Event: the 4th issue of Qiushi magazine, published on February 16, 2022, published the important article of Xi Jinping general secretary “adhere to the road of socialist rule of law with Chinese characteristics and better promote the construction of socialist rule of law system with Chinese characteristics”. The article mentioned that we should speed up legislation in key areas. We will strengthen legislation in important areas such as national security and scientific and technological innovation, and accelerate the pace of legislation in areas such as digital economy, Internet finance, artificial intelligence, big data and cloud computing.
We will accelerate legislation in areas such as the digital economy. Plans related to digital economy and new technologies such as the 14th five year plan for informatization, the 14th five year plan for the development of software and information technology service industry and the 14th five year plan for the development of digital economy have been released one after another. The article of seeking truth focuses on accelerating the pace of legislation in the fields of digital economy, Internet finance, artificial intelligence, big data and cloud computing, which will accelerate the improvement of the national legal system in the fields of digital economy, so as to actively promote the development of industries related to digital economy.
Strengthen legislation in areas such as network security. With the release of basic legal documents such as password law, data security law, personal information protection law and regulations on the security protection of key information infrastructure, the national legislative system on data security, personal information protection and customs based security has been further improved. This article focuses on strengthening the legislative work in the field of national security, which will help accelerate the introduction of top-level laws, regulations and supporting policies and promote the implementation, which is expected to drive the emergence of a new growth pole in the industry.
The intensive release of laws, regulations and plans points out the development direction of digital economy during the 14th Five Year Plan period.
Developing digital economy is the general trend of a new round of scientific and technological revolution and industrial reform. It is also an important way to promote China’s high-quality development. At the end of 2021, the national policies and plans on digital economy and other fields during the 14th Five Year Plan period were intensively issued, which deeply defined the development direction of digital economy. The constraints of legislation will contribute to the more orderly, stable and sound development of relevant industries.
Investment suggestions: it is suggested to focus on the sectors of information technology and innovation, energy informatization, network security, industrial Internet and digital government, which are highly related to the construction of digital economy, and focus on Longshine Technology Group Co.Ltd(300682) , Thunder Software Technology Co.Ltd(300496) , Quectel Wireless Solutions Co.Ltd(603236) , Hundsun Technologies Inc(600570) , Yonyou Network Technology Co.Ltd(600588) , Kingdee International, Glodon Company Limited(002410) , Sangfor Technologies Inc(300454) , Beijing Kingsoft Office Software Inc(688111) , 360 Security Technology Inc(601360) , Topsec Technologies Group Inc(002212) , China Reform Health Management And Services Group Co.Ltd(000503) , B-Soft Co.Ltd(300451) , Qi An Xin Technology Group Inc(688561) , Iflytek Co.Ltd(002230) Beijing Supermap Software Co.Ltd(300036) , Venustech Group Inc(002439) etc.
Risk warning: policy promotion is not as expected; The government budget fell short of expectations.
