Investment Rating - The report maintains an "Outperform" rating for the telecommunications industry [2]. Core Insights - The report highlights the regulatory advancements in stablecoin policies in the US and Hong Kong, indicating a shift towards the formalization of cryptocurrency applications, particularly stablecoins [10][11]. - It emphasizes the growing adoption of stablecoins for cross-border payments and the increasing demand for AI applications, which are driving the need for enhanced computational liquidity [12][13]. Summary by Sections Investment Strategy - The US Senate has advanced the "Stablecoin Unified Standards Guarantee Act" with a vote of 66 to 32, mandating that all stablecoins must be backed 1:1 by high-quality, low-risk liquid assets [10]. - Hong Kong has introduced the "Stablecoin Ordinance," effective August 1, 2025, requiring entities to obtain licenses for issuing stablecoins, with stringent financial and compliance requirements [14]. - The global issuance of stablecoins has surpassed $240 billion as of May 3, 2025, indicating a significant market presence [11]. - AI applications are experiencing rapid growth, with ChatGPT reaching 620 million monthly active users, surpassing traditional social media platforms [12][13]. Industry News - The "Stablecoin Ordinance" in Hong Kong aims to regulate stablecoin activities and establish a licensing system, which is expected to accelerate the compliance and formalization of stable currencies [14]. - The Ministry of Industry and Information Technology has released the "Computational Power Interconnection Action Plan," aiming to standardize and enhance the interconnectivity of computational resources by 2026 [15][16]. - China Mobile has announced the winners of its AI general computing device procurement, with a total estimated procurement of 7,058 units [17]. - The successful launch of the fourth batch of low-orbit satellites for the "GW Constellation" marks a significant step in China's satellite internet capabilities [18]. Market Review and Focus - The telecommunications sector saw a 5.06% increase this week, outperforming major indices, with significant gains in optical modules and AI computing indices [19][20]. - The report suggests focusing on investment opportunities in the digital currency and computational power sectors, highlighting companies such as Chutianlong and Hengbao [23].

Investment Strategy - The report highlights the recent updates in stablecoin policies in the US and Hong Kong, indicating a shift towards the formalization of cryptocurrencies, which may lead to increased adoption of stablecoins [10][11] - The global issuance of stablecoins has surpassed $240 billion as of May 3, 2025, suggesting that stablecoins are becoming a significant part of the cryptocurrency ecosystem [11] - The report emphasizes the growing demand for AI applications, with ChatGPT achieving 620 million monthly active users as of May 2025, surpassing traditional social media platforms [12][13] Industry News - The "Stablecoin Regulation" in Hong Kong will officially take effect on August 1, 2025, establishing a licensing system for stablecoin activities, which is expected to accelerate the compliance and formalization of stable currencies [14] - The Ministry of Industry and Information Technology has issued the "Computing Power Interconnection Action Plan," aiming to establish a comprehensive standard and rule system for computing power interconnection by 2026 [15][16] - China Mobile has announced the winners of its centralized procurement for AI general computing devices, with a total estimated procurement scale of 7,058 units, indicating ongoing investment in AI infrastructure [17] Market Review and Focus - The communication sector saw a 5.06% increase this week, outperforming major indices, with significant gains in optical modules and optical communication [19][20] - The report suggests focusing on investment opportunities in the digital currency and computing power sectors, highlighting companies such as Chutianlong and Hengbao [23]

Core Viewpoint - China Telecom is committed to advancing the low-altitude economy through technological innovation and collaboration with industry partners, aiming to establish itself as a leader in low-altitude intelligent networking and application services [1][2]. Group 1: Low-altitude Economic Development - The "1+1+3+N" low-altitude economic capability system was launched, which includes a comprehensive service solution, an intelligent network, and three platforms for infrastructure management, service regulation, and flight operations [2][3]. - China Telecom plans to implement 500 demonstration projects throughout the year to expand low-altitude application scenarios [2]. Group 2: Technological Innovations - The introduction of the Tianyi Low-altitude Card, the world's first dedicated low-altitude network card, aims to provide high-quality, secure, and efficient connectivity for low-altitude devices [3]. - The Tianyi Xinghan platform integrates multi-source data and enhances security, while the Tianyi Xingyun platform supports over 3,000 devices for online operations [3]. Group 3: Collaboration and Partnerships - China Telecom has established innovation centers focused on low-altitude communication infrastructure and terminal devices, aiming to bridge the gap between research and application [4]. - Strategic partnerships have been formed with 39 cities to enhance low-altitude economic initiatives, covering various applications such as drone inspections and emergency rescue [4].