaboration with the China Academy of Information and Communications Technology [1] - The computing power internet aims to interconnect dispersed computing resources, including general computing, intelligent computing, supercomputing, and cloud-edge-end resources, allowing users to easily access and utilize computing power [1] - The computing power internet is seen as a new type of infrastructure that enhances heterogeneous computing and elastic network capabilities, transforming the supply and usage patterns of computing resources [1] Group 2 - Hongbo Co., Ltd. has developed its own "Yingbo Cloud" platform, which integrates core technologies such as computing power scheduling, storage solutions, and cluster monitoring [2] - Tuo Wei Information is a core partner of Huawei's Ascend ecosystem, collaborating to develop AI servers and edge computing solutions [2]