Qiushi magazine, published on January 16, will publish an important article “constantly strengthening, optimizing and expanding China’s digital economy”, which points out that developing digital economy is a strategic choice to grasp the new opportunities of a new round of scientific and technological revolution and industrial reform. In addition, on Thursday, more than five digital economy concept stocks have quietly risen, as if there is a trend to replace the meta universe as a new hot spot.
digital economy segmentation concept stocks rose quietly, with a maximum increase of more than 30% in two trading days
Although the adjustment of Shanghai and Shenzhen stock markets was obvious in the last two trading days of this week, the Shanghai index fell by more than 2% in the two trading days, and the Shenzhen composite index also fell by nearly 2%. However, Xiaobian found that stocks such as Beijing Egova Co.Ltd(300075) , Jc Finance & Tax Interconnect Holdings Ltd(002530) , Synthesis Electronic Technology Co.Ltd(300479) , Hyunion Holding Co.Ltd(002537) have ushered in huge gains in recent two trading days, rising 32.53%, 25.31%, 21.05% and 8.98% respectively in recent two trading days.
it is worth noting that although some of the above stocks belong to the concept of meta universe and some belong to the concept of digital currency, which seems irrelevant, Xiaobian found that they all have a common main line through careful combing, that is, digital economy.
For example, Beijing Egova Co.Ltd(300075) , the company is specialized in the development and sales of smart city application software and provides technical support and follow-up services. It is one of the smart city application software developers and comprehensive solution providers with high popularity and leading market share in China.
Jc Finance & Tax Interconnect Holdings Ltd(002530) , SaaS leader of China’s fiscal and taxation system, is a company relying on cloud services and using advanced technical means such as big data, artificial intelligence and blockchain to digitally transform key links such as products, production, marketing and services of the fiscal and taxation industry, so as to reshape the industrial structure and ecosystem.
Synthesis Electronic Technology Co.Ltd(300479) , strategic layout of three artificial intelligence fields, namely industry service Siasun Robot&Automation Co.Ltd(300024) , intelligent upgrading of self-service equipment and intelligent knowledge management system. In addition, the company also has technical cooperation with Shangtang in face recognition technology.
Through combing, it is not difficult to find that the main businesses of the above stocks are all subdivided industrial chains of digital economy. In addition, digital economy stocks such as Tianjin Futong Information Science&Technology Co.Ltd(000836) , Raisecom Technology Co.Ltd(603803) also rose significantly, rising 15.9% and 12.18% respectively in the past two trading days.
what caused the amazing increase of the above stocks? All this seems to be inseparable from the introduction of China’s first national special plan in the field of digital economy.
Recently, the 14th five year digital economy development plan (hereinafter referred to as the plan) issued by the State Council clearly stipulates that by 2025, the added value of core industries of digital economy will account for 10% of GDP.
The data show that China’s GDP will be 101.6 trillion in 2020. Assuming an annual growth rate of 6%, China’s GDP will reach 135.96 trillion by 2025. In other words, the added value of core industries of digital economy will reach 13.6 trillion.
which digital economy industries can be regarded as “core industries”?
The National Bureau of statistics issued the statistical classification of digital economy and its core industries (2021) on June 3, 2021, which gives a clear definition of the core industries of digital economy, that is, to provide digital technology, products, services, infrastructure and solutions for industrial digital development, as well as various economic activities that completely depend on digital technology and data elements.
The document defines the scope of digital economy industry as: 01 digital product manufacturing industry, 02 digital product service industry, 03 digital technology application industry, 04 digital element driving industry and 05 digital efficiency improvement industry. It is clearly pointed out that category 01-04 is the core industry of digital economy, with a total of 23 medium categories and more than 100 sub categories, including computer manufacturing, intelligent equipment manufacturing, electronic components and equipment manufacturing, etc.
the key industries of digital economy have great potential, and the compound growth rate of 5g, cloud computing and other key industries is the highest, exceeding 40%
Because the above documents are too detailed for the core industries of digital economy, they can’t grasp the key points. which of the above subdivided core industries of digital economy belong to key industries?
To answer this question, we still have to look for an answer from the plan. At the beginning of the plan, it is mentioned that this document is formulated according to the 14th five year plan for national economic and social development of the people’s Republic of China and the outline of long-term objectives for 2035 (hereinafter referred to as the outline).
Therefore, it is not difficult for us to find that in Chapter 5 “accelerating digital development and building a digital China”, we clearly mentioned seven key industries of digital economy, including cloud computing, big data, Internet of things, industrial Internet, blockchain, artificial intelligence, virtual reality and augmented reality. In addition, the outline also clearly puts forward 10 digital application scenarios. Including digital transportation, smart energy, Jiangsu Nonghua Intelligent Agriculture Technology Co.Ltd(000816) , smart government, etc.
5g, Satellite Internet and integrated circuit mentioned in the plan constitute the key industries of digital economy.
In terms of breakdown, information infrastructure such as 5g base station and data center is an important direction of new infrastructure, and the application of industrial Internet will also be accelerated. The process of digitization, networking and intelligence of society puts forward higher requirements for the ability of information infrastructure. Fan Meng, deputy director of the Industrial Investment Research Office of the Planning Institute of China Electronic Information Industry Development Research Institute, said that new infrastructure serving the industrial field is expected to become the focus of investment deployment, including 5g, Internet of things, industrial Internet and other network infrastructure; Cloud computing, data center, intelligent computing center and other computing infrastructure.
According to public data, the scale of China’s 5g industry will be 600 billion yuan in 2020. According to the prediction of China Commercial Industry Research Institute, by 2025, the scale of China’s 5g industry is expected to reach 3.55 trillion yuan, with an annual compound growth rate of more than 40%.
As the core link of new infrastructure, cloud computing is the key base of new technologies such as Internet, big data and artificial intelligence. It has become an important force to promote the digital transformation of traditional industries and support the development of digital economy. China Business Industry Research Institute predicts that it will maintain a growth trend of about 20% in the next three years.
Sealand Securities Co.Ltd(000750) indicates that it is cloud based, intelligent enabled by artificial intelligence technology, large-scale application of industrial Internet, and escorted by digital security system. IDC, optical communication, SaaS and other cloud computing related industries will directly benefit; Demand driven, favorable policies, computing power and algorithm data support the artificial intelligence industry into a high-speed development stage.
In addition, some analysts also pointed out that recently, the attention of computers and communications has gradually increased. 5g devices, Internet of things modules, optical modules, servers, industrial Internet, intelligent manufacturing, etc. have gradually come out, and the overall valuation is not expensive after more than a year of adjustment, which is worthy of close tracking.
Finally, CFA sorted out a concept stock of each subdivided industrial chain of digital economy for investors, which is only for research and learning.
