Main points:
The pilot cities of digital finance continued to accelerate the digital transformation of RMB
On March 31, the people’s Bank of China held a symposium on the pilot work of digital RMB research and development, which determined to add six cities, including Tianjin, Chongqing and Guangzhou, Guangdong Province, to the existing pilot areas. Up to now, there have been 23 digital RMB pilot cities. Taking Guangzhou as an example, many business districts and scenic spots in the urban area have been put into use and innovatively applied to talent introduction subsidies. This pilot expansion is another major progress following the 14th five year plan for the development of financial standardization jointly issued by the people’s Bank of China and other four departments on February 8. It is deeply in line with the development plan of steadily promoting the development of legal digital currency standard and leading the construction of digital ecology in the financial industry. We believe that with the continuous expansion of the pilot scope and the gradual accumulation of experience feedback, digital RMB is expected to move from test operation to landing application, and promote the digital transformation of finance from the perspective of infrastructure innovation.
The construction of digital currency ecology drives the upgrading of software and hardware, which is expected to create 10 billion market space
In terms of software upgrading, commercial banks, as one of the main players of digital RMB operation, deeply participate in the circulation and settlement of digital currencies. In order to achieve comprehensive support for the digital RMB system, they need to carry out all-round upgrading of software and systems including front desk (Digital RMB APP), middle desk (front-end system, user center, service center and management center) and back office (Accounting and clearing). In terms of hardware deployment, commercial banks need to transform ATM machines to adapt to different bank cards and wallets, interface with major bank digital money systems and ATM equipment, and support QR code and NFC interaction functions. In addition, smart teller machines, hard wallets and other facilities also need to be upgraded accordingly. According to the calculation, the overall market scale created by the software and hardware upgrading brought by the digital RMB ecological construction is expected to reach 75.23 billion yuan, which will bring considerable business increment to upstream enterprises.
The wave of financial digitization has accelerated its penetration, and it is suggested to pay attention to software and hardware enterprises
The digital RMB policy has been continuously strengthened, and the financial digital transformation has been significantly accelerated, which fully benefits the software and hardware suppliers of upstream banks. In terms of hardware, it is suggested to pay attention to the financial equipment providers that have long-term cooperation with large banks; In terms of software, it is recommended to pay attention to the bank IT enterprises with outstanding front desk and middle desk system development ability. Specifically: Grg Banking Equipment Co.Ltd(002152) : a veteran manufacturer of digital finance, the market share of financial machines and tools remains the first in China, with both state-owned assets background and rich experience in bank customer service. Driven by digital RMB, financial innovation and digital economy policies, the company is expected to provide upgrading solutions and achieve high growth in financial technology performance Yusys Technologies Co.Ltd(300674) : the leading manufacturer of bank it track, which has accumulated strong strength in software development, system service and business operation, can provide all types of bank IT solutions covering credit, channel, data and supervision, and actively layout digital RMB software business.
Investment advice
Fintech and Xinchuang: Grg Banking Equipment Co.Ltd(002152) , Yusys Technologies Co.Ltd(300674) , Hundsun Technologies Inc(600570) , Inspur Electronic Information Industry Co.Ltd(000977) . Smart car: Thunder Software Technology Co.Ltd(300496) , Arcsoft Corporation Limited(688088) , Huizhou Desay Sv Automotive Co.Ltd(002920) , Autel Intelligent Technology Corp.Ltd(688208) , China Transinfo Technology Co.Ltd(002373) . Electric power informatization: Longshine Technology Group Co.Ltd(300682) , Ygsoft Inc(002063) , China Southern Power Grid technology, Zhiyang Innovation Technology Co.Ltd(688191) . Network security: Qi An Xin Technology Group Inc(688561) , Sangfor Technologies Inc(300454) , Topsec Technologies Group Inc(002212) , Dbappsecurity Co.Ltd(688023) , Venustech Group Inc(002439) . Artificial intelligence: Pci Technology Group Co.Ltd(600728) , Iflytek Co.Ltd(002230) , Zhejiang Dahua Technology Co.Ltd(002236) , Hangzhou Hikvision Digital Technology Co.Ltd(002415) , Opt Machine Vision Tech Co.Ltd(688686) .
Risk tips
1) the epidemic situation intensifies and reduces the expenditure of enterprise informatization; 2) Fiscal and monetary policies are lower than expected; 3) The fluctuation of supply chain increases, which affects the development of science and technology industry.
