Remote office, online education, robot distribution… Under the epidemic, the digital economy rose against the trend, and the related sectors of the capital market followed suit. The construction of a new generation of information infrastructure, represented by 5G, artificial intelligence, industrial Internet, and the Internet of Things, which is closely related to it, has once again gained momentum and ushered in a period of opportunity for accelerated development. On March 21, the Ministry of Industry and Information Technology issued the “Notice on Promoting the Accelerated Development of the Industrial Internet” (hereinafter referred to as the “Notice”), and introduced 20 specific measures from six aspects including accelerating new infrastructure construction. In the window period of policy attention and market attention, how can new infrastructure fly in the wind and hold up the vitality of stable growth and economic structure upgrading?
“Heavy warehouse” 5G + Industrial Internet
Two years after the concept of new infrastructure was proposed, the new crown pneumonia epidemic has brought it to the center of the conversation.
Affected by the epidemic, online applications such as cloud office and cloud classroom have detonated demand for cloud servers. The huge market demand has stimulated the popularity of new infrastructure concepts, and the layout of related facilities has been accelerated. On March 4, the Standing Committee of the Political Bureau of the CPC Central Committee requested to “accelerate the construction of new infrastructure such as 5G networks and data centers.”
In the “Notice” issued by the General Office of the Ministry of Industry and Information Technology recently, “speeding up the construction of new infrastructure” was listed as the number one task. Focusing on this field, the “Notice” focuses on the transformation and upgrading of the internal and external networks of the Industrial Internet, the enhancement of the core capabilities of the Industrial Internet platform, and the construction of industrial Internet big data centers, etc. 5G is used as an important support for the completion of the aforementioned actions.
In fact, in November last year, the Ministry of Industry and Information Technology issued the “5G + Industrial Internet” 512 Project Promotion Plan, proposing that by 2022, it will break through a batch of 5G key technologies that meet the specific needs of the Industrial Internet; build 5 industrial public service platforms; Accelerate the pilot application of “5G+Industrial Internet” in vertical fields, and build and transform the intranet covering 10 key industries; create a batch of “5G+Industrial Internet” intranet construction and reconstruction benchmarks and model projects, and form at least 20 typical industrial application scenarios and other goals.
On this basis, the “Notice” has been further extended and refined. For example, guide the platform to enhance the support capabilities of new technologies such as 5G, artificial intelligence, blockchain, augmented reality/virtual reality; select 10 cross-industry and cross-domain platforms, and develop 50 key industry/regional platforms. Promote the average number of key platforms to support 200 industrial protocols, 800,000 industrial equipment connections, and 2,500 industrial APPs.
“Industrial Internet is known as the key support for the fourth industrial revolution, and 5G is an important direction for the evolution of the new generation of information and communication technology and the new infrastructure project involving the most extensive fields. Industrial integration will become an important growth point for my country’s new infrastructure construction. It will help boost the economy and stabilize employment,” said Guo Xiaobei, a researcher at the Industry Research Center of China Minsheng Bank.
Concept stocks bucked the trend and strengthened
The market is most sensitive to changes in policy winds.
The so-called new infrastructure is generally compared with traditional infrastructure such as railways, highways, airports, and bridges, and the fields involved include 5G infrastructure, UHV, intercity high-speed railways and intercity rail transit, new energy vehicle charging piles, big data centers, artificial 7 aspects such as intelligence and industrial Internet. According to incomplete statistics, there are more than 800 “new infrastructure” concept stocks covering seven major fields.
After the aforesaid meeting set the tone, the A-shares gapped higher the next day, and went all the way up. As of the close of last Friday, 5G, UHV and other concept stocks rose strongly. Taking ZTE and Fiberhome among the 5G base station concept stocks as an example, according to statistics, from February 5 to March 20, the two rose by 9.42% and 64.81% respectively; Xun Technology’s stock price has risen by about 22.42%; in the same period, Tongyu Communication, which is involved in the antenna business, has risen by more than 23.7%.
The relevant person in charge of the Ministry of Industry and Information Technology pointed out that the current 5G, edge computing, time-sensitive network, software-defined network, IPv6 and other new network technology products are constantly developing, and gradually have the ability to meet the high requirements of production control. For example, time-sensitive network technology supports Gigabit and above interfaces, which can meet the needs of large industrial bandwidth; 5G low-latency application scenarios can provide highly reliable connections with a minimum latency of 1ms, making it possible to realize wireless automatic control; edge computing will Real-time computing capabilities are extended to industrial sites to support the realization of industrial intelligence.
Yu Haining, chief analyst of the communication industry of Changjiang Securities, said that with the acceleration of the construction of 5G base stations, the subdivided industrial chain including main equipment, transmission equipment, optical modules, wireless radio frequency, PCB, communication connectors, etc. will be expected to benefit in an all-round way. .
According to the latest disclosure on the website of the China Securities Regulatory Commission, the first batch of new infrastructure-themed funds has been officially reported, with a total of 5 products, including China Southern Asset Management, Bosera Fund, China Merchants Fund and other fund companies quickly deploy new infrastructure to seize relevant investment opportunities.
Where does the money come from
Market demand, policy overweight, capital boom, and the speed up of new infrastructure is at the right time. According to the calculation of China National Finance Corporation, new infrastructure accounts for 7%-12% of all infrastructure, and it is conservatively estimated that the scale will exceed 1 trillion in 2020.
For now, central SOEs have already taken action. On March 6, China Mobile started the procurement of the main equipment for the second phase of this year’s 5G wireless network. Four days later, China Telecom and China Unicom released the “2020 5G SA New Construction Wireless Main Equipment Joint Centralized Procurement Project Centralized Prequalification Announcement”. According to the announcement, China Telecom and China Unicom will start the joint centralized procurement of 5G SA wireless main equipment, and the procurement scale is expected to be no less than 250,000 stations. It is planned to complete all construction progress by the third quarter.
There are many new infrastructure projects in the local investment list. For example, Shandong has built more than 10,000 5G base stations. While completing the 5G network coverage in core urban areas such as Jinan, Qingdao, and Yantai, key transportation projects such as high-speed rail have been included in the 2020 development plan, and the UHV power grid has been fully launched in 2020. Live detection work, etc.; Yunnan listed and established a blockchain center; Hebei will “accelerate the deployment of new infrastructure such as 5G base stations, Internet of Things, IPv6” as an annual focus.
However, according to statistics from market institutions, as of March 6, among the list of investment plans with a total investment of 47.66 trillion yuan released by 23 provinces and cities, only 7.45 trillion yuan has actually been implemented this year.
According to the situation of traditional infrastructure investment, financial investment dominates. However, when the pressure on fiscal revenue and expenditure has doubled this year, especially when the risk of local government debt risks still exists, there is still a question mark about where the funds for new infrastructure will come from.
Ren Zeping, chief economist of Evergrande Research Institute, believes that for “new infrastructure”, it is necessary to optimize the direction and structure of financial investment, better leverage the role of financial funds, and improve the efficiency of the use and allocation of financial funds. We must not engage in one-off overstimulation. Instead, we should make medium-term investment plans and increase investment in a rhythmic, batch-by-batch and orderly manner.
“It is recommended to further liberalize the market access for infrastructure investment.” Ren Zeping pointed out that in the field of new information infrastructure, in addition to 5G base stations, public big data centers and other projects, the government should fully allow the market to play a decisive role in resource allocation. In terms of funding sources, it is necessary to standardize and promote the public-private partnership (PPP) financing model, introduce private capital to improve efficiency, and expand financing sources.
In the opinion of Li Jianjun, chief researcher of China Business Think Tank, based on the characteristics of long infrastructure construction period and long investment return period, financing methods that match the needs of new infrastructure construction should be developed. For example, focus on the role of long-term funds such as trusts and insurance. Trust institutions should set up special new infrastructure investment trust plans or investment funds, starting from a single project to provide long-term debt funds; at the same time, trust institutions can also take the lead in cooperating with insurance and other long-term funds to participate in investment in new infrastructure projects to meet the fund’s capital deadline. The problem of incompatibility with the project construction and operation period.
Remote office, online education, robot distribution… Under the epidemic, the digital economy rose against the trend, and the related sectors of the capital market followed suit. The construction of a new generation of information infrastructure, represented by 5G, artificial intelligence, industrial Internet, and the Internet of Things, which is closely related to it, has once again gained momentum and ushered in a period of opportunity for accelerated development. On March 21, the Ministry of Industry and Information Technology issued the “Notice on Promoting the Accelerated Development of the Industrial Internet” (hereinafter referred to as the “Notice”), and introduced 20 specific measures from six aspects including accelerating new infrastructure construction. In the window period of policy attention and market attention, how can new infrastructure fly in the wind and hold up the vitality of stable growth and economic structure upgrading?
“Heavy warehouse” 5G + Industrial Internet
Two years after the concept of new infrastructure was proposed, the new crown pneumonia epidemic has brought it to the center of the conversation.
Affected by the epidemic, online applications such as cloud office and cloud classroom have detonated demand for cloud servers. The huge market demand has stimulated the popularity of new infrastructure concepts, and the layout of related facilities has been accelerated. On March 4, the Standing Committee of the Political Bureau of the CPC Central Committee requested to “accelerate the construction of new infrastructure such as 5G networks and data centers.”
In the “Notice” issued by the General Office of the Ministry of Industry and Information Technology recently, “speeding up the construction of new infrastructure” was listed as the number one task. Focusing on this field, the “Notice” focuses on the transformation and upgrading of the internal and external networks of the Industrial Internet, the enhancement of the core capabilities of the Industrial Internet platform, and the construction of industrial Internet big data centers, etc. 5G is used as an important support for the completion of the aforementioned actions.
In fact, in November last year, the Ministry of Industry and Information Technology issued the “5G + Industrial Internet” 512 Project Promotion Plan, proposing that by 2022, it will break through a batch of 5G key technologies that meet the specific needs of the Industrial Internet; build 5 industrial public service platforms; Accelerate the pilot application of “5G+Industrial Internet” in vertical fields, and build and transform the intranet covering 10 key industries; create a batch of “5G+Industrial Internet” intranet construction and reconstruction benchmarks and model projects, and form at least 20 typical industrial application scenarios and other goals.
On this basis, the “Notice” has been further extended and refined. For example, guide the platform to enhance the support capabilities of new technologies such as 5G, artificial intelligence, blockchain, augmented reality/virtual reality; select 10 cross-industry and cross-domain platforms, and develop 50 key industry/regional platforms. Promote the average number of key platforms to support 200 industrial protocols, 800,000 industrial equipment connections, and 2,500 industrial APPs.
“Industrial Internet is known as the key support for the fourth industrial revolution, and 5G is an important direction for the evolution of the new generation of information and communication technology and the new infrastructure project involving the most extensive fields. Industrial integration will become an important growth point for my country’s new infrastructure construction. It will help boost the economy and stabilize employment,” said Guo Xiaobei, a researcher at the Industry Research Center of China Minsheng Bank.
Concept stocks bucked the trend and strengthened
The market is most sensitive to changes in policy winds.
The so-called new infrastructure is generally compared with traditional infrastructure such as railways, highways, airports, and bridges, and the fields involved include 5G infrastructure, UHV, intercity high-speed railways and intercity rail transit, new energy vehicle charging piles, big data centers, artificial 7 aspects such as intelligence and industrial Internet. According to incomplete statistics, there are more than 800 “new infrastructure” concept stocks covering seven major fields.
After the aforesaid meeting set the tone, the A-shares gapped higher the next day, and went all the way up. As of the close of last Friday, 5G, UHV and other concept stocks rose strongly. Taking ZTE and Fiberhome among the 5G base station concept stocks as an example, according to statistics, from February 5 to March 20, the two rose by 9.42% and 64.81% respectively; Xun Technology’s stock price has risen by about 22.42%; in the same period, Tongyu Communication, which is involved in the antenna business, has risen by more than 23.7%.
The relevant person in charge of the Ministry of Industry and Information Technology pointed out that the current 5G, edge computing, time-sensitive network, software-defined network, IPv6 and other new network technology products are constantly developing, and gradually have the ability to meet the high requirements of production control. For example, time-sensitive network technology supports Gigabit and above interfaces, which can meet the needs of large industrial bandwidth; 5G low-latency application scenarios can provide highly reliable connections with a minimum latency of 1ms, making it possible to realize wireless automatic control; edge computing will Real-time computing capabilities are extended to industrial sites to support the realization of industrial intelligence.
Yu Haining, chief analyst of the communication industry of Changjiang Securities, said that with the acceleration of the construction of 5G base stations, the subdivided industrial chain including main equipment, transmission equipment, optical modules, wireless radio frequency, PCB, communication connectors, etc. will be expected to benefit in an all-round way. .
According to the latest disclosure on the website of the China Securities Regulatory Commission, the first batch of new infrastructure-themed funds has been officially reported, with a total of 5 products, including China Southern Asset Management, Bosera Fund, China Merchants Fund and other fund companies quickly deploy new infrastructure to seize relevant investment opportunities.
Where does the money come from
Market demand, policy overweight, capital boom, and the speed up of new infrastructure is at the right time. According to the calculation of China National Finance Corporation, new infrastructure accounts for 7%-12% of all infrastructure, and it is conservatively estimated that the scale will exceed 1 trillion in 2020.
For now, central SOEs have already taken action. On March 6, China Mobile started the procurement of the main equipment for the second phase of this year’s 5G wireless network. Four days later, China Telecom and China Unicom released the “2020 5G SA New Construction Wireless Main Equipment Joint Centralized Procurement Project Centralized Prequalification Announcement”. According to the announcement, China Telecom and China Unicom will start the joint centralized procurement of 5G SA wireless main equipment, and the procurement scale is expected to be no less than 250,000 stations. It is planned to complete all construction progress by the third quarter.
There are many new infrastructure projects in the local investment list. For example, Shandong has built more than 10,000 5G base stations. While completing the 5G network coverage in core urban areas such as Jinan, Qingdao, and Yantai, key transportation projects such as high-speed rail have been included in the 2020 development plan, and the UHV power grid has been fully launched in 2020. Live detection work, etc.; Yunnan listed and established a blockchain center; Hebei will “accelerate the deployment of new infrastructure such as 5G base stations, Internet of Things, IPv6” as an annual focus.
However, according to statistics from market institutions, as of March 6, among the list of investment plans with a total investment of 47.66 trillion yuan released by 23 provinces and cities, only 7.45 trillion yuan has actually been implemented this year.
According to the situation of traditional infrastructure investment, financial investment dominates. However, when the pressure on fiscal revenue and expenditure has doubled this year, especially when the risk of local government debt risks still exists, there is still a question mark about where the funds for new infrastructure will come from.
Ren Zeping, chief economist of Evergrande Research Institute, believes that for “new infrastructure”, it is necessary to optimize the direction and structure of financial investment, better leverage the role of financial funds, and improve the efficiency of the use and allocation of financial funds. We must not engage in one-off overstimulation. Instead, we should make medium-term investment plans and increase investment in a rhythmic, batch-by-batch and orderly manner.
“It is recommended to further liberalize the market access for infrastructure investment.” Ren Zeping pointed out that in the field of new information infrastructure, in addition to 5G base stations, public big data centers and other projects, the government should fully allow the market to play a decisive role in resource allocation. In terms of funding sources, it is necessary to standardize and promote the public-private partnership (PPP) financing model, introduce private capital to improve efficiency, and expand financing sources.
In the opinion of Li Jianjun, chief researcher of China Business Think Tank, based on the characteristics of long infrastructure construction period and long investment return period, financing methods that match the needs of new infrastructure construction should be developed. For example, focus on the role of long-term funds such as trusts and insurance. Trust institutions should set up special new infrastructure investment trust plans or investment funds, starting from a single project to provide long-term debt funds; at the same time, trust institutions can also take the lead in cooperating with insurance and other long-term funds to participate in investment in new infrastructure projects to meet the fund’s capital deadline. The problem of incompatibility with the project construction and operation period.
The Links: 1MBI600PX-140 V24B3V3H150BL
