Core Insights - China's information and communication industry has established a globally leading and largest-scale network, with 5G applications integrated into 86 out of 97 categories of the national economy, and the industrial internet covering all 41 industrial categories, effectively promoting the deep integration of the real economy and the digital economy [1] Group 1: Industry Growth and Infrastructure - The telecommunications business revenue reached 598.5 billion yuan in the first four months of this year, showing a slight recovery in growth [1] - As of the end of April, the total number of 5G base stations reached 4.439 million, accounting for 34.9% of mobile base stations, with 90% of administrative villages having access to 5G [2] - The number of 5G mobile phone users reached 1.081 billion, with a net increase of 66.87 million users compared to the end of last year, representing nearly 60% of mobile phone users [3] Group 2: Technological Innovation and Applications - The industry has launched the "5G Scale Application 'Sail' Action Upgrade Plan" to expand the application of 5G networks [3] - The global share of essential patents for 5G standards exceeds 42%, indicating the industry's technological strength [3] - The construction of the computing power internet has begun, enhancing the capabilities of the existing internet infrastructure to meet the demands of computing power applications [5][6] Group 3: International Cooperation and Investment - The Ministry of Industry and Information Technology has initiated pilot projects to expand foreign investment in value-added telecommunications services, with over 2,400 foreign-invested telecommunications companies established in China, a 26.5% increase from the previous year [4] - The government emphasizes the importance of meeting comprehensive innovation needs and accelerating the development of 5G-A and 6G technologies [4] Group 4: Service Enhancement and Social Impact - The integration of artificial intelligence in agriculture has significantly improved breeding efficiency, showcasing the application of new technologies in traditional industries [8] - The industry aims to enhance service capabilities and levels, focusing on digital transformation to bridge the digital divide and improve the quality of digital life for the public [10]

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]

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]

Group 1 - The core viewpoint is that China is promoting the construction of a computing power internet experimental network to accelerate the establishment of a unified national computing power network [1] - The computing power internet is a new type of facility formed by upgrading the existing internet, enabling the interconnection of computing resources similar to how the internet connects information and devices [1][2] - Major telecom operators and institutions, including China Telecom, China Mobile, China Unicom, and the China Academy of Information and Communications Technology, have jointly initiated the construction of the computing power internet [1] Group 2 - A verification platform for the computing power internet allows users to view the distribution of intelligent, general, and super computing resources across different regions [2] - The platform enables users to query the types and quantities of computing resource cards and match them according to specific needs [4] - As of now, 131 enterprises have completed the identification of 499 computing resource pools, aggregating intelligent computing resources capable of 111.3 billion billion floating-point operations per second [6] Group 3 - The total scale of data center racks in China has exceeded 9 million standard racks, positioning the country among the top in the world for computing power infrastructure [6] - The ongoing construction of computing power infrastructure is expected to enhance work and life through initiatives like the "Millisecond Computing in Urban Areas" campaign [7] - The "Millisecond Computing in Urban Areas" initiative aims to build high-speed, low-latency urban network infrastructure, ensuring computing resource access time is controlled within 1 millisecond [8]

Group 1 - China's holdings of US Treasury bonds decreased by $18.9 billion in March, dropping to $765.4 billion, making it the third-largest holder, while the UK became the second-largest holder with an increase of $29 billion to $779.3 billion [2] - Moody's downgraded the US sovereign credit rating from Aaa to Aa1 due to increased government debt and interest payment ratios, marking a loss of the highest rating across all three major international credit rating agencies [3] - In April, overseas investors purchased a record ¥8.21 trillion (approximately $56.6 billion) worth of Japanese stocks and long-term bonds, marking the largest monthly net inflow since data collection began in 1996 [3] Group 2 - The Ministry of Industry and Information Technology emphasized the need for the information and communication industry to focus on meeting comprehensive innovation needs and accelerating the development of 5G-A and 6G technologies [1] - Guoxuan High-Tech announced the completion of its first all-solid-state battery pilot line with a design capacity of 0.2 GWh, achieving 100% domestic development of the production line and equipment [1]

Core Viewpoint - The launch of the computing power internet trial network aims to address the growing demand for computing power in the digital economy, facilitating the interconnection of distributed computing resources across different regions and entities [1][2]. Group 1: Definition and Importance of Computing Power - Computing power refers to the ability to process data, which is essential for various applications such as AI, big data, and cloud computing, impacting daily life significantly [2]. - In the digital economy, computing power is likened to essential public resources like water and electricity, highlighting its critical role in serving diverse industries [2]. Group 2: Current Challenges - There is a notable supply-demand imbalance in computing power, driven by rapid advancements in technology, while the resources remain fragmented and lack unified interfaces and protocols [2]. - The need for a system that allows users to access computing resources anytime and anywhere is emphasized, necessitating the interconnection of computing resources [2][3]. Group 3: Functionality of Computing Power Internet - The computing power internet aims to aggregate distributed computing resources online, enabling the transmission of computing tasks and data to appropriate resource pools [2]. - It is compared to the human circulatory system, where computing resources act as the heart and the computing power internet serves as the veins supplying "blood" to the digital economy [3]. Group 4: Benefits to Society - The computing power internet can enhance medical diagnostics and personalized treatment plans through AI, and improve user experiences in entertainment via cloud rendering and gaming [4]. - The construction of the computing power internet is expected to accelerate the arrival of a consumer-level computing power application era, making applications more accessible and flexible [4]. Group 5: Future Focus Areas - Key efforts for the computing power internet include deploying trial networks in critical regions and industries, enhancing resource perception and demand-supply matching capabilities [5]. - There is a focus on overcoming key technological challenges in areas such as computing power identification, scheduling, and cross-domain transmission, alongside building a technical standards system [5]. - Expanding industry applications in fields like AI, scientific computing, and smart manufacturing is crucial for deep integration with sectors such as healthcare, education, and intelligent manufacturing [5].